Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE

QM (PRC - 02)
Last Assignment
For
September 2023
by
Sir Dawood Shahid

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
1 Mathematical equations and coordinate system
1) Total Revenue earned by Mr. X is Rs. 550,000 and variable cost & Fixed Cost incurred by
Mr. X is Rs. 270,000 & Rs. 100,000 respectively. Calculate the total contribution earned by
Mr. X is?
a) Rs. 270000 b) Rs 370000 c) Rs. 280000 d) Rs. 180,000
2) Which of the following is irrational?
a) √(4/9) b) 4/5 c) √7 d) √(81)
3) The total cost of producing 12 units is Rs. 1,500 and the total cost of producing 18 units is
Rs. 2,700. Find the variable cost per unit?
a) 125 b) 200
c) 150 d) 140
4) Find the value of x:
( x  1) 4 ( x  1) 1
 and 
( x  1) 5 ( x  1) 2

a) (9,5) b) (-7,-9)
c) (7,9) d) (-9,3)
5) 6 years ago the age of father was 3 times of his son’s age. After 9 years it will be twice the
age of his son. The present ages of father and son are:
a) 48 and 20 b) 51 and 21
c) 54 and 22 d) 57 and 23
6) Seven years ago the age of a father was thrice of his son. After 7 yean the age of the father
will be twice that of his son. The present ages of the father and the son are?
a) (69,23) b) (85,39) c) (78,32) d) None of these
7) Which of the following diagrams represents fixed plus variable cost?
a) Y= 3x+9 b) Y= 3x- 9
c) Y= - 9x+3 d) Y= - 3x+9
8) 5 years ago the age of father was 3 times of his son’s age. After 7 years it will be twice the
age of his son. The present age of father and son is:
a) 53 and 21 b) 41 and 17
c) 50 and 20 d) 47 and 19
9) The equation representing a straight line is 7y=11x+3. The y-intercept is:
a) 3/7 b) 11/3
c) 7/3 d) 11/7
10) The equation representing a straight line is 4y=5x+8. The slope of line is:
a) 1.25 b) 5
c) 0.8 d) 0.5
11) Which of the following equations is not linear?
a) y  2x 2 b) X+9=0

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 y d) Y=2x-5
c) x  20  0
5
12) Kamran and Salman invested in a business. The sum of investment of Kamran and seven
times the investment of Salman amounts to Rs 18 million. Difference between thrice the
investment of Kamran and twice the investment of Salman is Rs 8 million. Amount invested
by Kamran and Salman is:
a) Rs 11 and 1 million respectively b) Rs 7.5 and 1.5 million respectively
c) Rs 4 and 2 million respectively d) Rs 8 million each.
13) Saad and Ali invested in a business. The sum of investment of Saad and seven times the
investment of Ali amounts to Rs 18 million. Difference between thrice the investment of
Saad and twice the investment of Ali is Rs 8 million. Amount invested by Saad and Ali is:
a) Rs 11 and 1 million respectively b) Rs 7.5 and 1.5 million respectively
c) Rs 4 and 2 million respectively d) Rs 8 million each.
14) Sum of thrice of Arif and twice of Ali is 18,000 and difference of thrice of Arif and twice of
Ali is 15,000. Howmuch amount Arif and Ali have?
a) 5500, 750 b) 3000,750
c) 4500,750 d) 2500,750
15) Hamid and Sajid invested in a business. The sum of investment of Hamid and seven times
the investment of Sajid amounts to Rs 18 million. Difference between thrice the investment
of Hamid and twice the investment of Sajid is Rs 8 million. Amounts invested by Hamid and
Sajid is:
a) Rs 11 and Rs 1 million respectively
b) Rs 7.5 million and Rs 1.5 million respectively
c) Rs 4 and Rs 2 million respectively.
d) Rs 8 million each.

16) Kamran and Salman invested in a business. The sum of investment of Kamran and seven
times the investment of Salman amounts to Rs 18 million. Difference between thrice the
investment of Kamran and twice the investment of Salman is Rs 8 million. Amounts invested
by Kamran and Salman is:
a) Rs 11 and Rs 1 million respectively
b) Rs 7.5 million and Rs 1.5 million respectively
c) Rs 4 and Rs 2 million respectively.
d) Rs 8 million each.

17) A two-digit number is equal to “7 times the sum of its digits” and “21 times equal to the
difference of its digits”. If xy represents the required number, solving which of the following
simultaneous equations could lead to that number?
a) 7y– xy =7x and 21x +xy=21y b) 7x+xy=7y and 21x – xy=21y
xy d) 7x – xy= –7y and 21y +xy=21x
c) 7x– xy = 7y and x + =y
21
18) A two-digit number is equal to “4 times the sum of its digits” and “12 times equal to the
difference of its digits.” If xy represents the required number, solving which of the following
simultaneous equations could lead to that number?
a) 4x+xy=4y and 12x – xy=12y b) Xy – 4y =4x and 12y – xy=12x

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 c) Xy – 4x = 4y and xy +12y =12x d) Xy – 4x = 4y and xy – 12x =12y
19) A line passes through (3,2). It has an X-intercept value which is thrice the y-intercept value.
The slope intercept form of equation of the straight line is:
a) b)
c) d)
20) Which of the following equation is not linear?
a) Y=2x-5 y
b) x  20  0
5
c) Y=2x2 d) None of these
21) Which of the following statements is correct in respect of the equation? X+2Y+3=0
a) The value of the intercept on the y-axis is 3
b) The value of the intercept on x-axis is –3
c) The slope of the line is 1
d) The degree of the equation is 0
22) If a negative slope line passes through a point (4,8) and x intercept is ¼ of the y-intercept.
Find equation of straight line
a) 4x+y=24 b) 4x – y=24
c) X+4y=24 d) X – 4y=24
23) Which of the following statements is correct in respect of the equation? 5X+2Y-10=0
a) The value of the intercept on the y-axis is 2
b) The value of the intercept on x-axis is –5
c) The slope of the line is 2.5
d) The degree of the equation is 1
24) A company has Revenue function R=9x and cost function C   0.09 x 2  2 x  5,000 . You
are required to determine Break-even point (in units) of this company.
a) 500 units b) 700 units
c) 200 units d) 400 units.

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
2 Quadratic equations
650
25) You are given an equation 15 x   15 , Find the value of x?
x
a) - 6.1 & 7 1 b) -7 1 & 6.1 c) 6.1 & 3.1 d) -6 1 & -3.1
2
26) If sales value of x unit is 16.8x and the cost of sales is -0.09x +1.8x+5000 then the number of
units at break-even will be?
a) 1200 b) 800 c) 333 d) 167
500
27) 25 x 2   25 x . Find the value of x?
x
a) -4 & 5 b) 4 & -5 c) 6 & 3 d) 5 & -3

28) x 4  18x 2  81  0 which of the following represent the roots of the equation?
a)  2 3 b) ±3
c) ±9 d)  3
29) Which TWO of the following are not quadratic equations?
3 b) 2x  11  5x
a) x  12  2 x
5
3x 2  12 x  15 d) 5 x  7  2 x
2
c)
30) Which one is not a quadratic equation?
a) 3x+4 =7 b) 2x2 = 9 c) 9x2 + 2x = -3 d) 5x2 + 8x = 9
31) Which of the following is not a quadratic equation?
a) 5 x 2  7  2 x b) 2x  11  15
c) 3x  12 x  15
2
d)
3
x  12  12 x 2
5
32) Which of the following values of x will satisfy the equation?
x+10 = 11x2 – x+1
a) 1 and 0.818 b) – 1 and –0.818
c) 1 and –0.818 d) –1 and 0.818
33) Which of the following statements is correct for the equation 3x 2  5 x  9 ?
a) Coefficient of x is 2 b) Constant = -9
c) The equation contains two variables d) It is a linear equation
34) A U shaped curve:
a) Departs from symmetry and the b) Represent values that are at equal
frequencies tend to pileup at one or the distance from a central maximum value
other end of the curve
c) Has the maximum frequencies d) Has frequencies that run up to a
occurring at both ends of the range maximum at one end of the range
and a minimum frequency towards the
center

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
35) A U shaped curve:
a) Has the maximum frequencies b) Has frequencies that run up to a
occurring at both ends of the range maximum at one end of the range
and a minimum frequency towards the
center
c) Represent values that are at equal d) Departs from symmetry and the
distance from a central maximum value frequencies tend to pileup at one or the
other end of the curve

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
3 Mathematical progression
36) If Ahmad saves Rs. 1,000 in the first month and 500 more every month, how much time he
needs to save Rs. 45,000
a) 9 b) 12 c) 8 d) 6
37) Basheer saves Rs. 105,000 in one year. if his first instalment was Rs. 500, how much more
Rs. X will be added monthly to accumulate the above amount?
a) 500 b) 1,000 c) 1,500 d) 2,000
38) If someone invest Rs 6,000 as 1st instalment and increase by Rs.300 per month in each of
next instalment for 24 months which of the following is true
1. Rs. 119,900 is the total value received after 13th instalment
2. The value for 13th instalment is Rs. 9,900
a) Only statement (1) is correct b) Only statement (2) is correct
c) Both statements are correct d) Both statements are not correct
39) Mr. Ali has borrowed X amount of money. He agreed to pay the installment 1.2 times than
the last one. If his fifth installment is Rs. 51,389, what was his first installment?
a) 51,384.2 b) 24,782.5
c) 20,652.1 d) Cannot be calculated
40) If a person invests 2 million and withdraw 10% each month then how much time it will take
to end of investment?
a) 5 months b) 15 months
c) 10 months d) 20 months
41) XYZ and company has developed a new product which would earn a revenue of Rs. 80
million during the first year. Therefore, the revenue would decline by 20% each year. The
company would be able to earn a revenue of Rs _______ million over the life of the product.
42) If Ahmad save 1000 in the first month and 500 more every month, how much time he need to
save Rs.45000?
a) 9 b) 12 c) 8 d) 6
43) Mr. Adeel saved Rs x in January, then each subsequent month he saved Rs 100 more than the
previous month. If his total savings at the end of December stood at Rs 16,200 how much did
he save in January?
a) 700 b) 800
c) 900 d) 1,000
44) Ali borrowed Rs. 1,500,000 on first year he returned Rs. 80,000 and then he increases his
instalment by 1.5 times of the previous instalment every year. In how many years he will be
able to return the loan?
a) 9 years b) 8 year c) 10 years d) 6 years
a (r  1)
n
S
r 1

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 80000(1.5 n  1)
1500000 
1.5  1
By solving from calculator we get “n” = 5.77= 6 years
45) Ali borrowed Rs. 1,500,000 on first year he returned Rs. 80,000 and then he increases his
instalment by 1.2 times of the previous instalment every year. In which years he will be able
to return the loan?
a) 9th years b) 8th year c) 10th years d) 6th years
a(r n  1)
S
r 1
80,000(1.2 n  1)
1,500,000 
1.2  1
By solving from calculator we get r = 8.54 = 9th years
46) Which of the following pairs of values cannot form part of a Geometric Progression?
a) (6 and -6) b) 5 and 1 / 7
c) 1,000,000 and 0 d) All of the above
47) XYZ and Company has developed a new product which would earn a revenue of Rs 90
million during the first year. Thereafter, the revenue would decline by 10% each year.
Calculate the revenue that the company would be able to earn over the life of the product
a) 450 million b) 500 million
c) 900 million d) 1 billion
Answer
a 90
S   900 million
1  r 1  0.9
48) ABC and Company has developed a new product which would earn a revenue of Rs 80
million during the first year. Thereafter, the revenue would decline by 20% each year.
Calculate the revenue that the company would be able to earn over the life of the product
a) 400 million b) 500 million
c) 800 million d) 100 million
Answer
a 80
S   400 million
1  r 1  0.8
49) Ali receives a total of Rs. 288,000 in two years in the form of monthly installments. If he
receives 1000 more than the previous month calculate the first installment?
a) Rs 7,500 b) Rs 6,500 c) Rs 500 d) None of these
50) Ali has to pay Rs. 1500000 in installments. If he pays the first installment of Rs. 80000 and
increase everyinstallment by 1.2, then in which year he will pay the amount?
a) 9th years b) 8th year c) 10th years d) 11th years
51) If Matti save Rs. 426000 monthly in two years. If he saves 500 in first month by x. Find the
amount of last installment.
a) 40000 b) 35000 c) 36000 d) 33000

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
4 Linear Programming
52) A company makes and sells two products X and Y. the related information is as follows:
X Y
Contribution per unit 150 320
Maximum sales 5000 7000
Direct Labour per unit 3 2
Machine per unit 4 1
A total of 25,000 direct labour hours and 20,000 machine hours are available per month.
The objective function (Z) and set of constraints represents the above situation would be:
a) Z=150x + 320y b) Z=150x + 320y
x ≤ 5,000 and y ≤ 7,000 x ≤ 5,000 and y ≤ 7,000
3x +2y ≤ 25,000 3x +2y ≤ 25,000
4x+y ≥ 20,000 4x+y ≤ 20,000
X,y≥0 x ,y≥0
c) Z=150x + 320y d) Z=150x + 320y
x ≥ 5,000 and y ≤ 7,000 x ≤ 5,000 and y ≥ 7,000
3x +2y ≤ 25,000 3x +2y≤25,000
4x+y ≤ 20000 4x+y≤20000
X ,y≥0 X, y≥0
53) The profit for product x & y is Rs. 120 per unit and Rs. 80 per unit respectively.
Find the maximum profit under the given constraints:
4x +5y ≤51,000
7x +4y ≤56,000
a. 96,000 b. 1,040,000 c. 1,120,000 d. 1,230,000
54) A diversified sports company make bats and footballs.
Product Name Sales Cost
Bat 1,500 1,100
football 3,000 2,300
Manufacturing times for bat and football are 2 and 4 labour hours respectively. The company has 45
workers which can work 200 hours in a month the funds available for manufacturing are Rs. 5
million. Raw material is available as required. Determine which of the following constraints are
correct?
a) Z=1,500B + 3,000F b) Z=1500B + 3,000F
2B + 4F ≤9,000 4B + 2F ≥ 9,000
1,100B + 2,300F ≥ 5,000,000 1,100B + 2,300F ≤5,000,000
c) Z=1,500B + 3,000F d) Z=1500B + 3000F
2B + 4F ≤ 9,000 2B + 4F ≤ 9000
1,100B + 2,300F ≤5,000,000 2300B + 1100F ≤5000000
55) A company earns profit of Rs 250 and Rs 375 per unit on product X and Y respectively. Find
the maximum profit that the company could earn if the company is subject to the following
constraints:
4x+2y ≤ 25,000
3x+2y ≤ 20,000
a) Rs 1,666,667 b) Rs 2,187,500

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 c) Rs 3,750,000 d) Rs 4,687,500
56) A factory produces two products x and y. Each product passes through two departments A
and B which have a capacity of 1120 hours and 1400 hours The Product X requires 4 hours
in department A and 7 hours in department B, the product Y requires 5 hours in department
A and 8 hours in department B. The constraints representing the above data:
a) 4x+5y ≤ 1120 and 7x+8y ≤ 1400 b) 4x+7y ≤ 1400 and 5x+8y ≤ 1120
c) 7x+5y ≤ 1400 and 8x+4y ≤ 1120 d) 7x+8y ≤ 1120 and 4x+5y ≤ 1400
57) A factory produces two products x and y. Each product passes through two departments A
and B which have a capacity of 1120 hours and 1400 hours The Product X requires 7 hours
in department A and 4 hours in department B, the product Y requires 8 hours in department
A and 5 hours in department B. The constraints representing the above data:
a) 7x+4y ≤ 1120 and 8x+5y ≤ 1400 b) 7x+8y ≤ 1400 and 4x+5y ≤ 1120
c) 7x+5y ≤ 1400 and 8x+4y ≤ 1120 d) 7x+8y ≤ 1120 and 4x+5y ≤ 1400
58) A factory produces two products x and y. Each product passes through two departments M
and N which have a capacity of 1120 hours and 1400 hours The Product A requires 7 hours
in department M and 4 hours in department N, the product B requires 8 hours in department
M and 5 hours in department N. The constraints representing the above data:
a) 7A+4B ≤ 1120 and 8A+5B ≤ 1400 b) 7A+8B ≤ 1400 and 4A+5B ≤ 1120
c) 7A+5B ≤ 1400 and 8A+4B ≤ 1120 d) 7A+8B ≤ 1120 and 4A+5B ≤ 1400
59) A factory produces two products x and y. Each product passes through two departments A
and B which have a capacity of 1,100 hours and 1,400 hours The Product X requires 4 hours
in department A and 5 hours in department B, the product Y requires 7 hours in department
A and 8 hours in department B. The profit margin on x and y is Rs. 500 and Rs. 700
respectively. Objective function related to the given situation will be:
a) 1100x+1400y b) 500x+700y
c) 600x+700y d) 660,000x+980,000y
60) A company makes and sells two products X and Y. The contribution per unit is Rs. 250 for
product X and 375 for product Y. due to various constraints, the company cannot make more
than 750 units X and 500 units of Y in a month.
If x represents number of units of product X and y represents the number of units of product
Y and C represents contribution, then relationship which represents maximum contribution
would be C=250x+375y
a) True b) False
61) A company makes and sells two products X and Y. the related information is as follows:
X Y
Contribution per unit (Rs.) 450 375
Maximum sales demand per month 2,800 1,200
Direct labour hour per unit 2 5
Machine hours per unit 6 7
A total of 10,000 direct labour hours and 22,000 machine hours are available per month. The objective
function (Z) and set of constraints represents the above situation would be:
Z=450x+375y 2x+5y ≤ 22,000 6x+7y ≤ 10,000
x ≤ 2,800 y ≤ 1,200 x, y ≥ 0

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 a) True b) False
62) Which of the following constraints are represented by the given graph?
a) 2x+3y ≤ 24, 3x+5y ≤45, x ≤ 4, x,y ≥ 0 b) 2x+3y ≤ 24, 3x+5y ≤ 45, y ≤ 4, x ≤ 0,
y≥0
c) 3x+2y≤24, 5x+3y≥45, x ≤ 4, y≥0, x≥0 d) 3x+2y≤24, 5x+3y≥45, y ≤ 4, x≤0 x,y≥0,
63) A company owns a machine which runs for 208 hours a month. The machine is used to make
two parts X and Y. each part X takes 1 hour of machine time and each part Y takes 2 hours of
machine time. If x represents the number of part X made in a month and y represents the
number of part Y made in a month, which of the following statements/ inequalities is correct?
a) The company could make any quantity b) x+2y<208 represents the boundary of
of X and Y but the total machine hours maximum production in a month
in a month cannot exceed 208.
c) y ≤ 208 if x=0, represents the maximum d) both (a) and (b)
production of Y in a month
64) If 3x+7 ≥ x+5 ≥ 5x – 3, then the inequality holds when x lies in the range
a) 7 ≤ x ≤ – 3 b) 5 ≥ x ≥ 7
c) 3 ≤ x ≤ 5 d) 2 ≥ x ≥ – 1
65) If 3x+7 ≤ 5x – 3, then the inequality holds when x lies in the range
a) Less than or equal to 7 b) Greater than or equal to 5
c) Less than or equal to 5 d) Greater than or equal to 2
66) A company makes and sells two products X and Y. the contribution per unit is Rs 250 for
product X and 375 for product Y. due to various constraints, the company cannot make more
than 750 units of X and 500 units of Y in a month. If x represents the number of product X, y
represents the number of product Y and C represents contribution, which of the following
relationship represents maximum contribution?
a) C=250x+375y b) C=750x+500y
c) C=500x+125y d) C=3x+1.33y
67) A company makes and sells two products X and Y. the related information is as follows:
X Y
Contribution per unit (Rs.) 450 375
Maximum sales demand per month 2,800 1,200
Direct labour hour per unit 2 5
Machine hours per unit 6 7
A total of 10,000 direct labour hours and 22,000 machine hours are available per month. Which
of the following objective function (Z) and set of constraints represents the above situation?
a) Z=450x+375y b) Z=450x+375y
x ≥ 2,800 x ≤ 2,800
6x+7y ≤ 10,000 2x+5y ≤ 10,000
2x+5y ≤ 22,000 6x+7y ≤ 22,000
y ≤ 1,200 y ≤ 1,200
c) Z=450x+375y d) Z=450x+375y
x ≤ 2,800 x ≥ 2,800
6x+7y ≤ 22,000 6x+7y ≤ 10,000
2x+5y ≤ 10,000 2x+5y ≥ 22,000
y ≥ 1,200 y ≤ 1,200

