Deck 4: Mathematics Statistics

Question 1

A factory that produces pipe costs 5,000,000 to set up and has an annual capacity of 50,000 units. The production cost is 0.5 per unit and this cost is not expected to change. The machines have an indefinite physical life, and the cost of capital is 10 percent. What is the competitive price of a pipe?

A)5)5
B)10
C)15
D)16.5

Answer 1

15

Question 2

Capital budgeting usually involves discounting future cash flows to the current period. If the interest rate is 10 percent per year, what is the current value of a project with $1,000 investment today and $2,200 cash inflow the following year?

A)$1,000
B)$1,020
C)$2,000
D)$2,020

Answer 2

$1,000

Question 3

What is the relative tax advantage of corporate debt, assuming a corporate tax rate of 40 percent, a personal tax rate of 27 percent, and that all equity income escapes taxation?

A)0)675
B)0)822
C)1)217
D)1)667

Answer 3

1)217

Question 4

A company's cost of equity is 12 percent and its debt ratio is 30 percent. The cost of debt is 7.5 percent and the tax rate is 35 percent. What is the firm's weighted average cost of capital?

A)7)71 percent
B)9)86 percent
C)13.05 percent
D)13.46 percent

Question 5

A business owner expects fixed costs of 12,000, a selling price of 200 per unit, and variable costs of 40 per unit produced. How many units will have to be sold in order for the owner to break even?

A)50
B)60
C)75
D)300

Question 6

A business owner expects fixed costs of 12,000, variable costs of 20 per unit produced, and a total amount sold of 60 units. What is the minimum price the owner has to charge per unit in order to break even?

A)150
B)200
C)300
D)600

Question 7

Discounting future cash flow to the present period is common in capital budgeting. If positive cash flow at the end of year 2 is $132,000, the interest rate for year 1 is 10 percent, and the interest rate for year 2 is 20 percent, the present value of the $132,000 at the beginning of year 1 is

A)$100,000
B)$110,000
C)$120,000
D)$132,000

Question 8

A project requiring a $1,000 investment today and yielding $8,800 next year has an internal rate of return (IRR) of

A)0)78 percent
B)7)8 percent
C)78 percent
D)780 percent

Question 9

Internal rate of return (IRR) is the interest rate that makes the net present value of all cash flows for a project equal to

A)-1
B)0
C)1
D)2

Question 10

Which of the following projects has the highest net present value? (Assume the interest rate per year is 10 percent.)

A)$1,000 invested today results in cash inflow next year of $2,100
B)$1,000 invested today results in cash inflow next year of $2,200
C)$1,500 invested today results in cash inflow next year of $2,600
D)$1,500 invested today results in cash inflow next year of $2,700

Question 11

Consider the following formula for annual compound interest: F = P(1+I)N
F = Future Value
P = Principal
I = Interest rate
N = Number of Years
Which scenario would represent the largest return?
1) Invest $100 for 5 years at 6%
2) Invest $200 for 4 years at 5%
3) Invest $300 for 2 years at 5%
4) Invest $400 for 4 years at 2%

A)1
B)2
C)3
D)4

Question 12

If you were presented with the following set of numbers representing employee hourly rates, which answer choice would provide the mean, median, and mode of those rates in consecutive order?
10)50, 12.00, 15.00, 12.00, 13.75, 22.00, 13.50

A)14.11, 13.50, 12.00
B)12.00, 13.00, 13.50
C)14.11, 13.50, 22.00
D)13.75, 12.00, 14.50

Question 13

Extrapolation is a process that is reasonably reliable for short term use in:

A)creating an equation using only known variables
B)calculating the sum of a series of both positive and negative variables
C)solving an equation that can have multiple outcomes based on variables
D)estimating the value of a variable at an unobserved time or circumstance

Question 14

You are calculating the probability that your department will make its quarterly goals. In statistical calculations, probability is shown as:

A)a fraction
B)odds against
C)a number between zero and one
D)all of the above

Question 15

If you travel to Mexico while the exchange rate from U.S. dollars to pesos is $1 = 10.85, what would be your total expenditure in U.S. dollars for two nights in a hotel at 550 pesos per night, six meals at 78 pesos each, and four cab rides at 84 pesos each?

A)$101.38
B)$116.31
C)$144.52
D)$175.48

Question 16

An employee performance appraisal system operates on a 5 point scale with a weighted average based on the following: Supervisor evaluation 50%, co-worker evaluations 10%, employee self evaluation 20%, performance data 20%. What is the weighted average or score for any employee's performance who receives the following scores: Supervisor: 4.5, co-workers: 4.5, self: 4.25, performance data: 3.75?

