Last 1.5 Day Revision Questions

BUSINESS MATHEMATICS, LOGICAL
REASONING, STATICS
CA Nishant Kumar
NISH10
Chapter 1 – Ratio, Proportion,
Indices, Logarithms
CA NISHANT KUMAR
S. Ratio Proportion Indices Logarithms
No.
1. Ratio exists only Cross Product Rule an = a × a× a 23 = 8 is expressed in
between quantities a c × a × … × a terms of Logarithms
If = , then
of same kind. b d (n times) as log 2 8 = 3. It is
ad = bc. read as log 8 to the
base 2 is 3.
2. Quantities to be Invertendo 1 log a 1 = 0
a−n = n
compared must be a c a
If = , then
in the same units. b d
b d
= .
a c
3. To compare ratios, Alternendo a0 = 1 log a a = 1
use calculator.
CA NISHANT KUMAR
a c
If = , then
b d
a b d c
= , or, =
c d b a
4. If a quantity Componendo am × an = log a ( mn ) = log a m
increases or a c am+n + log a n
If = , then
decreases in the b d
ratio a : b, then new a+b c+d
quantity = b of the = .
b d
original quantity/a.
The fraction by
which the original
quantity is
multiplied to get a
CA NISHANT KUMAR
new quantity is
called the factor
multiplying ratio.
(This is basically
unitary method.)
5. Inverse Ratio – Dividendo am m
The inverse ratio of a c = a m−n
log a   = log a m −
If = , then an n
a/b is b/a. b d log a n
a −b c −d
=
b d
(a ) = a log a ( mn ) = n log a m
n
6. Compound Ratio Componendo and m mn
– The Dividendo
= (a )
m
n
multiplication of
two or more ratios
CA NISHANT KUMAR
is called compound a c
If = , then
ratio. The b d
compound ratio of a+b c+d
a : b and c : d is ac = .
a −b c −d
: bd.
7. Duplicate Ratio – ( ab )
n
Addendo = a nb n log a m =
log b m
A ratio a c e log b a
If = = = ... , a
n
an
  = n
compounded of b d f
itself is called a then each of these b b
Duplicate Ratio. ratios is equal to
The duplicate ratio a + c + e + ...
of a : b is a2 : b2. , i.e.,
b + d + f + ...
CA NISHANT KUMAR
a a + c + e + ...
= ;
b b + d + f + ...
c a + c + e + ...
= ;
d b + d + f + ...
e a + c + e + ...
= .
f b + d + f + ...
= (a )
1
Sub-Duplicate Subtrahendo m 1
= log m a
n m n
a ,
Ratio – The sub- a c e log a m
If = = = ... , i.e.,
duplicate ratio of a b d f m
8. : b is a : b . then each of these a n
= n am
( )
m
ratios is equal to = n
a
a − c − e − ...
, i.e.,
b − d − f − ...
CA NISHANT KUMAR
a a − c − e − ...
= ;
b b − d − f − ...
c a − c − e − ...
= ;
d b − d − f − ...
e a − c − e − ...
=
f b − d − f − ...
9. Triplicate Ratio – a log a n = n

The triplicate ratio
of a : b is a3 : b3.
Sub-Triplicate p
10. Ratio – The sub- log aq n p = log a n
q
CA NISHANT KUMAR
triplicate ratio of a :
b is 3 a : 3 b .
CA NISHANT KUMAR
Question 1
If A : B = 3 : 5, B : C = 5 : 4, C : D = 2 : 3, and D is 50% more than E, find the ratio
between A and E.
(a) 2 : 3 (b) 3 : 4 (c) 3 : 5 (d) 4 : 5
Solution
(b)
Let E be 1. Then, D will be 1.5. Therefore, D : E = 1.5 : 1, or, 3 : 2.
A 3 B 5 C 2 D 3
Thus, we have = ; = ; = ; =
B 5 C 4 D 3 E 2
CA NISHANT KUMAR
A A B C D 3 5 2 3
Therefore, =    =    = 0.75
E B C D E 5 4 3 2
CA NISHANT KUMAR
Question 2
Find the value of 6561 + 4 6561 + 8 6561
(a) 81 (b) 93 (c) 121 (d) 243
Solution
(b)
6561 + 4 6561 + 8 6561 = 93
CA NISHANT KUMAR
Question 3
xn yn zn
Find the value of log n + log n + log n .
y z x
(a) –1 (b) 0 (c) 1 (d) 2
Solution
(b)
xn yn zn
log n + log n + log n
y z x
log xn − log y n + log y n − log z n + log z n − log x n = 0
CA NISHANT KUMAR
Question 4
8n  23 16−1 1
If = , then the value of n
2n  42 4
3 2
(a) 1 (b) 3 (c) (d)
2 3
Solution
(c)
8n  23 16−1 1
=
2n  42 4
CA NISHANT KUMAR
8 n  23 1
 n 2 =
2  4  16 4
(2 )  2
n
3 3
1
 =
2  (2 )  2
2
n 2 4 4
23n  23 1
 n 4 4=
2 2 2 4
23n+3 1
 n + 4+ 4 =
2 4
1
 23n +3−n−4−4 =
4
CA NISHANT KUMAR
1
 22 n−5 =
4
1
We know that can be written as 2−2 .
4
Therefore, 22 n−5 = 2−2
Since the bases are same, powers can be equated.
Therefore, 2n − 5 = −2
 2n = 5 − 2
 2n = 3
CA NISHANT KUMAR
3
n=
2
Question 5
If log10 5 + log10 ( 5 x + 1) = log10 ( x + 5 ) + 1, then x is equal to:
(a) 1 (b) 3 (c) 5 (d) 10
Solution
(b)
log10 5 + log10 ( 5 x + 1) = log10 ( x + 5 ) + 1
 log10 5 + log10 ( 5 x + 1) = log10 ( x + 5 ) + log10 10
CA NISHANT KUMAR
 log10 5  ( 5 x + 1) = log10 ( x + 5 )  10 (As log a + log b = log ab )
Taking Anti-log on both sides, we’ll get:

5 ( 5 x + 1) = 10 ( x + 5 )
 5x + 1 = 2 ( x + 5)
 5x + 1 = 2x + 10
 5x − 2 x = 10 − 1
 3x = 9
9
x= =3
3
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 6
 x+ y z+ y x+z 
If xy + yz + zx = −1, then the value of  + +  is:
 1 + xy 1 + zy 1 + zx 
1 1 1
(a) xyz (b) − (c) (d)
yz xyz x+ y+z
Solution
(c)
Given xy + yz + zx = −1
This means 1 + xy = − yz − zx …Eq. (1)
CA NISHANT KUMAR
1 + yz = − xy − zx …Eq. (2)
1 + zx = − xy − yz …Eq. (3)
x+ y z+ y x+z
+ +
1 + xy 1 + zy 1 + zx
Substituting the values of 1 + xy , 1 + zy , and 1 + zx above from Eqs. (1), (2), and (3), we
get:
x+ y z+ y x+z
+ +
− yz − zx − xy − zx − xy − yz
x+ y z+ y x+z
 + +
−z ( y + x) −x( y + z ) − y ( x + z )
CA NISHANT KUMAR
−1 −1 −1
 + +
z x y
1 1 1
 − + + 
z x y
 xy + yz + zx 
 − 
 xyz 
 −1 
 − 
 xyz 
1

xyz
CA NISHANT KUMAR
Question 7
The salaries of A, B and C are in the ratio 2 : 3 : 5. If increments of 15%, 10% and 20%
are allowed respectively to their salary, then what will be the new ratio of their salaries?
(a) 23 : 33 : 60 (b) 33 : 23 : 60 (c) 23 : 60 : 33 (d) 33 : 60 : 23
Solution
(a)
Since the ratio of the salaries of A, B and C is 2:3:5, let the salaries be 200, 300, and 500
respectively.
A’s new salary = 200 + (15% of 200) = 230
B’s new salary = 300 + (10% of 300) = 330
CA NISHANT KUMAR
C’s new salary = 500 + (20% of 500) = 600
Therefore, clearly, the new ratio is 23:33:60.
CA NISHANT KUMAR
Question 8
If A : B = 5 : 3, B : C = 6 : 7, and C : D = 14 : 9, then the value of A : B : C : D is:
(a) 20 : 14 : 12 : 9 (b) 20 : 9 : 12 : 14 (c) 20 : 9 : 14 : 12 (d) 20 : 12 : 14 : 9
Solution
(d)
A 5 B 6
We have = and = .
B 3 C 7
A 5 2
To make the Bs same, let’s multiply = with
B 3 2
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A 5 2 10 B 6
Now, =  = and = .
B 3 2 6 C 7
C 14
Also, we have = .
D 9
B 6 2
To make the Cs same, let’s multiply = with .
C 7 2
B 6 2 12
Therefore, =  = .
C 7 2 14
A 10 B 12 C 14
Now, we have = ; = ; = .
B 6 C 14 D 9
CA NISHANT KUMAR
A 10 2
Again, to make the Bs same, let’s multiply = with .
B 6 2
A 10 2 20
Therefore, =  =
B 6 2 12
A 20 B 12 C 14
So, now we have = ; = ; =
B 12 C 14 D 9
Therefore, A : B : C : D = 20:12:14:9
CA NISHANT KUMAR
Question 9
X and Y have their present ages in the ratio 6 : 7. 14 years ago, the ratio of the ages of the
two was 4 : 5. What will be the ratio of their ages 21 years from now?
(a) 7 : 11 (b) 9 : 10 (c) 8 : 11 (d) 11 : 13
Solution
(b)
Let the ages of X and Y be 6x and 7x respectively.
14 years, ago, their ages would have been ( 6 x − 14 ) , and ( 7 x − 14 ) .
It is given that the ratio of their ages 14 years ago was 4 : 5.
CA NISHANT KUMAR
Therefore,
( 6 x − 14 ) = 4
( 7 x − 14 ) 5
 5 ( 6 x − 14 ) = 4 ( 7 x − 14 )
 30x − 70 = 28x − 56
 30x − 28x = 70 − 56
 2 x = 14
14
x= =7
2
Therefore, the present ages are 6 × 7 = 42, and 7 × 7 = 49 respectively.
Their ages after 21 years will be 42 + 21 = 63, and 49 + 21 = 70 respectively.
CA NISHANT KUMAR
Therefore, the ratio of their ages after 21 years will be 63 : 70 = 0.9.
Now, try the options.
Option (a) → 7 : 11 = 0.6363
Option (b) → 9 : 10 = 0.9
Therefore, option (b) is the answer.
CA NISHANT KUMAR
Question 10
 
1  126   1 
If x = 3 + , then  x −  x − =?
3  42   2 3 
 x − 
 3 
(a) 5/6 (b) 6/5 (c) 2/3 (d) –3/5
Solution
(a)
1
x= 3+ = 2.3094
3
CA NISHANT KUMAR
126
x− = 2.3094 − 1.7321 = 0.5773
42
1 1
x− = 2.3094 − = 1.4434
2 3 2.3094 − 1.1547
x−
3
 
 126   1 
 x −   x −  = 0.5773  1.4434 = 0.8333
 42  −
2 3 
 x 
 3 
Option (a) → 5/6 = 0.8333
CA NISHANT KUMAR
Therefore, option (a) is the answer.
CA NISHANT KUMAR
Question 11
( ) ( ) ( )
−5 −7 −a
Find the value of a from the following: 9  3 = 3
(a) 11 (b) 13 (c) 15 (d) 17
Solution
(d)
( 9 ) ( 3) = ( 3)
−5 −7 −a
−7 −a
−5  1
  1

3 3  = 3 
2 2
   
CA NISHANT KUMAR
7 a
− −
−5
3 3 2
=3 2
7 a
−5− −
3 2
=3 2
−10 − 7 a
−
3 2
=3 2
17 a
− −
3 2
=3 2
17 a
− =−
2 2
CA NISHANT KUMAR
Question 12
If log a ( ab ) = x , then log b ( ab ) = ?
x x
(a) 1/ x (b) (c) (d) None
1+ x x −1
Solution
(c)
log a ( ab ) = x
log a a + log a b = x  As log m + log n = log mn 

1 + log a b = x
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log a b = x − 1…Eq. (1)
We know that log a b  logb a = 1
Putting the value of log a b from eq. (1), we get:
( x − 1)  logb a = 1
1
log b a =
x −1
log b ( ab )
log a ( ab ) = [As per Base Change Formula]
log b a
log b ( ab ) = log a ( ab )  log b a
CA NISHANT KUMAR
 1   1 
logb ( ab ) = x     As log ( ab ) = x and log a =
 x −1  x − 1
b b
x
log a ( ab ) =
x −1
CA NISHANT KUMAR
Question 13
A vessel contained a solution of acid and water in which water was 64%. Four litres of
the solution were taken out of the vessel and the same quantity of water was added. If the
resulting solution contains 30% acid, the quantity (in litres) of the solution, in the
beginning in the vessel, was:
(a) 12 (b) 36 (c) 24 (d) 27
Solution
(c)
Let the initial total volume be V.
Water = 0.64V; Acid = 0.36V
CA NISHANT KUMAR
Now, 4 litres were taken out.
Remaining Water = 0.64V – (0.64 × 4) = 0.64V – 2.56
Remaining Acid = 0.36V – (0.36 × 4) = 0.36V – 1.44
To the above, 4 litres of water was added. Therefore, the total volume of the vessel would
be V – 4 litres + 4 litres = V.
Now, it is given that this resulting solution contains 30% of acid.
0.36V − 1.44
Therefore, = 0.30
V
 0.36V − 1.44 = 0.30V
 0.36V − 0.30V = 1.44
CA NISHANT KUMAR
 0.06V = 1.44
1.44
V = = 24
0.06
CA NISHANT KUMAR
Question 14
25
If log 4 x + log16 x + log 64 x + log 256 x = , then the value of x is:
6
(a) 64 (b) 4 (c) 16 (d) 2
Solution
(c)
25
log 4 x + log16 x + log 64 x + log 256 x =
6
25
 log 22 x + log 24 x + log 26 x + log 28 x =
6
CA NISHANT KUMAR
1 1 1 1 25
 log 2 x + log 2 x + log 2 x + log 2 x =
2 4 6 8 6
 1 1 1 1  25
 log 2 x  + + +  =
 2 4 6 8 6
 12 + 6 + 4 + 3  25
 log 2 x  =
 24  6
 25  25
 log 2 x   =
 24  6
25 24
 log 2 x = 
6 25
CA NISHANT KUMAR
 log 2 x = 4
 x = 24 = 16
CA NISHANT KUMAR
Question 15
1
If x2 + y 2 = 7 xy , then log ( x + y) = ?
3
1 1
(a) ( log x + log y ) (b) ( log x + log y ) (c) ( log x + log y ) (d) 3 ( log/ log y )
2 3
Solution
(b)
x2 + y 2 = 7 xy
 x2 + y 2 + 2 xy − 2 xy = 7 xy
CA NISHANT KUMAR
 ( x + y ) − 2 xy = 7 xy
2
 ( x + y ) = 7 xy + 2 xy
2
 ( x + y ) = 9 xy
2
 x + y = 9 xy
 x + y = 3 xy
1
 x + y = 3( xy ) 2
1
We have to find the value of log ( x + y)
3
CA NISHANT KUMAR
1
1
 log  3 ( xy ) 2
3
1
 log ( xy ) 2
1
 ( log xy )
2
1
 ( log x + log y )
2
CA NISHANT KUMAR
Question 16
1
 n+
1
3.3n  n
Value of 9 4
. 
−n
 3. 3 
(a) 9 (b) 27 (c) 81 (d) 3
Solution
(b)
We can see that none of the options contain n. This means that ultimately n has to get
cancelled out. Therefore, we can assume the value of n to be anything, and we’ll get the
answer. For the sake of simplicity, let’s assume the value of n to be 1.
CA NISHANT KUMAR
Question 17
If 3x = 5 y = 75 z , then:
2 1 1 1 2 1 2 1 1
(a) x + y − z = 0 (b) + = (c) + = (d) + =
x y z x y z x z y
Solution
(c)
CA NISHANT KUMAR
Question 18
A bag contains ₹187 in the form 1 rupee, 50 paise and 10 paise coins in the ratio 3:4:5.
Find the number of each type of coins.
(a) 102, 136, 170 (b) 136, 102, 170 (c) 170, 102, 136 (d) None
(a)
Let the number of 1 rupee, 50 paise, and 10 paise coins be 3x, 4x and 5x respectively.
Value of 1 rupee coins = 3x × ₹1 = ₹3x
Value of 50 paise coins = 4x × ₹0.50 = ₹2x
Value of 10 paise coins = 5x × ₹0.10 = ₹0.50x
CA NISHANT KUMAR
Total value = 3x + 2 x + 0.5x = 5.5x
We know that the total value is ₹187.
Therefore, 5.5x = 187
187
x= = 34
5.5
Therefore, number of ₹1 coins = 3 × 34 = 102
Number of 50 paise coins = 4 × 34 = 136
Number of 10 paise coins = 5 × 34 = 170
CA NISHANT KUMAR
Question 19
log e x + log (1 + x ) = 0 is equivalent to:
(a) x 2 + x + e = 0 (b) x 2 + x − e = 0 (c) x 2 + x + 1 = 0 (d) x 2 + x − 1 = 0
(d)
In this question, the base of log (1 + x ) will be taken as e, as the base of the term log x is
also e.
Therefore, the given equation can be written as:
log e x + log e (1 + x ) = 0
 log e x + log e (1 + x ) = log e 1
CA NISHANT KUMAR
Also, we know that log a + log b = log ab
Therefore, log e x + log e (1 + x ) = log e 1 can be written as:
log e  x (1 + x ) = log e 1
 log e  x + x 2  = log e 1
 x + x2 = 1
 x2 + x − 1 = 0
CA NISHANT KUMAR
Question 20
, then the value of 3( x 2 + y 2 ) will be:

