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C03-Fundamentals of Business Mathematics1. Answer C 21%.The maximum rounding error in the total revenue is the error that is mostdeviated from the error free revenue.Error free revenue R PQDeviation 10% in P and Q. R 1.1PX1.1Q R 1.21PQ this is 21% higherthan the error free revenue.Deviation -10% in P and Q. R .9PX.9Q R .81PQ this is 19% lower thanthe error free revenue.2. Answer 1,021.Steps 1 collate the data.Total Costs 10,000.Vat 17.5%.60% cost to central admin.30% cost to Finance.Step 2 Exclude the Vat figure.10,000/1.175 8510.63Step 3 split figure in to 60% & 40%60% 5106 40% 3404Steps 4 30% or the 40% 3404X.3 1021.3. Answer DRe arrangement of the formula.4. Answer 50%Using the Future value formula calculate the negative growth rate.5. X 2 , Y 03X 2Y 6 (i)X-2y 2 (ii)4X 8X 8/4X 2.Replace the value of x in any equation.3X 2Y 6 replace and X 23(2) 2y 6 6 2y 6 2y 6-6 y 0

C03-Fundamentals of Business Mathematics6. Answer AEstimate SP 20 ( 3).Estimate CP 12 ( 1).Estimated Profit 8 ( 4)7. Answer DBasic understating of the signs in Mathematics.8. Answer BEliminate the distracters from the question, only deal with the female numberof students.Total no of Female 70Total no of Female at beginner level 39If a female is not at pro level she has to be from beginner level. Chances are39/70.9. Answer BSum of probability is 1. The problem is to find at least one serious error is 1probability of finding no error at all. The independent chances of each of theerror not to occur (0.2 x 0.3 x 0.4)10. Answer AThe probability of the buyer being under 25 and from north. Multiplication ofthe probabilities.No of buyers under 25 and from North is 400Total number of buyers 5200Chances are as 400/5200 .0769 rounded up to two decimal 0.0811. Answer B1. The probability of the buyer being under 25 is 1600/52002. The probability of the buyer being from west is 1300/52003. The probability of the buyer being under 25 or from west is [1600/5200 1300/5200] – [1600/5200 X 1300/5200]12. Answer A fx/ f

C03-Fundamentals of Business Mathematics360/2001.813. Answer 24,000Take average of class interval and multiply with the relevant frequencypercentage. Take sum of all the expected values to calculate the final answer.Sales 000Frequency %X 000EV0 to under 1055.2510 to under 202015320 to under 3060251530 to under 4010353.540 to under 505452.25Sum of expected values 24 2400014. Answer 2.4Multiply the profit with estimated probability. Take sum of all the expectedvalues to calculate the final answer.Profit ( 000)ProbabilityEV-1.1-.11.3.33.41.25.21Sum of expected value 2.4

C03-Fundamentals of Business Mathematics15. Answer A20:B20Identify the right group of people by keenly looking at the range values in eachrow.16. Answer 40,000Step 1. Adjust the price according to the rise in index.Step2. Calculate the taxable profit and apply tax rate to it.Price according to new index is 75000 x 240/120 150,000Profit on index adjusted cost is 250,000- 150,000 100,000Tax rate 40% , Hence the tax figure is 40,00017. Answer AApplication of the formula 110/ 50Number of rejects in Number of sampleseach sample(frequency of reject)fx0501101021020320604520500 f 50 fx 11018. Answer AReplace X with the given values as option A, B, C, D. Arrange a new range ofvalues. Apply the definition of median.An example10 11 12 13 14 16 17 18 19 20 X 10 11 12 13 14 16 17 18 19 20 (-3) 10 11 12 13 14 16 17 17 18 19 (14 16)/2 15repeat this for other values of X.

