Cima C03 Exam Question No 34

Question No 34:

What is Simple "And" Probability?
Simple Multiplication: not mutually exclusive outcomes

P(A and B)=P(A)P(B)

e.g - rolling a die and flipping a coin - they are unrelated, so we multiply the P of rolling a given number on the die (1/6) by the P of getting a desired result on the coin (1/2) ∴1/6*1/2=1/12

Cima C03 Exam Question No 33

Question No 33:

Read the following statements about the period 1998 to 2001:
(i) Inflation has increased by more than money wages.
(ii) Money wages have increased by 5% each year, year on year.
Which ONE of the following is true?

A. (i) only
B. (ii) only
C. Both (i) and (ii)
D. Neither (i) nor (ii)

Answer: A

Cima C03 Exam Question No 32

Question No 32:

Rebase to a Previous Index

• Value in current index/100)*value of rebase year in previous index eg)
• In 2006, a commodity had an index score of 111 based on the rebased value in 2001
• The value in 2001 of the commodity was 132 in the old index (now 100, since it is the new base year)
• To express 2006 in terms of the previous index base:
• (111/100) *132 = 146.52