1 −1 1 −1 2
If x = 3 4 + 3 4
, and y = 3 4 − 3 4
(a) 12 (b) 18 (c) 46 (d) 64
(d)
On calculator, press 3 → √ → √ → M+ → 1 → ÷ → MRC MRC = M+
Press 3 → √ → √ → + → MRC MRC = → × → =. This gives you the value of
x 2 = 4.3094.
Press 3 → √ → √ → M+ → 1 → ÷ → MRC MRC = M+
CA NISHANT KUMAR
Press 3 → √ → √ → – → MRC MRC = → × → =. This gives you the value of
y 2 = 0.3094.
Press 4.3094 + 0.3094 = × = × 3 = 63.9999 ≈ 64
CA NISHANT KUMAR
Question 21
−1 −1 −1
 y3   x2 y 2   x3  1
Find the value of ( x + y ) , if  x + 2  −  +  +  2 + y  = .
 x   y x  y  3
(a) 1/3 (b) 3 (c) ½ (d) 2
(b)
−1 −1 −1
 y3   x2 y 2   x3  1
 x + 2 
−  +  +  2 + y  =
 x   y x   y  3
−1 −1 −1
 x3 + y 3   x3 + y 3   x3 + y 3  1
 2  −   +  2  =
 x   xy   y  3
CA NISHANT KUMAR
 x 2   xy   y 2  1
 3 3 
− 3 3 
+ 3 3 
=
x +y  x +y  x +y  3
x 2 − xy + y 2 1
=
x +y
3 3
3
x 2 − xy + y 2 1
=
( x + y ) ( x 2 − xy + y 2 ) 3
1 1
=
x+ y 3
3= x+ y
x+ y =3
CA NISHANT KUMAR
Question 22 – Ambiguous
If pqr = a x , qrs = a y , rsp = a z , then find the value of ( pqrs ) 2 .

1
( )
1
x+ y+ z x+ y+ z 4 x+ y+ z x+ y + z 4
(a) a (b) a (c) a (d) a
(d)
pqr = a x
qrs = a y
rsp = a z
Multiplying these equations, we have
CA NISHANT KUMAR
( pqr )  ( qrs )  ( rsp ) = a x  a y  a z
p 2q 2r 3s 2 = a x+ y + z
p 2q 2r.r 2 s 2 = a x+ y + z
r ( p 2q 2r 2 s 2 ) = a x+ y + z
r ( pqrs ) = a x+ y + z
2
Now, ICAI has simply ignored this additional r outside the bracket on the left-hand side.
So, we’ll also do the same. Therefore, we’ll have:
( pqrs ) = a x+ y + z
2
Taking fourth root on both sides of the equation, we have:
CA NISHANT KUMAR
( pqrs )  = ( a )
1 1
2 4 x+ y + z 4
= (a )
1 1
( pqrs )
2 x+ y+ z 4
4
= (a )
1
( pqrs )
1
2 x+ y + z 4
CA NISHANT KUMAR
Question 23
The ratio of the earnings of two persons 3:2. If each saves 1/5th of their earnings, the ratio
of their savings is:
(a) 2 : 3 (b) 3 : 2 (c) 4 : 5 (d) 5 : 4
(b)
Let the earnings of two persons be ₹300 and ₹200 respectively.
1/5th of ₹300 = ₹60
1/5th of ₹200 = ₹40
Therefore, the ratio of their savings is 60:40 = 3:2.
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 24
1 −1
If x = 5 3 + 5 3
, then 5 x3 − 15 x is given by:
(a) 25 (b) 26 (c) 27 (d) 30
Solution
(b)
CA NISHANT KUMAR
Question 25
 1  1  1 
The value of log5 1 +  + log5 1 +  + − − − − + log5 1 + 
 5  6  624 
(a) 2 (b) 3
(c) 5 (d) 0
Solution
(b)
 1  1  1 
log5 1 +  + log5 1 +  + − − − − + log5 1 + 
 5  6  624 
CA NISHANT KUMAR
6 7 8  625 
= log   + log   log   + − − − − + log  
5 6 7  624 
5 7 8 624 625 
= log5     ...   
 6 6 7 625 624 
 625 
= log 5  
 5 
= log5 (125) = log5 53 = 3log 5 5 = 3
CA NISHANT KUMAR
Question 26
log 2 2
( 512) : log3 2
324 =
(a) 128 : 81 (b) 2 : 3

(c) 3 : 2 (d) None
Solution
(c)
log 2 2
( 512) : log3 2
324
log512 log324
= :
log 2 2 log3 2
CA NISHANT KUMAR
log (8)
3
log182
= :
log 2  2  2 log 3  3  2
3log8 log182
= :
1/ 2log8 1/ 2log18
= (3  2) : ( 2  2)
= 6: 4
= 3: 2
CA NISHANT KUMAR
Question 27
log0.01 10,000
(a) 2 (b) –2 (c) 4 (d) –4
Solution
(b)
CA NISHANT KUMAR
Question 28 – MTP June, 2023
64 ( b 4 a 3 )
6
The value of
 4 ( a 3b )2  ( ab )2 
 
(a) 16a10b 20 (b) 4a 20b10 (c) 8a10b 20 (d) 4a10b 20
Solution
(a)
64 ( b a )
6
4 3
 4 ( a 3b )2  ( ab )2 
 
CA NISHANT KUMAR
64 ( b 46 a 36 )
=
 4 ( a 32b 2 )  ( a 2b 2 ) 
 
64 ( b 24 a18 )
=
 4 ( a 6b 2 )  ( a 2b 2 ) 
 
64a18b 24
=
 4a 6b2  a 2b 2 
64a18b24
=
4a8b 4
= 16a18−8b 24− 4
CA NISHANT KUMAR
= 16a10b 20
CA NISHANT KUMAR
Question 29 – December, 2022; MTP June, 2023
Four persons A, B, C, D wish to share a sum in the ratio of 5:2:4:3. If D gets ₹1,000 less
than C, then the share of B?
(a) ₹2,000 (b) ₹1,200 (c) ₹2,400 (d) ₹3,000
Solution
(a)
Now, we have four people, A, B, C, and D, who want to divide a sum of money in the
ratio of 5:2:4:3. We also know that D's share is ₹1,000 less than C's share.
To find out the share of B, let's assign variables to represent the shares. Let A’s share be
5x, B’s share be 2x, Cs share be 4x, and D’s share be 3x.
CA NISHANT KUMAR
Now, we know that D's share is ₹1,000 less than C's share. So we can set up the following
equation:
C’s share (4x) – D’s share (3x) = ₹1,000
Simplifying the equation, we get:
4x – 3x = ₹1,000
That gives us:
x = ₹1,000
Now that we know the value of x, we can find the share of each person.
B's share is represented by 2x, so substituting the value of x, we get:
B’s share = 2 × ₹1,000 = ₹2,000
CA NISHANT KUMAR
Therefore, the share of B is ₹2,000.
CA NISHANT KUMAR
The mean proportional between 12x 2 and 27 y 2 is:
(a) 18xy (b) 81xy (c) 8xy (d) 9xy
Solution
(a)
Mean Proportional = 12 x 2  27 y 2 = 324 x 2 y 2 = 18xy
CA NISHANT KUMAR
If thrice of A’s age 6 years ago be subtracted from twice his present age, the result would
be equal to his present age. Find A’s present age.
(a) 7 (b) 8 (c) 9 (d) 6
Solution
(c)
Let’s assume A’s present age is x years.
According to the problem, if we subtract thrice of A’s age 6 years ago from twice his
present age, the result would be equal to his present age.
Twice of A’s present age is 2 × x = 2x.
CA NISHANT KUMAR
Thrice A’s age 6 years ago is 3 × (x – 6) = 3x – 18.
Now, we can set up the equation:
2x – (3x – 18) = x
Let’s simplify the equation:
2x – 3x + 18 = x
–x + 18 = x
To solve for x, let's bring x terms to one side and constants to the other side:
18 = 2x
 x = 18 ÷ 2 = 9
CA NISHANT KUMAR
If log3 4.log 4 5.log5 6.log6 7.log7 8.log8 9 = x , then find the value of x.
(a) 4 (b) 2 (c) 3 (d) 1
Solution
(b)
log 4 log5 log 6 log 7 log8 log9
      =x
log3 log 4 log5 log 6 log 7 log8
log 9
 =x
log 3
CA NISHANT KUMAR
 log3 9 = x
 3x = 9
x=2
CA NISHANT KUMAR
If 1 log10 4 = y , and if 1 log10 9 = x , then find the value of log10 15 .
2 2
(a) x − y + 1 (b) x + y − 1 (c) x + y + 1 (d) y − x + 1
Solution
(a)
1
log10 4 = y
2
1
 log10 22 = y
2
CA NISHANT KUMAR
2
 log10 2 = y
2
 log10 2 = y …Eq. (1)
1
log10 9 = x
2
1
 log10 32 = x
2
2
 log10 3 = x
2
 log10 3 = x …Eq. (2)
CA NISHANT KUMAR
log10 15
= log10 ( 3  5 )
= log10 3 + log10 5
 10 
= log10 3 + log10  
 2
= log10 3 + log10 10 − log10 2
= x +1− y
CA NISHANT KUMAR
Question 34 – December, 2022; MTP June, 2023
In a hostel, ration is stocked for 400 students upto 31 days. After 28 days 280 students
were vacated the hostel. Find the number of days for which the remaining ration will be
sufficient for the remaining students.
(a) 5 (b) 4 (c) 7 (d) 10
Solution
(d)
Here, Total men = 400, No. of days = 31
Total No. of unit of food for 400 men in 31 days
= 400 × 31 = 12400 unit
CA NISHANT KUMAR
Total No. of unit of food for 400 men in 28 days
= 400 × 28 = 11200 unit
Rest food = 12400 -11200 = 1200 unit
Remain men after 28 days = 400 - 280 = 120
𝑇𝑜𝑡𝑎𝑙 𝑅𝑒𝑚𝑎𝑖𝑛𝑖𝑛𝑔 𝐹𝑜𝑜𝑑
No. of days for which the remaining food will be sufficient: =
𝑁𝑜. 𝑜𝑓 𝑅𝑒𝑚𝑎𝑖𝑛𝑖𝑛𝑔 𝑀𝑒𝑛
1200
= 10 𝑑𝑎𝑦𝑠
120
CA NISHANT KUMAR
Two vessels containing water and milk in the ratio 2 : 3 and 4 : 5 are mixed in the ratio 1
: 2. The ratio of milk and water in the resulting mixture is:
(a) 58 : 77 (b) 77 : 58 (c) 68 : 77 (d) None
Solution
(b)
Let the mixture contain 10 litres of solution from first vessel, and 20 litres of solution
from the second vessel.
CA NISHANT KUMAR
The 10 litres of solution from the first vessel would contain 2/5 water and 3/5 milk.
Therefore, portion of water out of 10 litres would be 2/5 × 10 = 4 litres, and the portion
of milk out of 10 litres would be 3/5 × 10 = 6 litres.
The 20 litres of solution from the second vessel would contain 4/9 water and 5/9 milk.
Therefore, portion of water from 20 litres would be 4/9 × 20 = 80/9 litres, and the portion
of milk out of 20 litres would be 5/9 × 20 = 100/9 litres.
Total water = 4 litres (from first vessel) + 80/9 litres (from second vessel)
Total milk = 6 litres (from first vessel) + 100/9 litres (from second vessel)
100
6+
Ratio of milk to water = 9 = 1.327586
80
4+
9
CA NISHANT KUMAR
If ( x − 9 ) : ( 3 x + 6 ) is the duplicate ratio of 4 : 9, find the value of x.
(a) x = 9 (b) x = 16 (c) x = 36 (d) x = 25
Solution
(d)
x − 9 42
=
3 x + 6 92
x − 9 16
 =
3x + 6 81
CA NISHANT KUMAR
 81( x − 9 ) = 16 ( 3 x + 6 )
 81x − 729 = 48x + 96

 81x − 48x = 729 + 96
 33x = 825
825
x= = 25
33
CA NISHANT KUMAR
Value of ( a1/8 + a −1/8 )( a1/8 − a −1/8 )( a1/4 + a −1/4 )( a1/2 + a −1/2 ) is:
1 1 1 1
(a) a + (b) a − (c) a 2 + (d) a 2 −
a a a2 a2
Solution
(b)
(a 1/8
+ a −1/8 )( a1/8 − a −1/8 )( a1/4 + a −1/4 )( a1/2 + a −1/2 )
 
 ( a1/8 + a −1/8 )( a1/8 − a −1/8 ) ( a1/4 + a −1/4 )( a1/2 + a −1/2 )
CA NISHANT KUMAR

 (a 1/8
) − ( a ) ( a
2
−1/8
2
1/4
+ a −1/4 )( a1/2 + a −1/2 )
 182 − 2 
1
 a − a 8  ( a1/4 + a −1/4 )( a1/2 + a −1/2 )
 
 ( a1/4 − a −1/4 )( a1/4 + a −1/4 )( a1/2 + a −1/2 )
 
 ( a1/4 − a −1/4 )( a1/4 + a −1/4 ) ( a1/2 + a −1/2 )

 ( a1/4 ) − ( a −1/4 )
2 2
( a
1/2
+ a −1/2 )
 14 2 − 2 
1
 a − a 4  ( a1/2 + a −1/2 )
 
CA NISHANT KUMAR
 ( a1/2 − a −1/2 )( a1/2 + a −1/2 )
 (a ) − (a )
2 2
1/2 −1/2
 a − a −1
1
a−
a
CA NISHANT KUMAR
If ( 25) = ( 25x ) , then the value of x will be:
150 50
(a) 53 (b) 54 (c) 52 (d) 5
Solution
(b)
( 25) = ( 25x )
150 50
 25150 = 2550  x50

25150
 x = 50
50
25
CA NISHANT KUMAR
 x50 = 25150−50
 x50 = 25100
 x = (5 )
100
50 2
 x50 = 5200
Option (b) → 54
( )
50
LHS: 54 = 5450 = 5200 = RHS
CA NISHANT KUMAR
 16   25   81 
7log   + 5log   + 3log   is equal to:
 15   24   80 
(a) 0 (b) 1 (c) log 2 (d) log3
Solution
(c)
 16   25   81 
7log   + 5log   + 3log  
 15   24   80 
CA NISHANT KUMAR
7 5 3
 16   25   81 
 log   + log   + log  
 15   24   80 
 167   255   813 
 log  7  + log  5  + log  3 
 15   24   80 
 167 255 813 
 log  7  5  3 
 15 24 80 
 log 2
CA NISHANT KUMAR
log 4 ( x 2 + x ) − log 4 ( x + 1) = 2 . Find x.
(a) 16 (b) 0 (c) –1 (d) None
Solution
(a)
log 4 ( x 2 + x ) − log 4 ( x + 1) = 2
 x2 + x 
 log 4  =2
 x +1 
CA NISHANT KUMAR
 x ( x + 1) 
 log 4  =2
 x +1 
 log 4 x = 2
 x = 42 = 16
CA NISHANT KUMAR
Chapter 2 – Equations
CA NISHANT KUMAR
Concepts at a Glance
Simple Equations
• An equation with only one variable with a linear power is known as a Simple
Equation.
• Try the options to solve the questions.
Simultaneous Linear Equations in Two Variables

• Two equations with two variables with linear power are known as simultaneous
linear equations.
• Try the options to solve the questions.
CA NISHANT KUMAR
Quadratic Equations
• A quadratic equation is an equation in which the highest power of the variables is 2.
• A quadratic equation is of the form ax 2 + bx + c = 0 .
• x is a variable while a, b and c are constants.
• A quadratic equation has two solutions/roots.
Methods of Solving Quadratic Equations

