Practice Test 2012
1. Tomoko receives a commission at a fixed rate on all sales. If Tomoko earns $2,500
on sales of $45,000, what is her commission rate?
2. Melina bought an item for $55 and sold it for $95. What is her percentage mark up
on this item?
3. Fatima invested $1,000 for one year at a rate of 4.5% per annum simple interest.
What was the interest earned by the end of the year?
4. Joyce invested a certain amount of money for three years at a rate of 5.5% per
annum simple interest. At the end of the three years, she had earned $1,500 in
interest. How much money did Joyce invest?
5. Matthew made a profit of 25% on an Item sold for $60. How much did the item cost?
6. What are “Hypothesis testing errors”?
7. Define Co Efficient of Determination.
9. William invested $1,250 in an account today. If the account pays 4.5% interest per
annum compounded semi annually how much will he receive in 3 years time?
10. A rental property depreciates at 5% per annum. Using the reducing balance
method of depreciation, prepare a 3 year depreciation schedule with an original cost
Year Annual Accumulated Book Value
11. Dinal borrows $100,000 from the bank to buy a house. The bank charges him an interest rate of 6% compounded monthly. Dinal agrees to pay the loan in 30 years.
a) What are Dinal’s monthly repayments?
b) How much interest did Dinal pay on the loan?
12. The total cost of manufacturing a product is given by the formula, C=55X+10,000, and the Income from sales is given by the formula, I=100X.
a) What is the fixed cost value?
b) What is the variable cost per product?
c) What is the selling price of each product??
d) Using the formula X=F divided by S minus V, find the number of products to
e) If 500 products are made and sold would a profit be made or a loss?
f) Find the profit or loss made if 300 products are sold.
13. The Laspeyre’s index for the year 2009 was 1.56 and the base year was 2005.
Interpret this index and explain what the index means.
14. Define positive / negative skewed kurtosis.
15. A TAFE Business Studies student must enrol in one elective subject and has the
choice of either Advertising or Marketing. Since he likes both subjects, he decided
to roll a fair die to help him decide. If he roll a 1 or 2, he will enrol in Advertising. If
he rolls 3 or 4 or 5 or 6, he will enrol in Marketing. If he enrols in Advertising, there
is a probability 0.60 that he will pass. If he enrols in Marketing, there is a probability
of 0.70 that he will pass.
a) Draw a probability tree diagram.
b) Calculate the probability that he will enrol in Advertising and pass it.
c) Calculate the probability that he will enrol in Marketing and not pass it.
d) Calculate the probability that he will pass the elective subject.
16. Find the Simple price index for a product with a price of $330 in 2005 and a price of
$475 in 2007. Use 2005 as the base year. Explain your answer.
17. Which of the two students below has the greater co efficient of Variation when it
comes to selling?
Mean Sales 20,000 units 15,000 units
Standard Deviation 520 units 450 units
18. A company produces and sells potatoes with a mean weight of 20kgs and a std dev
of 0.5 kgs. If we select a bag of potatoes what is the probability that it weighs:
a) More than 20.5kgs,
b) Less than 19kgs,
c) Between 19kgs and 20.5kgs,
d) From a box of 500 bags how many would weigh between 19.2 and 20.2kgs
19. The following information on hypothesis testing is given:
Ho: μ = 20
H1: μ > 20
α = 0.05
SD = 6
n = 10
bar x = 24
a) Is this a one or two tailed test?
b) Which test statistic do we use to calculate it?
c) What is the critical value?
d) What is your decision on Ho?
coefficient of determination.