A)4)25
B)4)3
C)4)35
D)4)5

Question 17

Your manager has stated the department goal of increasing annual sales numbers by 23% for the next year. If your year one sales were $17,550,000, in order to meet this goal, your sales in year two must be at least:

A)$40,365,000
B)$21,586,500
C)$58,754,347
D)$22,815,000

Question 18

You are purchasing some rope for a project. The directions indicate that you will need 23.5 meters. If you convert this to a commonly used unit of measurement in the United States, you will need to buy:

A)approximately 75.5 feet
B)exactly 141 feet
C)approximately 35.25 yards
D)exactly 23.5 yards

Question 19

Your organization develops a marketing strategy to reach its target audience by using the science or process of drawing likely conclusions about populations by analyzing samples from that population, known as:

A)descriptive statistics
B)standard deviations
C)inferential statistics
D)central tendency

Question 20

Ten candidates for employment earn the following scores on a general aptitude test: 67, 98, 78, 89, 86, 92, 56, 87, 90, 98. If the scores are based on a 100 point scale, what is the range?

A)2
B)10
C)42
D)84

Question 21

If your organization is conducting research to investigate the role that gender plays in obesity related heath problems, out the possible variables considered, which of the following would be considered independent?

A)gender
B)blood pressure
C)weight
D)number of annual trips to the doctor

Question 22

You are developing official forms for a target population. In conducting research, you gather data about your target population from a random sample. This data includes race, gender, and family status. This type of variable is known as:

A)ordinal
B)interval
C)ratio
D)nominal

Question 23

A computer program that runs an alarm system which automatically notifies the police if a door or window is opened, and 15 seconds pass without the disarm code being entered, is designed using:

A)heuristics
B)algorithms
C)fixed ratios
D)standard deviations

Question 24

John works 40 hours in a week, at $15.00 per hour, and produces 150 widgets. Amy works 32 hours in a week, at $18.50 per hour, and produces 128 widgets. Dave works 36 hours in a week, at $17.75 per hour, and produces 141 widgets. Which employee is the most cost effective for the company in terms of widgets produced per dollar of payroll spent?

A)John
B)Amy
C)Dave
D)Dave and Amy are equally effective

Question 25

Which of the following formulas would accurately calculate the probability of an event occurring?

A)Probability = Total number of ways event can occur / Total number of possible outcomes
B)Probability = Total number of possible outcomes / Total number of ways event can occur
C)Probability = (Total number of ways event can occur - Total number of possible outcomes) / Total number of possible outcomes
D)Probability = (Total number of ways event can occur + Total number of possible outcomes) / Total number of ways event can occur

Question 26

If you are traveling 100 miles in a vehicle that gets 30 mpg, how many liters of gas would you need if the conversion ratio for a gallon to a liter is 1 = 3.785?

A)1)136
B)12.617
C)113.55
D)348.5

Question 27

When compiling statistical data on the performance appraisals of your employees you examine the set of raw rating scale scores and discover that it is multimodal meaning:

A)it contains all possible scores from the lowest to the highest
B)several scores are repeated in the set
C)no scores are repeated or duplicated among employees
D)the scores follow a distinct pattern of performance

Question 28

Which of the following would not be considered a digit?

A)0
B)1
C)9
D)99

Question 29

In a math problem such as {(3546-2345) X (3567/23.4)} / (349 + 1256), order of operations defines in which order different operations must be completed. Which would come first?

A)Addition
B)Multiplication
C)Brackets
D)Parenthesis

Question 30

Your division employs 5300 employees. 15% of these employees are considered management level. How many employees does your division have in the non-management category?

A)795
B)850
C)1500
D)4505

Question 31

You are driving to a meeting 890 miles away and have estimated an average travel rate of 60 mph. Approximately how long will it take you to reach your destination?

A)14 hours
B)15 hours
C)7 hours
D)21 hours

Question 32

The first 12% of a project has been completed at a total cost of $850,000. The project managers have calculated that the remainder of the project should be completed at a similar dollar per percentage rate. Approximately how much should the entire project cost?

