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If 3 candidate is selected in a particular subject, than what is 15% of 3 candidate ? Ans. is 3*15/100=0.45 i.e. no candidate will pass in a particular subject even if all the 3 candidate scores 100% marks in a particular subject. It is possible because some subjects are very very hard.

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It is not statistical error.  You are making an error in understanding the UGC notification.  First of all, such a probability is well nigh impossible. Secondly, even if you assume only 3 candidates are selected or are clearing the demarcation then there shall be no need to filter the first 15% all 3  are well within first 15% and hence by default will pass the examination.

I understood very well. I m jst discussing statistical error.....I accept it but if UGC really do like this what will you do ? They are legally correct. After all you are not Prof. V. Prakash, you have no authority to take decision.

The matter cannot simply be left to the whims and fancies of V.Prakash or any XYZ for that matter.  You are no judge either, to pronounce them "legally correct".  In such a situation people will force institutions for course corrections if need be.  Dont worry about that.

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