Thursday, 29 October 2015

Cima C03 Exam Question No 30

Question No 30:

In an internal audit of 200 invoices, the following numbers of errors were discovered:

Number of Errors            Number of Invoices
0                                                    60
1                                                    30
2                                                    40
3                                                    40
4                                                    20
5                                                    10
6 or morew                                     0

The expected value of the number of errors per invoice is

A.
1∙8
B.
2
C.
2∙1
D.
3

Answer: A

Wednesday, 21 October 2015

Cima C03 Exam Question No 29

Question No 29:

Index Relatives: Fixed Base vs. Chain Base Methods

 Fix base method = for commodities in which the basic nature is unchanged over time:
=(value in given year/value in base year)*100

Chain base method = for commodities where the basic nature changes over time:
=(this year's value/last year's value)*100   

Thursday, 15 October 2015

Cima C03 Exam Question No 28

Question No 28:

What is Index Relatives?

Name given to the index number which measures the change in a single distinct commodity.

Formulae are given on the assessment - just remember that P₀ or Q₀ are the index base year value and P₁ or Q₁ are the values for the year in question.

Thursday, 8 October 2015

Cima C03 Exam Question No 27

Question No 27:

What is standard Deviation (σ)?
  • The square root of the variance
  • The most common/important measure of spread
Formula given on the assessment
  • For grouped data, use the Σf version, for ungrouped data use the standard 'n' version.


Thursday, 1 October 2015

Cima C03 Exam Question No 26

Question No 26:

Difference between General "And" Probability?

General Multiplication: conditional outcomes
P(A and B)=P(B)*P(A/B)

eg- if sales don't improve, there's a 70% chance we'll go under - P(A). There's a 20% chance that sales will improve - P(B). What's the probability of us going under? (PB does not depend on PA, but PA depends on PB) ∴ P(B)P(A/B)=0.80.7=0.56 - there's a 56% chance of us going under.