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68) Tooba furniture (TF) manufacture chairs (C) and tables (T). the sale price and cost of
production of the two articles are as follows:
Article Sale price Cost of Production
Amount in Rs.
C 850 700
T 1,300 1,200
Manufacturing time is 3 and 4 labour hours for each chair and table respectively. TF has a labour force of
20 workers and each worker can work a maximum of 180 hours. The total funds available for
manufacturing are Rs. 4 million. The objective function (Z) and the constraints representing the given
scenario are: (02)

a) Z=100C+150T b) Z=150C+100T
700x+1200y ≤ 4,000,000 700x+1200y ≤ 4,000,000
3x+4y ≤ 3,600 3x+4y ≤ 3,600
c) Z=700C+1,200T d) Z=850C+1,300T
700x+1200y ≤ 4,000,000 700x+1200y ≤ 4,000,000
3x+4y ≤ 180 3x+4y ≤ 3,600

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5 Financial Mathematics
69) Hashim invested Rs. 20000 today and will withdraw amount after two years. What Will be
the amount if he withdraws after 3 years at 12% compounded annually?
a) Rs. 25,088 b) Rs. 28,098.56 c) Rs. 47,488 d) Rs. 67,488
70) If Ali invested Rs. 30,000 today compounded annually for five years. There is no penalty if
he withdraws money after 2 years. If he will receive Rs. 36,300 after 2 years
1) What is the interest rate?
2) What money he gets, if he withdraws after 3 years
a) 10%, Rs.36300 b) 10.5%, Rs.39450 c)10%, Rs. 39,930 None of these
71) Basit wants to took a loan for 5 years Which would be the least beneficial for him?
a) 11 % simple interest b) 8% compounded quarterly
c) 10% compounded annually d) 9% compounded semi annually
72) A person invested some amount today @1.8% per quarter for 10 years find his investment if
he receives Rs. 10 million.
a) 8.356 million b) 4.13 million c) 4.899 million d) None of these
73) Basit took Rs. 200,000 from bank at 13.5% rate per year. What is the total amount after 5
years?
a) 356,700 b) 376,712 c) 335,000 d) 337,500
74) A person took a loan of Rs. 120,000 at simple interest per annum. There is no penalty on
withdrawing after 2 years. However, the total amount he receives after 4 years is Rs.
156,000. Which of the following statement is/are correct?
a) If he withdraws after 3 years, he would b) The simple interest rate is 7.5%
receive a total amount of Rs. 138000
c) both a & b d) None of these
75) Mr. Ikram invests Rs. 400,000 at the start of each quarter@12% for 8 years. What will be the
total amount after 8 years?
a) Rs. 5,510,263 b) Rs. 4,919,877
c) Rs. 21,101,103 d) Rs. 21,631,137
76) A person has enough amount to invest for 9 years, if Rs. 1 million is received after 9 years
(end of year) at the rate of 7%, What is amount he has to invest each year (at the start)?
a) Rs.83,486 b) Rs.78,025 c) Rs.543,933 d) Rs.613,497
77) If the fees earned by school in 10th year is 5 Million and fee is increased each year by 10%
and number of students increase by 5%. What was the fee earned by school in 1st year?
a) Rs.3.07Million b) 1.93 Million c) 1.37 Million d) 0.81 million
78) If 5 Million is invested for 3 years and yield 6 Million at compounded quarterly interest rate.
If this amount is not withdrawn and further invested at the same interest rate, what will be the
fee earned by school in further 3 years?
a) Rs.7.2M b) Rs.6M c) Rs.7.5M d) Difficult to
calculate

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79) If Rs. 500,000 is invested in a scheme @ 1.5% per month simple interest for 5 years then:
a) He will get gain of Rs. 150,000 per b) He will get gain of Rs. 75,000 per
annum annum
c) He will get gain of Rs. 450,000 after 5 d) All of these are correct.
years
80) Majid borrowed Rs. 600,000 at some simple interest x for 2 years and 3 months and paid
39,960 in excess, find interest rate?
a) 4.23% b) 2.96% c) 29.6% d) 42.3%
81) Mr. Ali invested Rs. 10,000 in 6 years, in first 3 years he received return at 8% and next 3
years he received return at 10%. What will be total amount he will receive after 6 years?
a) Rs. 16,766.8 b) Rs. 15,400
c) Rs. 16,120 d) Rs. 10,000
82) Sohail is receiving interest from Fast Bank Limited (FBL) at 14% compounded semi-
annually. Slow bank limited (SBL) has introduced a scheme whereby interest would be
compounded on a quarterly basis.
SBL should offer a minimum interest rate of 13.16% to motivate Sohail to shift his
investment from FBL to SBL is:
a) True b) False
83) Nasir had taken Rs. 900,000 from his office at 13.5% simple interest for a period of 5 years
and 5 months. The principal amount was paid at the expiry of loan period.
He paid interest of Rs. 595,000 during the period of loan.
a) True b) False
84) Mr. A invested Rs. 10,000 @4% compounded quarterly and received the total amount at the
end of 5th year. Find the amount.
a) Rs 12,000 b) Rs 13,202
c) Rs 12,202 d) Rs 15,302
85) Government has issued a five years bond of Rs. 200,000. On maturity the buyer will get Rs
300,000. If the current interest rate is 8% per annum, is purchasing the bond worth?
a) Yes, as present value of Rs 300,000 is b) No, as present value of Rs 300,000 is
more than Rs 200,000 more than Rs 200,000
c) Yes, as present value of Rs 300,000 is d) No, as future value of Rs 200,000 is
less than Rs 200,000 more than Rs 300,000
86) Government has issued a five years bond of Rs. 200,000. On maturity the buyer will get Rs
300,000. If the current interest rate is 9% per annum, is purchasing the bond worth?
a) Yes, as Future Value of Rs 200,000 at b) No, as Future value of Rs 200,000 at
current interest rate is more than Rs current interest rate is more than Rs
300,000 300,000
c) Yes, as present value of Rs 300,000 at d) No, as present value of Rs 300,000 at
current interest rate is more than Rs current interest rate is less than Rs
200,000 200,000
87) Find the value invested now, if he received 8,000 at the end of each year from year 4 to year
12 at the rate of11% compounded annually?
a) 51939 b) 32,389

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 c) 27119 d) 57652
88) Ali invests Rs. 2 million and get 0.5 million at redemption. If n = 3, which of the following
interest rate is best?
a) 7.15% monthly b) 7.23% bi-monthly
c) 8.1% simple interest d) 7.51% quarterly
89) Alia borrowed Rs. 700,000 from Sara for a period of 2 years and 3 months at r% simple
interest. She paid a total of 950,000 at the end of loan period. the value of “r” is
a) 14.29% b) 15.53%
c) 15.87% d) 17.86%
90) Suman borrowed Rs. 900,000 at simple interest of 7.5% per annum. At the end of the loan
period she repaid a total of 1,372,500. Period of the loan was:
a) 7 years b) 7 years 3 months
c) 7 years 6 months d) 8 years
91) Haroon has borrowed a certain amount at an interest of 12% compounded semi-annually. In
how many years the amount owed would double?
a) 3 years b) 5 years
c) 6 years d) 8 years
92) Hashir has borrowed “x” amount at an interest of 13% compounded semi-annually. If he
does not return the amount, in which of the following years the amount owed would be 2x?
a) Third year b) Fifth year
c) sixth years d) eighth years
93) Rida has borrowed a certain amount at an interest of 9% compounded quarterly. In which
year the amount owed would be double?
a) 6th year b) 7th year
c) 8th year d) 9th year
94) Saad borrowed Rs 600,000 from Fahad for a period of 3 years and 9 months at r% simple
interest. He paid Rs 400,000 in excess of the borrowed amount at the end of loan period. The
value of “r” is:
a) 22.22% b) 17.78%
c) 17.09% d) 16.67%
95) Saad borrowed Rs 90,000 from Fahad for a period of 5 years and 10 months at r% simple
interest. He paid Rs 40,000 in excess of the borrowed amount at the end of loan period. The
value of “r” is:
a) 12.8% b) 8.71%
c) 5.57% d) 7.61%
96) If Present value is 1,000,000 and interest is 750,000 in 4 years and 10 months. Find the
simple interest rate?
a) 15.51% b) 5.17%
c) 7.75% d) None of these
97) Mani borrowed Rs 900,000 from Rani for a period of 4 years and 10 months on simple
interest. He paid Rs 750,000 in excess of the borrowed amount at the end of loan period. The
rate of interest is:
a) 18.33% b) 17.24%

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 c) 20.33% d) 16.67%
98) Hanif borrowed Rs 800,000 from Rehan for a period of 4 years and 5 months on simple
interest. He paid Rs 650,000 in excess of the borrowed amount at the end of loan period. The
rate of interest is:
a) 18.06% b) 18.13%
c) 18.40% d) 20.31%
99) Baber borrowed Rs. 900,000 at simple interest of 9.68% per annum. At the end of the loan
period he repaid a total of Rs. 1,510,000. Period of the loan was”
a) 5 years and 9 months b) 6 years
c) 6 years and 3 months d) 7 years
100) Baber borrowed Rs. 900,000 at simple interest of 8.34% per annum. At the end of the
loan period he repaid a total of Rs. 1,500,000. Period of the loan was”
a) 7 years b) 7 years and 3 months
c) 7 years and 9 months d) 8 years
101) Faraz borrowed Rs. 1,000,000 at simple interest of 8.5% per annum. At the end of the
loan period he repaid a total of Rs. 1,510,000. Period of the loan was”
a) 5 years and 9 months b) 6 years
c) 6 years and 3 months d) 7 years
102) Saleem borrowed Rs. 500,000 from a bank at simple interest of 2% per month for a
period of 3 years. the principal is payable in equal monthly instalments, along with interest.
Which of the following statements is correct?
a) His monthly instalments would be Rs. b) He would pay Rs. 100,000 per annum in
23,000 interest
c) He would have paid an additional amount d) At the end of year 1, his balance
of Rs 300,000 by the end of 3 years principal amount would be Rs.
333,333.33
103) Tom and Jerry both invested same amount for 8 years. If Tom’s rate of return is 9% and
Jerry’s rate is 10% compounded annually then how much more percent amount Jerry will
have after 8 years than Tom?
a) 1% b) 8%
c) 15.1% d) None of these
104) An investment of 1.5 million is made in a business for 4 years and gain is 0.5 million.
Find rate of gain under compound interest?
a) 6.54% b) 8.5%
c) 7.45% d) 9.4%
105) John and Johnson have invested same amounts in two different investment schemes. John
is getting a return of 9% compounded annually whereas Johnson gets a return of 10%
compounded annually, the amount of Johnson' s interest over a period of six years would
exceed the amount of John's interest by
a. 9.44% b. 5.63% c. 31.47% d. 13.95%

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106) Naeem and Karim have invested same amounts in two different investment schemes.
Naeem is getting a return of 7% compounded annually whereas Karim gets a return of 9%
compounded annually, the amount of Karim’s interest over a period of five years would
exceed the amount of Naeem’s interest by:
a) 25.26% b) 9.70%
c) 13.60% d) 33.80%
107) Saeed invested Rs 400,000 for ten years after which he received a lump sum amount of
Rs 900,000. If he earned 8.50% interest compounded quarterly during last five years which
of the following rate compounded quarterly did he earn during first five years
a) 7.89% b) 8.25%
c) 8.39% d) 8.50%
Answer

r 0.085 45
900,000  400,000(1  ) 45 (1  )
4 4
By solving on calculator we get r=0.078843=7.89%

108) Anees invested Rs 500,000 for six years after which he received a lump sum amount of
Rs 822,531. If he earned 10% interest compounded annually during last four years, which of
the following rate compounded quarterly did he earn during first two years
a) 5.87% b) 8.25%
c) 8.39% d) 8.50%
Answer

r
822,531  500,000(1  ) 42 (1  0.10) 4
4
By solving on calculator we get r=0.05869515029 =5.87%

109) Ali invested Rs 500,000 for5 years after which he received a lump sum amount of Rs
762,150. If he earned 10% interest compounded annually during last 2 years, what rate of
interest compounded annually did he earn during the first three years?
a) 6% b) 7%
c) 8% d) 9%
Answer 762,150  500,000(1  r )3 (1  0.10) 2
By solving on calculator we get r = 0.0800114499=8%

110) Jamil invested Rs. 6 million with a real estate firm. The firm returned him Rs. 8 million
after four years. The effective annual rate of interest on his investment was:
a) 7.46% b) 7.00%
c) 8.25% d) 8.33%
1. A person wants to invest some money for 6 years. He is offered four different interests. Which one
is better?
a) 15% simple interest b) 10% compounded annually
c) 9% compounded semi-annually d) 8% compounded monthly

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111) Ali and Kashif invested equal sum in two different banks at 9% and 10% interest
compounded annually. In 6 years how much percent of sum will Kashif earn more than Ali?
a) 9.45% b) 8.45% c) 7.45% d) 6%
112) If Naina and Maina both invested same amount for 6 years and the rate of interest are 9%
and 10% compounded annually respectively. Then how much more percent amount Maina
will have after 6 years than Naina?
a) 7.63% b) 8%
c) 9.45% d) None of these
113) Kareem and Jaffer have invested same amounts in two different investment schemes.
Kareem is getting a return of 8% compounded annually whereas Jaffer gets a return of 10%
compounded annually, the amount of Jaffer’s interest over a period of six years would exceed
the amount of Kareem’s interest by
a) 11.25% b) 12% c) 31.47% d) 8%
114) Mr. A invested 200,000 in an account today. He also deposits 20,000 quarterly in this
account and made first payment today. If the interest is 8% compounded quarterly. What will
be total value of investment after 5 years?
a) Rs 992,855 b) Rs 222,855
c) Rs 792,855 d) Rs 692,855

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6 Discounted Cash flows
115) A bank launched a new scheme where it offers Rs. 400,000 per year for indefinite time
after 8 years. How much amount should bank require to collect from customer today if it
offers 5% interest compounded annually?
a)8 million b)5.69 million c.5.41 million d)5.6 million
116) Calculate the IRR of the project
Year Cash flows
0 (1,500,000)
1 100,000
2 200,000
3 1,450,000
a) 0.573% b) .573% c) 5.73% d) 57.3%
117) Calculate IRR of the project:
Year Cash flows
0 (5,000,000)
1 1,000,000
2 5,200,000
3 850,000
a. 19.2% b. 12.3% c. 0.192% d. 14.4%
118) A project costing 4 million is expected to yield Rs. 600,000, Rs. 800,000 & Rs. 4,000,000
at the end of each year for next 3 years respectively. The IRR of the project is?
a. 12.22% b. 21.22% c. 22.12% d. 22.21%
119) A project-costing 2 million is expected to yield Rs. 100,000, Rs. 200,000 & Rs.
2,300,000 at the end of each year for next 3 years respectively. The IRR of the project is?
a) 8.8% b) 9.7% c) 9.2% d) 11.51%
120) A project has a net present value of Rs. 26,708 n discount rate is 13%. At what discount
rate will the net present value of project be Rs. 35,612?
a) 15% b) 17% c) 19% d) 11%
121) A project has a NPV of Rs. 6,172 when discount rate is 9%. What will be the net present
value if discount rate is increased to 12%
a) 9,438 b) 10,292 c) 3,291 d) 9,163
122) The project has an NPV of Rs. 2,210 at a discount rate of 11% & (1,918) at a discount
rate of 15%. Estimate the IRR of the project.
a) 13.14% b) 17.14% c) 16.85% d) 12.85%
123) A project costing 3 million is expected to yield Rs. 800,000, Rs. 1,200,000 & Rs.
1,800,000 at the end of each year for next 3 respectively. The IRR of the project is?
a) 18.11% b) 11.18% c) 12.22% d) 22.21%
124) The project has an NPV of Rs. 5641 at a discount rate of 8% & (2354) at a discount rate
of 10%. Estimate the IRR of the project:
a) 9.41% b) 11.43% c) 38.89% d) 20.70%

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125) Two companies made profits from investments in different projects:
Year 1 2 3 4
Company A 600,000 900,000 1,200,000 -
Company B 600,000 750,000 850,000 900,000
Find the rate at which NPV of both companies will be same?
a) 14.47% b) 14.60% c) 54.65% d) 15.2%
126) You are given some annuity due of Rs. 200,000, find the sum of ordinary annuity if r=
12% compounded quarterly?
a) Rs. 206,000 b) Rs. 194,174.76
c) Rs. 200,000 d) None of these
127) A research foundation was established by a fund of Rs. 500,000 invested at rate that
would provide 20,000 payments at the end of each year for forever. What interest rate was
being earned on fund?
a) 5% b) 3% c) 4% d) 6%
128) If Rs 1000 is invested yearly for 3 years @7% compounded annually and some other
unknown amount is invested annually for next 2 years @5% compounded annually and Rs
500,000 is received at the end of five years, then find the amount invested in last two years.
a) Rs 212,173.45 b) Rs 242,173.45
c) Rs 202,173.45 d) Rs 302,173.45
129) Zafar has purchased a motor cycle worth Rs. 40,000 from his friend who has given him
the following payment options.
a) pay Rs. 52,000 at the end of four years.
b) pay Rs. 12,000 annually at the end of next 4 years
c) pay the full amount now
Zain’s cost of funds is 10 %
Match the following
Most beneficial Option (A)
second most beneficial Option (B)
third most beneficial Option (C)
130) Rashid wants to obtain a bank loan. Bank a offers a nominal rate of 14% compounded
monthly, Bank B offers a nominal rate of 14.5% compounded quarterly; and Bank c offers an
effective rate of 14.75%
Arrange the given banks in terms of charging lower interest using drag and drop option

Bank A Sequence 1
Bank B Sequence 2
Bank C Sequence 3
131) Saleem is planning to invest in a scheme whereby he would be required to invest Rs.
160,000 annually (at the start of the year) for 5 years. If interest rate is 14% compounded
annually, he would receive Rs. 1,057,617 at the end of 5th year.
a) True b) False

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132) To _______ present value of a project, the discount rate should be adjusted _______
133) A company intends to invest Rs 6 million into a project which would yield 10,12 and 14
percent during first three years respectively. The company would also recover the original
investment after 3 years. If the company’s cost of capital is 9%, NPV of the project would
be:
a) Rs 393,745 b) Rs 438,204
c) Rs 648,634 d) Rs 1,805,103
134) A company intends to invest Rs 9 million into a project which would yield 8, 12 and 14
percent during first three years respectively. The company would also recover the original
investment after 3 years. If the company’s cost of capital is 9%, NPV of the project would
be:
a) Rs 393,745 b) Rs 438,204
c) Rs 648,634 d) Rs 492,167
135) A company intends to invest Rs 4 million into a project which would yield 10, 12 and 13
percent during first three years respectively. The company would also recover the original
investment after 3 years. If the company’s cost of capital is 10%, NPV of the project would
be:
a) Rs 393,745 b) Rs 438,204
c) Rs 156,273 d) Rs 1,805,103
136) A company intends to invest Rs 4 million into a project which would yield 10, 12 and 13
percent during first three years respectively. The company would also recover the original
investment after 3 years. If the company’s cost of capital is 9%, NPV of the project would
be:
a) Rs 261,248 b) Rs 438,204
c) Rs 648,634 d) Rs 1,805,103
137) A company intends to invest Rs 4 million into a project which would yield 10, 12 and 14
percent during first three years respectively. The company would also recover the original
investment after 3 years. If the company’s cost of capital is 12%, NPV of the project would
be:
a) Rs 393,745 b) Rs 438,204
c) Rs 648,634 d) Rs (14,486)
138) Iram invested Rs.2 million and received Rs.2.5m after 3 years. Calculate the rate of
interest?
a) 7.51% compounded monthly b) 7.51% compounded quarterly
c) 7.51% compounded bi-monthly d) 7.51% compounded annually
139) A company intends to invest Rs 5 million into a project which would yield 10, 12 and 14
percent during first three years respectively. The company would also recover the original
investment after 3 years. If the company’s cost of capital is 10%, NPV of the project would
be:
a) Rs 393,745 b) Rs 232,908
c) Rs 648,634 d) Rs 1,805,103