There are three methods of solving any quadratic equation:
1. Factorization Method
2. Quadratic Formula
−b  b 2 − 4ac
Quadratic Formula =
2a
CA NISHANT KUMAR
If we call the roots α, and β, then,
−b + b 2 − 4ac
=
2a
−b − b 2 − 4ac
=
2a
b
Sum of Roots ( +  ) = −
a
c
Product of Roots  =
a
3. Fastest Method
Solve the equation x 2 − 5 x + 6 = 0 using fastest method.
Here, a = 1; b = –5; c = 6
CA NISHANT KUMAR
b −5
Sum of Roots = − =− =5
a 1
c 6
Product of Roots = = = 6
a 1
5 
Now, take the sum of the roots, divide it by half, and add x to it. You’ll get  + x  .
2 
Similarly, take the sum of the roots, divide it by half, and subtract x from it. You’ll
5 
get  − x  . Multiply these two and equate with the product, i.e. 6.
2 
5  5 
 + x  − x =6
2  2 
CA NISHANT KUMAR
2
 5
  − x 2
=6
2
25
 − x2 = 6
4
25
 x2 = −6
4
 x 2 = 6.25 − 6
 x 2 = 0.25
 x = 0.25
 x = 0.5
CA NISHANT KUMAR
5  5 
Now, put the value of x = 0.5 in the factors  + x  , and  − x  . You’ll get the
2  2 
roots.
5 5
Therefore,  = + 0.5 = 3 ;  = − 0.5 = 2 .
2 2
This method applies to complicated roots as well.
Important Rule
If α and β are the roots of the equation, the equation is given by:
x 2 − ( +  ) x +  = 0
In other words,
CA NISHANT KUMAR
x 2 − ( Sumof Roots ) x + Product of Roots = 0 .
Nature of Roots
We know that the quadratic formula gives us the value of x as follows:
−b  b 2 − 4ac
x= .
2a
In this formula, the term b 2 − 4ac plays a very important role. The nature of the roots is
dependent on b 2 − 4ac .
1. If b 2 − 4ac = 0 , the roots are real and equal.
2. If b 2 − 4ac  0 , the roots are real and unequal.
a. If b 2 − 4ac is a perfect square, the roots are real, rational, and unequal.
CA NISHANT KUMAR
b. If b 2 − 4ac is not a perfect square, the roots are real, irrational, and unequal.
3. If b 2 − 4ac  0 , the roots are imaginary and unequal.
Since b 2 − 4ac discriminates the roots, it is known as the discriminant.
Points to be noted –
1. A real number is a number which can be expressed on a number line. Therefore,
every number is a real number, including negative numbers.
2. An imaginary number is a number multiplied by a unit “i”, which is identified by its
property i 2 = −1.
3. An integer is a number without any fractional part. It includes positive as well as
negative numbers.
CA NISHANT KUMAR
4. A rational number is a number which can be expressed as a fraction of two integers.
The decimal expansion of a rational number either terminates after a finite number
of digits, or begins to repeat the same finite sequence of digits over and over.
Examples:
2
a. 2 is a rational number as it can be expressed in the form of .
1
5
b. is a rational number as its decimal expansion 2.5 terminates after a finite
2
number of digits.
2
c. is a rational number as its decimal expansion comes to 0.222…, i.e. it begins
9
to repeat itself over and over.
CA NISHANT KUMAR
5 2
d. − , − are also rational numbers.
2 9
5. An irrational number is a number whose decimal expansion either does not
terminate after a finite number of digits or does not repeat itself over and over.
Examples:
a.  is an irrational number as its decimal expansion is 3.14159265359…, i.e. it
neither terminates after a finite number of digits nor does it repeat itself over
and over.
b. 2 is an irrational number as its decimal expansion is 1.41421356237…, i.e.
it neither terminates after a finite number of digits nor does it repeat itself over
and over.
( ) (
6. Irrational roots occur in conjugate pairs, i.e. if m + n is a root, then m − n is )
the other root of the same equation.
CA NISHANT KUMAR
c
7. If one root is reciprocal to the other root, then their product is 1 and so = 1, i.e.
a
c = a.
8. If one root is equal to the other root but opposite in sign, then their sum = 0, i.e.
b
− = 0  b = 0.
a
Cubic Equations
• An equation with the highest power of the variables as 3 is known as a cubic
equation.
• Try the options to solve such an equation.
CA NISHANT KUMAR
Questions Based on Simple Equations
CA NISHANT KUMAR
Question 1
The denominator of a fraction exceeds the numerator by 5 and if 3 be added to both the
3
fraction becomes . Find the fraction.
4
12 13 14 15
(a) (b) (c) (d)
17 17 18 19
Solution
(a)
Try the options.
CA NISHANT KUMAR
12
Option (a) →
17
17 – 12 = 5
Therefore, denominator exceeds the numerator by 5.
If 3 be added to both, the fraction becomes:
12 + 3 15
= = 0.75
17 + 3 20
3
Also, = 0.75
4
Therefore, it can be concluded that if 3 be added to both the numerator and the
denominator, the fraction becomes ¾.
CA NISHANT KUMAR
Question 2
If thrice of A’s age 6 years ago, be subtracted from twice his present age, the result would
be equal to his present age. Find A’s present age.
(a) 8 (b) 9 (c) 10 (d) 11
Solution
(b)
Let A’s present age be x years.
A’s age 6 years ago would be x − 6.
Twice of A’s present age would be 2x
As per the question, 2 x − 3 ( x − 6 ) = x
CA NISHANT KUMAR
Option (a) → 8
LHS = ( 2  8 ) − 3 ( 8 − 6 ) = 10  8
Option (b) → 9
LHS = ( 2  9 ) − 3 ( 9 − 6 ) = 9
CA NISHANT KUMAR
Question 3
A number consists of two digits. The digit in the ten’s place is twice the digit in the unit’s
place. If 18 be subtracted from the number, the digits are reversed. Find the number.
(a) 63 (b) 84 (c) 42 (d) 21
Solution
(c)
By trying the options, we’ll find that option (c) is the answer.
Clearly, the digit in the ten’s place is twice the digit in the unit’s place.
Also, 42 – 18 = 24  the digits are reversed.
CA NISHANT KUMAR
Question 4
For a certain commodity, the demand equation giving demand ‘d’ in kg, for a price ‘p’
in rupees per kg. is d = 100 (10 − p ) . The supply equation giving the supply s in kg. for a
price p in rupees per kg. is s = 75 ( p − 3) . The market price is such at which demand
equals supply. Find the market price and quantity that will be bought and sold.
(a) 10, 400, 400 (b) 9, 500, 500 (c) 8, 340, 440 (d) 7, 300, 300
Solution
(d)
Demand = Supply
100 (10 − p ) = 75 ( p − 3)
CA NISHANT KUMAR
1000 − 100 p = 75 p − 225
100 p + 75 p = 1000 + 225
175 p = 1225
1225
p= =7
175
Now, d = 100 (10 − p )
d = 100 (10 − 7 ) = 300
s = 75 ( p − 3)
s = 75 ( 7 − 3) = 300
CA NISHANT KUMAR
Question 5
The sum of two numbers is 52 and their difference is 2. The numbers are:
(a) 17 and 15 (b) 12 and 10 (c) 27 and 25 (d) None
Solution
(c)
By trying the options, we’ll find that option (c) is the answer.
Option (c) → 27 and 25
Clearly, 27 + 25 = 52; and 27 – 25 = 2
CA NISHANT KUMAR
Question 6
The diagonal of a rectangle is 5 cm and one of at sides is 4 cm. Its area is:
(a) 20 sq. cm. (b) 12 sq. cm. (c) 10 sq. cm. (d) None
Solution
(b)
4 cm
CA NISHANT KUMAR
As per Pythagoras’ Theorem,
x 2 + 4 2 = 52
 x = 52 − 42 = 3
Therefore, the area of the rectangle is 3 × 4 = 12 sq. cm.
CA NISHANT KUMAR
Question 7
Divide 56 into two parts such that three times the first part exceeds one third of the second
by 48. The parts are:
(a) (20, 36) (b) (25, 31) (c) (24, 32) (d) None
Solution
(a)
CA NISHANT KUMAR
Question 8
The sum of the digits of a two-digit number is 10. If 18 be subtracted from it, the digits
in the resulting number will be equal. The number is:
(a) 37 (b) 73 (c) 75 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 9
The fourth part of a number exceeds the sixth part by 4. The number is:
(a) 84 (b) 44 (c) 48 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 10
Ten years ago, the age of a father was four times of his son. Ten years hence, the age of
the father will be twice that of his son. The present ages of the father and the son are:
(a) (50, 20) (b) (60, 20) (c) (55, 25) (d) None
Solution
(a)
CA NISHANT KUMAR
Question 11
The product of two numbers is 3200 and the quotient when the larger number is divided
by the smaller is 2. The numbers are:
(a) (16, 200) (b) (160, 20) (c) (60, 30) (d) (80, 40)
Solution
(d)
CA NISHANT KUMAR
Question 12
The denominator of a fraction exceeds the numerator by 2. If 5 be added to the numerator,
the fraction increases by unity. The fraction is:
5 1 7 3
(a) (b) (c) (d)
7 3 9 5
Solution
(d)
CA NISHANT KUMAR
Question 13
Three persons Mr. Roy, Mr. Paul and Mr. Singh together have ₹51. Mr. Paul has ₹4 less
than Mr. Roy and Mr. Singh has got ₹5 less than Mr. Roy. They have the money as:
(a) (₹20, ₹16, ₹15) (b) (₹15, ₹20, ₹16) (c) (₹25, ₹11, ₹15) (d) None
Solution
(a)
CA NISHANT KUMAR
Question 14
A number consists of two digits. The digits in the ten’s place is 3 times the digit in the
unit’s place. If 54 is subtracted from the number, the digits are reversed. The number is:
(a) 39 (b) 92 (c) 93 (d) 94
Solution
(c)
CA NISHANT KUMAR
Question 15
One student is asked to divide a half of a number by 6 and other half by 4 and then to add
the two quantities. Instead of doing so, the student divides the given number by 5. If the
answer is 4 short of the correct answer, then the number was:
(a) 320 (b) 400 (c) 480 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 16
If a number of which the half is greater than 1/5th of the number by 15, then the number
is:
(a) 50 (b) 40 (c) 80 (d) None
Solution
(a)
CA NISHANT KUMAR
Questions Based on Simultaneous Linear Equations in Two
Variables
CA NISHANT KUMAR
Question 16
The point of intersection between the lines 3x + 4 y = 7 and 4 x − y = 3 lie in the:
(a) 1st Quadrant (b) 2nd Quadrant (c) 3rd Quadrant (d) 4th Quadrant
Solution
(a)
We have:
3x + 4 y = 7 …Eq. (1)
4 x − y = 3 …Eq. (2)
Multiplying Eq. (2) with 4, we’ll get:
CA NISHANT KUMAR
( 4 x − y = 3)  4
 16 x − 4 y = 12 …Eq. (3)
Adding Equations (1) and (3), we’ll get:
3x + 16 x + 4 y − 4 y = 7 + 12
 19 x = 19
 x =1
Putting this value of x in Eq. (1), we’ll get:
3 (1) + 4 y = 7
 3+ 4y = 7
CA NISHANT KUMAR
 4y = 7 − 3
 4y = 4
 y =1
Since both x and y are positive, they lie in the 1st quadrant.
CA NISHANT KUMAR
Question 17
If the numerator of a fraction is increased by 2 and the denominator by 1, it becomes 1.
Again, if the numerator is decreased by 4 and the denominator by 2, it becomes 1/2. Find
the fraction.
(a) 2/3 (b) 4/5 (c) 7/8 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 18
The age of a man is three times the sum of the ages of his two sons and 5 years hence his
age will be double the sum of their ages. Find the present age of the man?
(a) 23 (b) 45 (c) 78 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 19
A number consist of three digits of which the middle one is zero and the sum of the other
digits is 9. The number formed by interchanging the first and third digits is more than the
original number by 297. Find the number.
(a) 306 (b) 207 (c) 702 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 20
Monthly incomes of two persons are in the ratio 4 : 5 and their monthly expenses are in
the ratio 7 : 9. If each saves ₹50 per month find their monthly incomes.
(a) (500, 400) (b) (400, 500) (c) (300, 600) (d) (350, 550)
Solution
(b)
CA NISHANT KUMAR
Question 21
Find the fraction which is equal to 1/2 when both its numerator and denominator are
increased by 2. It is equal to 3/4 when both are increased by 12.
(a) 3/8 (b) 5/8 (c) 2/8 (d) 2/3
Solution
(a)
CA NISHANT KUMAR
Question 22
The age of a person is twice the sum of the ages of his two sons and five years ago his
age was thrice the sum of their ages. Find his present age.
(a) 60 years (b) 52 years (c) 51 years (d) 50 years
Solution
(d)
CA NISHANT KUMAR
Question 23
A number between 10 and 100 is five times the sum of its digits. If 9 be added to it the
digits are reversed find the number.
(a) 54 (b) 53 (c) 45 (d) 55
Solution
(c)
CA NISHANT KUMAR
Question 24
The wages of 8 men and 6 boys amount to ₹33. If 4 men earn ₹4.50 more than 5 boys
determine the wages of each man and boy.
(a) (₹1.50, ₹3) (b) (₹3, ₹1.50) (c) (₹2.50, ₹2) (d) (₹2, ₹2.50)
Solution
(b)
CA NISHANT KUMAR
Question 25
A number consisting of two digits is four times the sum of its digits and if 27 be added
to it the digits are reversed. The number is:
(a) 63 (b) 35 (c) 36 (d) 60
Solution
(c)
CA NISHANT KUMAR
Question 26
Of two numbers, 1/5th of the greater is equal to 1/3rd of the smaller and their sum is 16.
The numbers are:
(a) (6, 10) (b) (9, 7) (c) (12, 4) (d) (11, 5)
Solution
(a)
CA NISHANT KUMAR
Question 27
y is older than x by 7 years. 15 years back, x’s age was 3/4th of y’s age. Their present ages
are:
(a) (x = 36, y = 43) (b) (x = 50, y = 43) (c) (x = 43, y = 50) (d) (x = 40, y = 47)
Solution
(a)
CA NISHANT KUMAR
Question 28
The sum of the digits in a three digit number is 12. If the digits are reversed, the number
is increased by 495 but reversing only of the tens and units digits increases the number
by 36. The number is:
(a) 327 (b) 372 (c) 237 (d) 273
Solution
(c)
CA NISHANT KUMAR
Question 29
Two numbers are such that twice the greater number exceeds twice the smaller one by
18 and 1/3rd of the smaller and 1/5th of the greater number are together 21. The numbers
are:
(a) (36, 45) (b) (45, 36) (c) (50, 41) (d) (55, 46)
Solution
(b)
CA NISHANT KUMAR
Question 30
The demand and supply equations for a certain commodity are 4q + 7p = 17 and
q 7
p = + respectively where p is the market price and q is the quantity. The equilibrium
3 4
price and quantity are:
3 1 3
(a) 2, (b) 3, (c) 5, (d) None
4 2 5
Solution
(a)
CA NISHANT KUMAR
Question 31
The cab bill is partly fixed and partly varies on the distance covered. For 456 km, the bill
is ₹8252, for 484 km the bill is ₹8728. What will the bill be for 500 km?
(a) ₹8876 (b) ₹9156 (c) ₹9472 (d) ₹9000
Solution
(d)
8728 − 8252
Variable Cost per unit = = 17
484 − 456
Therefore, Fixed Cost = 8252 – (17 × 456) = 8252 – 7752 = ₹500
The bill for 500 km will be ₹500 + (500 × ₹17 p.u.) = ₹500 + ₹8,500 = ₹9,000
CA NISHANT KUMAR
Alternatively,
Let the fixed cost be x and variable cost per unit be y.
For 456 km, we have x + 456y = 8252…Eq. (1)
For 484 km, we have x + 484y = 8728…Eq. (2)
Subtracting Eq. (1) from Eq. (2), we have:
x – x + 484y – 456y = 8728 – 8252
 y ( 484 − 456 ) = 476
 y  28 = 476
476
y= = 17
28
CA NISHANT KUMAR
Putting this value in Eq. (1), we have:
x + ( 456  17 ) = 8252
 x = 8252 − ( 456  17 ) = 8252 − 7752 = 500
Therefore, for 500 km, the bill will be x + 500 y = 500 + ( 500  17 ) = 500 + 8500 = 9000
CA NISHANT KUMAR
Question 32
The value of k for the system of equations kx + 2 y = 5 and 3x + y = 1 has no solution is:
(a) 5 (b) 2/3 (c) 6 (d) 3/2
Solution
(c)
kx + 2 y = 5 …Eq. (1)
3x + y = 1…Eq. (2)
Multiplying Eq. (2) with 2, we’ll get:
6 x + 2 y = 2 …Eq. (3)
CA NISHANT KUMAR
Subtracting Eq. (3) from Eq. (1), we’ll get:
kx − 6 x + 2 y − 2 y = 5 − 2
 kx − 6 x = 3
 x ( k − 6) = 3
3
x=
k −6
Now, clearly, if k takes the value 6, then denominator becomes zero, and x becomes not
defined, and hence the system of equations won’t have any solution.
CA NISHANT KUMAR
Questions Based on Quadratic Equations
CA NISHANT KUMAR
Question 33
If  ,  be the roots of the equation 2 x 2 − 4 x − 3 = 0 , then the value of  2 +  2 is:
(a) 5 (b) 7 (c) 3 (d) –4
Solution
(b)
Method 1 – Solve the quadratic, find the roots and calculate  2 +  2 .
2x2 − 4x − 3 = 0
a = 2; b = −4; c = −3
CA NISHANT KUMAR
b −4
 + =− =− =2
a 2
c −3
 = = = −1.5
a 2
2  2 
 + x  − x  = −1.5
2  2 
12 − x 2 = −1.5
x 2 = 1 + 1.5 = 2.5
x = 2.5
 = 1 + 2.5
CA NISHANT KUMAR
 = 1 − 2.5
( ) ( )
2 2
 +  = 1 + 2.5 + 1 − 2.5
2 2
=7
Method 2 –
Given equation:
2x2 − 4x − 3 = 0
a = 2; b = −4; c = −3
b −4
 + =− =− =2
a 2
c −3
 = = = −1.5
a 2
CA NISHANT KUMAR
We know that ( +  ) =  2 +  2 + 2
2
  2 +  2 = ( +  ) − 2 = ( 2 ) − ( 2  −1.5) = 7
2 2
CA NISHANT KUMAR
Question 34
Examine the nature of roots of the following equation: 3x 2 − 8 x + 4 = 0 .
(a) Real and Equal (b) Real and Unequal
(c) Imaginary and Unequal (d) Real, Rational, Unequal
Solution
(d)
3x 2 − 8 x + 4 = 0
a = 3; b = −8; c = 4
b2 − 4ac = ( −8) − ( 4 )( 3)( 4 ) = 16