C03-Fundamentals of Business MathematicsNote: when the sample is in even number to find the value of the median middlenumber of values19. Answer BWeighted average Wx/ W 13,300/100 133GroupBaseWeightIndex (X)WXFood &Drink100501407000Travel &Leisure100301303900Housing100201202400All items100100?13,30020. Answer AWages inflation has been 15%. 15% inflation on the inflation index would havegiven 207. The actual index is 210, confirming that inflation is higher thanwages. Wage inflation is 5 index points year on year, not 5%.21. Answer 120Step1 Use the weighted average formulaStep 2 represent the missing value with XStep 3 Calculate the value by solving the equation for X127 (7x130 3X )/10 1270 910 3x 360 3x X 120Sub-groupWeightIndexNon-food7130Food3?All items1012722. Answer AThe graph represents the inverse relationship between two variables. As thevalue of X increases the Value of Y decreases.

C03-Fundamentals of Business Mathematics23. Answer CBoth Accounting and Maths are perfectly negatively correlated with Law whichsuggests that their behaviour is 100% predictable. Therefore, Accounting andMaths must behave predictably and in the same way as each other meaninganother perfect correlation, this time positive.24. Answer C 25%Cv Standard Deviation / Mean3/12 .25 25%25. Answer AFormula for correlation coefficient is provided with the mathematics table.26. Answer .82Use the formula for Rank correlation.27. Answer 1.4Calculate the mean value. Use the standard deviation formula, (10/5-1)½ 1.428. Answer BCv Standard Deviation / Mean1/5 .2 20%29. Answer is BTabulate 24 month sales, deduce the four point moving average, count thenumber of averages deduced.30. Answer 1600

C03-Fundamentals of Business Mathematics31. Answer ACalculate the value eliminating the seasonal factor in Q2. Apply the seasonalfactor of Q3.Demand in Q2 240. Q2 seasonality was 50%Elimination of the seasonality 240/1.5 160Q3 seasonality -50% Demand in Q3 160(.5) 80 Units32. Answer 106Eliminate the seasonal factor from P2. Adjust the P3 figure according to thenew period factor.Sales in P2 350 Seasonality 65% Eliminate the seasonality 350/1.65 212.P3 Seasonality -50% 212(.5) 106 Units33. Answer CTrend 1,600 / (1.00 - 0.20) 2,00034. Answer ASeasonalities should be balanced to zero.Hence the Q4 should be -50%.35. Answer ATrend calculationQ1Trend 1,600 / (1.00 - 0.20) 2,000Q2Trend 4,400 / (1.00 1.00) 2,200Q3Trend 1,680 / (1.00 - 0.30) 2,400If same trend continues then Q4 trend is 2,600Q4 Forecast 2,600* 0.50 1,30036. Answer DUse perpetuity formula.Required investment 10,000/.08 125,00037. Answer DUse the perpetuity formula. 15,000/.09The absolute value we get by calculations 166,666.667 this is closest to167,000.38. Answer BUse 2000 as present value and apply the future value formula for the

C03-Fundamentals of Business Mathematicscalculation.FV PV (1 r) nFV 2000 (1.05) 5 2,55339. Answer DUse 2000 as present value and 4000 as future value. Use compound rateas provided in the data and calculate the value of T by solving the wholeequation.FV PV (1 r) t4000 2000(1 .05) t2 (1.05) t Apply logarithmt 14 years.40. Answer 16,981Use the annuity function/formula to calculate the equal instalments.C Pr(1 r) n/(1 r) n-1C [(100,000)(.11)(1 .11) 10]/ (1 .11) 10 -1C 16,98141. Answer BUse the annuity function/formula to calculate the equal instalments.C Pr(1 r) n/(1 r) n-1C [(200,000)(.06)(1 .06) 10]/ (1 .06) 15 -1C 20,593.42. Answer CFV PV(1 r) nPV FV/ (1 r) nPV 300 X( 1/1 r) 3PV 300 X (1/1.11) 3PV 300X (10/11) 343. Answer 40* (20 4 2)/1044. Answer ROUND(37/9*4.34,2)

C03-Fundamentals of Business Mathematics45. AnswerROI Average(B2:B5)/B1NPV NPV(B7,B2:B5)-B1

C03-Fundamentals of Business Mathematics 360/200 1.8 13. Answer 24,000 Take average of class interval and multiply with the relevant frequency percentage. Take sum of all the expected values to calculate the final answer. Sales 000 Frequency % X 000 EV 0 to under 10 5 5 .25 10 to under 20 20 15 3 20 to under 30 60 25 15