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
140) A company intends to invest Rs 5 million into a project which would yield 10, 12 and 16
percent during first three years respectively. The company would also recover the original
investment after 3 years. If the company’s cost of capital is 10%, NPV of the project would
be:
a) Rs 393,745 b) Rs 438,204
c) Rs 308,039 d) Rs 1,805,103
141) A project costing Rs. 2 million is expected to yield Rs. 300,000, Rs. 400,000, Rs.
1,900,000 at the end of each of the next 3 years respectively. The IRR of the project is:
a) 11.51% b) 10.66%
c) 11.15% d) 10.18%
142) A project costing Rs. 2.5 million is expected to generate cash flows of Rs. 200,000, Rs.
300,000, Rs. 2,900,000 at the end of each of the next three years respectively. The IRR of the
project is 11.7%
a) True b) False
143) If the interest rate is 9% compounded monthly, the value of perpetuity of Rs. 3,000 per
month would be________.
144) Rashid has savings of 3.6 million whereas sajjad has savings of 5.4 million. If Rashid
invest his savings at 9% compounded quarterly whereas Sajjad invest his savings at 7%
compounded annually, in how many years would the value of Rashid’s savings exceed that
of Sajjad’s savings.
a) 9 years b) 14 years
c) 19 years d) 24 years
145) Miss Salma requires a sum of Rs. 300,000 after three years from now and Rs. 500,000
after 5 years from now, for the purpose of education of her son. She is planning to deposit
quarterly amounts in a bank account from which she would draw the desired amounts at the
required time. If interest rate is 12% compounded Quarterly, which of the following amounts
should Salma deposit at the start of each quarter?
a) Rs 76,766 b) Rs 74,530
c) Rs 31,797 d) Rs 32,751
146) A certain sum of money lent out at simple interest amount to 690 in three years and 750
in five years. The sum lent is:
a) Rs 500 b) Rs 600
c) Rs 700 d) Rs 800
147) If Rs 100,000 is invested yearly for 3 years @7% compounded annually and some other
unknown amount is invested annually for next 2 years @5% compounded annually and Rs
500,000 is received at the end of five years, then find the amount invested in last two years.
a) Rs 71,003.55 b) Rs 60,000
c) Rs 70,000 d) Rs 80,000
148) Which of the following statements is CORRECT?
a) It is impossible to find the future value b) It is impossible to find the present value
of a perpetuity. of a perpetuity
c) Perpetuity factor is square of the cost of d) In investment appraisal, an annuity
capital might be assumed when a constant
annual cash flow is expected for a long

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 term into the future.
149) A bank launched a new scheme where it offers 400,000 per year for indefinite time after
8 years. How much amount should bank require to collect from customer today if it offers
5% interest compounded annually?
a) Rs. 8,000,000 b) Rs. 5,414,714
c) Rs. 5,685,451 d) None of these
150) A bank is planning to offer a unique product to its customers whereby it would pay Rs
250,000 per annum for an indefinite period commencing from the end of year 6. How much
amount should the bank ask its customers to pay now, if the rate of interest that the bank can
pay, is 5% compounded annually?
a) Rs 3,191,221 b) Rs 3,547,829
c) Rs 3,917,631 d) Rs 3,960,498
151) Asif plans to invest Rs 5,000 every year starting from today for next 3 years. Interest rate
is 10% per annum compounded annually. Future value of the annuity is:
a) Rs 16,500 b) Rs 17,050
c) Rs 17,600 d) Rs 18,205
152) Sami plans to invest Rs 8,000 every year for 3 years starting from today. Interest rate is
10% per annum compounded semi-annually. At the end of year 3 he will receive:
a) Rs 29,128 b) Rs 29,265
c) Rs 26,480 d) Rs 27,871
153) Kaleem plans to invest Rs 8,000 every year for 3 years starting from today. Interest rate is
10% per annum compounded annually. At the end of year 3 he will receive:
a) Rs 26,480 b) Rs 28,328
c) Rs 29,128 d) Rs 31,944
154) Razia plans to invest Rs 9,000 every year for 3 years starting from today. Interest rate is
10% per annum compounded annually. At the end of year 3 she will receive:
a) Rs 29,790 b) Rs 31,869
c) Rs 35,937 d) Rs 32,769
155) Zaki plans to invest Rs 6,000 every year for 3 years starting from today. Interest rate is
10% per annum compounded annually. At the end of year 3 he will receive:
a) Rs 23,958 b) Rs 21,846
c) Rs 21,246 d) Rs. 19,860
156) Zaki plans to invest Rs 6,000 every year for 4 years starting from today. Interest rate is
10% per annum compounded annually. At the end of year 4 he will receive:
a) Rs 30,000 b) Rs 30,631
c) Rs 33,600 d) Rs. 26,400
157) Razia plans to invest Rs 9,000 every year for 4 years starting from today. Interest rate is
10% per annum compounded annually. At the end of year 4 she will receive:
a) Rs 29,790 b) Rs 31,869
c) Rs 35,937 d) Rs 45,945.9
158) Which of the following statement is CORRECT?
a) Discounting estimates the present day equivalent of a future cash flow at a specified time
in the future at a given rate of interest

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 b) Multiplying by a discount factor is the same as multiplying by a compounding factor
c) The present value of a cash flow is the recipient of its future value
d) Present value fails to appraise large projects with multiple cash flows.
159) Raza wants to save money over a period of ten years in order to meet the expenses to be
incurred on higher education of his son. He has recently invested a sum of Rs 200,000 and
plans to further invest Rs 20,000 at the end of each quarter, which of the following amount
will be available to him at the end of 10th year if he earns a profit of 6% per annum
compounded quarterly?
a) Rs 1,448,161.56 b) Rs 1,321,027.61
c) Rs 992,497.74 d) Rs 718,018.61
160) Zahid wants to save money over a period of ten years in order to meet the expenses to be
incurred on higher education of his son. He has recently invested a sum of Rs 200,000 and
plans to further invest Rs 20,000 at the end of each quarter, which of the following amount
will be available to him at the end of 10th year if he earns a profit of 6% per annum
compounded quarterly?
a) Rs 1,448,161.56 b) Rs 1,321,027.61
c) Rs 992,497.74 d) Rs 718,018.61
161) Aman wants to save money over a period of eight years in order to meet the expenses to
be incurred on higher education of his son. He has recently invested a sum of Rs 100,000 and
plans to further invest Rs 20,000 at the end of each quarter, which of the following amount
will be available to him at the end of 8th year if he earns a profit of 8% per annum
compounded quarterly?
a) Rs 1,234,876.08 b) Rs 1,117,221.68
c) Rs 1,072,994.65 d) Rs 623,788.75
162) A bank launched a new scheme where it offers Rs. 8000 per year for indefinite time after
8 years. How much amount should bank require to collect from customer today if it offers 8%
interest compounded annually?
a) Rs 54,027 b) Rs 100,000 c) Rs 63,017 d) Rs 58,349
163) If the discount rate is 10%, the present value of Rs X received at the end of each year for
the next five years is equal to:
a) 3.5X b) 4.17X
c) 3.79X d) 5X
164) If the discount rate is 11%, the present value of Rs X received at the end of each year for
the next five years is equal to:
a) 3.17X b) 4.10X
c) 3.7X d) 5X
165) If the discount rate is 8%, the present value of Rs X received at the end of each year for
the next four years is equal to:
a) 2.2X b) 3.31X
c) 1.2X d) None of these
166) If the discount rate is 12%, the present value of Rs X received at the end of each year for
the next four years is equal to:
a) 3.4X b) 3.04X

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 c) 4X d) 3.6X
167) If the discount rate is 12%, the present value of Rs X received at the end of each year for
the next five years is equal to:
a) 6X b) 5X
c) 3.6X d) 4.03X
168) If the discount rate is 9%, the present value of Rs X received at the end of each year for
the next four years is equal to:
a) 3.24X b) 3.42X
c) 3.89X d) 4X
169) If the discount rate is 14%, the present value of Rs X received at the end of each year for
the next five years is equal to:
a) 3.91X b) 3.43X
c) 3.7X d) 5X
170) Ashfaq is planning to invest in a scheme whereby he would be required to invest Rs
130,000 annually (at the start of the year) for 5 years. If the interest rate is 13% compounded
annually, what amount would he receive at the end of the 5th year?
a) Rs 842,435 b) Rs 951,952
c) Rs 964,952 d) Rs 1,075,706
171) Abid is planning to invest in a scheme whereby he would be required to invest Rs
120,000 annually (at the start of the year) for 6 years. If the interest rate is 8% compounded
annually, what amount would he receive at the end of the 6th year?
a) Rs 648,500 b) Rs 777,600
c) Rs 880,311 d) Rs 950,736
172) The rate of interest is 8% per annum compounded monthly, the value of perpetuity of Rs
2,500 per month would be:
a) Rs 375,000 b) Rs 187,500
c) Rs 37,500 d) Rs 31,250
173) If the rate of interest is 12% per annum compounded monthly, the value of perpetuity of
Rs 2,500 per month would be achieved by investing:
a) Rs 250,000 b) Rs 20,833
c) Rs 125,000 d) Rs 187,500
174) If the rate of interest is 6% per annum compounded monthly, the value of perpetuity of
Rs 2,500 per month would be:
a) Rs 41,667 b) Rs 166,667
c) Rs 250,000 d) Rs 500,000
175) If the rate of interest is 8% per annum compounded monthly, the value of perpetuity of
Rs 2500 per month would be
a) 31,250 b) 37,500
c) 187,500 d) 375,000
176) If the rate of interest is 8% per annum compounded quarterly, the value of perpetuity of
Rs 3,500 per quarter would be:
a) Rs 131,250 b) Rs 175,000
c) Rs 262,500 d) Rs 525,000

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
177) If the rate of interest is 5% per annum compounded quarterly, the value of perpetuity of
Rs 2,500 per quarter would be achieved by investing
a) Rs 50,000 b) Rs 200,000
c) Rs 250,000 d) Rs 500,000
178) If the rate of interest is 15% per annum compounded monthly, the value of perpetuity of
Rs 1,975 per month would be achieved by investing
a) Rs 375,000 b) Rs 187,500
c) Rs 158,000 d) Rs 37,500
179) If the rate of interest is 10% per annum compounded monthly, the value of perpetuity of
Rs 3,000 per month would be achieved by investing
a) Rs 400,000 b) Rs 300,000
c) Rs 270,000 d) Rs 360,000
180) Which of the following is correct?
a) Net Present Value (NPV) is a financial metric that seeks to capture the total value of a
potential investment opportunity
b) Multiplying by a discount factor is the same as multiplying a compounding factor.
c) The present value of a cash flow is the reciprocal of its future value
d) Present value fails to appraise large projects with multiple cash flows
181) A company intends to invest Rs 4 million into a project which would yield 12,14 and 16
percent during three years respectively. The company would also recover the original
investment after 3 years. Company’s cost of capital is 10%, NPV of the project would be:
a) 385,274 b) 436,364
c) 480,841 d) 1,380,015
182) A company intends to invest Rs 3 million into a project which would yield 10,12 and 14
percent during three years respectively. The company would also recover the original
investment after 3 years. If the company’s cost of capital is 10%, the NPV of the project is:
a) Rs 139,745 b) Rs 45,582
c) Rs 1,046,582 d) Rs 3,139,745
183) A company intends to invest Rs 3 million into a project which would yield 10,12 and 14
percent during three years respectively. The company would also recover the original
investment after 3 years. If the company’s cost of capital is 8%, the NPV of the project is:
a) Rs 277,778 b) Rs 301,326
c) Rs 333,410 d) Rs 919,830
184) A company intends to invest Rs 3 million into a project which would yield 10,15 and 20
percent during first three years respectively. The company would also recover the original
investment after 3 years. If the company’s cost of capital is 12%, the NPV of the project
would be:
a) Rs 1,350,000 b) Rs 168,754
c) Rs (39,783) d) Rs 189,003
185) A project costing Rs. 2.5 million is expected to generate cash flows of Rs. 200,000, Rs.
300,000, Rs. 2,900,000 at the end of each of the next three years respectively. The IRR of the
project is:
a) 9.9% b) 10.4%
c) 11.7% d) 12.8%

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
186) A project costing Rs. 2 million is expected to yield Rs. 300,000, Rs. 400,000, Rs.
1,900,000 at the end of each of the next 3 years respectively. The nearest IRR approximation
of the project is:
a) 10.18% b) 10.66%
c) 11.15% d) 11.51%
187) A project costing Rs. 2 million is expected to yield Rs. 100,000, Rs. 200,000, Rs.
2,300,000 at the end of each of the next 3 years respectively. The nearest IRR approximation
of the project is:
a) 8.8% b) 9.7%
c) 9.2% d) 11.51%
188) A project costing Rs. 4 million is expected to yield Rs. 600,000, Rs. 800,000, Rs.
4,000,000 at the end of each of the next 3 years respectively. The nearest IRR approximation
of the project is:
a) 11.52% b) 11.84%
c) 12.22% d) 12.71%
189) Ali plans to invest Rs. 8,000 every year for 3 years starting from today. Interest rate is
10% per annum compounded annually. At the end of year 3 he will receive:
a) Rs 26,480 b) Rs 26,328
c) Rs 29,128 d) Rs 31,944
190) Project A would provide annual inflows of Rs. 525,000 Rs. 648,000, Rs 853,000 and Rs
2,844,000 at the end of year 1 to 4 respectively, whereas project B would yield annual
inflows of Rs 947,000, Rs. 1,155,000 and Rs. 2,068,000 from year 1 to 3 respectively. The
discount rate at which both projects would have same net present value is:
a) 18.27% b) 18.83%
c) 19.31% d) 19.73%
191) Project X would provide annual inflows of Rs. 650,000 Rs. 500,000, Rs 1,000,000 and
Rs 2,500,000 at the end of year 1 to 4 respectively, whereas project Y would yield annual
inflows of Rs 849,650, Rs 1,166,800 and Rs 2,068,000 from year 1 to 3 respectively. The
discount rate at which both projects would have same net present value is:
a) 16.31% b) 17.51%
c) 18.27% d) 19.31%

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
7 Data-Collection and representation
192) Which of the following statement is correct about Population Parameter?
(i) All the items are present in the data from which parameter is determined.
(ii) 50 people selected through random sampling can be used to find parameter.
a) Both statement are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct
193) Which of the following statements are correct regarding Class boundary?
1) There is no gap between the classes;
2) Midpoint of the upper class limit of one class and the lower class limit of the subsequent class.
a) Both statement are correct b) Both statements are not correct
c) Only statement (i) is correct d) Only statement (ii) is correct
194) Which of the following is/are correct regarding primary data?
1. Data collected by interviewing students in school.
2. Data collected by interviewing the parents of students.
a) Only statement (1) is correct b) Only statement (2) is correct
c) Both statements are correct d) Both statements are not correct
195) Which of the following statement is/are correct?
1. Discrete data has gaps between classes
2. Bar charts are used for continuous data
a) Both statements are correct b) Both statements are not correct
c) Only statement (1) is correct d) Only statement (2) is correct
196) Which of the following is correct?
1) The grouped frequency of discrete data does not contain gaps between the classes.
2) Discrete data has gap between them
a) Only statement (1) is correct b) Only statement (2) is correct
c) Both statements are correct d) Both statements are not correct
197) Which of the following is discrete data?
a) No. of children of an employee b) Weight of students
c) Height of students d) None of these
198) Construction of frequency distribution:
a) Helps in deleting the data b) Begins by recording the number of
times a particular value occurs
c) Is the only way to assess mode od d) All of the above
population.
199) Which of the following is correct?
a) Results of sampling enquiries or a census b) The data which is collected specifically
is called raw data for the ongoing investigation is called
primary data
c) The data which is stored after d) Both (a) and (b)
classification is called secondary data
200) Data can be collected through which of the following method(s):
a) Direct Observation b) National Census

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 c) CCTV recordings d) All of the above
201) Which of the following statements is/are correct?
(i) A grouped frequency distribution of discrete data has gaps between the classes.
(ii) Discrete data can be converted into continuous data.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
202) Which of the following statement is correct?
a) A grouped frequency distribution of b) Discrete data can be converted into
discrete data has gaps between the classes continuous data
c) In the case of discrete data, the mid-point d) All of the above
of upper class limit of one class and
lower class limit of subsequent class is
termed as class boundary
203) Which of the following statements is correct?
a) Bar charts are usually used for plotting b) Bar charts are usually used for plotting
continuous data discrete data
c) Bar charts can be plotted horizontally or d) Both (b) and (c)
vertically.
204) Which of the following statements regarding Bar charts is correct?
a) Bar charts are usually used for plotting b) Bar charts can be plotted horizontally
continuous data or vertically.
c) Bar charts are usually used for plotting d) Both (a) and (b)
vertical data only
205) Which of the following statements as regards Histogram is correct?
a) A vertical rectangle is drawn to b) The frequency of the class is represented
represent each class of the frequency by the height of rectangles
distribution
c) Histogram cannot represent continuous d) Both (a) and (b)
data
206) Which of the following statements as regards Histogram is correct?
a) Histogram can represent continuous data b) A vertical rectangle is drawn to
represent each class of the frequency
distribution
c) The frequency of the class is represented d) Histogram are used to compare variables
by the height of rectangles
207) A set of exam scores is represented by the following stem and leaf display:
4 5 6 8
5 3 4 5 6 9
6 2 3 5 6 6 9 9
7 0 1 1 3 3 4 5 5 5 7 8
8 1 2 3 6 9
9 3 5 7 8
The mode for the data set is

a) 75 b) 71
c) 78 d) 69

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
208) 81, 81, 81, 81, 21, 21, 21, 21, 21, 90, 90, 90, 90. Find mode of the data?
a) 21 only b) 21 & 81 only
c) 21 & 90 only d) None of these
209) 21, 21, 21, 21, 21, 28, 28, 28, 28, 29, 29, 29, 29. Find mode of the data?
a) 21 only b) 21 & 28 only c) 21 & 29 only d) None of
these
210) The following stem and leaf display show the number of pizza slices eaten by contestants
in a recent pizza eating contest.
3 1
4 0
5 4 7
6 2 2 6
7 0 2 5 6 9 9
8 5 7 9
Based on above data, which of the following statement is/are true?
(I) The range is 57
(II) The median is 71
(III) The mean is 66
a) Statement (I) only b) Statement (II) only
c) Statement (III) only d) All statements are correct
211) Which of the following is True about mean?
(i) Most repeated value
(ii) The best single figure to describe data
a) Statement (I) only b) Statement (II) only
c) Statement (III) only d) All statements are correct
212) Which of the following statements is/are true about population?
(i) It is desired to consider all the population in an observation.
(ii) In an observation we consider all of the population.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
213) Which of the following statements is/are true about discrete data?
(i) There is no gap between them.
(ii) Mid-point is calculated by dividing the upper and lower limit in each class
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
214) Which of the following statements is/are true about discrete data?
(i) There is gap between them.
(ii) Mid-point is calculated by dividing the upper and lower limit in each class
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
215) Which of the following statements is/are correct?
(i) A grouped frequency distribution of discrete data has gaps between the classes.
(ii) In class boundaries, there is no gap between the classes.