2
CA NISHANT KUMAR
Since D > 0, the roots are real and unequal. Also, since D is a perfect square, the roots
are rational.
CA NISHANT KUMAR
Question 35
Examine the nature of roots of the following equation: 5 x 2 − 4 x + 2 = 0 .
(a) Real and Equal (b) Real and Unequal
(c) Imaginary and Unequal (d) Real, Rational, Unequal
Solution
(c)
5x2 − 4 x + 2 = 0
a = 5; b = −4; c = 2
b2 − 4ac = ( −4 ) − ( 4 )( 5)( 2 ) = −24

2
CA NISHANT KUMAR
Since D < 0, the roots are imaginary and unequal.
CA NISHANT KUMAR
Question 36
If the roots of the equation 2 x 2 + 8 x − m3 = 0 are equal, then the value of m is:
(a) –3 (b) –1 (c) 1 (d) –2
Solution
(d)
2 x 2 + + 8 x − m3 = 0
a = 2; b = 8; c = −m3
b 2 − 4ac = 0
(8) − ( 4 )( 2 ) ( −m3 ) = 0
2
CA NISHANT KUMAR
64 − ( −8m3 ) = 0
64 + 8m3 = 0
8m3 = −64
−64
m3 = = −8
8
 m = −2
CA NISHANT KUMAR
Question 37
The equation x 2 − ( p + 4 ) x + 2 p + 5 = 0 has equal roots. The value of p will be:
(a)  1 (b) 2 (c)  2 (d) –2
Solution
(c)
x2 − ( p + 4) x + 2 p + 5 = 0
a = 1; b = − ( p + 4 ) ; c = 2 p + 5
b 2 − 4ac = 0
CA NISHANT KUMAR
− ( p + 4) − ( 4)(1)( 2 p + 5) = 0
2
p 2
+ 42 + ( 2  p  4 ) − 4 ( 2 p + 5 ) = 0
p 2
+ 16 + 8 p − 8 p + 20 = 0
p 2 + 16 + 8 p − 8 p − 20 = 0
p2 − 4 = 0
p2 = 4
p = 4 = 2
CA NISHANT KUMAR
Question 38
The roots of the equation x 2 + ( 2 p − 1) x + p 2 = 0 are real if:
(a) p  1 (b) p  4 (c) p  1/ 4 (d) p  1/ 4
Solution
(d)
x 2 + ( 2 p − 1) x + p 2 = 0
a = 1; b = 2 p − 1; c = p 2
For the roots to be real, b 2 − 4ac  0
CA NISHANT KUMAR
( 2 p − 1) − ( 4 )(1) ( p 2 )  0
2
( 2 p ) + (1) − ( 2)( 2 p )(1) − 4 p2  0

2 2
4 p2 + 1 − 4 p − 4 p2  0
1− 4 p  0
1 4p
1
p
4
1
 p
4
CA NISHANT KUMAR
Question 39
If L + M + N = 0 , and L, M, and N are rationals, the roots of the equation
( M + N − L ) x2 + ( N + L − M ) x + ( L + M − N ) = 0 are:
(a) Real and Irrational (b) Real and Rational
(c) Imaginary and Equal (d) Real and Equal
Solution
(b)
We have
( M + N − L ) x2 + ( N + L − M ) x + ( L + M − N ) = 0
CA NISHANT KUMAR
We know that
L+M + N =0
Therefore,
M + N = − L ; N + L = −M ; L + M = − N ; M = − N − L
Therefore, we have
( − L − L ) x2 + ( −M − M ) x + ( − N − N ) = 0
 −2 Lx 2 − 2Mx − 2 N = 0
(
 −2 Lx 2 + Mx + N = 0 )
 Lx 2 + Mx + N = 0
CA NISHANT KUMAR
Here, a = L ; b = M ; c = N
b2 − 4ac = M 2 − ( 4 )( L )( N )
b2 − 4ac = ( − N − L ) − 4LN
2
b2 − 4ac = − ( N + L ) − 4 LN
2
b2 − 4ac = ( N + L ) − 4LN
2
b 2 − 4ac = N 2 + L2 + 2 LN − 4 LN
b 2 − 4ac = N 2 + L2 − 2 LN
b2 − 4ac = ( N − L )
2
CA NISHANT KUMAR
Therefore, D is a perfect square. Hence, the roots are rational. Also, the roots are real.
This is because even if N – L comes to be a negative figure, squaring it would make it
positive, and thereafter, its square root will be determined in the quadratic formula.
Therefore, the roots are Real and Rational.
CA NISHANT KUMAR
Question 40
If one root of the equation is 2 − 3 , form the equation given that the roots are irrational.
(a) x 2 − 4 x + 2 = 0 (b) x 2 − 3x + 9 = 0
(c) x 2 − 5 x + 2 = 0 (d) x 2 − 4 x + 1 = 0
Solution
(d)
Irrational roots always occur in conjugate pairs. This means that if one root is 2 − 3 , the
other root will be 2 + 3 .
When the roots are known, the equation is given by:
CA NISHANT KUMAR
x 2 − ( Sumof Roots ) x + Product of Roots = 0
( ) ( ) (
x2 − 2 − 3 + 2 + 3 x + 2 − 3 2 + 3 = 0 )( )
 
x − 2 − 3 + 2 + 3 x + ( 2) −
2
 2
( 3)  = 0
2
x 2 − 4 x + 4 − 3 = 0
x2 − 4 x + 1 = 0
CA NISHANT KUMAR
Question 41
If the roots of the equation p ( q − r ) x 2 + q ( r − p ) x + r ( p − q ) = 0 are equal, find the
1 1
value of + .
p r
2 1 1
(a) (b) (c) (d) None
q q 2
Solution
(a)
Here, a = p ( q − r ) ; b = q ( r − p ) ; c = r ( p − q )
CA NISHANT KUMAR
Since the roots of this equation are equal, b 2 − 4ac = 0 .
q ( r − p ) − ( 4) p ( q − r )r ( p − q ) = 0
2
q 2 ( r − p ) −  4 pr ( q − r )( p − q )  = 0
2
q 2 ( r 2 + p 2 − 2rp ) −  4 pr ( qp − q 2 − pr + qr ) = 0
q 2 r 2 + q 2 p 2 − 2rpq 2 −  4 p 2 qr − 4 pq 2r − 4 p 2r 2 + 4 pqr 2  = 0
q2r 2 + q2 p2 − 2rpq2 − 4 p2qr + 4 pq 2r + 4 p2r 2 − 4 pqr 2 = 0

q2r 2 + q2 p2 + 4 pq2r − 2rpq2 − 4 p 2qr + 4 p2r 2 − 4 pqr 2 = 0
q2r 2 + q 2 p 2 + 2 pq 2r − 4 p 2qr + 4 p 2r 2 − 4 pqr 2 = 0
CA NISHANT KUMAR
We know that ( a + b + c ) = a 2 + b2 + c 2 + 2ab + 2bc + 2ca
2
If we look closely at the LHS of the following equation,

q2r 2 + q 2 p 2 + 2 pq 2r − 4 p 2qr + 4 p 2r 2 − 4 pqr 2 = 0 , we’ll find that it is the expansion of
( qr + qp − 2 pr )
2
.
Therefore,
( qr + qp − 2 pr )
2
=0
 qr + qp − 2 pr = 0
 qr + qp = 2 pr
Dividing the entire equation by pqr, we get:
CA NISHANT KUMAR
qr qp 2 pr
+ =
pqr pqr pqr
1 1 2
 + =
p r q
CA NISHANT KUMAR
Question 42
If α and β be the roots of x2 + 7x + 12 = 0, find the equation whose roots are ( +  ) and
2
( −  )
2
.
(a) x 2 + 50 x + 49 = 0 (b) x 2 − 24 x + 144 = 0

(c) x 2 − 50 x + 49 = 0 (d) x 2 − 19 x + 49 = 0
Solution
(c)
x 2 + 7 x + 12 = 0
Here, a = 1; b = 7; c = 12
CA NISHANT KUMAR
b 7
 +  = − = − = −7
a 1
c 12
 = = = 12
a 1
As per the fastest method,
 −7  −7 
 + x  − x  = 12
 2  2 
 −7 
2
  − x 2
= 12
 2 
49 49 − 48 1
x2 = − 12 = =
4 4 4
CA NISHANT KUMAR
1 1
x= =
4 2
−7 1 6
Therefore,  = + = − = −3
2 2 2
−7 1 8
= − = − = −4
2 2 2
The roots of the new equation will be:
( +  ) = ( −3 − 4 ) = 49 , and
2 2
( −  ) = −3 − ( −4 )
2 2
=1
When roots of the equation are known, the equation is given by:
CA NISHANT KUMAR
Therefore, the equation will be x 2 − ( 49 + 1) x + ( 49 1) = 0
 x 2 − 50 x + 49 = 0
CA NISHANT KUMAR
Question 43
If α, β are the two roots of the equation x2 + px + q = 0, form the equation whose roots
 
are and .
 
( )
(a) qx 2 − p 2 − 2q x + q = 0 ( )
(b) px 2 − p 2 − 2q x + q = 0
(c) qx 2 −( p 2
− 2q ) x + p = 0 (d) qx 2 +(p 2
− 2q ) x + p = 0
Solution
(a)
x2 + px + q = 0
CA NISHANT KUMAR
b p
 +  = − = − = − p , and
a 1
c q
 = = =q
a 1
 
We need an equation whose roots are and
 
Quadratic equation is given by: x 2 − ( Sumof Roots ) x + Product of Roots = 0
Therefore,
     
x2 −  +  x +    = 0
     
CA NISHANT KUMAR
2 + 2 
 x −
2
 x +1 = 0
  
  2 +  2 + 2 − 2 
 x −
2
 x +1 = 0
  
 ( 2 +  2 + 2 ) − 2 
 x2 −   x +1 = 0
  
(
   ) − 2 
2
+ 
 x −
2
 x +1 = 0

  

CA NISHANT KUMAR
 ( ) − ( 2q ) 
2
 − p 
 x −
2
 x +1 = 0

 q 

 p 2 − 2q 
 x −2
 x +1 = 0
 q 
Multiplying the entire equation with q, we get:
 p 2 − 2q 
qx − q 
2
x + q = 0
 q 
 qx 2 − ( p 2 − 2q ) x + q = 0
CA NISHANT KUMAR
Question 44
If one root of 5x2 + 13x + p = 0 be reciprocal of the other, then the value of p is:
(a) –5 (b) 5 (c) 1/5 (d) –1/5
Solution
(b)
5x2 + 13x + p = 0
a = 5; b = 13; c = p
If one root is the reciprocal of the other, then the product of roots = 1
CA NISHANT KUMAR
c
Therefore, =1 c = a  p = 5
a
CA NISHANT KUMAR
Question 45
2 2
If  and  are the roots of x = x + 1, then the value of
2
− is:
 
(a) 2 5 (b) 5
(c) 3 5 (d) −2 5
Solution
(d)
x2 = x + 1
x2 − x − 1 = 0
CA NISHANT KUMAR
a = 1; b = −1; c = −1
b −1
 + =− =− =1
a 1
c −1
 = = = −1
a 1
2  2 3 − 3
− =
  
 2  2 ( −  ) ( +  +  )
2 2
− =
  
CA NISHANT KUMAR
 2  2 ( −  ) ( +  +  +  −  )
2 2
− =
  
 2  2 ( −  ) ( + 2 +  −  )
2 2
− =
  
( −  )(1) − ( −1)
2
2
 2
− =
  −1
2 2
− =−
( −  )1 + 1
  −1
CA NISHANT KUMAR
2 2
− = −2 ( −  )
 
2 2
= −2 ( −  )
2
−
 
2 2
− = −2  2 +  2 − 2
 
2 2
− = −2  2 +  2 − 2 + 2 − 2
 
2 2
= −2 ( +  ) − 4
2
−
 
CA NISHANT KUMAR
2 2
= −2 (1) − ( 4 )( −1)
2
−
 
2 2
− = −2 5
 
Alternatively, as per the fastest method:
1  1 
 + x  − x  = −1
2  2 
2
1
  − x = −1
2
2
CA NISHANT KUMAR
1
+ 1 = x2
4
5
x2 =
4
5 5
x= =
4 2
1 5 1+ 5
= + =
2 2 2
1 5 1− 5
= − =
2 2 2
CA NISHANT KUMAR
 2  2   1 + 5    1 − 5     1 − 5    1 + 5  
2 2
− =     −    
    2    2     2    2  
     
2 2
− = −4.2361 − 0.2361 = −4.4722 = −2 5
 
CA NISHANT KUMAR
Question 46
2 2
If α, β be the roots of 2x – 4x – 1 = 0, find the value of
2
+ .
 