A)$960,000
B)$1,600,000
C)$6,000,000
D)$7,000,000

Question 33

You calculate the value of a $10,000 investment compounded continuously at 8% for 10 years. The result would be an example of:

A)exponential growth
B)ratio analysis
C)simple interest
D)quotients

Question 34

Your firm conducted an advertising campaign to reach a target audience of young people ages 14 to 25. The campaign was designed using information about the target audience gathered in a statistical study of a random sample from this larger population. The campaign failed to reach the target audience effectively, due perhaps to:

A)using too small of a sample size
B)misinterpretation of data
C)the use of qualitative data
D)A and B

Question 35

Annual raises in your department were determined by a merit system and have been noted in the following chart. What is the approximate average salary increase in your department?
Employee Original Salary New Salary
John $48,000 $52,000
Jane $54,000 $60,000
Jim $37,000 $47,000
Jill $68,000 $75,000
Jeff $78,000 $89,000

A)8%
B)10%
C)14%
D)18%

Question 36

You are considering organizing your staff into teams to tackle upcoming projects. When looking at the permutations of team organization, you are considering:

A)how many teams can be effectively created
B)how many people should be on each team
C)how many ways people can be organized into teams
D)how many projects can be tackled at one time

Question 37

Your departmental budget for last year was $765,000. Your budget for this year reflects a 15% increase. You have decided to use 85% of the increase to add additional personnel. Which of the following scenarios would fit into your budget and use the largest portion of the available funds?

A)You decide to hire two additional clerks at annual salaries of $28,000 each and one additional analyst at a salary of $40,000.
B)You decide to hire two additional analysts at a salary of $38,000 each and one additional secretary at an annual salary of $39,000.
C)You decide to hire two additional clerks and two additional secretaries each at annual salaries of $28,500.
D)You decide to hire three additional analysts each at an annual salary of $36,500.

Question 38

You are presented with a list of material measurements for a project from Germany. All materials are listed in metric measurements. What would be the most comparable measurement for materials described in kilograms:

A)inches
B)pounds
C)quarts
D)tons

Question 39

During the previous year, 110 on the job accidents were reported. Your department has established a goal of decreasing the total number of on the job accidents by 75%. During the next year, 82 accidents are reported. How did your department perform in relation to your goal?

A)The department achieved the goal with a 75% reduction in accidents
B)The department achieved the goal with an 80% reduction in accidents
C)The department missed the goal with only a 34% reduction in accidents
D)The department missed the goal with only a 25% reduction in accidents

Question 40

A business trip takes you to several European countries during a six day period.Your business expenses for this trip are $1350.00. Assuming equal daily expenditures and an exchange rate of $1 = 0.850 euros, approximately how many euros did you spend each day?

A)191
B)225
C)265
D)321

Question 41

If your organization is considering all Americans registered to vote as the population for statistical study, the percentage of those Americans who intend to vote in the upcoming national elections would be considered:

A)a sample
B)a parameter
C)a deviation
D)a quotient

Question 42

When analyzing the performance of each division in your organization in regards to sales quotas, you would look at the standard deviation of each division to determine:

A)the mean performance of all divisions
B)how far apart the divisions are from the mean
C)what level of performance was most commonly occurring
D)the lowest and highest performing divisions

Question 43

You are analyzing the relationship between employees working more than ten hours in a shift and the number of on the job accidents at your production facility. One aspect to consider is the relative frequency which would be:

A)the total number of accidents divided by the number of times employees worked more than ten hours in a shift
B)the number of times employees worked more than ten hours in a shift divided by the total number of accidents
C)the number of times employees worked more than ten hours in a shift minus the total number of accidents divided by the number of times employees worked more than ten hours in a shift
D)The total number of accidents times the number of times employees worked more than ten hours in a shift divided by the total number of accidents.

Question 44

If asked to provide the quotient of your division's clocked work hours (Hours) and the number of division employees (Employees), the answer would be calculated by which of the following formulas?

A)Hours + Employees = Quotient
B)Hours x Employees = Quotient
C)Hours / Employees = Quotient
D)(Hours + Employees) / Employees = Quotient

Question 45

Your department consists of twelve employees and your total payroll expense for salaries only is $325,000. The organization's average salary is $36,000. What is the relation of your department's average salary to the organization's average?

A)Your department is about 25% below average
B)Your department is about 30% below average
C)Your department is about 25% above average
D)Your department is about 30% above average

Question 46

After administering a test on computer applications to prospective employees, you consider all test results and decide to interview candidates whose scores were in the 90th percentile or higher. This would be candidates whose scores:

A)reflected 90% accuracy or higher
B)were better than 90% of the candidates tested
C)demonstrated exceptional proficiency in computer applications
D)B and C

Question 47

If simple interest is calculated using the formula A=P(1+nr) where A is total principle and interest, P is principle, n is number of years, and r is rate, what would be the simple interest earned on an investment of $2000.00 at 12.5% for 9 years?

A)$4,250.00
B)$2,250.00
C)$1,250.00
D)$250.00

Question 48

ABC Shoe Company reports annual sales of $4,500,000. If they make a net profit of $300,000, what is the rate of profit?

A)6)70%
B)14%
C)15%
D)33.30%