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
216) Which of the following is correct?
a) The data which is collected specifically b) Results of sampling enquiries or a
for ongoing investigation is called raw census is called primary data
data
c) The data which is relevant to the d) Both (b) and (c)
investigation but was collected
previously for some other purpose is
called secondary data
217) If the peak of the histogram is in the middle and the frequencies on either side are similar
to each other, the distribution is said to be:
a) Normal b) Balanced
c) Binomial d) Symmetrical
218) Which of the following statements is correct?
a) An Ogive is the graph of a cumulative frequency distribution
b) Median of a grouped frequency distribution can be found by constructing an Ogive
c) An Ogive is constructed by joining the mid points of the top of each rectangle histogram
with straight lines
d) Both (a) and (b)
219) Which of the following statements is correct?
a) A frequency polygon can be constructed by joining two symmetrical ogives
b) A histogram can be converted to an ogive by joining the mid-point of the top of each of
its rectangle with a straight line
c) An ogive is the graph of a cumulative frequency distribution
d) Both (a) and (b)
220) A batter scored following runs in eleven T20 matches played in a calendar year:
35, 15, 51, 28, 0, 3, 85, 45, 30, 0
The mode of his above scores is ____________

221) A population may be defined as including all people or items with a characteristic that a
researcher wises to understand.
a) true b) false
222) Which two of the following statements are correct regarding construction of a frequency
distribution?
a) It sometime leads to provide incorrect b) It is the most common method of
data summarizing data
c) It begins by recording the number of d) It is the basis for construction of a
times a particular value occurs percentage distribution
223) Which two of the following statements are correct?
a) An ogive is the graph of a cumulative b) Median of a grouped frequency
frequency distribution distribution can be found by
constructing an ogive.
c) An ogive is constructed by joining the d) An ogive is the least desirable method of
mid points of the top of each rectangle of presentation of data

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 a histogram with straight lines
224) Consider the following statements about mean.
i. It must be one of the values found in the data
ii. In case of ungrouped data, there may be more than one mean
Which of the above statement is/are correct?
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
225) Construction of frequency distribution:
a) Helps in deleting the data b) Begins by recording the number of
times a particular value occurs
c) Is the only way to assess mode od d) All of the above
population.
226) Which of the following is correct?
a) Results of sampling enquiries or a census b) The data which is collected specifically
is called raw data for the ongoing investigation is called
primary data
c) The data which is stored after d) Both (a) and (b)
classification is called secondary data
227) Which of the following is correct?
a) Results of sampling enquiries or a census b) The data which is collected specifically
is called raw data for the ongoing investigation is called
primary data
c) The data which is stored after d) Both (a) and (b)
classification and summation is called
secondary data

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
8 Statistical measures of data
228) Calculate variance the following data?
X 0 1 2 3 4
F 2 3 5 7 9
a) 1.26 b) 1.60 c) 2 d) 4
229) Geometric Mean of 7, 14 & 21?
a) 11.45 b) 12.72 c)14 d) 45.33
230) ∑(x—x) =0.555 & n=5, find standard deviation?
2

a) 0.333 b) 0.003
c) 0.111 d) Insufficient Information
231) Calculate the Harmonic Mean of the following data 10,12, & 15
a) 12.33 b) 12.16 c) 12.31 d) 12
232) The standard deviation of the data given below is?
x 0 1 2 3 4
F 8 7 3 1 1
a. 1.095 b. 1.2 c. 1.44 d. 1
233) The variance of the data given below is?
X 0 1 2 3 4
F 8 7 3 1 1
a) 1.095 b) 1.2 c) 2.098 d) 4.4
234) The scores obtained by six students in a set of examination are 80, 40, 50, 72, 45 and 81.
These scores are changed by 15% What will be the effect of these changes on the mean and
standard deviation?
a) Mean and standard deviation will remain unchanged
b) Mean will increase by.15%Wbut standard deviation will remain unchanged
c) Mean and standard deviation both will increase by 15%
d) Mean will remain unchanged but standard deviation will increase by 15%
235) Which of the following statements is/are correct?
1. Mean can never be smaller than 1st quartile.
2. Mode can never be smaller than 1st quartile.
a) Both statements are correct b) Both statements are not correct
c) Only statement (1) is correct d) Only statement (2) is correct
236) Which of the following statement is/are correct?
1. Variance can never be larger than standard deviation
2. Variance is independent of change of scale
a) Both statements are correct b) Both statements are not correct
c) Only statement (1) is correct d) Only statement (2) is correct

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
237) Find the inner median if first quartile is 128 less than median and upper quartile is 256
more than median?
a) 256 b) 384
c) 128 d) Impossible to determine.
238) The mean of 11 numbers is 7. One of the numbers i.e 17 is deleted. The mean of the
remaining 10 numbers is________
239) Starting salaries of a group of fresh graduates is as follows:
45,500, 50,000 48,000 60,000 62,000 55,000 58,000 and 49,000
Median of above salaries is:

a) 50,000 b) 53,437.50
c) 55,000 d) 52,500
240) Team A scored an average of 205 runs in twenty one-day international matches with a
standard deviation of 10 whereas Team B scored an average of 190 runs in the same number
of matches with a standard deviation of 8.
It may be concluded that Team A is more consistent than Team B
a) True b) False
241) Mean of 38 values is 62, mean of 10 values is 57, find the mean of remaining 28 values
Answer
Using combined mean formula
n1 X 1  n2 X 2
Xc 
n1  n2
10  57  28  X 2
62 
38
X 2  63.786
242) A batsman scored following runs in ten T20 matches played in a calendar year.
35,15,51,28,0,3,35,20,45,30. The mode of his scores is:
a) 0 b) 35
c) 45 d) 3
243) A batsman scored following runs in ten T20 matches played in a calendar year.
35,15,51,28,0,3,85,20,15,30. The mode of his scores is:
a) 0 b) 15
c) 45 d) 3
244) Immaculate Enterprise Assesses performance of its staff on annual basis assigning
weightages to their performance scores. Following are the scores of two of its managers.
Personal Growth Diversified skills Appraising job results Salaries/bonus
Weight 80 80 64 75
Manager 1 200 170 50 20
Manager 2 60 80 170 140
Find the weighted arithmetic mean of mangers respectively?
a) 114.72 & 108.96 b) 108.96 & 114.72 c) 896.72 & 554.6 d) 554.6 & 896.72

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
245) Immaculate Enterprise Assesses performance of its staff on annual basis assigning
weightages to their performance scores. Following are the scores of two of its managers.
weightage Manager 1 Manager 2
Annual goals achieved 5 75 80
Client Satisfaction 5 75 80
Addition of new clients 3 40 35
Initiatives taken 2 20 15
The weightage arithmetic mean of Manager 1 and Manager 2 are:

a) 62.33 and 60.67 b) 52.50 and 51.5

c) 60.67 and 62.33 d) 52.50 each
246) In order to decide whether to use z-test or t-test, we need to consider:
a) Size of sample only b) Size of sample and population
variance
c) Either size of sample or population d) Either size of sample or population
variance standard deviation
247) Consider the following data set: 11,19,19,20,21,24,25,25,36
The lower quartile of the data is:
a) 20 b) 25
c) 19 d) 24
248) Consider the following data: 2,5,7,6,9
The coefficient of variance of the above data is:

a) 36.94% b) 39.92%
c) 41.57% d) 60.08%
249) Consider the following data:
X 0 1 2 3 4
F 8 7 3 1 1
The variance of the above data is:

a) 1.095 b) 1.2
c) 2.098 d) 4.4
250) A survey of 316 randomly selected patients in a hospital, produced the following data:
Hospital Stays 1-3 4-6 7-9 10-12 13-15 16-18 19-21 22-24 25-27
Frequency (patients) 06 12 110 103 42 25 13 04 01
The mean and Standard Deviation of the data is:

a) 11 and 4 b) 11 and 5
c) 11and 3 d) 12 and 2
251) A survey of 316 randomly selected patients in a hospital, produced the following data:
Hospital Stays 1-3 4-6 7-9 10-12 13-15 16-18 19-21 22-24 25-27
Frequency (patients) 125 115 91 59 70 25 07 02 01
The mean and Standard Deviation of the data is:

a) 24.96 and 7.72 b) 7.72 and 5.00

c) 7.72 and 24.96 d) 5.00 and 7.72

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
252) Age distribution of employees in Dynamic Corporation is as follows:
Age in Years 22-26 26-30 30-34 34-38 38-42 42-46 46-50
No. of Employees 6 10 8 5 7 6 3
Find the Standard Deviation:

a) 7.3708 b) 6.9397
c) 6.1397 d) 6.3708
253) Age distribution of employees in Dynamic Corporation is as follows:
Age in Years 22-26 26-30 30-34 34-38 38-42 42-46 46-50
No. of Employees 6 10 8 5 7 1 3
Find the Standard Deviation:

a) 7.1397 b) 6.9397
c) 6.7397 d) 6.5397
254) The following data shows the weight (in grams, round to the nearest gram) of 35
randomly picked oranges from a farm:
155 161 164 166 168 170 172 172 173 175
177 178 178 179 181 182 182 184 186 188
189 192 195 196 197 198 203 206 208 209
210 214 218 221 243
The mean and median of the above data is:

a) 186.50 and 182 b) 184.50 and 183

c) 188.29 and 184 d) None of the above
255) Team A scored an average of 205 runs in twenty-one-day international matches with a
standard deviation of 10 whereas Team B scored an average of 190 runs in same one-day
international matches with a standard deviation of 8. Which of the following is correct?
a) Team A is more consistent b) Team B is more consistent
c) Both teams are equally consistent d) Consistency cannot be determined from
the above information
256) Detail of leaves availed during 20X8 by top three students in a class is as follows:
Name of Student Taha Amir Zahid
Number of Leaves 7 5 3
Harmonic mean of the number of leaves taken by the above students is:

a) 5.00 b) 0.68
c) 0.20 d) 4.44
257) The mean and standard deviation of a sample of 100 values were found to be 104 and 4.7
respectively. Later, errors were discovered in three records enumerated below:
Sr. no. Correct values (as per original record) Amount taken (for computation)
58 151 115
72 78 87
89 98 89
The correct mean and standard deviation is:

a) 105.21 and 6.2 b) 107.5 and 7.2

c) 104.36 and 6.7 d) None of the above

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
258) Which of the following statements is correct as regards the mode of a grouped frequency
distribution?
a) Modal class can be identified by b) Mode is the mid-point of the Modal
preparing histogram class
c) Modal class is the Mode of grouped d) Both (a) and (b)
frequency distribution
259) Calculate mode of the following data:
15, 16, 20, 20, 20, 21, 21, 21, 21, 23, 23, 28, 28, 28, 28, 28, 29, 29, 29, 33

a) 21 b) 29
c) 21 and 28 d) 28
260) The scores obtained by six students in a set of examination are 80,40,50,72,45, and 81.
These scores are changed by 15%. What will be the effect of these changes on the mean and
standard deviation?
a) Mean and standard deviation will remain b) Mean will increase by 15% but standard
unchanged deviation will remain unchanged.
c) Mean and standard deviation both will d) Mean will remain unchanged but
increase by 15% standard deviation will increase by 15%
261) A sample survey conducted by an organisation obtained the following data on the
average number of items that persons in the various age group visit a physician each year:
Age Group Number of persons Mean number of visits
(years) In the sample
Less than 5 50 2.1
5—20 115 1.6
21—60 155 2.6
61 and over 90 3.5
Calculate the mean number of visits to the physician:

a) 2.456 b) 2.656
c) 2.896 d) None of the above
262) If the median is 49.21 and the two quartiles are 37.15 and 61.27, what can be said of the
skewness?
a) Distribution is positively skewed b) Distribution is negatively skewed
c) Distribution is symmetrical d) None of the above
263) Jamal got a rise of 12%, 20% and 18% in 2011, 2012 and 2013 respectively. The average
annual increase rate is:
a) 16.5% b) 16.62%
c) 17.1% d) 17.33%
264) Arman got a rise of 12%, 20% and 18% in 2011, 2012 and 2013 respectively. The
average annual increase rate is:
a) 16.5% b) 16.62%
c) 17.1% d) 17.33%
265) Detail of minor claims of an automobile insurance company is as follows:
Claims (Rs.) 1-1,000 1,001-2,000 2,001-3,000 3,001-4,000 4,001-5,000
No. of Claims 5 30 60 70 80

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 The standard deviation and variance for the insurance companies above data is:
a) 3,276 and 57 b) 1,093 and 33
c) 1,194,502 and 1,093 d) 1,093 and 1,194,502
266) Which of the following statements as regards to variance is/are correct?
(i) It is always smaller than the standard deviation
(ii) It can never be negative.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
267) Which of the following statements as regards to variance is/are correct?
(i) It can never be smaller than the standard deviation
(ii) It can never be zero.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
268) If in a frequency distribution, mode<median<mean then the frequency distribution is
a) Symmetrical around the median b) Symmetrical around the mean
c) Skewed to left (negatively skewed) d) Skewed to right (positively skewed)
269) If a frequency distribution Skewed to left (negatively skewed), then
a) Mean<median<mode b) Mean>median>mode
c) Mode>median>mean d) Arithmetic mean < geometric mean <
harmonic mean
270) If a frequency distribution is skewed to the left (negatively skewed), then:
a) Mean<median>mode b) Mean>median>mode
c) Mode>median> Mean d) Arithmetic mean < geometric mean <
harmonic mean
271) Following is the data related to number of persons per house in a village town:
No. of persons per house 1 2 3 4 5 6 7 8 9 10
No. of houses 25 114 120 90 50 41 20 12 3 2
The mean, median and modal number of persons per house are:

a) 3.67, 3, 3 b) 3.62, 4, 5
c) 3.67, 3, 5 d) 3.42, 3, 3
272) Which of the following statement is CORRECT about the median?
a) The upper quartile is also called the median
b) It is a measure of central tendency
c) It is middle value no matter the data is arranged in any order
3(n  1)
d) The position of the median can be found by using the expression
2
273)
Class boundary 10—12 12—14 14—16 16—18 18—20
Frequency 14 26 42 38 8
The geometric mean of the above data is:

a) 1.17 b) 14.53
c) 14.70 d) 14.87

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
274) Starting salaries of a group of fresh graduates are as follows:
45,000; 47,500; 52,000; 52,500; 52,500; 56,000; 56,500; 57,000
Find median from above data:

a) 52,000 b) 52,375
c) 52,500 d) 57,000
275) Starting salaries of a group of fresh graduates are as follows:
45,000; 47,500; 52,000; 52,500; 52,500; 56,000; 56,500; 57,000; 59,000; 60,000
Find median from above data:

a) 52,000 b) 52,500
c) 54,250 d) 56,000
276) Starting salaries of a group of fresh graduates are as follows:
63,000; 70,000; 68,000; 72,000; 78,000; 63,000; 65,000; 75,000;
Find median and mode from above data:

a) 63,000 and 70,000 b) 70,000 and 63,000

c) 71,000 and 63,000 d) 72,000 and 63,000
277) Which of the following statements is/are correct?
1. Range is a measure of dispersion.
2. Semi-inter Quartile Range measure of dispersion
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
278) Which of the following statements is/are correct?
I. Semi-inter quartile Range is a measure of dispersion.
II. Percentile is a measure of Dispersion
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
279) Which of the following statements is/are correct?
I. Range is a measure of dispersion.
II. Percentile is a measure of Dispersion
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
280) Which of the following statement is correct?
1. Quartile is a measure of dispersion.
2. Percentile is a measure of dispersion.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
281) Which of the statement as regard to variance is/are correct?
i) It can never be smaller than standard deviation
ii) It can never be zero
a) Both statements are not correct b) Both statements are correct
c) Only statement 1 is correct d) Only statement 2 is correct

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
9 Indices
282) ΣP0 Q o  70.5, ΣP1Q1  72, ΣP1Q o  60, ΣP0 Q1  73
Find the Fisher’s Price Index?
a. 107.65% b. 91.61% c. 109.15% d. 92.89%
283) The prices of commodity in different years is given below:
Years Prices
2010 49
2011 53
2012 58
2013 62
Determine the chain indices in the above case:

a) 100,105.5,118.40,112.80 b) 100,92.50,91.40,93.55
c) 100,108.16,109.43,106.90 d) 100,105.50,116.50,114.50
284) The price relatives of three commodities are given below:
Year A B C
2013 100 105 102
2014 106 100 100
The chain indices for each commodity are:

a) 94, 105 and 102 respectively b) 106, 95 and 98 respectively

c) 106, 105 and 102 respectively d) 106, 95 and 102 respectively
285) Following CPI has been computed taking 2008 as base year.
Year CPI
2008 104.98
2009 100.00
2010 116.19
2011 115.11
2012 132.01
Yearly inflation/ deflation for the above data shall be?

a) (4.98%), 5.83%, 7.75%, 12.80% b) 4.98%, 6.19%, 8.41%, 14.69%

c) (4.74%), 6.19%, 8.40%, 14.68% d) 4.74%, 6.19%, 8.40%, 14.68%
286) Consider following data
Ingredients Jan 20x2 (Base Period) Dec 20x5 (current period)
Price per kg Kg per unit Price per kg Kg per unit
A 3.00 10.00 3.95 11.00
B 9.00 3.00 9.90 2.50
C 1.00 2.00 0.95 3.00
D 2.00 2.00 4.50 5.00
Using Paasche Price index as at Dec 20x5, which of the following statement is correct?
a) Prices have risen by 8.73% between Jan 20x2 and Dec 20x5
b) Prices have risen by 16.79% between Jan 20x2 and Dec 20x5
c) Prices have risen by 27.14% between Jan 20x2 and Dec 20x5
d) Prices have risen by 36.57% between Jan 20x2 and Dec 20x5

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
287) Chemical Master Company (CMC) produces a special industrial chemical that is a blend
of four chemical ingredients. The prices at the beginning and the end of year of each material
and quantities required to make one unit of finished product are given below:
Jan 20X2 (Base Period) Dec 20X5 (Current Period)
Ingredients
Price per kg Kg per unit Price per kg Kg per unit
A 2.50 10.00 3.95 11.00
B 8.75 3.00 9.90 2.50
C 0.99 2.00 0.95 3.00
D 4.00 2.00 4.50 5.00
Using Laspeyre price index as at Dec 20X5, which of the following statement is correct?
a) Prices have risen by 30.82% between Jan b) Prices have risen by 23.56% between
20X2 and Dec 20X5 Jan 20X2 and Dec 20X5
c) Prices have risen by 22.67% between Jan d) Prices have risen by 29.31% between
20X2 and Dec 20X5 Jan 20X2 and Dec 20X5
288) Chemical Master Company (CMC) produces a special industrial chemical that is a blend
of four chemical ingredients. The prices at the beginning and the end of year of each material
and quantities required to make one unit of finished product are given below:
Jan 20X2 (Base Period) Dec 20X5 (Current Period)
Ingredients
Price per kg Kg per unit Price per kg Kg per unit
A 3.00 10.00 3.95 11.00
B 9.00 3.00 9.90 2.50
C 1.00 2.00 0.95 3.00
D 2.00 2.00 4.50 5.00
Using Laspeyre price index as at Dec 20X5, which of the following statement is correct?
a) Prices have risen by 30.82% between Jan b) Prices have risen by 23.56% between
20X2 and Dec 20X5 Jan 20X2 and Dec 20X5
c) Prices have risen by 22.67% between Jan d) Prices have risen by 29.31% between
20X2 and Dec 20X5 Jan 20X2 and Dec 20X5
289) Which of the following statements is correct about Laspeyre price index?
a) It fails to account for the fact that people will buy less of those items which have risen in
price
b) The denominator in the Laspeyre price index has to be recalculated every year to take
account of the most recent quantities consumed.
c) It is based on most recent quantities purchased.
d) It tends to understate inflation
290) Which of the following is correct about Laspeyre price index?
a) It has a focus which is biased to the cheaper items bought by consumers as a result of
inflation.
b) The denominator in the Laspeyre price index has to be recalculated every year to take
account of the most recent quantities consumed.
c) It is based on quantities bought in the base year
d) It tends to understate inflation
291) Which of the following statements about Laspeyre’s Price Index is/are correct?
(i) It tends to overstate inflation.
(ii) The denominator does change from year to year.
a) Only statement 1 is correct b) Only statement 2 is correct