(a) –22 (b) 23 (c) –23 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 47
1
The value of 4 + is:
1
4+
1
4+
4 + ...
(a) 1  2 (b) 2 + 5 (c) 2  5 (d) None
Solution
(b)
CA NISHANT KUMAR
1
Let 4 + =x
1
4+
1
4+
4 + ...
1
x = 4+
x
4x + 1
x=
x
x2 = 4 x + 1
x2 − 4 x − 1 = 0
a = 1; b = −4; c = −1
CA NISHANT KUMAR
b −4
 + =− =− =4
a 1
c −1
 = = = −1
a 1
4  4 
 + x  − x  = −1
2  2 
( 2)
2
− x 2 = −1
x2 = 4 + 1 = 5
x= 5
CA NISHANT KUMAR
4
 = + 5 = 2 + 5 = 4.23
2
4
 = − 5 = 2 − 5 = −0.24
2
Clearly, the answer cannot be negative. Therefore, option (b) is the answer.
CA NISHANT KUMAR
Question 48
The value of 6 + 6 + 6 + ... is:

(a) –3 (b) 2 (c) 3 (d) 4
Solution
(c)
Let x = 6 + 6 + 6 + ...
CA NISHANT KUMAR
Question 49
If the sum of the roots of the quadratic equation ax 2 + bx + c = 0 is equal to the sum of
b 2 bc
the squares of their reciprocals, then + is:
ac a 2
(a) 2 (b) –2 (c) 1 (d) –1
Solution
(a)
ax 2 + bx + c = 0
b
 + =−
a
CA NISHANT KUMAR
c
 =
a
1 1
Given:  +  = +
2 2
b  2 +2
− = 2 2
a  
b ( +  ) − 2
2
− =
( )

2
a
CA NISHANT KUMAR
2
 b  c
− − 
b  a   
2
a
− = 2
a c
 
a
b  b 2 2c  c 2
− = 2 −  2
a a a  a
b  b 2 − 2ac  a 2
− = 2  2
a  a  c
b b 2 − 2ac
− =
a c2
CA NISHANT KUMAR
−bc 2 = ab 2 − 2a 2c
ab 2 + bc 2 = 2a 2c
Dividing both sides by a 2c
ab 2 bc 2 2a 2c
+ =
a 2c a 2c a 2c
b 2 bc
+ =2
ac a 2
CA NISHANT KUMAR
Question 50
If p and q are the roots of the x 2 + 2 x + 1 = 0 , then the values of p3 + q3 becomes:
(a) 2 (b) –2 (c) 4 (d) –4
Solution
(b)
x2 + 2 x + 1 = 0
a = 1; b = 2; c = 1
b 2
p+q=− = − = −2
a 1
CA NISHANT KUMAR
c 1
pq = = =1
a 1
Therefore, obviously p = −1 and q = −1
p3 + q3 = ( −1) + ( −1) = −2
3 3
Alternatively,
We know that ( p + q ) = p3 + q3 + 3 pq ( p + q )
3
 p3 + q3 = ( p + q ) − 3 pq ( p + q )
3
p3 + q3 = ( −2 ) − ( 3)(1)( −2 ) = −2
3
CA NISHANT KUMAR
Question 51
p q
If p  q and p 2 = 5 p − 3 and q 2 = 5q − 3, the equation having the roots as and is:
q p
(a) x 2 − 19 x + 3 = 0 (b) 3 x 2 − 19 x − 3 = 0
(c) 3x 2 − 19 x + 3 = 0 (d) 3x 2 + 19 x + 3 = 0
Solution
(c)
We have p 2 = 5 p − 3
p2 − 5 p + 3 = 0
CA NISHANT KUMAR
a = 1; b = −5; c = 3
b −5
 + =− =− =5
a a
c 3
 = = =3
a 1
5  5 
 + x  − x  = 3
2  2 
2
5
  −x =3
2
2
CA NISHANT KUMAR
25
x2 = −3
4
25 − 12 13
x2 = =
4 4
13 13
x= =
4 2
5 13 5 + 13
= + =
2 2 2
5 13 5 − 13
= − =
2 2 2
CA NISHANT KUMAR
5 + 13 5 − 13
Therefore, p = ,
2 2
Also, we have q 2 = 5q − 3
Since this is exactly the same as p 2 = 5 p − 3 , it’s obvious that q will also have the same
two values.
Since it is given in the question that p  q , therefore, we’ll have to take different values.
5 + 13 5 − 13
So, let p = , and q =
2 2
p q
Now, we need to find the equation whose roots are and .
q p
CA NISHANT KUMAR
5 + 13
p 2 5 + 13
= = = 6.1713
q 5 − 13 5 − 13
2
5 − 13
q 2 5 − 13
= = = 0.1620
p 5 + 13 5 + 13
2
If the roots are given, the equation is given by:
Therefore, the equation is:
CA NISHANT KUMAR
x 2 − ( 6.1713 + 0.1620 ) x + ( 6.1713  0.1620 ) = 0
x 2 − 6.333 x + 1 = 0
Option (a) cannot be the answer.
Option (b) cannot be the answer as the last term has a negative sign.
Option (c) → 3x 2 − 19 x + 3 = 0
Dividing the entire equation by 3, we’ll get:
3x 2 19 3
− x+ =0
3 3 3
 x 2 − 6.333 x + 1 = 0
CA NISHANT KUMAR
Question 52
If the root of the equation x 2 − 8 x + m = 0 exceeds the other by 4, then the value of m is:
(a) 10 (b) 11
(c) 9 (d) 12
Solution
(d)
x2 − 8x + m = 0
a = 1; b = −8; c = m
b −8
 + =− =− =8
a 1
CA NISHANT KUMAR
c m
 = = =m
a 1
 − =4
Now, we have two equations:
 +  = 8 …Eq. (1)
 −  = 4 …Eq. (2)
Adding these two, we’ll get:
12
2 = 12   = =6
2
Putting this value in Eq. (1), we’ll get:
CA NISHANT KUMAR
6+  =8  =8−6 = 2
Now,  = m  6  2 = m  m = 12
CA NISHANT KUMAR
Question 53
If arithmetic mean between roots of a quadratic equation is 8 and the geometric mean
between them is 5, the equation is _______.
(a) x 2 − 16 x − 25 = 0 (b) x 2 − 16 x + 25 = 0 (c) x 2 + 16 x + 25 = 0 (d) None
Solution
(b)
 +
= 8   +  = 8  2   +  = 16
2
 = 5   = 52   = 25
CA NISHANT KUMAR
Option (a) → x 2 − 16 x − 25 = 0
b −16
Here,  +  = − =− = 16
a 1
c −25
 = = = −25
a 1
Therefore, option (a) cannot be the answer.
Option (b) → x 2 − 16 x + 25 = 0
b −16
Here,  +  = − =− = 16
a 1
CA NISHANT KUMAR
c 25
 = = = 25
a 1
CA NISHANT KUMAR
Question 54
( ) ( )
The harmonic mean of the roots of the equation 5 + 2 x 2 − 4 + 5 x + 8 + 2 5 = 0 is:
(a) 2 (b) 4 (c) 6 (d) 8
Solution
(b)
(5 + 2 ) x − ( 4 + 5 ) x + 8 + 2
2
5 =0
Here,
( )
a =5+ 2; b = − 4+ 5 ; c =8+2 5
CA NISHANT KUMAR
b
Therefore,  +  = − = −
(
− 4+ 5)= 0.9722
a 5+ 2
c 8+2 5
 = = = 1.9444
a 5+ 2
2 2  1.9444
HM = = =4
 + 0.9722
CA NISHANT KUMAR
Question 55
Difference between a number and its positive square root is 12; find the numbers.
(a) 4, 16 (b) 16, 4 (c) 22, 35 (d) Both (a) and (b)
Solution
(d)
CA NISHANT KUMAR
Question 56
A piece of iron rod costs ₹60. If the rod was 2 metre shorter and each metre costs ₹1.00
more, the cost would remain unchanged. What is the length of the rod?
(a) 10 m (b) 14 m (c) 12 m (d) None
Solution
(c)
CA NISHANT KUMAR
Question 57
Divide 25 into two parts so that sum of their reciprocals is 1/6.
Solution
(b)
CA NISHANT KUMAR
Question 58
The sum of two numbers is 8 and the sum of their squares is 34. Taking one number as x
form an equation in x and hence find the numbers. The numbers are:
(a) (7, 10) (b) (4, 4) (c) (3, 5) (d) (2, 6)
Solution
(c)
CA NISHANT KUMAR
Question 59
The difference of two positive integers is 3 and the sum of their squares is 89. Taking the
smaller integer as x form a quadratic equation and solve it to find the integers. The
integers are:
(a) (7, 4) (b) (5, 8) (c) (3, 6) (d) (2, 5)
Solution
(b)
CA NISHANT KUMAR
Question 60
Five times of a positive whole number is 3 less than twice the square of the number. The
number is
(a) 3 (b) 4 (c) –3 (d) 2
Solution
(a)
CA NISHANT KUMAR
Question 61
The area of a rectangular field is 2000 sq.m. and its perimeter is 180 m. Form a quadratic
equation by taking the length of the field as x and solve it to find the length and breadth
of the field. The length and breadth are:
(a) (205 m, 80 m) (b) (50 m, 40 m) (c) (60 m, 50 m) (d) None
Solution
(b)
CA NISHANT KUMAR
Question 62
Two squares have sides p cm and (p + 5) cms. The sum of their squares is 625 sq. cm.
The sides of the squares are:
(a) (10 cm, 30 cm) (b) (12 cm, 25 cm) (c) (15 cm, 20 cm) (d) None
Solution
(c)
CA NISHANT KUMAR
Question 63
Divide 50 into two parts such that the sum of their reciprocals is 1/12. The numbers are:
(a) (24, 26) (b) (28, 22) (c) (27, 23) (d) (20, 30)
Solution
(d)
CA NISHANT KUMAR
Question 64
There are two consecutive numbers such that the difference of their reciprocals is 1/240.
The numbers are:
(a) (15, 16) (b) (17, 18) (c) (13, 14) (d) (12, 13)
Solution
(a)
CA NISHANT KUMAR
Question 65
The hypotenuse of a right–angled triangle is 20 cm. The difference between its other two
sides be 4 cm. The sides are:
(a) (11 cm, 15 cm) (b) (12 cm, 16 cm) (c) (20 cm, 24 cm) (d) None
Solution
(b)
CA NISHANT KUMAR
Question 66
The sum of two numbers is 45 and the mean proportional between them is 18. The
numbers are:
(a) (15, 30) (b) (32, 13) (c) (36, 9) (d) (25, 20)
Solution
(c)
CA NISHANT KUMAR
Question 67
The sides of an equilateral triangle are shortened by 12 units 13 units and 14 units
respectively and a right-angle triangle is formed. The side of the equilateral triangle is:
(a) 17 units (b) 16 units (c) 15 units (d) 18 units
Solution
(a)
CA NISHANT KUMAR
Question 68
A distributor of apple Juice has 5000 bottles in the store that it wishes to distribute in a
month. From experience it is known that demand D (in number of bottles) is given by
D = −2000 p 2 + 2000 p + 17000 . The price per bottle that will result zero inventory is:
(a) ₹3 (b) ₹5 (c) ₹2 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 69
The sum of two irrational numbers multiplied by the larger one is 70 and their difference
is multiplied by the smaller one is 12; the two numbers are:
(a) 3 2, 2 3 (b) 5 2, 3 5 (c) 2 2, 5 2 (d) None
Solution
(c)
CA NISHANT KUMAR
Questions Based on Cubic Equations
CA NISHANT KUMAR
Question 70
x, x − 4, x + 5 are the factors of the left-hand side of the equation:
(a) x3 + 2 x 2 − x − 2 = 0 (b) x3 + x 2 − 20 x = 0
(c) x3 − 3x 2 − 4 x + 12 = 0 (d) x3 − 6 x 2 + 11x − 6 = 0
Solution
(b)
CA NISHANT KUMAR
Question 71
The equation 3 x 3 + 5 x 2 = 3 x + 5 has got 3 roots and hence the factors of the left-hand side
of the equation 3x3 + 5 x 2 − 3x − 5 = 0 are:
(a) x − 1, x − 2, x − 5 / 3 (b) x − 1, x + 1, 3x + 5
(c) x + 1, x − 1, 3x − 5 (d) x − 1, x + 1, x − 2
Solution
(b)
CA NISHANT KUMAR
Question 72
The roots of x3 + x 2 − x − 1 = 0 are:
(a) (–1, –1, 1) (b) (1, 1, –1) (c) (–1, –1, –1) (d) (1, 1, 1)
Solution
(a)
CA NISHANT KUMAR
Question 73
If 4 x3 + 8 x 2 − x − 2 = 0 , then the value of ( 2 x + 3) is given by:
(a) 4, –1, 2 (b) –4, 2, 1 (c) 2, –4, –1 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 74
The value of k is ________, if 2 is the root of the following cubic equation
x3 − ( k + 1) x + k = 0 .
(a) 2 (b) 6 (c) 1 (d) 4
Solution
(b)
x3 − ( k + 1) x + k = 0
 23 − ( k + 1) 2 + k = 0
 8 − 2k − 2 + k = 0
CA NISHANT KUMAR
6−k =0
k =6
CA NISHANT KUMAR
Chapter 3 – Linear Inequalities
CA NISHANT KUMAR
Question 1
On the average, an experienced person does 7 units of work while a fresh one work 5
units of work daily but the employer has to maintain an output of at least 35 units of work
per day. The situation can be expressed as:
(a) 7x + 5y < 35 (b) 7x + 5y ≤ 35 (c) 7x + 5y > 35 (d) 7x + 5y ≥ 35
Solution
(d)
CA NISHANT KUMAR
Question 2
The solution space of the inequalities 2 x + y  10 and x − y  5 :
1. Includes origin
2. Includes the point (4, 3)
Which one is correct:
(a) Only 1 (b) Only 2 (c) Both 1 and 2 (d) None
Solution
(a)
Origin means (0, 0).
CA NISHANT KUMAR
Try this point in the first equation.
2 x + y  10
2 ( 0 ) + ( 0 ) = 0 + 0 = 0  10
Also,
x− y5
0−0 = 05
Since both the inequations are being satisfied with origin, the solution space definitely
contains the origin.
Now, try the point (4, 3).
Put it in the first equation
CA NISHANT KUMAR
2 x + y  10
2 ( 4 ) + ( 3) = 8 + 3 = 11
This is neither less than nor equal to 10. Therefore, this point does not satisfy the first
inequation. Hence, there is no point in checking the second equation.
Clearly, option (a) is the answer.
CA NISHANT KUMAR
Question 3
The solution of the inequality

( 5 − 2 x )  x − 5 is:
3 6
(a) x  8 (b) x  8 (c) x = 8 (d) None
Solution
(a)
Try the options.
Option (a) → x ≥ 8
Take x = 8 first and see if the inequation satisfies.
CA NISHANT KUMAR
5 − ( 2  8 ) 5 − 16
LHS = = = −3.67
3 3
8
RHS = − 5 = −3.67
6
Since LHS = RHS, the inequation satisfies.
Now, let’s check if the inequation satisfies for a value greater than 8. Let’s try with 9.
5 − ( 2  9 ) 5 − 18
LHS = = = −4.33
3 3
9
RHS = − 5 = −3.5
6
Clearly LHS < RHS, and therefore, the inequation is satisfied.
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 4
On the average, an experienced person does 5 units of work while a fresh one work 3
units of work daily but the employer has to maintain an output of at least 30 units of work
per day. The situation can be expressed as:
(a) 5x + 3y ≤ 30 (b) 5x + 3y ≥ 30 (c) 5x + 3y = 30 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 5
The solution set of the inequation x + 2  0 and 2 x − 6  0 is:
(a) ( −2,  ) (b) ( 3, ) (c) ( −, −2 ) (d) ( −, −3)
(b)
x + 2  0  x  −2
Therefore, any value greater than –2 till infinity will satisfy this equation.
2x − 6  0
2x  6
CA NISHANT KUMAR
6
x  x3
2
Therefore, any value greater than 3 till infinity will satisfy this equation.
Therefore, the common solution set is ( 3, ) .
CA NISHANT KUMAR
Question 6
A company produces two products A and B, each of which requires processing in two
machines. The first machine can be used at most for 60 hours, the second machine can
be used at most for 40 hours. The product A requires 2 hours on machine one and one
hour on machine two. The product B requires one hour on machine one and two hours
on machine two. Express above situation using linear inequalities.
(a) 2 x + y  60 and x + 2 y  40 (b) 2 x + y  60 and x + 2 y  40
(c) 2 x + y  60 and x + 2 y  40 (d) 2 x + y  60 and x + 2 y  40
(c)
CA NISHANT KUMAR
Machine 1 Machine 2
Product A (x) 2 1
Product B (y) 1 2
Maximum Capacity 60 40
Clearly, 2 x + y  60 and x + 2 y  40
Therefore, option (c) is the answer.
CA NISHANT KUMAR
Question 7
Mr. A plans to invest up to ₹30,000 in two stocks X and Y. Stock X (x) is priced at ₹175
and Stock Y (y) at ₹95 per share. This can be shown by:
(a) 175x + 95y < 30,000 (b) 175x + 95y > 30,000 (c) 175x + 95y = 30,000 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 8
The solution of the inequality 8x + 6 < 12x + 14 is:
(a) (–2, 2) (b) (0, –2) (c) (2, ∞) (d) (–2, ∞)
Solution
(d)
CA NISHANT KUMAR
Question 9
The rules and representations demand that employer should employ not more than 8
experienced leads to 1 fresh one and this fact can be expressed as:
(a) y ≥ x/8 (b) 8y ≤ x (c) 8y = x (d) y = 8x
Solution
(a)
CA NISHANT KUMAR
Question 10
A manufacturer produces two items A and B. He has ₹10,000 to invest and a space to
store 100 items. A table costs him ₹400 and a chair ₹100. Express this in the form of
linear inequalities.
(a) x + y ≤ 100, 4x + y ≤ 100, x ≥ 0, y ≥ 0
(b) x + y ≤ 1000, 2x + 5y < 1000, x ≥ 0, y ≥ 0
(c) x + y > 100, 4x + y ≥ 100, x ≥ 0, y ≥ 0
(d) None
Solution
(a)
CA NISHANT KUMAR
Question 11
The common region in the graph of the inequalities x + y  4, x − y  4, x  2 is
(a) Equilateral triangle (b) Isosceles triangle
(c) Quadrilateral (d) Square
Solution
(b)
Inequalities graph for
x + y  4, x− y4 x2
x 0 4 x 0 4
y 4 0 y –4 0
CA NISHANT KUMAR
Common Area in the graph is Δ ABC
CA NISHANT KUMAR
Clearly, it is an isosceles triangle.
Question 12
Solve for x of the Inequalities
3x − 2
2  4 where x → N
5
(a) {5, 6, 7} (b) {3, 4, 5, 6}
(c) {4, 5, 6} (d) None
Solution
(d)
CA NISHANT KUMAR
Given:
3x − 2
2 4
5
Multiplying the entire equation with 5, we get:
 ( 3x − 2 ) 
( ) 
2  5   5  ( 4  5 )
 5 
10  3x − 2  20
Adding 2 to the entire equation, we get:
10 + 2  3x − 2 + 2  20 + 2
12  3x  22
CA NISHANT KUMAR
Dividing the entire equation by 3, we get:
12 3x 22
 
