The Advanced Numeracy Test Workbook - Mike Bryon [45]
Q19. Answer A, D.
Explanation The current APS of population 6 = 18,700 ÷ 1,700 = 11. This becomes 1,700 + 2,040 = 3,740 (average savings), divide 18,700 by 3,740 = 5. The propensity has improved by 6 (11 – 5 = 6). So the answer is A, D.
Q20. Answer C.
Explanation Calculate the current APS = 4, then find the new APS given the new average income = $39,750/4 = $9,937.5 (the new level of saving if APS does not change). Now minus the original average savings to find by how much average saving would need to increase: $9,937.5 – $7,950 = $1,987.5
Q21. Answer D.
Explanation The target for 2007 is $72,000 which if missed by 15% = ($72,000 × 85%) = $61,200 + revenue for 2006 ($2,400,000) = $2,461,200.
Q22. Answer A.
Explanation The revenue for 2007 = total revenue 2006 plus targets for 2007 = $7,400,000 (total revenue 2006) + $134,750 (total of targets 2007) = $7,534,750.
Q23. Answer B.
Explanation The revenue growth target for 2008 = 2.5% while in $ terms the target for 2007 = $6,500 expressed as a percentage of $1,300,000. 1% = $13,000 so $6,500 = 0.5% or in percentage terms 2% less than the 2008 target.
Q24. Answer A.
Explanation The combined revenue growth target for 2007 is $5,250 + $27,000 = $32,250, and the combined 2006 revenue was $700,000 + $1,800,000 = $2,500,000. Expressed as a percentage of 2006 revenue the revenue growth target = $2,500,000 ÷ 100 = 1% = $25,000. Divide 32,250 by 25,000 = 1.29 or 1.29%.
Q25. Answer D.
Explanation With sources 1 and 4 it would be possible to estimate the size of the confectionery market. Sources 2, 3 and 4 would provide insight into the character of the distributors of confectionery and competitors’ market share rather than the potential market.
Q26. Answer B.
Explanation Revenue in 2007 will be $3,500 below target and in 2008 will be $3,500 × 101% below target = $3,535. Add these two sums to calculate the total revenue shortfall. $3,500 + $3,535 = $7,035.
Q27. Answer C.
Explanation Suggested answers A and B would least support the achievement of the target growth in revenue. Answer C is preferable over D because it would provide a more effective assessment of marketing activities (both C and D would support the achievement of revenue growth targets).
Q28. Answer A.
Explanation In 2006 revenue = $1,300,000. For 2007 = £1,300,000 + ($6,500 × 20) $130,000 = $1,430,000. Revenue for the two years combined = $2,730,000.
Q29. Answer C.
Explanation The 2007 revenue growth target calculated as a percentage of its 2006 revenue for Hard Gums is 0.5%, so you must find the product with a revenue growth target calculated as a percentage of its 2006 revenue of 3% (6 times greater). This is Cool Mints ($72,000 as a percentage of $2,400,000 = 3%).
Q30. Answer B.
Explanation Statement 4: ‘The figures for Fruit Salad in 2007 and 2008 combined give a target revenue increase of 3%’ is not valid. The increase in 2007 for Fruit Salad is $24,000 on $1,200,000 which is 2%. Add this to the percentage target for 2008 (2%) and it is clear that the statement is not valid). All the other suggested answers are valid.
Interpretations of your test scores
Test 1: Key quantitative operations
A score above 60
If you face one of the higher-level psychometric tests such as GMAT, Fast Stream or SHL Graduate Battery, this is the only category of score that you should be content with. To excel in these tests you must be able to demonstrate speed, accuracy, confidence and familiarity with these basic operations and your score suggests that you did exactly this, so you have made a good start!
Go on to the tests and practices contained in the latter sections and be confident that you are adopting the right approach to ensure that you perform well in the demanding psychometric tests used by employers and educational institutions.
A score of 50 or above
Establish which principles were involved in the questions that you got wrong and start a programme of practice that begins with the revision of these operations. Once you have become confident in