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 c) Both statements are correct d) None of the above are correct
292) Which of the following statements about Laspeyre’s Price Index is/are correct?
(i) It tends to overstate inflation.
(ii) The denominator does not change from year to year.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
293) Which of the following is correct about Laspeyre price index?
a) It has a focus which is biased to the cheaper items bought by consumers as a result of
inflation.
b) The denominator in the Laspeyre price index has to be recalculated every year to take
account of the most recent quantities consumed.
c) It is based on the most recent quantities purchased
d) It tends to overstate inflation
294) Which of the following is correct about Laspeyre price index?
a) It has a focus which is biased to the cheaper items bought by consumers as a result of
inflation.
b) The denominator in the Laspeyre price index does not change from year to year.
c) It is based on the most recent quantities purchased
d) It tends to understate inflation
295) Which of the following is correct about Paasche index?
a) It fails to account for the fact that people will buy less of those items which have risen in
prices.
b) The denominator in the Paasche price index does not change from year to year.
c) It is based on the most recent quantities purchased
d) It tends to overstate inflation
296) Compute Laspeyres Price Index for the following data using 2002 as base:
Ingredients Price in 2002 Price in 2007 Quantity in 2002
A 140 220 40
B 120 180 25
C 80 110 60
a) 147.21 b) 148.51
c) 149.50 d) 146.50
297) Which of the following statement is/are correct?
(i) In Laspeyre price index, the denominator does not change from year to year.
(ii) In Laspeyre price index, the denominator has to be recalculated every year to take
account of the most recent quantities consumed
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
298) Which of the following statement is/are correct?
(i) In Laspeyre price index, the denominator does change from year to year.
(ii) In Paasche’s price index, the denominator has to be recalculated every year to take
account of the most recent quantities consumed
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
299) Which of the following statement is/are correct?
(i) In Laspeyre price index, the denominator does not change from year to year.
(ii) In Paasche’s price index, the denominator has to be recalculated every year to
take account of the most recent quantities consumed
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
300) Which of the following statement is/are correct?
(i) In Laspeyre price index, the denominator does not change from year to year.
(ii) Laspeyre price index is used more than the Paasche price index in practice
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
301) The index that uses quantities of base period as weights, is known as:
a) Laspeyre’s index b) Paasche’s index
c) Fisher’s index d) Both (a) and (b)
302) Paasche price index fails to account for the fact that people will buy less of those items
which have risen in price.
c) True d) False
303) The prices of commodity in different years are given below:
Year Prices
2010 49
2011 53
2012 58
2013 62
The chain indices in the above case would be:

a) 100,92.50,91.40,93.55 b) 100, 108.16, 109.43, 106.90

c) 100, 105.50, 118.40, 112.80 d) 100, 105.50, 116.50, 114.50
304) The price of a juicer machine during past five years is as follows:
Year Price (Rs.)
20X7 3,700
20X8 4,800
20X9 4,500
20Y0 4,500
20Y1 5,300
Keeping 20X9 as base year, simple index numbers relative to price for the given period would be:
a) 100, 121.62, 129.73, 135.14, 143.24 b) 121.62, 100, 93.75, 90, 84.91
c) 100, 82.22, 77.08, 74, 69.81 d) 82.22, 106.67, 100, 100, 117.78
305) The price of a juicer machine during past five years is as follows:
Year Price (Rs.)
20X7 3,700
20X8 4,500
20X9 4,800
20Y0 5,000

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 20Y1 5,300
Keeping 20X8 as base year, simple index numbers relative to price for the given periodwould be:
a) 100, 121.62, 129.73, 135.14, 143.24 b) 121.62, 100, 93.75, 90, 84.91
c) 100, 82.22, 77.08, 74, 69.81 d) 82.22, 100, 106.67, 111.11, 117.78
306) The price of a Juicer Machine during past five years is as follows:
Year Price (Rs.)
20X7 3,700
20X8 4,500
20X9 4,800
20Y0 5,000
20Y1 5,300
Keeping 20X7 as base year, simple index numbers relative to price for the given period would be:

a) 100, 121.62, 129.73, 135.14, 143.24 b) 121.62, 100, 93.75, 90, 84.91
c) 100, 82.22, 77.08, 74, 69.81 d) 82.22, 100, 106.67, 111.11, 117.78
307) Consumer Price index of a country in 2018 is 148 it increases in 2019 by 10%, in 2020 it
decreases by 10%, then again increases by 10% in 2021 then again decreases by 10% in
2022. Find index of 2022.
a) 148 b) 149
c) 145 d) 154

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
10 Correlation and regression
308) Which of the following statement is /are correct about correlation coefficient?
1. It is always from 0 to +1
2. It is always from 0 to -1
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
309) Which of the following is true about regression lines?
1. It is used to obtain line of best fit between two variables.
2. We can calculate fixed cost from it but not variable cost.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
310) When correlation coefficient is closer to one then:
a) No correlation b) High correlation
c) Moderate correlation d) Linear correlation
311) When on scatter diagram all points cluster around a single point is called:
a) No correlation b) High correlation
c) Moderate correlation d) Linear correlation
312) Desi Restaurant collected the following data about advertising and sales for five months:
Advertising Expense (Rs. 000) 10 40 20 35 50
Sales (Rs. 000) 125 535 180 415 560
Equation of a line of best fit for the above data will be:

a) Y= - 17.06+12.26x b) Y=17.06-12.26x
c) Y=-17.06x+12.26 d) Y=17.06x-12.26
313) Which of the following is correct?
a) If there is a strong relationship between two variables, the points on the scatter diagram
concentrated around a curve
b) Linear regression analysis is used to calculate values of “a” and “b” in the linear cost
equation
c) The standard regression equation is y= a – bx
d) Both (a) and (b)
314) Which of the following is correct?
a) If there is a strong relationship between two variables, the points on the scatter diagram
would be concentrated around a curve
b) Linear regression analysis can be used to estimate fixed costs and variable cost per unit from
historical total cost and production data.
c) The standard regression equation is y= a – bx
d) Both (a) and (b)
315) Which of the following is correct?
a) If there is a strong relationship between two variables, the points on the scatter diagram
would be concentrated around a curve
b) The standard regression equation is y= a – bx
c) Scatter diagram leads to correct conclusions even if there are few data points

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 d) Both (a) and (b)
316) Which of the following statements about scatter diagram is/are correct?
(i) It is important to establish which variable is independent before plotting
(ii) It might indicate a relationship where there is none
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
317) Which of the following statements about scatter diagram is/are correct?
(i) It is least important to establish which variable is independent
(ii) It might indicate a relationship where there is none.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
318) Which of the following statements about scatter diagram is/are correct?
(i) It leads to correct conclusion even if there are only few data points.
(ii) It might indicate a relationship where there is none.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
319) Which of the following statements is correct as regards scatter diagrams?
a) It is least important to establish which b) It leads to correct conclusions even if
variable is independent before plotting there are only few data points.
the scatter diagram
c) It can show relationship between more d) It may indicate a relationship where
than two variables there is none
320) Which of the following statements is correct as regards scatter diagrams?
a) It can show relationship between more b) It leads to correct conclusions even if
than two variables there are only few data points.
c) It is important to establish which d) Both (b) and (c)
variable is independent before plotting
the scatter diagram
321) Which of the following statement is/are correct where Regression is used?
(i) It is very important in accounting and other business operations
(ii) It is widely used in economics & business
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
322) Which of the following statement is/are correct where Regression is used?
(i) It tells fixed cost but not variable cost per unit.
(ii) It shows the extent of relationship between two variables
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
323) A medical research company has developed the following equation for regression line of
y on x (line of best fit) for a particular age group y= 6.93 +0.38x where x represent height in
centimeters and y represents weight in kilogram. Using above equation, we can say that
a) For each centimetre increase in height, weight will decrease by 0.38 kilogram
b) For each centimetre increase in height, weight will increase by 0.38 kilogram

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 c) For each centimetre increase in height, weight will increase by 6.55 kilogram
d) For each centimetre increase in height, weight will decrease by 6.55 kilogram

324) Consider following data

Towns Bee Cee Dee Gee Jay Kay Pee Tee
Police strength 140 130 220 150 140 150 180 160
No. of crimes per Month 95 110 80 75 90 120 100 110
The equation for regression line of y on x (line of best fit) for the above data is:
Y=129.25-0.2x
Using the above regression equation, which of the following statement is correct?
a) Police of Bee town is more efficient than police of Cee town
b) Police of Dee town is more efficient than police of Gee town
c) Police of Kay town is more efficient than police of Pee town
d) Both (a) and (b)

325) The Citizen Police Liaison Committee of Port City has gathered following information
from the various towns of the city:
Towns East West South North Central Costal Upper Lower
Police strength 120 150 130 125 156 150 130 160
No. of crimes per Month 105 90 108 108 155 180 130 125
The equation for regression line of y on x (line of best fit) for the above data is:
a) Y=31.825+1.123x b) Y=3.840+0.866x
c) Y=110.533+0.237x d) Y=3.840+0.237x
326) The Citizen Police Liaison Committee of Utopia City has gathered following information
from the various towns of the city:
Towns Bee Cee Dee Gee Jay Kay Pee Tee
Police strength 120 150 230 235 156 150 130 160
No. of crimes per Month 95 110 90 55 90 180 130 110
The equation for regression line of y on x (line of best fit) for the above data is:
Y=185.031 – 0.466x
Using the above regression equation, which of the following statement is correct?
a) Police of Cee town is more efficient than police of Bee town
b) Police of Dee town is more efficient than police of Gee town
c) Police of Kay town is more efficient than police of Pee town
d) Police of Jay town is more efficient than police of Tee town

327) If X  2000, Y  1020, X 2  10,000, Y 2  750, XY  15,000 and n  100

The line of regression of Y on X is:
a) 5.6+0.17x b) 6.6+0.18x
c) 6.6+0.15x d) 9.6+0.18x

328) If X  1,239, Y  79, X  568,925, Y  293, XY  17,233 and n  100

2 2

Find line y on x and x on y and their point of intersection

a) b)
c) d)

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
329) If X  173, Y  613, XY  11,965, X 2  4,119, and n  10 , then equation for
regression line of y on x (line of best fit) would be:
a) Y=40.402+20.898x b) Y=-61.30+20.898x
c) Y=40.402+1.208x d) Could not be calculated as value of
Y 2 is not given
330) If X  65, Y  315, XY  1985, X 2  685, and n  5 . Then equation for regression line y
on x?
a) Y=108.47+13.19x b) Y= – 108.47 – 13.19x
c) Y= – 108.47+13.19x d) Y=108.47–13.19x
331) If X  173, Y  613, XY  11,965, X 2  4,119, and n  10 , then equation for
regression line of y on x (line of best fit) would be:
a) Y=40.40+20.90x b) Y=-61.30+20.90x
c) Y=40.40+1.21x d) Could not be calculated as value of
Y 2 is not given

332) If X  58, Y  313, XY  3,015, X  594, and n  6

2
then the equation for
regression line of y on x (line of best fit) would be:
a) X=-0.32+55.26y b) Y=55.26+0.32x
c) Y=0.32-55.26x d) Y=55.26-0.32x
333) Which of the following statements as regards to the value of the correlation coefficient
is/are correct?
(i) The coefficient of determination is the square of the correlation coefficient
(ii) The value of the coefficient of determination must always be in the range 0 to +1.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
334) Find the coefficient of correlation between x and y if:
Regression line of x on y is: 5x-4y+2=0 and
Regression line of y on x is: x-5y+3=0
a) 0.4 b) -0.4
c) ±0.4 d) ±0.16
335) If a = -12.57 and b = 0.35 then equation for regression line of y on x (line of best fit)
would be:
a) Y=-0.35+12.57x b) Y=0.35-12.57x
c) Y=12.57- 0.35x d) Y= -12.57+0.35x
336) If the equation for regression line of y on x (line of best fit) is y=16 - 1.5x, then by
increasing every 1-unit of x the value of y would:
a) Decrease by 16 units b) Decrease by 14.5 units
c) Decrease by 1.5 units d) Increase by 14.5 units
337) If the equation for regression line of y on x (line of best fit) is y=32+0.5x, then for every
unit increase in x, y would:
a) Increase by 32 units b) increase by 16 units
c) increase by 48 units d) Increase by 0.5 units

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
338) What will be the coefficient of correlation for a sample of 20 pairs of observations, given
that:
X  2, Y  8, X 2  180, Y 2  1424 and XY  404

a) 0.90 b) 0.70
c) 0.80 d) None of these
339) If the value of coefficient of determination i.e r2=0.64, it means that:
a) 80% of variations in the value of y are b) 64% of variations in the value of y are
explained by variations in the value of x explained by variations in the value of
x
c) 36% of variations in the value of y are d) 20% of variations in the value of y are
explained by variations in the value of x explained by variations in the value of x
340) If the coefficient of determination is a positive value, then the coefficient of correlation:
a) Must be positive b) Must be negative
c) Must be zero d) Can be positive as well as negative
341) Which of the following statements about scatter diagram is/are correct?
(i) It is least important to establish which variable is independent
(ii) It leads to correct conclusion even if there are only few data points.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
342) Which of the following statements about scatter diagram is/are correct?
(i) Shows visual impression (relation) between variables.
(ii) It might indicate a relationship where there is none.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
343) There is a perfect positive correlation when
a) All the data points lie on a scatter b) all the data points lie in an exact
diagram in a discrete form straight line and a linear relationship
exists between the two variables
c) All the data points lie in an exact straight d) None of the above
line but relationship ,may or may not be
linear
344) Perfect positive correlation is denoted by value:
a) 1 b) 0
c) Between 0.90 and 1.0 d) 1 or -1
345) Value of r=0, indicates:
a) Perfect positive correlation b) Perfect negative correlation
c) No correlation d) None of the above
346) If 25% of variations in the value of y are explained by variations in the value of x then
coefficient of correlation is:
a) 0.25 b) 0.75
c) 0.50 or -0.50 d) Either 0.25 or – 0.25

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347) If 49% of variations in the value of y are explained by variations in the value of x then
coefficient of correlation is:
a) 0.51 b) 0.70
c) 0.50 or -0.50 d) Either 0.49 or – 0.49
348) If the value of r2 is 0.25, it means that: (01 mark)
a) 75% of the variation in the value of y is explained by variation in the value of x
b) 50% of the variation in the value of y is explained by variation in the value of x
c) 25% of the variation in the value of y is explained by variation in the value of x
d) 0.25% of the variation in the value of y is explained by variation in the value of x
349) If covariance(x,y)=62, standard deviation (x) = 16 and standard deviation (y)=7, “r” will
be equal to:
a) 0.6435 b) 0.5536
c) 0.6235 d) 0.5235
350) If all the points on scatter diagram lies on the regression line, then coefficient of
correlation is?
a) 0 b) 1
c) -1 d) 1 or -1
351) If regression coefficient of y on x is 1.44 and the coefficient of correlation between x and
y is 0.6, the regression coefficient of x on y will be
a) 0.84 b) 2.4
c) 0.25 d) 4
352) Find out the regression coefficient of y on x if regression coefficient of x on y is 0.25 and
coefficient of correlation between x and y is 0.6:
a) 1.24 b) 1.44
c) 1.96 d) 2.02
353) The average runs scored by seven leading test cricketers during last calendar year are
given below:
Average runs scored in 1st innings (x) 46 73 68 79 49 43 81
Average runs scored in 2nd innings (y) 31 55 65 62 85 36 53
The spearman’s rank correlation coefficient for the runs scored in first and second innings is:

a) 0.7143 b) 0.1190
c) 0.2857 d) 0.8810
354) Find rank correlation of the following data
1 3 3 5 4 4
1 2 3 4 5 6

a) b)
c) d)

355) ( x  x)( y  y )  954 and standard deviation of x is 21.5 and standard deviation of y is 10.61
r=0.524 then find n=?
a) 20 b) 7
c) 9 d) 8

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356) Which of the following is correct?
a) The coefficient of determination is the b) The coefficient of coefficient is the
square root of the correlation coefficient. square of the correlation of
determination.
c) The coefficient of correlation explains the d) The coefficient of determination
variations in the value of y by variations explains how much variability of one
in the value of x. factor can be caused by relationship
to another related factor
357) Which of the following statements regarding regression is correct?
a) If there is a weak relationship between b) In linear regression, both variables are
two variables, the points on the scatter dependent to each other
diagram would be concentrated around a
curve
c) The standard regression equation is Y=a- d) In linear regression, one variable is
bx considered to be an explanatory
variable, and the other is considered
to be a dependent variable
358) Which of the following statements regarding regression is correct?
a) If there is a weak relationship between b) If the curve of regression is a straight
two variables, the points on the scatter line, it is described as a linear
diagram would be concentrated around a regression line.
curve
c) The standard regression equation is Y=a- d) In linear regression, both variables are
bx dependent to each other
359) The correlation between height and weight for adults is +0.90. it depicts height on
account of variation in weight is:
a) 90% b) 45%
c) 10% d) 81%
360) Following equations are given
X+2Y+5=0
X+3Y–10=0
Find coefficient of correlation
a) 0.8165 b) – 0.8165
c) 1.2247 d) -1.2247
361) From following information given, find coefficient of correlation.
X 3 5 8 11 9
Y 1 0 4 0 1

a) r= 0.038 b) r= 0.082
c) r=0.018 d) r= none of these
362) Which of the following is correct about coefficient of determination?
a) It ranges from 0 to -1 b) It is Square root of r
c) It ranges from 0 to +1 d) All of these
363) Find the coefficient of correlation between x and y if:
Regression line of x on y is: 5x-4y+2=0 and

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 Regression line of y on x is: x-5y+3=0
a) 0.4 b) -0.4
c) ±0.4 d) ±0.16
364) If r falls between 0.9 and 1.0 then which of the following is correct
a) There is strong correlation b) There is no correlation
c) There is perfect correlation d) None of these

365) X  6, Y  10, XY  293, X 2  266, n  6, Y 2  706

Find coefficient of correlation
a) 0.9203 b) –0.9203
c) –0.2903 d) 0.2903

366) X  6, Y  10, XY  293, X 2  266, n  6, Y 2  706

Find coefficient of correlation
a) 0.9203 b) –0.9203
c) –0.2903 d) 0.2903
367) Y = 1.96x + 15 (y on x), X = 0.45y + 7.16 (X on Y). Find Co-efficient of determination.
a) 0.94 b) 0.9983
c) 0.88 d) 0.5569
368) If the Co-efficient of determination is equal to 1, then correlation Co-efficient is:
a) Must be equal to 1 b) Any value between – 1 and + 1
c) Either – 1 or + 1 d) Must be – 1
369) In regression, the sum of the residuals is always:
a) 0 b) >0
c) <0 d) All of these
370) For 9 observations on supply (x) and price (y), following data was obtained
(Y  127 )  12, (Y  127 ) 2  1006 ( X  90)  25, ( X  90) 2  301 ( X  90)(Y  127 )  469
The estimated value of supply when the price is Rs 125/- comes to be:

a) 87.79 b) 78.79
c) 79.87 d) 79.78
371) if the coefficient of correlation between x and y is -0.75 the SD of y is 5 and
( x  x)( y  y )  15 . The value of SD of x would be:
a) 4 b) 16
c) 5 d) 6
372) For r2 = 0.6 the explained variation in dependent variable due to independent variable is:
a) 0.6 b) 0.4
c) 0.36 d) 0.16
373) If the regression line is a perfect estimator of the dependent variable, then which of the
following is false.
a) Co – efficient of determination is one b) Co – efficient of correlation is zero
c) All the data points fall on regression line d) None of these