3 3 3
4    7.33
So, solution set is x = {4, 5, 6, 7}
CA NISHANT KUMAR
Question 13
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 14
CA NISHANT KUMAR
Question 15
CA NISHANT KUMAR
Question 16
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 17
If 3x + 2  2 x + 5 and 4 x − 5  2 x − 3, then x can take from the following values:
(a) 3 (b) –1 (c) 2 (d) –3
Solution
(c)
3x + 2  2 x + 5
 3x − 2 x  5 − 2
 x  3…Eq. (1)
4x − 5  2x − 3
CA NISHANT KUMAR
 4x − 2x  −3 + 5
 2x  2
 x  1…Eq. (2)
From Equations (1), and (2), x can take values between 1 and 3 (including 1, but
excluding 3).
CA NISHANT KUMAR
Chapter 4 – Time Value of Money
CA NISHANT KUMAR
CA NISHANT KUMAR
CA NISHANT KUMAR
CA NISHANT KUMAR
Questions on Simple Interest
CA NISHANT KUMAR
Question 1 – ICAI SM
Sania deposited ₹50,000 in a bank for two years with the interest rate of 5.5% p.a. What
will be the final value of investment?
(a) ₹55,800 (b) ₹5,500 (c) ₹55,500 (d) ₹5,800
Solution
(c)
CA NISHANT KUMAR
The sum required to earn a monthly interest of ₹1,200 at 18% p.a. SI is:
(a) ₹50,000 (b) ₹60,000 (c) ₹80,000 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 3
₹8,000 becomes ₹10,000 in 1 year 8 months at simple interest. The amount that will
become ₹6,875 in 2 years 7 months at the same rate of interest is:
(a) ₹4,850 (b) ₹5,000 (c) ₹4,955 (d) ₹5,275
Solution
(c)
First, let’s calculate rate of interest.
A− P 1000 − 8000
i= = = 0.15
Pt  8
8000  1 + 
 12 
CA NISHANT KUMAR
Now, let’s calculate P.
A 6,875
P= = = 4,955
1 + it   7 
1 + 0.15   2 +  
  12  
CA NISHANT KUMAR
P = ₹8,500, A = ₹10,200, R = 12½% SI, t will be:
(a) 1 year 7 months (b) 2 years (c) 1½ year (d) None
Solution
(a)
CA NISHANT KUMAR
Question 5 – MTP December, 2021
A sum of money gets doubled in 5 years at x% simple interest. If the interest was y%, the
sum of money would have become ten-fold in thirty years. What is y – x (in %)?
(a) 10 (b) 5 (c) 8 (d) None
Solution
(a)
Let’s find out x first.
We have P = 100; A = 200; t = 5; i = x/100
I = A – P = 200 – 100 = 10
CA NISHANT KUMAR
We know that I = Pit
x
Therefore, 100 = 100  5
100
100  100
 =x
100  5
 x = 20%
Now, let’s find out y.
P = 100; A = 10 × 100 = 1,000; t = 30; i = y/100
I = A – P = 1,000 – 100 = 900
CA NISHANT KUMAR
y
Therefore, 900 = 100   30
100
900  100
 =y
100  30
 y = 30%
Therefore, y – x = 30% – 20% = 10%
CA NISHANT KUMAR
Question 6 – MTP November, 2019
A person deposited a sum of ₹10,000 in a bank. After 2 years, he withdrew ₹4,000 and
at the end of 5 years, he received an amount of ₹7,900; then the rate of simple interest is:
(a) 6% (b) 5% (c) 10% (d) None
(b)
For the first two years, P = 10,000 , t = 2 , i = ?
Therefore, I = Pit = 10,000  i  2 = 20,000i
Amount = 20,000i + 10,000
For the next three years, P = 10,000 − 4,000 = 6,000 , t = 3, i = ?
CA NISHANT KUMAR
Therefore, I = Pit = 6,000  i  3 = 18,000i
Total Interest = 20,000i + 18,000i = 38,000i
Amount = Principal + Interest
₹7,900 = ₹6,000 + 38,000i
38,000i = 7,900 − 6,000 = 1,900
1,900
i= = 0.05
38,000
Therefore, rate of interest is 5%.
Alternatively, try the options:
Option (a) → 6%
CA NISHANT KUMAR
Interest for first two years = 10,000  0.06  2 = 1,200
Interest for next three years = 6,000  0.06  3 = 1,080
Total Interest = 1,200 + 1,080 = 2,280
Total Amount = ₹6,000 + ₹2,280 = ₹8,280
Option (b) → 5%
Interest for first two years = 10,000  0.05  2 = 1,000
Interest for next three years = 6,000  0.05  3 = 900
Total Interest = 1,000 + 900 = 1,900
Total Amount = ₹6,000 + ₹1,900 = ₹7,900
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 7 – May, 2018; MTP June, 2021
A person borrows ₹5,000 for 2 years at 4% p.a. simple interest. He immediately lends to
another person at 6¼% p.a. for 2 years. Find his gain in the transaction per year.
(a) ₹112.50 (b) ₹125 (c) ₹225 (d) ₹167.50
Solution
(a)
CA NISHANT KUMAR
Question 8 – June, 2011; MTP June, 2021
If a simple interest on a sum of money at 6% p.a. for 7 years is equal to twice of simple
interest on another sum for 9 years at 5% p.a., the ratio will be:
(a) 2 : 15 (b) 7 : 15 (c) 15 : 7 (d) 1 : 7
Solution
(c)
P1  0.06  7 = 2  P2  0.05  9
P1 2  0.05  9
= = 2.1428
P2 0.06  7
CA NISHANT KUMAR
CA NISHANT KUMAR
A sum of money amounts to ₹20,800 in 5 years and ₹22,720 in 7 years. Find the principal
and rate of interest.
(a) ₹5,000; 6% (b) ₹16,000; 6% (c) ₹80,000; 8% (d) ₹10,000; 10%
Solution
(b)
Since the question is silent about Simple Interest or Compound Interest, we’ll try both.
First, let’s try Simple Interest.
A=P+I
Try the options:
CA NISHANT KUMAR
Option (b) → 16,000; 6%
Amount after 5 years:
A = 16,000 + (16,000 × 0.06 × 5) = ₹20,800
Amount after 7 years:
A = 16,000 + (16,000 × 0.06 × 7) = ₹22,720
CA NISHANT KUMAR
Two equal sums were lent out at 7% and 5% simple interest respectively. The interest
earned on the two loans adds upto ₹960 for four years. Find the sum lent out.
(a) ₹4,000 (b) ₹3,000 (c) ₹5,000 (d) ₹6,000
Solution
(a)
Let the sum lent out be x each.
Interest from 7% = x × 0.07 × 4 = 0.28x
Interest from 5% = x × 0.05 × 4 = 0.2x
CA NISHANT KUMAR
As per the question, 0.28x + 0.2x = 960  0.48x = 960  x = 960 ÷ 0.48 = ₹2,000
Therefore, total sum lent out = ₹2,000 + ₹2,000 = ₹4,000
CA NISHANT KUMAR
A trust fund has invested ₹30,000 in two different types of bonds which pays 5% and 7%
interest respectively. Determine how much amount is invested in each type of bond if
trust obtains an annual total interest of ₹1,600.
(a) ₹5,000 (b) ₹6,000 (c) ₹7,000 (d) ₹8,000
(a)
Let the amount invested in the 5% bond be x. Then, the amount invested in the 7%
bond will be (₹30,000 – x).
 5   7 
Total Interest =   x +   ( 30,000 − x ) = 1,600
 100  100 
CA NISHANT KUMAR
 0.05 x + 0.07 ( 30,000 − x ) = 1,600
 0.05x + 2,100 − 0.07 x = 1,600

 −0.02x = −500
500
 x= = 25,000
0.02
Therefore, in the 5% bond, the amount invested is ₹25,000, and so, the amount invested
in the 7% bond is ₹30,000 – ₹25,000 = ₹5,000.
Since we don’t have ₹25,000 in the options, we’ll mark ₹5,000.
CA NISHANT KUMAR
Question 12 – December, 2022
A farmer borrowed ₹3,600 at the rate of 15% simple interest per annum. At the end of 4
years, he cleared this account by paying ₹4,000 and a cow. The cost of the cow is:
(a) ₹1,000 (b) ₹1,200 (c) ₹1,550 (d) ₹1,760
Solution
(d)
A = P (1 + it )
A = 3,6001 + ( 0.15  4 ) = 5,760
Cost of Cow = ₹5,760 – ₹4,000 = ₹1,760
CA NISHANT KUMAR
Question 13 – July, 2021
A certain sum amounts to ₹15,748 in 3 years at simple interest at r % p.a. The same sum
amounts to ₹16,510 at ( r + 2 ) % p.a. simple interest in the same time. What is the value
of r?
(a) 10% (b) 8% (c) 12% (d) 6%
Solution
(d)
We know that A = P (1 + it )
Therefore, 15,748 = P (1 + 3i ) …Eq. (1)
CA NISHANT KUMAR
Also,
16,510 = P 1 + 3 ( i + 0.02 ) [Note: We added 0.02 because we need to take the interest in
decimal]
 16,510 = P 1 + 3 ( i + 0.02 )
 16,510 = P (1.06 + 3i ) …Eq. (2)

Dividing Eq. (1) by Eq. (2), we have:
15,748 P (1 + 3i )
=
16,510 P (1.06 + 3i )
CA NISHANT KUMAR
15,748 1 + 3i
 =
16,510 1.06 + 3i
1 + 3i
 0.9538 =
1.06 + 3i
Option (a) → 10%
1 + 3 ( 0.10 ) 1.3
RHS = = = 0.9559  0.9538
1.06 + 3 ( 0.10 ) 1.36
Option (b) → 8%
CA NISHANT KUMAR
1 + 3 ( 0.08 ) 1.24
= = 0.9538 = LHS
1.06 + 3 ( 0.08) 1.3
An amount is lent at R% simple interest for R years and the simple interest amount was
one-fourth of the principal amount. Then R is _______.
(a) 5 (b) 6 (c) 5½ (d) 6½
Solution
(a)
CA NISHANT KUMAR
P R
Given: I = ;i= ;t=R
4 100
I = Pit
P R
 = P R
4 100
1 R2
 =
4 100
 100 = 4R 2
100
 R2 = = 25
4
CA NISHANT KUMAR
 R = 25 = 5
CA NISHANT KUMAR
CA NISHANT KUMAR
Questions on Compound Interest
CA NISHANT KUMAR
A sum of ₹x amounts to ₹27,900 in 3 years and to ₹41,850 in 6 years at a certain rate
percent per annum, when the interest is compounded yearly. The value of x is:
(a) 16,080 (b) 18,600 (c) 18,060 (d) 16,800
Solution
(b)
From the given information, it is clear that interest from the 3rd year to the 6th year is
₹41,850 – ₹27,900 = ₹13,950
Therefore, for this duration, we have P = ₹27,900; t = 3 years; A = ₹41,850; i = ?
CA NISHANT KUMAR
t  NOCPPY
 i 
We know that A = P 1 + 
 NOCPPY 
31
 i
Therefore, 41,850 = 27,900 1 + 
 1
41,850
 = (1 + i )
3
27,900
 1.5 = (1 + i ) …Eq. (1)

3
Now, for the first 3 years, we have: P = x; t = 3 years; A = 27,900; (1 + i ) = 1.5

3
CA NISHANT KUMAR
t  NOCPPY
 i 
 NOCPPY 
A
Therefore, P = t  NOCPPY
 i 
 1 + 
 NOCPPY 
27,900 27,900 27,900
P= = = = 18,600
(1 + i )
31 3
 i 1.5
1 + 
 1
[We know from Eq. (1) that (1 + i ) = 1.5 ]
3
CA NISHANT KUMAR
Mr. X borrowed ₹5,120 at 12½% p.a. C.I. At the end of 3 years, the money was repaid
along with the interest accrued. The amount of interest paid by him is:
(a) ₹2,100 (b) ₹2,170 (c) ₹2,000 (d) None
Solution
(b)
CA NISHANT KUMAR
If A = ₹1,000; n = 2 years; R = 6% p.a. compound interest payable half-yearly, then
Principal (P) is:
(a) ₹888.50 (b) ₹885 (c) ₹800 (d) None
Solution
(a)
Even though in this question, we are directly given the value of n, but this is wrong as n
cannot have a unit. n means total number of conversions. In this question, they were
supposed to write t = 2 years, and not n. Also, since we are given the compounding as
well in the question as “half-yearly”, this further goes to show that this n should have
been t. We will solve the question taking it to be t only.
CA NISHANT KUMAR
So, we have A = 1,000; t = 2; i = 0.06; NOCPPY = 2; P = ?
t  NOCPPY
 i 
A = P 1 + 
 NOCPPY 
A 1,000
P= t  NOCPPY
= 22
= 888.48
 i   0.06 
 1 +  1 + 
 NOCPPY   2 
CA NISHANT KUMAR
The compound interest on half-yearly rests on ₹10,000 the rate for the first and second
years being 6% and for the third year 9% p.a. is:
(a) ₹2,200 (b) ₹2,287 (c) ₹2,285 (d) ₹2,290.84
(d)
For the first two years, we have P = ₹10,000; i = 0.06; t = 2; NOCPPY = 2.
t  NOCPPY
 i 
 NOCPPY 
CA NISHANT KUMAR
22
 0.06 
Amount at the end of two years = 10,000 1 +  = 11, 255.0881
 2 
For the third year, we have P = 11,255.0881; i = 0.09; NOCPPY = 2; t = 1 year
12
 0.09 
Amount at the end of the third year = 11, 255.08811 +  = 12, 290.84
 2 
We know that Compound Interest = Amount – Principal
Therefore, Compound Interest = ₹12,290.84 – ₹10,000 = ₹2,290.84
CA NISHANT KUMAR
On what sum will the compound interest at 5% p.a. for two years compounded annually
be ₹1,640?
(a) ₹2,200 (b) ₹1,487.53 (c) ₹16,000 (d) None
Solution
(c)
 i 
t  NOCPPY

CI = P 1 +  − 1
 NOCPPY  
CA NISHANT KUMAR
CI 1,640
P= = = 16,000
 i 
t  NOCPPY
  0.05 21 
 1 +  − 1  1 +  − 1
 NOCPPY    1  
CA NISHANT KUMAR
What annual rate of interest compounded annually doubles an investment in 7 years?
1
Given that 2 = 1.104090 .
7
(a) 11.41% (b) 10% (c) 10.41% (d) None
Solution
(c)
CA NISHANT KUMAR
The population of a town increases every year by 2% of the population at the beginning
of that year. The number of years by which the total increase of population be 40% is:
(a) 7 years (b) 10 years (c) 17 years (approx.) (d) None
Solution
(c)
CA NISHANT KUMAR
The annual birth and death rates per 1,000 are 39.4 and 19.4 respectively. The number of
years in which the population will be doubled assuming there is no immigration or
emigration is:
(a) 35 years (b) 30 years (c) 25 years (d) None
Solution
(a)
CA NISHANT KUMAR
A = ₹5,200, R = 5% p.a., T = 6 years, P will be
(a) ₹2,000 (b) ₹3,880 (c) ₹3,000 (d) None
(b)
It is not mentioned in the question whether we have to use Simple Interest or Compound
Interest. So, we’ll try both.
First, let’s try Simple Interest.
I = Pit
A= P+I
CA NISHANT KUMAR
A = P + Pit
A = P (1 + it )
A
P=
1 + it
A 5, 200
P= = = ₹4,000
1 + it 1 + ( 0.05  6 )
Clearly, ₹4,000 is not present in any of the options. Now, don’t just straightaway mark
the option (d). Try with Compound Interest first.
t  NOCPPY
 i 
A = P 1 + 
 NOCPPY 
CA NISHANT KUMAR
A
P= t  NOCPPY
 i 
 1 + 
 NOCPPY 
A 5,200
P= t  NOCPPY
= 61
= ₹3,880
 i   0.05 
 1 +  1 + 
 NOCPPY   1 
CA NISHANT KUMAR
A man borrows ₹4,000 from a bank at 10% compound interest. At the end of every year
₹1,500 as part of repayment of loan and interest. How much is still owed to the bank after
three such instalments [Given: (1.1)3 = 1.331]
(a) ₹359 (b) ₹820 (c) ₹724 (d) ₹720
(a)
Amount owed at the end of first year before payment of instalment =
11
 0.10 
4,000 1 +  = 4, 400
 1 
From this, instalment of ₹1,500 is paid.
CA NISHANT KUMAR
Therefore, amount owed at the end of first year after payment of instalment = ₹4,400 –
₹1,500 = ₹2,900
Now, amount owed at the end of the second year before payment of instalment =
11
 0.10 
2,900 1 +  = 3,190
 1 
Therefore, amount owed at the end of the second year after payment of instalment =
₹3,190 – ₹1,500 = ₹1,690
Now, amount owed at the end of the third year before payment of instalment =
11
 0.10 
1,690 1 +  = 1,859
 1 
CA NISHANT KUMAR
Therefore, amount owed at the end of the third year after payment of instalment = ₹1,859
– ₹1,500 = ₹359
Therefore, amount owed after payment of the third instalment = ₹359.
CA NISHANT KUMAR
A trust fund has invested ₹27,000 money in two schemes ‘A’ and ‘B’ offering compound
interest at the rate of 8% and 9% per annum respectively. It the total amount of interest
accrued through these two schemes together in two years was ₹4,818.30, what was the
amount invested in scheme ‘A’?
(a) ₹12,000 (b) ₹12,500 (c) ₹13,000 (d) ₹12,500
Solution
(a)
Let the amount invested in Scheme A be x; then the amount invested in Scheme B =
₹27,000 – x
CA NISHANT KUMAR
 i 
t  NOCPPY

We know that CI = P 1 +  − 1
 NOCPPY  
Interest after 2 years from Scheme A:
 0.08 21 
CI = x 1 +  − 1 = 0.1664 x
 1  
Interest after 2 years from Scheme B:
 0.09 21 
CI = ( 27,000 − x ) 1 +  − 1 = 0.1881( 27,000 − x )
 1  
CI = 5,078.7 − 0.1881x
CA NISHANT KUMAR
Total interest = ₹4,818.30
0.1664 x + 5,078.7 − 0.1881x = 4,818.30
 −0.0217 x = 4,818.30 − 5,078.7
 −0.0217 x = −260.4
260.4
x= = 12,000
0.0217
CA NISHANT KUMAR
A sum of money invested of compound interest double itself in four years. In how many
years it become 32 times of itself at the same rate of compound interest.
(a) 12 years (b) 16 years (c) 20 years (d) 18 years
Solution
(c)
Let P = 100; A = 200; t = 4; i = ?
t  NOCPPY
 i 
A = P 1 + 
 NOCPPY 
CA NISHANT KUMAR
41
 i
 200 = 100 1 + 
 1
200
= (1 + i )
4

100
 (1 + i ) = 2
4
1
 1 + i = 2 …Eq. (1)
4
Now, we have P = 100; A = 32 × 100 = 3,200; t = ?

t  NOCPPY
 i 
A = P 1 + 
 NOCPPY 
CA NISHANT KUMAR
t 1
 i
 3, 200 = 100 1 + 
 1
3,200
= (1 + i )
t

100
 32 = (1 + i )
t
 (1 + i ) = 32
t
1
 1 + i = 32 …Eq. (2)
t
From Eqs. (1) and (2), we have:

1 1
2 = 32
4 t
CA NISHANT KUMAR
1 1
 2 = (2
4
)
5 t
1 5
2 =2
4 t
1 5
 =
4 t
 t = 5  4 = 20
CA NISHANT KUMAR
CA NISHANT KUMAR
Questions Based on Depreciation
CA NISHANT KUMAR
A Machine was purchased for ₹10,000. Its rate of depreciation is 10% in the first year
and 5% per annum afterwards. Find the depreciated value of Machine after 7 years of

purchase. Given : ( 0.95) = 0.7351
6

(a) ₹6,606 (b) ₹6,616 (c) ₹6,660 (d) ₹6,661
(b)
Depreciated Value = 10,000 (1 − 0.10 ) (1 − 0.05)
1 6
= 10,000 ( 0.90 )( 0.95)

6
= 10,000  0.90  0.7351
CA NISHANT KUMAR
= 6,615.90
 6,616
CA NISHANT KUMAR
A machine worth ₹4,90,740 is depreciated at 15% on its opening value each year. When
its value would reduce to ₹2,00,750?
(a) 5 years 5 months (b) 5 years 6 months (c) 5 years 7 months (d) 5 years 8 months
Solution
(b)
P = ₹4,90,740; A = ₹2,00,750; i = –0.15; t = ?
 −0.15 
t1
2,00,750 = 4,90,740 1 + 
 1 
CA NISHANT KUMAR
2,00,750
 = 0.85t
4,90,740
 0.4091 = 0.85t
Now try the options.
CA NISHANT KUMAR
A machine worth ₹4,90,740 is depreciated at 15% of its opening value each year. When
its value would reduce by 90%?
(a) 11 years 6 months (b) 11 years 7 months
(c) 11 years 8 months (d) 14 years 2 months
Solution
(d)
P = ₹4,90,740; A = 10% × ₹4,90,740 = ₹49,074; i = –0.15; t = ?
 −0.15 
t1
49,074 = 4,90,740 1 + 
 1 
CA NISHANT KUMAR
49,074
= ( 0.85 )
t
4,90,740
( 0.85)
t
= 0.10
Options (a), (b), (c) are nearly the same. Try with option (d)
 2
Option (d) → 14 years 2 months = 14 +  years
 12 
 2
( 0.85) 14 + 
 12  = 0.09996  0.10
Therefore, option (d) is the answer.
CA NISHANT KUMAR
Questions Based on Difference Between Compound Interest
and Simple Interest
CA NISHANT KUMAR
Question 30 – June, 2006; MTP June, 2021
The difference between the simple and compound interest on a certain sum for 3 years at
5% p.a. is ₹228.75. The compound interest on the sum for 2 years at 5% p.a. is:
(a) ₹3,175 (b) ₹3,075 (c) ₹3,275 (d) ₹2,975
Solution
(b)
CA NISHANT KUMAR
The difference between simple interest and compound interest on a sum of ₹6,00,000 for
two years is ₹6,000. What is the annual rate of interest?
(a) 8% (b) 10% (c) 6% (d) 12%
Solution
(b)
  t

CI − SI = P  (1 + i ) − 1 − it 

  2

6,000 = 6,00,000  (1 + i ) − 1 − ( i  2 ) 

CA NISHANT KUMAR
6,000
6,00,000
 
= (1 + i ) − 1 − ( i  2 )
2
 
0.01 = (1 + i ) − 1 − ( i  2 )
2
(1 + i ) −1 − (i  2) = 0.01

2
Try the options.

Option (a) → 8%
(1 + 0.08) 2

− 1 − ( 0.08  2 ) = 0.0064  0.01
Option (b) → 10%
CA NISHANT KUMAR
(1 + 0.10) −1 − (0.10  2) = 0.01
2
CA NISHANT KUMAR
What is the difference (in ₹) between the simple interest and the compound interest on a
2
sum of ₹8,000 for 2 years at the rate of 10% p.a., when the interest is compounded
5
yearly?
(a) 136.12 (b) 129.50 (c) 151.75 (d) 147.20
Solution
(a)
 2
We have P = ₹8,000; t =  2 +  = 2.4 years; i = 0.10
 5
CA NISHANT KUMAR
  t

CI − SI = P  (1 + i ) − 1 − it 

 
CI − SI = 8,000  (1 + 0.10 )
2.4

− 1 − ( 0.10  2.4 )  = 136.12

CA NISHANT KUMAR
Questions Based on Effective Rate of Interest
CA NISHANT KUMAR
Which is a better investment 3% per year compounded monthly or 3.2% per year simple
interest? Given that (1 + 0.0025)12 = 1.0304.
(a) Compound Interest (b) Simple Interest (c) Don’t Know (d) None
Solution
(b)
CA NISHANT KUMAR
CA NISHANT KUMAR
CA NISHANT KUMAR
CA NISHANT KUMAR
Questions Based on Future Value of Annuity
CA NISHANT KUMAR
Question 34 – June, 2022
Ankit invests ₹3,000 at the end of each quarter receiving interest @ 7% per annum for 5
years. What amount will be received at the end of the period?
(a) ₹71,200.20 (b) ₹71,104.83 (c) ₹73,204.83 (d) None
Solution
(b)
Given A = 3,000 ; i = 0.07 ; NOCPPY = 4 ; t = 5
CA NISHANT KUMAR
 i 
t  NOCPPY

 1 +  − 1
FVAR = A  
NOCPPY  
 i 
 NOCPPY 
 
  0.07 54 
 1 +  − 1
FVAR = 3,000  
4   = 71,104.83
 0.07 
 4 
 
CA NISHANT KUMAR
Question 35 – ICAI SM; MTP May, 2019
₹200 is invested at the end of each month in an account paying interest 6% per year
compounded monthly. What is the future value of this annuity after 10th payment? Given
that (1.005)10 = 1.0511.
(a) ₹2,047 (b) ₹2,046 (c) ₹2,044 (d) ₹2,045
Solution
(c)
CA NISHANT KUMAR
At six months’ intervals A deposited ₹1,000 in a savings account which credits interest
at 10% p.a., compounded semi-annually. The first deposit was made when A’s son was
6 months old and last deposit was made when his son was 8 years old. The money
remained in the account and was presented to the son on his 10th birthday. How much did
he receive? ((1.06)16 = 2.1829)
(a) ₹25,740 (b) ₹23,740 (c) ₹25,860 (d) ₹25,760
(b)
This is the question on Future Value of Annuity Regular. If A’s son is born today, he
deposited ₹1,000 after 6 months. He continued to deposit ₹1,000 at the end of every 6
months for 8 years. Therefore,
CA NISHANT KUMAR
Annuity ( A ) = 1,000 ; t = 8 years ; i = 0.10
No. of Conversion Periods Per Year ( NOCPPY ) = 2
 i 
t  NOCPPY

 1 +  − 1 
FV = A   NOCPPY  
  i  
   
  NOCPPY  
  0.10 82 
 1 +  − 1
FV = 1,000   
2  = 23,657
  0.10  
   
  2  
CA NISHANT KUMAR
This 23,657 is the amount after 8 years. Now, the option (b) is the closest to it. Therefore,
option (b) is the answer.
However, there are plenty of problems with this question.
First of all, if ICAI wants the answer to be exactly ₹23,740, then, the interest rate should
be 10.085723883609%.
Secondly, where it is given (1.06)16, it is actually (1.05)16.
Thirdly, when the amount remained in that savings account for two years (from age 8 to
age 10), interest should have been compounded to it after every six months. However,
ICAI has ignored this. The money remained in the savings account for two years and no
interest accrued on it.
All said and done, if this question comes in the exam, mark the option (b), i.e. ₹23,740.
CA NISHANT KUMAR
How much amount is required to be invested every year so as to accumulate ₹5,00,000
at the end of 12 years if interest is compounded annually at 10% {Where A(12, 0.1) =
21.384284}
(a) ₹23,381.65 (b) ₹24,385.85 (c) ₹26,381.65 (d) ₹28,362.75
Solution
(a)
The value of A(12, 0.1) given in the question is incorrect. The correct value should be
21.384283767.
We have FVAR = 5,00,000 ; t = 12 ; i = 0.10 ; NOCPPY = 1; A = ?
CA NISHANT KUMAR
 i 
t  NOCPPY

 1 +  − 1
FVAR = A  
NOCPPY  
 i 
 NOCPPY 
 
FVAR
A=
 i 
t  NOCPPY

 1 +  − 1
 NOCPPY  
 i 
 NOCPPY 
 
CA NISHANT KUMAR
5,00,000 5,00,000
A= = = 23,381.66
  0.10 121  21.384283767
 1 +  − 1
 1  
 0. 10 
 1 
 
CA NISHANT KUMAR
A machine costs ₹5,20,000 with an estimated life of 25 years. A sinking fund is created
to replace it by a new model at 25% higher cost after 25 years with a scrap value
realization of ₹25,000. What amount should be set aside every year if the sinking fund
investments accumulate at 3.5% compound interest p.a.?
(a) ₹16,000 (b) ₹16,500 (c) ₹16,050 (d) ₹16,005
Solution
(c)
CA NISHANT KUMAR
Sinking fund factor is the reciprocal of:
(a) Present value interest factor of a single cash flow
(b) Present value interest factor of an annuity
(c) Future value interest factor of an annuity
(d) Future value interest factor of a single cash flow.
Solution
(c)
Following is the formula for calculating the future value of annuity regular:
CA NISHANT KUMAR
 i 
t  NOCPPY

 1 +  − 1
FVAR = A  
NOCPPY  
 i 
 NOCPPY 
 
Here, A stands for annuity, i.e., the amount invested at regular intervals.
 i 
t  NOCPPY

 1 +  − 1
 NOCPPY   is called the future value interest factor of the annuity,
 i 
 NOCPPY 
 
because, when it is multiplied by the annuity, we get the future value.
CA NISHANT KUMAR
Now, if we are required to calculate the amount to be invested every period to meet a
specific goal at the end of certain periods, we’ll re-write the formula like this:
FVAR
A=
 i 
t  NOCPPY

 1 +  − 1
 i 
 NOCPPY 
 
CA NISHANT KUMAR
1
We can also write it like this: A = FVAR 
 i 
t  NOCPPY

 1 +  − 1
 i 
 NOCPPY 
 
CA NISHANT KUMAR
1
We can see that we are multiplying FVAR with to find out
 i 
t  NOCPPY

 1 +  − 1
 i 
 NOCPPY 
 
1
the amount required to be invested every period. This is
 i 
t  NOCPPY

 1 +  − 1 
  NOCPPY  
 i 
 NOCPPY 
 
nothing but the sinking fund factor, as it helps you determine what amount is required to
CA NISHANT KUMAR
be invested in a sinking fund to achieve the desired value in future. As we can see, this
is clearly the reciprocal of the future value interest factor of the annuity.
CA NISHANT KUMAR
Raju invests ₹20,000 every year in a deposit scheme starting from today for next 12 years.
Assuming that interest rate on this deposit is 7% per annum compounded annually. What
will be the future value of this annuity? Given that (1 + 0.07)12 = 2.25219150
(a) ₹5,40,576 (b) ₹3,82,813 (c) ₹6,43,483 (d) ₹3,57,769
Solution
(b)
We have A = 20,000 ; t = 12 ; i = 0.07 ; NOCPPY = 1; FVAD = ?
CA NISHANT KUMAR
 i 
t  NOCPPY

 1 +  − 1
FVAD = A  
NOCPPY    1 + i 
 i   NOCPPY 
 NOCPPY 
 
  0.07 121 
 1 +  − 1
FVAD = 20,000  
1    1 + 0.07 
 0.07   1 
 1 
 
 2.25219150 − 1
FVAD = 20,000   1.07 = 3,82,812.83
 0.07 
CA NISHANT KUMAR
Raja aged 40 wishes his wife Rani to have ₹40 lakhs at his death. If his expectation of
life is another 30 years and he starts making equal annual investments commencing now
at 3% compound interest p.a. how much should he invest annually?
(a) ₹84,448 (b) ₹84,450 (c) ₹84,449 (d) ₹84,080
Solution
(d)
CA NISHANT KUMAR
CA NISHANT KUMAR
Questions Based on Present Value
CA NISHANT KUMAR
The present value of ₹10,000 due in 2 years at 5% p.a. compound interest when the
interest is paid on half-yearly basis is ₹________.
(a) ₹9,070 (b) ₹9,069 (c) ₹9,061 (d) None
Solution
(c)
CA NISHANT KUMAR
Questions Based on Present Value of Annuity Regular
CA NISHANT KUMAR
Find the present value of an ordinary annuity of 8 quarterly payments of ₹500 each, the
rate of interest being 8% p.a. compound quarterly.
(a) 4275.00 (b) 4725.00 (c) 3662.50 (d) 3266.50
Solution
(c)
We have A = 500 ; t = 2 ; i = 0.08 ; NOCPPY = 4 ; PVAR = ?
CA NISHANT KUMAR
  i 
t  NOCPPY

 1 +  −1 
PVAR = A   NOCPPY  
t  NOCPPY
 i  i  
   1 +  
 NOCPPY  NOCPPY  
  0.08  24 
  1 +  − 1 
= 500   4   = 3,662.74
24
 0.08  0.08  
  1 +  
 4  4  
CA NISHANT KUMAR
CA NISHANT KUMAR
Questions Based on Applications of Present Value of Annuity
Regular
CA NISHANT KUMAR
₹2,500 is paid every year for 10 years to pay off a loan. What is the loan amount if the
interest rate is 14% per annum compounded annually?
(a) ₹15,841.90 (b) ₹13,040.27 (c) ₹14,674.21 (d) ₹14,010.90
Solution
(b)
  i 
t  NOCPPY