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374) There is a perfect positive correlation when
a) All the data points lie on a scatter b) all the data points lie in an exact
diagram in a discrete form straight line and a linear relationship
exists between the two variables
c) All the data points lie in an exact straight d) None of the above
line but relationship ,may or may not be
linear
375) Which of the following statements is correct as regards scatter diagrams?
a) It is least important to establish which b) It leads to correct conclusions even if
variable is independent before plotting there are only few data points.
the scatter diagram
c) It can show relationship between more d) It may indicate a relationship where
than two variables there is none
376) Which of the following statements is correct as regards scatter diagrams?
a) It can show relationship between more b) It leads to correct conclusions even if
than two variables there are only few data points.
c) It is important to establish which d) Both (b) and (c)
variable is independent before plotting
the scatter diagram
377) Which of the following is correct?
a) If there is a strong relationship between two variables, the points on the scatter diagram
concentrated around a curve
b) Linear regression analysis is used to calculate values of “a” and “b” in the linear cost
equation
c) The standard regression equation is y= a – bx
d) Both (a) and (b)
378) Which of the following is correct? (01)
a) If there is a strong relationship between two variables, the points on the scatter diagram
would be concentrated around a curve
b) Linear regression analysis can be used to estimate fixed costs and variable cost per unit from
historical total cost and production data.
c) The standard regression equation is y= a – bx
d) Both (a) and (b)
379) Which of the following statements is/are correct?
(i) There is strong relationship between two variables, the points on the scatter diagram would be
concentrated around a curve.
(ii) Linear regression analysis can be used to estimate fixed cost and variable cost per unit from
historical totalcost and production data.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
380) Which of the following is correct? (01)
a) If there is a strong relationship between two variables, the points on the scatter diagram
would be concentrated around a curve
b) The standard regression equation is y= a – bx
c) Scatter diagram leads to correct conclusions even if there are few data points

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 d) Both (a) and (b)
381) Which two of the following are correct?
a) The value of coefficient of b) If coefficient of correlation i.e r=0, it
determination shows how much means there is a perfect correlation
variation in the value of y is explained between x and y
by variation in the value of x
c) The value of coefficient of determination d) The perfect negative or positive
is in range -1 to +1 coefficient of correlation cannot be
achieved in real life scenario.
382) Which of the following statement as regard to the value of the correlation coefficient
is/are correct?
i. It always greater than zero
ii. It always lies in the range of -1 to +1
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
383) Which of the following statements about scatter diagram is/are correct?
(i) It leads to more accurate results if the collected data is atypical
(ii) we can draw it for two or more variables
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct.
384) Which of the following statement regarding scatter diagram is/are correct?
I. It leads to more accurate results if the collected data is atypical
II. It might indicate a relationship where there is none
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
385) Which of the following statements about scatter diagram is/are correct?
1. Shows visual relation between variables
2. It might indicate a relationship where there is none
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
11 Probability concepts
386) A wallet contains 65 notes of Rs 1,000 and 35 notes of Rs. 500 Four notes are selected at
random with replacement. Find the probability that sum of notes are Rs. 3,000?
a) 0.3156 b) 0.6844 c) 0.3105 d) 0.6895
387) A coin is rolled three times, find the probability that exactly one head will appear.
a) 0.375 b) 0.625 c) 0.357 d) 0.875
388) If there are 5 Civic cars & 8 city cars. If two cars are selected, what is the probability that
both are Civics?
a) 0.1282 b) 0.8718
c) 5/13 d) 0.3571
389) There are 30 students in PRC class consisting of 18 boys and 12 girls. 2 boys and 2 girls
are selected at random from this class, you are required to find how many different
combinations are formed?
a) 27405 b) 10,098
c) 40392 d) 657720
390) The value of 0! is equal to _____ and 1! is equal to _____.
391) In how many different ways can the letters of the word 'LEADING’ be arranged in such a
way that the vowels always come together?
a) 120 b) 360
c) 720 d) 5040
Answer
The word 'LEADING' has 7 different letters.
When the vowels EAI are always together, they can be supposed to form one letter.
Then, we have to arrange the letters LNDG (EAI).
Now, 5 (4 + 1 = 5) letters can be arranged in 5! = 120 ways.
The vowels (EAI) can be arranged among themselves in 3! = 6 ways.
Required number of ways = (120 x 6) = 720.
392) The events A and B are mutually exclusive if P(A)=0.5 and P(B)=0.4 then P (A or B) is:
a) 0.1 b) 0.54
c) 0.2 d) 0.9
393) A 4-digit pin code can begin with any number except 0 ,1,2. If repetition of the same digit
is allowed the probability that the pin will begin with 3 is?
a) 1/7 b) 1/9
c) 1/8 d) 1/49
394) A 4-digit pin code can begin with any number except 0,1 & 2. If repetition of the same
digit is allowed, the probability of a pin code begin with 5 and end with a 3 is?
a) 1/70 b) 1/90
c) 1/80 d) 1/49
395) If a consignment of 25 auto batteries 3 are defective. If a random sample of 5 batteries is
selected the probability of having exactly 2 defective batteries is:
a) 0.053 b) 0.035
c) 0.12 d) 0.087

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
396) The table below describes the smoking habits of a group of asthma sufferers:
Gender Non smokers Light smokers Heavy Smokers Total
Men 353 42 49 444
Women 352 32 40 424
Total 705 74 89 868
If a person is randomly selected from the group, the probability that selected person is either
Women or Light Smoker Male, is:
a) 0.5737 b) 0.5369
c) 0.5115 d) 0.0373
397) How many 3-digit numbers can be formed from the digits 1, 3, 4, 5, 7 and 9, which are
divisible by 2 and none of the digits is repeated?
a) 6 b) 20
c) 30 d) 120
Answer
Since each desired number is divisible by 2, so we must have 4 at the unit place. So, there is 1
way of doing it.
The tens place can now be filled by any of the remaining 5 digits (1, 3, 5, 7, 9). So, there are 5
ways of filling the tens place.
The hundreds place can now be filled by any of the remaining 4 digits. So, there are 4 ways of
filling it.
Required number of numbers = (1 x 5 x 4) = 20.
398) A 5digit Pin Code can begin with any number except 0 and 1. If repetition of the same
digit is allowed then probability of a Pin Code beginning with a 7 and ending with an 8 is
a) 1/10 b) 1/100
c) 1/90 d) 1/80
399) How many 3-digit numbers can be formed from the digits 2, 3, 5, 6, 7,8 and 9, which are
divisible by 5 and none of the digits is repeated?
a) 12 b) 30
c) 120 d) 720
400) How many 3-digit numbers can be formed from the digits 2, 3, 5, 6, 7 and 9, which are
divisible by 5 and none of the digits is repeated?
a) 6 b) 20
c) 120 d) 360
Answer
Since each desired number is divisible by 5, so we must have 5 at the unit place. So, there is 1
way of doing it.
The tens place can now be filled by any of the remaining 5 digits (2, 3, 6, 7, 9). So, there are 5
ways of filling the tens place.
The hundreds place can now be filled by any of the remaining 4 digits. So, there are 4 ways of
filling it.
Required number of numbers = (1 x 5 x 4) = 20.
401) Find the probability of making a 5-digit number from the digits 2, 3, 4, 7 and 8, in such a
way that 7 is the first number and 8 is the last number?
a) 1/20 b) 20%
c) 120 d) 360

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402) A 4-digit number can begin with any number except 0 and 9. What is the probability that
it will start with 5 and end at 3?
a) 1/72 b) 20%
c) 1/20 d) 8/360
403) A 4-digit Pin code can begin with any number except 0 and 9. If repetition of the same
digit is allowed, , the probability of Pin code beginning with 5 and ending at 3 is
a) 1/10 b) 1/100
c) 1/90 d) 1/80
404) A 5-digit pin code can begin with any number except 0 and 9. If repetition of the same
digit is allowed, the probability of Pin code beginning with 3 and ending with a 5 is:
a) 1/10 b) 1/100
c) 1/90 d) 1/80
405) Following numbers are given 1, 2, 5, 6, 8, 9 you are required to make a 3-digit number
which is divisible by 5. How many arrangements are possible?
Answer:
A number can only be divisible by 5 if the last digit is 5. So last digit is fix but 10th place and
100th place digit can be any from remaining 5 digits.
Answer: 4 x 5 x 1 = 20 ways
406) There are 5 red and 7 black cars for sale at fast wheels. If 2 cars are sold, what is the
probability that both are red?
a) 0.6364 b) 0.1515 c) 0.3636 d) 0.4167
407) There are 5 red and 7 black cars for sale at fast wheels. If 2 cars are sold, what is the
probability that first is red & second is black?
a) 0.6364 b) 0.1515 c) 0.2651 d) 0.7349
408) There are 6 red and 9 black cars for sale at fast wheels. If 2 cars are sold, what is the
probability that first is red & second is black?
a) 0.6364 b) 0.1515
c) 0.7429 d) 0.2571
409) Three dices rolled together. The probability of rolling a 3 on atleast one of three dices is:
a) 0.3333 b) 0.3472
c) 0.4212 d) 0.5787
410) Three dices rolled together. The probability of rolling a 2 on atleast one of three dices is:
a) 0.3333 b) 0.3472
c) 0.4212 d) 0.5787
411) Three dices rolled together. The probability of rolling a 4,5,6 on each dice respectively is:
a) 1/216 b) 6/216
c) 3/216 d) None of these
412) Three dices rolled together. The probability of rolling a 4,5,6 on them is:
a) 1/216 b) 1/36
c) 3/216 d) None of these
413) Four dices are rolled together. The probability of rolling a 1,2,3,4 on them is:
a) 1/54 b) 1/27

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 c) 1/36 d) 1/216
414) If two dices are rolled then probability of appearing at least one six appear?
a) 0.598 b) 0.402 c) 0.694 d) 0.306
415) Two dice are rolled together. The probability of getting atleast one six is:
a) 2/36 b) 9/36
c) 11/36 d) 25/36
416) In a consignment of 25 auto-batteries, 3 are defective. If a random sample of 5 batteries is
selected, then probability of having exactly 2 defective batteries in the sample is:
a) 5.3% b) 3.5%
c) 12% d) 8.7%
417) In a consignment of 25 Bulbs, 3 are defective. If a random sample of 5 bulbs is selected,
then probability of having exactly 2 defective Bulbs in the sample is:
a) 5.3% b) 3.5%
c) 12% d) 8.7%
418) While checking out and from a departmental store, a customer passes through one out of
the 12 cash counters C1 to C12 with equal probability. After that his bill is verified by one of
the 3 verifying officers V1, V2 or V3 with equal probability and then he embarks on one of
the two elevators E1 or E2 and is twice as likely to embark on E2 as it is twice as large as E1.
What is the probability that a consumer will pass through C1, verified by either V1 or V3 and embark
on E2..
a) 17/12 b) 1/27
c) 1/36 d) 1/54
Answer
P(C1) x (V1 or V3) x (E2)
 1  1 1  2 
=    
 12  3 3  3 
419) In how many different ways can the letter of the word “BINOMIAL” be arranged in such
a way that the vowels always come together?
a) 120 b) 40320
c) 2880 d) 1440
420) Ali wishes to plant flowers in front of his house. His father has brought him a box
containing 3 tulips, 4 roses and 3 jasmines. If he selects five flowers at random, the
probability that 1 tulip, 2 roses and 2 jasmines are selected is:
a) 1/9 b) 2/27
c) 3/14 d) 3/28
421) If a coin is flipped three times, the possible sample will be:
a) HHH, HTT, HTH, TTT, HTT, THH, HHT, THT
b) HTT, THT, HTH, HHH, TTH, TTT
c) HHH, THT, HTH, HTT, THH, THT, TTH, TTT
d) HHH, TTT, THT, HTH, HHT, TTH, HTH
422) A coin is tossed 3 times find the probability that it lands on head exactly once is?
a) 0.125 b) 0.375
c) 0.5 d) 0.25

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423) A loaded coin is tossed 5 times and the probability of all head appear is 0.16807. what is
the probability of one head tossed once?
a) 0.7 b) 0.4
c) 0.3 d) 0.6
424) A wallet contains fifty Rs. 1,000 and fifty Rs. 500 currency notes. If four notes are drawn
from the wallet at random with replacement, the probability that the total amount drawn
would exactly be equal to Rs. 3,000 is:
a) 25.0% b) 37.5%
c) 50.0% d) 62.5%
425) A wallet contains sixty-five Rs. 1,000 and thirty-five Rs. 500 currency notes. If four notes
are drawn from the wallet at random with replacement, the probability that the total amount
drawn would exactly be equal to Rs. 3,000 is:
a) 31.05% b) 35.00%
c) 50.00% d) 65.00%
426) In a bakery, 3 cakes of fresh cream pineapple, 4 cakes of chocolate, 2 cakes of
buttercream strawberry and 1 cake without cream are available. If two customers purchase
one cake each, such that first cake is replaced before the sale of the second then, the
probability that both the cakes would be of chocolate flavour is:
a) 7/12 b) 2/15
c) 0.12 d) 0.16
427) In a bakery, 3 cakes of fresh cream pineapple, 4 cakes of chocolate, 2 cakes of
buttercream strawberry and 1 cake without cream are available. If two customers purchase
one cake each, such that first cake is replaced before the sale of the second then, the
probability of selling both the pineapple flavour cakes is:
a) 7/12 b) 2/15
c) 0.16 d) 0.09
428) A problem in statistics is given to three students A, B, C whose chances of solving are ½,
¾,1/4 respectively. What is the probability that problem will be solved?
a) 3/32 b) 29/32
c) 3/7 d) ½
Answer
Problem will be considered as solved if anyone or more of the students will solve it.
P (Problem solve) =P (A solve or B solve or C solve) =1-P (none solve)
P(A)=1/2

A B C
Solve the problem ½ ¾ ¼
Not solve 1/2 ¼ ¾
1 1 3 3 29
P( Solve)  1  P( A  B  C )  1     1  
2 4 4 32 32
Correct option is B

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429) If two dice are rolled, what is the probability that either the sum of the two will be seven
or at least one of the dice will show the number 5
a) 18/36 b) 6/36
c) 15/36 d) 12/36
430) The events A and B are mutually exclusive events and P(A) = 0.5 and P(B)= 0.4, then
P(A and B) is:
a) 0.9 b) 0.20
c) 0.54 d) 0.1
431) The events A and B are mutually exclusive. If P(A) = 0.5 and P(B) = 0.4, then P(A or B)
is:
a) 0.1 b) 0.54 c) 0.9 d) 0.2
432) A and B are two mutually exclusive events and P(A) = 0.4 and P(B) 0.3 Find P(AUB)
a) 0.58 b) 0.70 c) 0.4 d) 0.3
433) Following data is given
Goal 0 1 2 3 4 5 >5
P(X=x) 0.05 0.2 0.15 0.15 0.3 0.05 0.1
Find the probability that there would be total 5 goals in two matches
a) 0.17 b) 0.83
c) 0.84 d) 0.12
Answer
5 goals in 2 match can be scored in following order
(i) 0 goals in first match and 5 goals in second match 0.05*0.05=0.0025
(ii) 1 goals in first match and 4 goals in second match 0.2*0.3=0.06
(iii) 2 goals in first match and 3 goals in second match 0.15*0.15=0.0225
(iv) 3 goals in first match and 2 goals in second match 0.15*0.15=0.0225
(v) 4 goals in first match and 1 goals in second match 0.3*0.2=0.06
(vi) 5 goals in first match and 0 goals in second match 0.05*0.05=0.0025
Total probability is 0.17
434) A mobile service provider offers the following options to its customers
Call metering 5 sec 20 sec 30 sec 60 sec
Fixed monthly charges 0 with no free Rs 300 with 300 Rs 1,000 Rs for
minutes free Minutes 1,500 free Minutes
SMS bundle charges Rs 1 per SMS Rs 30 for 300 SMS Rs 100 for 10,000
bundle SMS bundle
GPRS package 0 with no GPRS Rs 300 Rs for 300 Rs 500 for 500 MB
MB download limit download limit
In how many ways can a customer select a service package?
a) 10 b) 12
c) 36 d) 108
435) A mobile service provider offers the following options to its customers
Call metering 1 Min 2 Min 3 Min 4 Min
Call package 300 Rs for 300 Min 400 Rs for 400 Min 500 Rs for 500 Min
GPS package 300 Rs for 300 MBs 400 Rs for 450 MBs 450 Rs for 500 MBs
In how many ways can a customer select a service package?
a) 36 b) 144 c) 16 d) none of these
Answer

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No of ways = call metering option x call package options x GPS package options
No of ways = 4x3x3=36
Correct option is A

436)
Call metering 1 Min 2 Min 3 Min 4 Min
Call package 300 Rs for 300 Min 400 Rs for 400 Min 500 Rs for 500 Min
GPS package 300 Rs for 300 MBs 400 Rs for 450 MBs 450 Rs for 500
MBs
SMS package 500 per month 750 per month 1000 per month
If a customer wants to choose one of these package, then find the number of ways available to him
a) 36 b) 108 c) 120 d) none of these
Answer
No of ways = call metering option x call package options x GPS package options
No of ways = 4x3x3x3=108
Correct option is B

437) Eight runners have equal chance of winning the race. What is the probability that a
person wins the bet if he selects top 3 runners in the connect order?
a. 5.61% b. 1/336 c. 1/112 d. None of these
438) There are 12 runners in marathon and all runners have equal chance of winning. What is
the probability that a person may win a bet on the race if he has to correctly select the top 3
runners and the order they finish in?
a) 1/1320 b) 1/1728
c) 3/1728 d) 1/12
Answer
Total outcomes = 12P3 = 1320
Probability = 1/1320

439) In a T20 cricket match between falcon club (FC) and eagle club (EC) the probability of
winning by FC is 0.4, in a series of 5 T20 matches, the probability that FC would win exactly
two matches, is:
a) 34.56% b) 65.44%
c) 66.33% d) 33.79%
440) A firm installed two machines U and V, on January 1, 2017. The probability that the
machines will break down during first year of operations is 0.2 and 0.1 for machines U and V
respectively. The probability that one of two machines will break down during the year is:
a) 0.02 b) 0.26
c) 0.28 d) Cannot be calculated
441) In a certain town, 70% of the households own a UPS, 30% own a generator and 20% own
both a UPS and generator. The population of households that own neither a UPS nor a
generator is:
a) 10% b) 20%
c) 30% d) 50%

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
442) In a certain town, 50% of the households own a cellular phone, 40% own a pager, and
20% own both a phone and pager. The proportion of households that own neither a cellular
phone nor a pager is:
a) 90% b) 70%
c) 10% d) 30%
443) In how many different ways can the letters of the word “CORRECT” be arranged
a) 210 b) 1260
c) 2520 d) 5040
Answer
No of ways = 7!/2!x2! = 1260
444) A bookcase contains 6 math books and 12 accounting books. If a student randomly
selects two books, then find the probability that both of them are math books or accounting
books
a) 0.0423 b) 0.5556
c) 0.5000 d) 0.5294
445) A local news channel has conducted an opinion poll for constructing more dams in the
country. The poll result indicates that 80% of the participating viewers support the idea, 10%
are against the idea and 10% are undecided. If a sample of 10 participating viewers is
selected at random, the probability that atleast 8 viewers will support the idea will be:
a) 0.2684 b) 0.3020
c) 0.3222 d) 0.6778
446) A bag contains 2 red, 3 green and 2 blue balls. Two balls are drawn at random. What is
the probability that none of the balls drawn is blue?
a) 0.4762 b) 0.1429
c) 0.1905 d) 0.4000
447) A bag contains 2 red, 3 green and 2 blue balls. Two balls are drawn at random. What is
the probability that one of the balls drawn is green?
a) 0.4286 b) 0.6857
c) 0.1143 d) 0.5714
448) There are 2 red balls, 2 green and 3 blue balls in a bag. It two balls are drawn at random.
What is the probability that none is blue?
a) 0.2857 b) 0.5875
c) 0.2458 d) 0.2485
449) If a dice is rolled 4 times, then probability of appearing 3 at least one time is?
a) 0.4823 b) 0.5177 c) 0.612 d) 0.388
450) In a certain town, 50% of the households own a cellular phone, 40% own a pager, and
20% own both a phone and pager. The proportion of households that own neither a cellular
phone nor a pager is_______.
451) an analysis of the frequency with which a football team scores foals in a match show that
probability of securing goals in match is as follows
Goals 0 1 2 3 4 5 More than 6
probability 0.10 0.25 0.20 0.15 0.20 0.05 0.05
The probability that the team will score a total of 5 goals in a two match series is

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 a) 0.17 b) 0.83 c) 0.82 d) 0.12
452) There are five red and seven black cars for sale at F wheels. If 2 cars are sold what is the
probability that both are red
a) 0.6364 b) 0.1515
c) 0.3636 d) 0.4167

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
12 Probability distributions
453) Normal distribution depends on:
1) Mean
2) Standard deviation
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
454) What is/are the parameter(s) of normal distribution?
a) Mean b) Standard deviation c) Both d) none
455) An IQ test is administered by a well-known testing center. The test has a mean scores of
100 and standard deviation of 15. If Ali’s z-score is -1.20, what was his score on the test?
a) 82 b) 100
c) 112 d) 118
456) Which of the following statement as regard to normal distribution is/are correct?
i. Both tails of the distribution approach and meet the horizontal axis at a finite but high value
ii. Lower Standard Deviation leads to a flatter curve
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
457) A national achievement test is administered annually to 3rd graders. The test has a mean
score of 100 and standard deviation of 15. If a particular students z-score is 1.20 what was
his score on the test?
a) 118 b) 87
c) 92 d) 82
458) The average number of traffic accidents on a certain section of highway is two per week.
Assuming that the number of accidents follow a poisson distribution. Find the probability of
3 accidents on this section of highway during two-week period.
a) 19.5% b) 28.9%
c) 23.8% d) 12.8%
459) If the sample mean of a data set is 15 and the sample standard deviation is 9 what percent
of the data would you expect to fall between 6 and 24 assuming that distribution is fairly
symmetric
a) 81.5% b) 68.3%
c) 95% d) 99.73%
460) A sample of 4 different calculators is randomly selected from a group containing 57
calculators out of which 36 are defective. The probability that all the selected calculators are
defective is:
a) 0.1400 b) 0.1491
c) 0.0184 d) 0
461) 8 people are selected at random from the group of 10 men and 11 women to form a
committee. The probability that at least 5 men would be selected on the committee is 0.1401
a) True b) False

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
462) If a student randomly guesses 20 multiple choice questions with four possible choices.
The probability that the student would get exactly four right answers is 46.23%.
c) True d) False
463) Which TWO of the following statements as regards the Normal Distribution are not
correct?
a) Area under the Curve represents b) Lower standard deviation leads to
probability and so totals to 1 Flatter curve
c) Both tails of the normal distribution d) It is described by its Mean and Standard
curve always meet the horizontal axis. deviation
464) The weights of bag of rice packed on a machine are normally distributed with mean
5.15kg and SD 0.05kg if a bag is picked at random probability that it weighs less than 5 kg
is:
a) 0.9987 b) 0.5013
c) 0.4987 d) 0.0013
465) Which of the following statements as regards the Normal Distribution is NOT correct?
a) Both tails of the distribution approach and meet the horizontal axis at a finite but high
value.
b) Higher standard deviation leads to a flatter curve
c) The area under the curve represents probability and so totals to 1.
d) It is described by its mean and standard deviation.
466) Which of the following statements as regards the Normal Distribution is correct? (01 m)
a) The area under the curve represents probability and so totals to 100%
b) The Flatter the curve, the higher the standard deviation
c) The Curve is obtained by Mean(µ) and standard deviation (σ)
d) All are correct
467) An unprepared student makes random guess for ten true-false questions on a quiz. The
probability of atleast one correct answer is:
a) 0.9990 b) 0.99
c) 0.9 d) 1
468) An unprepared student makes random guess for ten MCQs questions having 4 options, on
a quiz. The probability of atleast one correct answer is:
a) 0.9990 b) 0.99
c) 1 d) 0.9437
469) The weights of bags of rice packed on a machine are normally distributed with mean =
5.15 kg and standard deviation 0.05kg. If a bag is picked at random, find the probability that
it weighs less than 5 kg is?
a) 0.9987 b) 0.5013
c) 0.4987 d) 0.0013
470) The weights of bags of rice packed on a machine are randomly distributed with mean =
5.05 kg and standard deviation 0.02kg. if a bag is packed at random, the probability that it
weighs between 5 kg and 5.06 kg is:
a) 47.72% b) 68.53%
c) 34.13% d) 49.86%

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
471) The weights of bags of rice packed on a machine are randomly distributed with mean =
5.05 kg and standard deviation 0.02kg. if a bag is packed at random, the probability that it
weighs less than 5 kg is:
a) 0.62% b) 2.28%
c) 2.5% d) 49.38%
472) The weights of bags of rice packed on a machine are normally distributed with mean =
5.05 kg and standard deviation 0.025kg. If a bag is picked at random, find the probability that
it weighs less than 5.06 kg is?
a) 50.82% b) 1.64% c) 65.54% d) 47.72%
473) The weights of bags of rice packed on a machine are randomly distributed with mean =
5.05 kg and standard deviation 0.025kg. if a bag is packed at random, the probability that it
weighs between 5 kg and 5.06 kg is:
a) 15.54% b) 47.72%
c) 63.26% d) 0.2.28%
474) The weights of bags of rice packed on a machine are randomly distributed with mean =
5.05 kg and standard deviation 0.025kg. if a bag is packed at random, the probability that it
weighs less than 5kgs is:
a) 15.54% b) 47.72%
c) 63.26% d) 2.28%
475) If a dice is rolled 5 times, then probability of appearing 3 at least one time is?
a) 0.598 b) 0.402
c) 0.612 d) 0.388
476) The helpline of an ISP receives an average of four calls in every five minutes during peak
load hour. Assuming an appropriate Poisson distribution, what is the probability that three or
more calls will be received during a period of ten minutes?
a) 0.8488 b) 0.9576
c) 0.9862 d) 0.0424
477) Fantastic Five Football (FFC) team loses 7% of its matches in every session. The
probability that FFC will lose exactly one of its next five matches is?
a) 7% b) 26.18% c) 0.01% d) 73.82%
478) Historical data shows that Star Football Club (SFC) team loses 9% of its matches in
every session. The Probability that SFC will lose exactly one of its next five matches is:
a) 04.50% b) 09.00%
c) 08.50% d) 30.86%
479) PABX system of Nadia Travels receives an average of two calls in every three minutes.
Assuming poisson distribution, what is the probability that four or more calls will be received
during a period of 9 minutes?
a) 0.1512 b) 0.2851
c) 0.6667 d) 0.8488
480) PABX system of Nadia Travels receives an average of two calls in every three minutes.
Assuming poisson distribution, what is the probability that six or more calls will be received
during a period of 9 minutes?
a) 0.4457 b) 0.5543

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 c) 0.6063 d) 0.8488
481) You are given 7 true false questions and required to find the probability of at least 1 will
be correct?
a) 0.992 b) 0.008
c) 0.9375 d) 0.0625
482) In a test there are 20 questions, all questions are MCQs with 4 options one of which is
correct. 4 questions are selected at random from the questions, find the probability that all are
correct:
a) 18.97% b) 20.23%
c) 8.67% d) 33.75%
483) In a test there are 20 questions, all questions are MCQs with 4 options one of which is
correct. He solved all question haphazardly, find the probability that exactly 4 are correct:
a) 18.96% b) 19.86%
c) 16.98% d) 16.66%
484) A box contains 2 white balls, 3 black balls and 4 red balls. In how many ways balls be
drawn from the box, if at least one black ball is to be included in the draw:
a) 32 b) 48
c) 64 d) 96
485) A telephone operator receives on average 2 calls in 3 minutes. Find the probability of
receiving more than or equal to 4 calls in 9 minutes:
a) 0.5120 b) 0.8488
c) 0.5217 d) 0.4884
486) Ahmed received on average 4 calls in 5 minutes. Find the probability of receiving more
than 3 calls in 10 minutes:
a) 0.0286 b) 0.2682
c) 0.2862 d) 0.0862
487) During peak hours a center receives 4 calls per 30 minutes. What is the probability of
getting 3 or more calls in an hour?
a) 0.9862 b) 0.9682
c) 0.8692 d) 0.2689
488) A consignment of 12 refurbished CNG kits contain 4 defective kits. If 4 Kits are selected
at random then find the probability that at least 3 are defective
P(x>3) = P(x=3) + p(x=4)
4
C3 8 C1  4C3 8 C1 1
12

C4 15
489) A consignment of 12 refurbished CNG kits contain 4 defective kits. If 5 Kits are
randomly chosen for inspection, what is the probability that at least 3 of them are defective?
P(x>3) = P(x=3) + p(x=4)
4
C3 8 C 2  4C 4 8 C1 5
12

C5 33
a) 1/11 b) 2/33

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 c) 5/33 d) None of these
490) A committee is to be made of 4 members from a total of 13 people of which 5 from
Punjab, 2 from Baluchistan, 4 from Sindh and 2 from KPK, what is the probability that
committee contain none from Punjab?
a) 6.8% b) 0.7% c) 9.8% d) None of these
491) A committee is to be made of 5 members from a total of 12 people of which 5 from
Punjab, 2 from Baluchistan, 3 from Sindh and 2 from KPK, what is the probability that
committee contain 2 from Sindh and 1 each from others?
a) 6.8% b) 0.7% c) 9.8% d) None of these
492) Sadiq earned a total of 940 on a general knowledge test. The mean test score was 850
with a standard deviation of 100. What proportion of students had a higher score than Sadiq?
(assume that test scores are normally distributed)
a) 82% b) 18%
c) 10% d) 32%
493) Online booking system of food channel receives an average of two orders in every four
minutes. Assuming an approx. poisson distribution that five or more orders will be received
during a period of eight minutes.
a) 0.3712 b) 0.4679
c) 0.5321 d) 0.4679
494) FX food channel receives an average of six orders in every four minutes. Assuming an
approximate Poisson distribution that five or more orders will be received during a period of
four minutes
a) 0.2849 b) 0.7149 c) 0.44550 d) 0.5545

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
13 Sampling and sampling distributions
495) Which of the following statements is/are correct in regards the sampling distribution of
the mean?
1. The sampling distribution of the mean is not a normal distribution.
2. The standard deviation of the sampling distribution of the mean is the same as the standard
deviation of the population.
a) Only statement (1) is correct b) Only statement (2) is correct
c) Both statements are correct d) Both statements are not correct
496) From a given finite population, samples are drawn with replacement. If the sample size is
increased from 45 to 75. The standard error would:
a) Decrease by 22.54% b) Decrease by 21.625 c) Decrease by 29.09% d) Decrease by 75.28%
497) A sample of 100 employees of an entity had a mean weight of 170 pounds with a
standard deviation of 5 pound. Which of the following sample sizes will result in a
confidence interval of the mean ± 3 pound for this data at the 99% confidence interval?
a. 3 b. 280 c. 18 d. 19
498) Which of the following is true about random sample?

1. Where every member of the population has an unequal chance of being selected as a
member of the sample.
2. It can be cumbersome when sampling from an unusually large target population.
a) Only statement (1) is correct b) Only statement (2) is correct
c) Both statements are correct d) Both statements are not correct
499) Consider the following sample:
4.8, 5.8, 5.2, 4.6, 6.2
With 99% confidence level, the population mean is between?
a) 3.94 & 6.62 b) 5.92 & 6.08 c) 3.94 & 6.70 d) 5.22 & 6.08
500) If n=5, Calculate t-value for one tail at 99% confidence interval
a) 4.6041 b) 4.0328 c) 3.7470 d) 3.3650
501) For heterogeneous population which consist of homogenous group, which of the
following is most suitable?
a) Simple random sampling b) Stratified random sampling
c) Cluster Sampling d) None of these
502) Which of the following statement is/are correct?

1) Cluster sampling is extension to multistage sampling

2) Cluster sampling is similar to multistage sampling
a) Only statement (1) is correct b) Only statement (2) is correct
c) Both statements are correct d) Both statements are not correct
503) If the standard error is 18. What will be the revised standard error, if standard deviation is
halved and sample is increased by 9 times?
a) 18 b) 3 c) 9 d) 12

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
504) Standard deviation of sampling distribution of mean is directly proportional to
a) Standard error b) Standard deviation of population
c) Both d) None of these
505) Risk level (Level of significance) is also same as:
a) Confidence level b) Inverse of confidence level
c) 100% + confidence level d) Confidence level - 100%
506) The Human Resource Director of a large company wants to know what the employees of
his company think about proposed changes in remuneration package. A questionnaire is
given to 250 employees. 220 employees returned the questionnaire of which 180 employees
support the proposed change in remuneration package. The population is:
a) All employees of company b) 250 employees receiving the
questionnaire
c) 180 employees who support the proposed d) 220 questionnaires which have been
change in remuneration package returned
507) 5,000 adults were randomly selected from all over Quetta and asked whether they drink
at least 2 cups of tea each day. Only 50% said yes. The population and sample in the data is:
a) Population: 5,000 selected adults b) Population: all adults in Quetta
Sample: 50% adults who do not drink at Sample: 5,000 selected adults
least 2 cups of tea
c) Population: all adults in Quetta d) Population: 5,000 selected adults
Sample: 50% adults who do not drink at Sample: 60% adults who do not drink at
least 2 cups of tea least 2 cups of tea
508) Salam Textile Mills is a large manufacturer of textile products. To assess employees
views on recent changes in human resources policies, 500 employees from various cadres
have been given a questionnaire. 70% employees returned the questionnaire of which 90%
supported the changes. The population is:
a) All employees receiving the b) 500 employees receiving the
questionnaire questionnaire
c) 90% of the 70% employees who d) All employees of Salam Textile Mills
supported the changes
509) Xylem Mills is a large manufacturer of textile products. To assess employees views on
recent changes in human resources policies, 300 employees from various cadres have been
given a questionnaire. 80% employees returned the questionnaire of which 90% supported
the changes. The population is:
a) 500 employees receiving the b) 500 employees receiving the
questionnaire questionnaire
c) 90% of the 70% employees who d) All employees of Salam Textile Mills
supported the changes
510) A statistician wants to test whether intelligence level of college students of two cities are
different or not. The above test would require to use:
a) test of goodness of fit b) Z-test
c) Chi-square test d) T-test

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
511) The manager of a fitness club claims that new entrants lose more than 25% of their
weight within 3 months of joining the club. A sample of 25 new entrants shows that on
average they lost 23.5% of their weight with a standard deviation of 2.5%. the calculated and
table value of “t” in this case at 0.05 level of significance is:
a) – 3.0 and 2.0639 b) 3.0 and 2.0639
c) 3.0 and 1.7109 d) – 3.0 and 1.7109
512) Drawing a conclusion about a population from a sample is known as:
a) Hypothesis testing b) Point estimate
c) Statistical inference d) Systematic sampling
513) A pharmaceutical company sent its teams into rural areas of the country to interview all
mothers with children under 2 years of age. The selected sample is an example of:
a) Cluster sampling b) Systematic sampling
c) Stratified sampling d) Quota sampling
514) A business researcher wanted to evaluate the eating habits of England residents from
rural site, such mothers which have less than 3 babies. The sampling used for this purpose is
called
a) Cluster sampling b) Systematic sampling
c) Stratified sampling d) Multi-stage sampling
515) A company has 1,000 customers. The customer service office of the company selected a
customer at random from the first 10 customers on the list of customers. Thereafter he
selected every 10th customer from the list and called them to get feedback on the services
offered by the company. This is an example of
a) Random sampling b) Systematic sampling
c) Stratified sampling d) Quota sampling
516) Which of the following as regards random sample is INCORRECT?
a) It can be cumbersome when sample is to b) It is not suitable for investigators who
be obtained from an unusually large are interested in issues related to
population subgroups of a population
c) It is a bias free sample d) It is a sample in which every member
of population has unequal chance of
being selected
517) 100,000 adults were randomly selected from all over Karachi and asked whether they
drink atleast 10 glasses of water each day. Only 45% percent said yes. The population and
sample in data is:
a) Population: 45% adults who drink atleast b) Population: all adults in Karachi
10 glasses of water Sample: 45% adults who drink atleast
Sample: 100,000 selected adults 10 glasses of water
c) Population: all adults in Karachi d) None of these
Sample: 100,000 selected adults
518) 50,000 adults were randomly selected from all over Lahore and asked whether they drink
atleast 12 glasses of water each day. Only 30% percent said yes. The population and sample
in data is:
a) Population: 30% adults who drink atleast b) Population: all adults in Lahore
12 glasses of water Sample: 30% adults who drink atleast
Sample: 50,000 selected adults 12 glasses of water

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 c) Population: all adults in Lahore d) Population: 50,000 selected adults.
Sample: 50,000 selected adults Sample: 30% adults who drink atleast
12 glasses of water
519) A museum wants to determine the fee that should be charged from the visitors to enable it
to earn revenue of Rs 40 million per annum. The administrator of the museum has estimated
that 500 visitors visit the museum daily. Identify the size of the sample that would be needed
at 95% confidence level such that error in the above claim does not exceed 25, assuming that
population standard deviation is 60.
a) 28 b) 35
c) 23 d) 25
520) While assessing the accuracy of packed weight of 1 kg sugar bags, a quality controller
estimated that the standard deviation is 0.05 gram. How large a sample must he take in order
to be 95% confident that the error in his estimate of mean weight will not exceed 0.01 gram?
a) 68 b) 69
c) 96 d) 97
521) Which of the following about cluster sampling is/are correct?
(i) It is type of multistage sampling.
(ii) It is useful when all data of individuals of population are not given.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
522) Consider the following observations
95 103 97 130 96 73 78 95 89 68
85 62 69 83 118 112 95 87 93 117
The number of observations lying in the limit mean ±2σ are:
a) 20 b) 19
c) 18 d) 17
523) Feroz textiles (FT) is planning to export ready-made garments for adults to England.
Which of the following would be an appropriate sample for measuring waste sizes?
a) Sample of all sizes of leading ready-made b) Adults selected at random from
garment brands in England. residents in major cities of England
c) Adults selected at random from a large d) Both (a) and (b)
corporation of England
524) An auto analyst is conducting a satisfaction survey, sampling from a list of 10,000 new
car buyers. The list includes 2500 Suzuki buyers, 2500 Hyundai buyers, 2500 Honda buyers,
and 2500 Toyota buyers. The analyst selects a sample of 400 car buyers by randomly
sampling 100 buyers of each brand. Is this an example of a simple random sample?
a) Yes, because each buyer in the sample b) Yes, because each buyer in the sample
was randomly selected had an equal chance of being selected.
c) Yes, because buyers of every brand d) No, because every possible sample of
were equally represented in the sample 400 buyers did not have an equal chance
of being chosen.

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525) The human resource director of a large company wants to know what the employees of
his company think about the proposed changes in remuneration package. A questionnaire is
given to 250 employees, 220 employees returned the questionnaire of which 180 employees
support the proposed changes in remuneration package. The population is:
a) 250 employees receiving the questionnaire
b) All employees of the company
c) 220 questionnaires which have been returned
d) 180 employees who support the proposed change in remuneration package.

526) The human resource director of a large company wants to know what the employees of
his company think about the proposed changes in remuneration package. A questionnaire is
given to 250 employees, 220 employees returned the questionnaire of which 180 employees
support the proposed changes in remuneration package. The sample is:
a) 250 employees receiving the questionnaire
b) All employees of the company
c) 220 questionnaires which have been returned
d) 180 employees who support the proposed change in remuneration package.

527) Which of the following statements is/are correct about random sample?
(i) It is bias free sample
(ii) Unequal chance of selection
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
528) Which of the following statements is/are correct about random sample?
(i) It is bias free sample
(ii) Where every member of the population has an equal chance of being selected as a member of
the sample
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
529) Which of the following is/ are correct about random sample?
i. It is bias free sample
ii. It is not suitable for investigators who are interested in issues related to sub group of population
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
530) In a sample of 300 medical student’s college,109 are males. We can say with 98%
confidence that the population proportion of male students is between?
a) 30.89% to 41.78% b) 29.83% to 42.83% c) 40.64% to 48.79% d) 31.75% to 40.92%
531) In a sample of 300 medical students of a college, 109 are males. We can say with 95%
confidence that the population proportion of male students is between:
a) 29.17% and 43.50% b) 31.75% and 40.92%
c) 30.31% and 42.36% d) 30.89% and 41.78%
532) In a sample of 700 medical students of a college, 313 are males. We can say with 99%
confidence that the population proportion of male students is between:
a) 41.61% and 47.82% b) 41.03% and 48.40%
c) 40.64% and 48.79% d) 39.87% and 49.56%

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
533) What will be the 95% confidence interval for the proportion of defective units in a large
shipment when 200 units were found defective in a random sampling of 1000 units
a) 0.1994≤ µ ≤ 0.2006 b) 0.1997≤ µ ≤ 0.2003
c) 0.1792≤ µ ≤ 0.2208 d) 0.1752≤ µ ≤ 0.2248
534) To select every 5th name from the list of students in a class is an example of:
a) Random sampling b) Systematic sampling
c) Stratified sampling d) Quota sampling
535) A company has 1000 customers. The customer service office of the company selected a
customer at random from the first 10 customers on the list of customers. Thereafter he
selected every10th customer from the list and called them to get feedback on the services
offered by the company. This is an example of ----------- sampling
a) random b) systematic
c) stratified d) quota
536) A pharmaceutical company sent its teams into the rural areas of the country to interview
all mothers with children under 2 years of age. The selected sample is an example of ----------
------------sampling
537) in order to decide whether to use z-test, which TWO of the following would need to be
considered?
a) Size of population b) size of sample
c) whether population variance is known or d) population mean
unknown
538) if sample of 50 athletes from the Olympic squad of a country had a mean weight of 80 kg
with a standard deviation of 1.5kg. we can say with 95% confidence that the mean weight of
all athletes in the squad is between (i) _________________ and (ii) ____________________
a) 79.65 and 81,34 b) 79.58 and 80.42
c) 80.42 and 90,45 d) 80.55 and 90.45
539) A sample of 100 employees of an entity has a mean weight of 170 pounds with a SD of 5
pounds. Which pf the following sample size will result in a confidence interval of mean ±1
Pound for this date at the 90% confidence interval?
a) 3 b) 280
c) 20 d) 68
540) A sample of 100 employees of an entity had a mean weight of 170 pounds with a
standard deviation of 5 pound. Which of the following sample sizes will result in a
confidence interval of the mean ±3 pound for this dataat the 95% confidence interval?
a) 8 b) 280
c) 20 d) 68
541) If at 99% confidence interval, the limits of interval are 20---32, calculate Standard error:
a) 0.43 b) 2.33
c) 2.58 d) 3.06
542) If sample size, n=5 then determine t-value for one-tail test at 99% confidence interval:
a) 4.6041 b) 3.7470
c) 2.1319 d) 7.1732

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
543) The sampling distribution of mean:
a) Has a mean equal to population mean b) Is obtained by taking all possible
samples of a fixed size n from a
population, noting the sample and
classifying the means into a distribution
c) Is a normal distribution d) All of the above
544) T-test may be used to test the hypothesis regarding:
a) Sample mean b) Population variance
c) Population mean d) Population standard deviation.
545) T-test may be used to test the hypothesis regarding:
a) Population variance b) Population mean
c) Population standard deviation. d) Sample mean
546) T-test may be used to test the hypothesis when:
a) Sample size are small and population is b) Sample size are large and population is
normally distributed normally distributed
c) Sample size are either small or large but d) Sample size are either small or large but
population is normally distributed population is not normally distributed
547) The president of National Cardiac Association (NCA) wants to determine the average
number minutes that patients of each doctor walks per day. He randomly selected 30 doctors
and advised each of them to poll 50 of their patients at random and submit the main number
of walk minutes per day to the NCA. The sample size for NCA will be:
a) 30 b) 50
c) 1500 d) 80
548) Which of the following statements is NOT correct as regards the term population?
a) Population may be defined as all items under study/consideration
b) In gathering information about a population it is desirable to test each member of that
population
c) A population may be defined as all people or items with a characteristics that a researcher
wishes to understand
d) The term “population” includes every single member of a particular group.
549) A population has a mean of 75 and standard deviation 10, sample of size 20 are selected
and sample means are recorded. What is the standard deviation of sample mean?
a) 10 b) 75
c) 2.24 d) None of these
550) What is considered when choosing between z and t distribution
a) Sample size b) Population size
c) Whether population variance is known or d) Both A and C
unknown
551) In order to decide whether to use z-test, we need to consider
a) Size of sample only b) Size of sample and population
variance
c) Either size of sample or population d) Either size of sample or population
variance standard deviation

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
552) What is correct about T-distribution?
a) It varies with sample size b) As sample size decreases, it approaches
towards normal distribution
c) It is used when n>30 d) Both A and B
553) Which of the following does not come under normal distribution?
a) Age of students in a class b) Height of men above 20 years
c) Age of entire population of a country d) Both a and b
554) Which two of the following statements are correct as regards the sampling distribution of
mean?
a) Has a mean equal to the population mean
b) Is obtained by taking all possible samples of a fixed size n from a population noting the mean
of each sample and classifying the means into a distribution
c) Is not necessarily a normal distribution
d) Is obtained by taking all possible samples of different sizes from a population, noting the mean
of each sample and classifying the means into a distribution is obtained by taking all possible
samples of different sizes from a population
555) If a finite population of size 256 has a mean 16, then the mean of the sampling
distribution of the mean for samples of sizes 20 would be _____________________
556) Which of the following statements are correct as regards the sampling distribution of the
mean?
a) The mean of the sampling distribution of the mean can never be the same as the mean of the
population
b) The sampling distribution of the mean is a normal distribution
c) The standard deviation of a sampling distribution is called standard error
d) The standard deviation of the sampling distribution of the mean is the same as the standard
deviation of the population
557) Random samples of 50 items were drawn with replacement from a finite population. If
variance 45, the standard error of the mean would be 0.918.
a) True b) False
558) from a given finite population samples are drawn with replacement. If the sample size is
increased from 40 to 60, the standard error would:
559) Random samples of 90 items were drawn with replacement from a finite population. If
variance is 49, the standard error of the mean would be:
a) 0.763 b) 0.738
c) 0.551 d) 0.544
560) What is the standard error of the mean, if sample size, sample mean and sample standard
deviation are 7,8 and 4.2 respectively?
a) 2.65 b) 5.80
c) 2.05 d) 1.56
561) From a given finite population, samples are drawn with replacement. If the sample size is
decreased from 70 to 45. The standard error would:
a) Increase by 25% b) Increase by 21.62% c) Increase by 24.72% d) Increase by
75.28%

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
562) From a given finite population samples are drawn with replacement. If the sample size is
increased from 10 to 100, the standard error would: (02 Marks)
a) Decrease by 21.62% b) Decrease by 31.62%
c) Decrease by 68.38% d) Decrease by 90%
563) From a given finite population samples are drawn with replacement. If the sample size is
increased from 50 to 70, the standard error would: (02 Marks)
a) Decrease by 7.07% b) Decrease by 15.48%
c) Decrease by 14.14% d) Decrease by 8.37%
564) From a given finite population samples are drawn with replacement. If the sample size is
decreased from 70 to 50, the standard error would: (02 Marks)
a) Increase by 18.32% b) Increase by 15.48%
c) Increase by 14.14% d) Increase by 8.37%
565) From a given finite population samples are drawn with replacement. If the sample size is
decreased from 75 to 40, the standard error would:
a) Increase by 36.93% b) Increase by 46.17%
c) Increase by 32.81% d) Increase by 29.73%
566) From a given finite population samples are drawn with replacement. If the sample size is
decreased from 60 to 40, the standard error would:
e) Increase by 12.90% f) Increase by 15.81%
g) Increase by 18.35% h) Increase by 22.47%
567) If a finite population of size 324 has a mean 18, what would be the mean of the sampling
distribution of the mean for samples of sizes 25?
a) 5 b) 3 2
c) 18 d) It cannot be determined from the
information given
568) Random samples of 50 items were drawn with replacement from a finite population. If
( X  X ) 2  700, the standard error of the mean would be:
a) 0.529 b) 0.535
c) 0.011 d) Cannot be calculated from given data
569) Random samples of 70 items were drawn with replacement from a finite population. If
( X  X ) 2  500, the standard error of the mean would be:
a) 0.319 b) 0.322
c) 2.67 d) 2.69
570) Which of the following statements is NOT correct as regards the sampling distribution of
the means?
a) It is distribution made up of mean of b) It is not symmetrical about the mean
many samples
c) The standard deviation of the sampling d) Both B and C
distribution is called standard error
571) Which of the following statements about Sampling distribution of the means is/are
correct?
(i) The standard deviation of the sampling distribution is called standard error.

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 (ii) The standard deviation of the sampling distribution of the mean is the same as the standard
deviation of thepopulation.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
572) Which of the following statements is NOT correct as regards the sampling distribution of
the means?
a) The sampling distribution of the means is b) The mean of the sampling distribution
a normal distribution. of the mean is the same as the mean of
the population
c) The standard deviation of the sampling d) The standard deviation of the
distribution is called standard error sampling distribution of the mean is
the same as the standard deviation of
population.
573) D-electric claims that its energy saver bulbs have an average life of 8000 hours. A
consumer rights protection agency tested 15 such bulbs to check this claim. It found that the
mean life of 15 bulbs was 7800 hours with a standard deviation of 200 hours. Assume that
life of such bulbs have an approximately normal distribution. At 5% significance level, on
assuming the claim of D-electric we:
a) Rejects the D-electric claim as number of standard error between the sample means
and asserted mean is beyond the table value of t-statistic which is -1.7611
b) Accept the D-electric claim as number of standard error between the sample means and
asserted mean is within the table value of t-statistic which is -1.7611
c) Accept the D-electric claim as number of standard error between the sample means and
asserted mean is -3.8730 which is within the table value of t-statistic which is -2.1458
d) Rejects the D-electric claim as number of standard error between the sample means and
asserted mean is 3.8730 which is greater than the table value of t-statistic which is -2.1458
574) From a given finite population samples are drawn with replacement if the sample size is
measured from 10 to 100 the standard error would
a) Decrease by 90% b) Decrease by 21.62%
c) Decrease by 68.38% d) Decrease by 31.62%
575) Which of the following statements is/are correct in regards the sampling distribution of
the mean?
(i) The sampling distribution of the mean is a normal distribution
(ii) The mean of the sampling distribution of the mean is the same as the mean of the population
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
576) Consider the following sample: 4.5, 4.9, 5.2, 5.6, 6.2
With 95% confidence level, the population mean is between?
a) 3.94 & 6.62 b) 5.92 & 6.08 c) 4.47 & 6.09 d) 5.22 & 6.08
577) Consider the following sample: 4.5, 4.9, 5.2, 5.6, 6.2
With 99% confidence level the population mean is between:

a) 3.94 & 6.62 b) 5.92 & 6.08

c) 4.99 & 5.91 d) 5.22 & 6.08

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
578) Which of the following are correct about sampling distribution?
i. Sampling distribution of mean is a Normal Distribution about its mean
ii. The mean of the sampling distribution is the same as the mean of population
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
579) Which of the following statements is/are correct in regards the sampling distribution of
the mean?
(i) The sampling distribution of the mean is not a normal distribution
(ii) The standard deviation of the sampling distribution of the mean is the same as the standard
deviation of thepopulation.
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
580) Which of the following are correct about sampling distribution?
i) The mean of the sampling distribution is the same as the mean of population
ii) Sampling distribution is systematical about its mean
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
14 Hypothesis testing
581) Consider the following information:
Claim: Population proportion p = <0.7
Proportion standard deviation =0.0092
Sample proportion =0.684
Level of significance =10%
n is more than 30
Test is one tail
Test the hypothesis whether to accept or reject the null hypothesis:
a) Can’t be determined because level of confidence is not b) Accept
given
c) Can’t be determined because sample size is not given d) Reject
582) Which of the following construction of null and alternative hypothesis is/are correct?
Please note that population mean if both cases is 36?
1. The sample data provide evidence that the population mean is not equal to 36. Therefore
Ho: u=36 H1: u≠36
2. The sample data provide evidence that the population mean is less than 36. Therefore
Ho: u<36 H1: u≤36
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
583) Which of the following construction of null and alternative hypothesis is/are correct?
Please note that population mean in both cases is 36.
1. The sample data provide evidence that the population mean is more than 36. Therefore,
Ho: u≠36 H1: u=36
2. The sample data provide evidence that the population mean is less than 36. Therefore,
Ho: u=36 H1: u<36
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
584) A null hypothesis is rejected whereas the right decision was to accept the null hypothesis
it is:
a) A type I error b) A type II error
c) A type III error d) Either type I or Type II error
585) A significance level of 0.01 means:
a) If null hypothesis is rejected, there is a maximum chance of 1%that the decision may be
wrong
b) There is more than 99% chance that the null hypothesis is false
c) If the null hypothesis is accepted, there is atleast 1% chance that the decision may be wrong
d) If type II error is made, there is 99% chance of making a type 1 error too
586) A significance level of 0.05 means:
a) There is more than 95% chance that the null hypothesis is false.
b) If null hypothesis is rejected, there is a maximum chance of 5% that the decision may
be wrong
c) If the null hypothesis is accepted, there is atleast 5% chance that the decision may be wrong

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 d) If type II error is made, there is 95% chance of making a type I error too
587) A pharmaceutical company claims that the amount of alcohol in each bottle of a drug is
0.750ml. A random sample of 50 bottles of that drug was tested and found to have mean
alcohol contents of 0.767ml with a standard deviation of 0.06 ml. if we test the company’s
claim at 6% level of significance, which of the following statements will become true? (03
m)
a) Reject the company’s claim as calculated b) Calculated value of Z is 1.985
value of Z is more than table value of Z.
c) Table value of Z is 1.96 d) All of the above
588) A pharmaceutical company claims that the amount of alcohol in each bottle of a drug is
0.706mg. A random sample of 38 bottles of that drug was tested and found to have mean
alcohol contents of 0.705mg with a standard deviation of 0.02 mg. if we test the company’s
claim at 6% level of significance, which of the following statements will become true?
1. Calculated value of Z is – 0.308
2. Table value of Z is 1.96
3. Claim is accepted
a) 1,2 b) 2,3
c) 1,3 d) All are correct
589) Which of the following construction of null and alternative hypothesis is/are correct?
(Note that population mean in both cases is 36)
i. The same data provide evidence that the population mean is less than 36. Therefore:
HO =µ < 36
Ha =µ = 36
ii. The sample data provide evidence that the population mean is greater than 36. Therefore,
HO =µ = 36
H1 = µ > 36
a) Only statement 1 is correct b) Only statement 2 is correct
c) Both statements are correct d) None of the above are correct
590) An automobile company reports that the average annual maintenance cost for its 1300 cc
car is currently Rs 11025. A random sample of 100 customers has mean annual maintenance
of Rs. 11418 and SD of Rs. 1775. The calculated and table values of z in this case at 1%
level of significance is:
a) -2.214 & 2.576 b) 2.214 & 2.330
c) -2.214 & 2.330 d) 2.214 & 2.576

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
15 Chi-square testing
591) Following data is available having observed and expected values:
Observed data Expected values
75 70
90 84
70 79
83 85
Calculated value of chi square for this data would be?
a) 2.1875 b) 5.6899
c) 3.6754 d) 4.4768
592) The “Yates” continuity correction:
a) Reduce the numerical value of the difference between actual and estimated value by 0.5
regardless of the sign of the numerical value
b) Increase the numerical value of the difference between actual and estimated value by 0.5
regardless of the sign of the numerical value
c) Reduce the numerical value of the difference between actual and estimated value by 0.5 only
if actual value is greater than estimated value.
d) Reduce the numerical value of the difference between actual and estimated value by 0.5 only
if actual value is less than estimated value.
593) Yates correction is applied in case of:
a) Poisson Distribution b) Binomial Distribution
c) Chi-square Distribution d) Normal Distribution
594) Under the yates’ continuity correction, the numerical value of the difference between
actual and estimated value is:
a) Reduced by 0.5 regardless of the sign of the numerical value
b) Increased by 0.5 regardless of the sign of the numerical value
c) Reduced by 0.5 if actual value is greater than estimated value
d) Reduced by 0.5 if actual value is less than estimated value
595) The average performance of the students of a college over last 10 yea1S shows that the
percentages of students securing A B and C grades are 10%, 15% and 75% respectively. The
current year's result shows that out of total 500 students, the number of students securing A,
B and C grades aggregated to 64, 88 and 348 respectively. Calculated value chi square for
this data would be?
a) 6.52 b) 2.24 c) 8.12 d) 7.23
596) The average performance of the students of a college over last 10 years shows that the
percentages of students securing A, B and C grades are 10 %, 40% and 50% respectively.
The current year's result shows that out of total 556 students securing A, B and C grades
aggregated to 88, 188 and 280 respectively. Calculated value of chi square for this data
would be?
a) 3.44 b) 24.22 c) 8.63 d) 8.16

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
597) The average performance of the students of a college over last 10 years shows that the
percentages of students securing A, B and C grades are 10%, 40% and 50% respectively. The
current year's result shows that out of total 400 students securing A, B and C grades
aggregated to 64, 144 and 192 respectively. Calculated value of chi square for this data
would be?
a. 16.32 b. 2.24 c. 8.63 d. 8.16
598) The average performance of the students of a college over last 10 years shows that the
percentages of students securing A, B, C grades are 15%, 30% and 55% respectively. The
current year result shows that out of total 400 students the number of students securing A, B,
C grades aggregated to 64, 144 and 192 respectively. calculate the value of Chi square for
this data would be:
a) 3.44 b) 2.24
c) 8.63 d) 8.16
599) The average performance of the students of a college over last 10 years shows that the
percentages of students securing A, B, C grades are 45%, 30% and 25% respectively. The
current year result shows that out of total 400 students the number of students securing A, B,
C grades aggregated to 64, 144 and 192 respectively. calculate the value of Chi square for
this data would be:
a) 2.24 b) 215.4
c) 3.44 d) 164.2
600) A group of people were surveyed about their favourite car. The following results were
obtained:
Gender Frequency
Civic Corolla Suzuki
Female 26 14 5
Male 27 37 11
Using Chi-square test at 5% level of significance, if we have to test the hypothesis that the choice
of favourite car is independent of one’s gender, which of the following is true?
a) Degree of freedom is 3
b) Calculated value of chi-square is 5.99
c) Sum of expected values for two rows is 45 and 75
d) Favourite car is independent of one’s gender as calculated value of Chi-square is greater than
its tabulated value.

601) A group of people were surveyed about their favourite car. The following results were
obtained:
Gender Type of car
Civic Corolla Suzuki
Female 26 14 5
Male 27 37 11
Using Chi-square test at 5% level of significance, if we have to test the hypothesis that the choice
of favourite car is independent of one’s gender, which of the following is true?
a) Degree of freedom is 3
b) Calculated value of chi-square is 5.48
c) Favourite car is not independent of one’s gender as calculated value of Chi-square is greater
than its table value.

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE
 d) Favourite car is independent of one’s gender as calculated value of Chi-square is greater than
its tabulated value.

602) A group of people were surveyed about their favourite smart phone. The following results
were obtained:
Gender Smart phone category
Apple Samsung Oppo
Female 25 19 5
Male 30 37 11
Using Chi-square test at 5% level of significance, if we have to test the hypothesis that the choice
of smart phone is independent of one’s gender, which of the following is correct?
a) Calculated value of chi-square is 5.68
b) Degree of freedom is 3
c) Favourite smart phone is independent of one’s gender as calculated value of Chi-square
is less than its tabulated value.
d) Favourite smart phone is not independent of one’s gender as calculated value of Chi-square is
greater than its table value.

603) A group of people were surveyed about their favourite car. The following results were
obtained:
Gender Type of Car
Civic Corolla Suzuki
Female 26 14 5
Male 27 37 11
Using Chi-square test at 5% level of significance, if we have to test the hypothesis that the choice
of favourite car is independent of one’s gender, which of the following is true?
a) Favourite car is independent of one’s gender as calculated value of Chi-square is greater than
its table value.
b) Favourite car is not independent of one’s gender as calculated value of Chi-square is
greater than its table value.
c) Degree of freedom is 3
d) Calculated value of Chi-square is 5.48

604) The term degree of freedom is used with reference to:

a) Test of goodness of fit b) Z-test and test of goodness of fit
c) T-test and test of goodness of fit d) T-test and z-test
605) The term degree of freedom is used with reference to:
a) T-test b) Test of goodness of fit
c) Both A and B d) None of these

Prepared by: Dawood Shahid CA & CIMA Affiliate, CPA, MPhil, MBA, OCE