 1 +  −1 
t  NOCPPY
 i  i  
  1 +  
CA NISHANT KUMAR
  0.14 101 
 1 +  −1 
PVAR = 2,500  
1   = 13,040.29
101
 0.14  0.14  
  1 +  
 1  1  
CA NISHANT KUMAR
Appu retires at 60 years receiving a pension of ₹14,400 a year paid in half-yearly
installments for rest of his life after reckoning his life expectation to be 13 years and that
interest at 4% p.a. is payable half-yearly. What single sum is equivalent to his pension?
(a) ₹1,45,000 (b) ₹1,44,900 (c) ₹1,44,800 (d) ₹1,44,700
Solution
(b)
CA NISHANT KUMAR
A took a loan from B. The loan is to be repaid in annual installments of ₹2,000 each. The
first instalment is to be paid three years from today and the last one is to be paid 8 years
from today? What is the value of loan today, using a discount rate of eight percent?
(a) ₹9,246 (b) ₹7,927 (c) ₹8,567 (d) None
Solution
(b)
The first instalment is to be paid at the end of 3rd year, and the last instalment is to be
paid at the end of 8th year. Therefore, total number of instalments = 6.
CA NISHANT KUMAR
If we calculate the present value of this annuity regular, we’ll get the value at the end of
2nd year.
  i 
t  NOCPPY

  1 +  − 1 
t  NOCPPY
 i  i  
   1 +  
  0.08 61 
 1 +  −1 
 PVAR = 2,000   1   = 9, 246
61
  0.08   0.08  
   1 +  
  1   1  
CA NISHANT KUMAR
Now, this amount is standing at the end of 2nd year.
Let’s calculate the Present Value of this amount now:
A
P= t  NOCPPY
 i 
 1 + 
 NOCPPY 
9, 246
P= 21
= 7,927
 0.08 
1 + 
 1 
CA NISHANT KUMAR
A loan of ₹1,02,000 is to be paid back in two equal annual instalments. If the rate of
interest is 4% p.a., compounded annually, then the total interest charged (in ₹) under this
instalment plan is:
(a) 6,160 (b) 8,120 (c) 5,980 (d) 7,560
Solution
(a)
We have PV = 1,02,000; t = 2 years; NOCPPY = 1; i = 0.04; A = ?
CA NISHANT KUMAR
  i 
t  NOCPPY

 1 +  −1 
We know that PV = A   NOCCPY  
t  NOCPPY
 i  i  
   1 +  
Therefore,
PV 1,02,000
A= = = 54,080
  i 
t  NOCPPY
   0.04  21

  1 +  −1   1 +  −1 
  NOCCPY     1  
t  NOCPPY 21
 i  i    0.04  0.04  
  1 +     1 +  
 NOCPPY  NOCPPY    1  1  
Therefore, total amount paid = 54,080 + 54,080 = 1,08,160
CA NISHANT KUMAR
Interest = 1,08,160 – 1,02,000 = 6,160
CA NISHANT KUMAR
Question 48 – ICAI SM; MTP June, 2023
Mr. Paul borrows ₹20,000 on condition to repay it with C.I. at 5% p.a. in annual
installments of ₹2,000 each. The number of years for the debt to be paid off is:
(a) 10 years (b) 12 years (c) 11 years (d) 14.2 years
Solution
(d)
CA NISHANT KUMAR
A man purchased a house valued at ₹3,00,000. He paid ₹2,00,000 at the time of purchase
and agreed to pay the balance with interest at 12% per annum compounded half yearly in
20 equal half-yearly instalments. If the first instalment is paid after six months from the
date of purchase then the amount of each instalment is:
(a) ₹8,718.45 (b) ₹8,769.21 (c) ₹7,893.13 (d) None
(a)
The value of the house at the time of purchase is ₹3,00,000. The man has paid ₹2,00,000
upfront, and ₹1,00,000 is pending. This is the present value of all the instalments that he
is going to pay. We need to find out the amount of each instalment. Therefore, we have
CA NISHANT KUMAR
PV = ₹1,00,000; i = 0.12; NOCPPY = 2; t = 10 years (since there are 20 half yearly
instalments); A = ?
  i 
t  NOCPPY

  1 +  − 1 
PV = A   NOCPPY  
t  NOCPPY
 i   i  
 
  1 +  
  NOCPPY   NOCPPY  
PV
A=
  i 
t  NOCPPY

  1 +  − 1 
  NOCPPY  
t  NOCPPY
 i   i  
 
  1 +  
CA NISHANT KUMAR
1,00,000
A=
  0.12 102 
 1 +  −1 
  2 
102

  0.12   0.12  
   1 +  
 2   2  
1,00,000
A= = 8718.45
(1.06 ) − 1
20
0.06  (1.06 )
20
CA NISHANT KUMAR
Question 50 – ICAI SM; MTP May, 2020
A person bought a house paying ₹20,000 cash down and ₹4,000 at the end of each year
for 25 yrs. at 5% p.a. C.I. The cash down price is:
[Given (1.05)25 = 3.386355]
(a) ₹75,000 (b) ₹76,000 (c) ₹76,375.80 (d) None
(c)
Cash Down Price = Down Payment + Present Value of Annual Instalments
CA NISHANT KUMAR
  i 
t  NOCPPY

 1 +  −1 
Cash Down Price = ₹20,000 + A   NOCPPY  
t  NOCPPY
 i   i  
 
  1 +  
  0.05 251 
  1 +  − 1 
Cash Down Price = ₹20,000 + 4,000   1  
251
  0.05   0.05  
   1 +  
  1   1  
 (1.05)25 − 1 
Cash Down Price = ₹20,000 + 4,000  25 
 0.05  (1.05 ) 
CA NISHANT KUMAR
 3.386355 − 1 
Cash Down Price = ₹20,000 + 4,000 
 0.05  3.386355 
Cash Down Price = ₹20,000 + ₹56,375.778
Cash Down Price = ₹76,375.778 ≈ ₹76,375.80
CA NISHANT KUMAR
Arun purchased a vacuum cleaner by giving ₹1700 as cash down payment, which will be
followed by five EMIs of ₹480 each. The vacuum cleaner can also be bought by paying
₹3900 cash. What is the approx. rate of interest p.a. (at simple interest) under this
instalment plan?
(a) 18% (b) 19% (c) 22% (d) 20%
Solution
(c)
Cash Down Price = ₹3,900
Down Payment = ₹1,700
CA NISHANT KUMAR
Loan Amount = ₹3,900 – ₹1,700 = ₹2,200
Total amount paid in instalments = ₹480 × 5 = ₹2,400
Therefore, interest paid = ₹2,400 – ₹2,200 = ₹200
Now, P = ₹2,200; t = 5/12 years; A = ₹2,400; i = ?
A − P 2400 − 2200
i= = = 0.21818 = 21.82%  22%
Pt 5
2200 
12
CA NISHANT KUMAR
A company is considering proposal of purchasing a machine either by making full
payment of ₹4,000 or by leasing it for four years at an annual rate of ₹1,250. Which
course of action is preferable if the company can borrow money at 14% compounded
annually?
(a) Leasing (b) Purchasing (c) Don’t Know (d) None
Solution
(a)
CA NISHANT KUMAR
Question 53 – June, 2019 (Similar)
ABC Ltd. wants to lease out an asset costing ₹3,60,000 for a five-year period. It has fixed
a rental of ₹1,05,000 per annum payable annually starting from the end of first year.
Suppose rate of interest is 14% per annum compounded annually on which money can
be invested by the company. Is this agreement favourable to the company?
(a) No (b) Yes (c) Don’t Know (d) None
Solution
(b)
CA NISHANT KUMAR
Question 54 – MTP June, 2023; ICAI SM
A machine with useful life of seven years costs ₹10,000 while another machine with
useful life of five years costs ₹8,000. The first machine saves labour expenses of ₹1,900
annually and the second one saves labour expenses of ₹2,200 annually. Determine the
preferred course of action. Assume cost of borrowing as 10% compounded per annum.
(a) First Machine (b) Second Machine (c) Don’t Know (d) None
Solution
(b)
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If the cost of capital be 12% per annum, then the Net Present Value (in nearest ₹) from
the given cash flow is given as:
Year 0 1 2 3
Operating Profit (in thousand ₹) (100) 60 40 50
(a) ₹34,048 (b) ₹34,185 (c) ₹51,048 (d) ₹21,048
Solution
(d)
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60,000 40,000 50,000
Present Value of Inflows = 11
+ 21
+ 31
= 1,21,048
 0.12   0.12   0.12 
 1 +   1 +  1 + 
 1   1   1 
Net Present Value = PV of Inflows – PV of Outflows
Net Present Value = ₹1,21,048 – ₹1,00,000 = ₹21,048
CA NISHANT KUMAR
An investor intends purchasing a three-year ₹1,000 par value bond having nominal
interest rate of 10%. At what price the bond may be purchased now if it matures at par
and the investor requires a rate of return of 14%?
(a) ₹907.125 (b) ₹800.125 (c) ₹729.12 (d) None
Solution
(a)
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Find the purchase price of a ₹1,000 bond redeemable at the paying annual dividends at
4% if the yield rate is to be 5% effective.
(a) ₹884.16 (b) ₹984.17 (c) ₹1,084.16 (d) None
Solution
(b)
We’ll assume that the bond is redeemable at par. Also, since time is not given, we’ll have
to assume that it is a 1-year bond.
The cash flow at the end of 1 year would be the yield from the bond + the face value of
the bond.
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Yield from the bond = 0.04 1,000 = 40
Face Value of the Bond = ₹1,000
Therefore, cash flow at the end of 1 year = ₹1,000 + ₹40 = ₹1,040
A
Present Value = t  NOCPPY
 i 
 1 + 
 NOCPPY 
1,040
= 11
= 990.47
 0.05 
1 + 
 1 
CA NISHANT KUMAR
Suppose your mom decides to gift you ₹10,000 every year starting from today for the
next five years. You deposit this amount in a bank as and when you receive and get 10%
per annum interest rate compounded annually. What is the present value of this annuity?
(a) ₹91,000 (b) ₹79,489 (c) ₹41,698.70 (d) None
Solution
(c)
CA NISHANT KUMAR
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Questions Based on Perpetuity
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Ramesh wants to retire and receive ₹3,000 a month. He wants to pass this monthly
payment to future generations after his death. He can earn an interest of 8% compounded
annually. How much will he need to set aside to achieve his perpetuity goal?
(a) ₹4,30,000 (b) ₹4,50,000 (c) ₹4,20,000 (d) None
Solution
(b)
CA NISHANT KUMAR
If a person bought a house by paying ₹45,00,000 down payment and ₹80,000 at the end
of each year till the perpetuity. Assuming the rate of interest as 16% the present value of
house (in ₹) is given as:
(a) 47,00,000 (b) 45,00,000 (c) 57,80,000 (d) 50,00,000
Solution
(d)
Value of House = Down Payment + Present Value of Perpetuity
80,000
Value of House = 45,00,000 +
0.16
CA NISHANT KUMAR
Value of House = 45,00,000 + 5,00,000 = 50,00,000
CA NISHANT KUMAR
A stock pays annually an amount of ₹10 from 6th year onwards. What is the present value
of the perpetuity, if the rate of return is 20%?
(a) 20.1 (b) 19.1 (c) 21.1 (d) 22.1
Solution
(a)
Since the stock starts paying annually from 6th year onwards, if we use the present value
of perpetuity formula to find out the present value, it’ll give us the value at the 5 th year.
Think about it logically. In all the questions on perpetuity that we’ve done so far, the
amount was supposed to be received from the end of the first year, and then, when we
calculated the present value, it gave us the value at the beginning of the first year. In
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similar lines, if the stock will start paying the interest from the end of the 6th year, and we
use the same formula to calculate the present value, it’ll give the present value of only
one year before, i.e., at the end of the fifth year.
Let’s first calculate that:
A 10
PV = = = 50
i / NOCPPY 0.20 / 1
Now, this ₹50 is the amount standing at the end of the 5th year. Since we are required to
find out the present value, we need to discount it to the present. Again, think about it
logically. This is the amount that is standing at the end of the 5th year. We need to find
out the sum that we could invest right now so as to get this 50 at the end of the 5th year.
Therefore, this 50 is the amount, and we need to find out the principal.
CA NISHANT KUMAR
A
P= t  NOCPPY
 i 
 1 + 
 NOCPPY 
50
P= 51
= 20.09
 0.20 
1 + 
 1 
CA NISHANT KUMAR
Assuming that the discount rate is 7% per annum, how much would you pay to receive
₹50, growing at 5%, annually, forever?
(a) ₹4,300 (b) ₹2,500 (c) ₹4,200 (d) None
Solution
(b)
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Questions Based on Nominal Rate of Return
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Real Rate of Return = 5%; Inflation Rate = 2%. What is the Nominal Rate of Return?
(a) 7% (b) 9% (c) 11% (d) None
Solution
(a)
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The nominal rate of growth is 17% and inflation is 9% for the five years. Let P be the
Gross Domestic Product (GDP) amount at the present year, then the projected real GDP
after 6 years is:
(a) 1.587P (b) 1.921P (c) 1.403P (d) 2.51P
Solution
(a)
Nominal Rate = Real Rate + Inflation Rate
17% = Real Rate + 9%
Real Rate = 17% – 9% = 8%
CA NISHANT KUMAR
Present GDP = P
GDP after 6 years = P (1.08) = 1.5869P  1.587 P
6
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Questions Based on Compound Annual Growth Rate (CAGR)
CA NISHANT KUMAR
The CAGR of initial value of an investment of ₹15,000 and final value of ₹25,000 in 3
years is:
(a) 19% (b) 18.56% (c) 17.56% (d) 17%
Solution
(b)
t  NOCPPY
 i 
A = P 1 + 
 NOCPPY 
CA NISHANT KUMAR
31
 i
 25,000 = 15,000 1 + 
 1
25,000
 = (1 + i )
3
15,000
1
 25,000  3
i =  − 1 = 0.1856
 15,000 
CA NISHANT KUMAR
10 years ago, the earning per share (EPS) of ABC Ltd. was ₹5 share its EPS for this year
is ₹22. Compute at what rate, EPS of the company grows annually?
(a) 15.97% (b) 16.77% (c) 18.64% (d) 14.79%
Solution
(a)
EPS stands for Earnings Per Share. We simply need to find at which rate of interest
compounded annually, the amount of ₹5 becomes ₹22 in 10 years.
Therefore, we have P = 5 ; A = 22 ; t = 10 ; NOCPPY = 1; i = ?
CA NISHANT KUMAR
t  NOCPPY
 i 
A = P 1 + 
 NOCPPY 
101
 i
 22 = 5 1 + 
 1
22
= (1 + i )
10

5
 4.40 = (1 + i )
10

Option (a) → 15.97%
CA NISHANT KUMAR
RHS = (1 + 0.1597 ) = 4.40 = LHS
10
CA NISHANT KUMAR
Let the operating profit of a manufacturer for five years is given as:
Years 1 2 3 4 5 6
Operating Profit (in lakh ₹) 90 100 106.4 107.14 120.24 157.34
The Compound Annual Growth Rate (CAGR) of Operating Profit for year 6 with respect
to year 2 is:
(a) 9% (b) 12% (c) 11% (d) 13%
Solution
(b)
CA NISHANT KUMAR
We need to find out the CAGR with respect to Year 2 as base. Therefore, let the profit of
year 2 be P. Then the profit of year 6 will be A.
We have P = 100; A = 157.34; t = 4 years; NOCPPY = 1
t  NOCPPY
 i 
A = P 1 + 
 NOCPPY 
41
 i
157.34 = 100 1 + 
 1
Now, let’s try the options.
Option (a) → 9%
CA NISHANT KUMAR
41
 0.09 
RHS = 100 1 +  = 141.16  157.34
 1 
Option (b) → 12%
41
 0.12 
RHS = 100 1 +  = 157.35 = LHS
 1 
CA NISHANT KUMAR
Chapter 5 – Permutations and
Combinations
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Question 1
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Find x if 1/9! + 1/10! = x/11!
(a) 119 (b) 120 (c) 121 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 2
( n + 1)! − n! = ?
(a) n.n! (b) n ( n − 1)! (c) ( n − 1)!.n (d) None
Solution
(a)
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Question 3
The number of ways the letters of the word ‘COMPUTER’ can be rearranged is:
(a) 40,320 (b) 40,319 (c) 40,318 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 4
If 18 Cr = 18Cr + 2 , the value of r C5 is:
(a) 55 (b) 50 (c) 56 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 5
In n Pr , the restriction is:
(a) n > r (b) n ≥ r (c) n ≤ r (d) None
Solution
(b)
CA NISHANT KUMAR
Question 6
In n Pr = n ( n − 1)( n − 2 )...( n − r + 1) , the number of factors is:
(a) n (b) r – 1 (c) n – r (d) r
Solution
(d)
CA NISHANT KUMAR
Question 7
If six times the number permutations of n things taken 3 at a time is equal to seven times
the number of permutations of (n – 1) things taken 3 at a time, find n.
(a) 20 (b) 21 (c) 22 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 8
In a group of boys the number of arrangement of 4 boys is 12 times the number of
arrangements of 2 boys. The number of boys in the group is:
(a) 10 (b) 8 (c) 6 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 9
A committee is to be formed of 3 persons out of 12. Find the number of ways of forming
such a committee.
(a) 215 (b) 220 (c) 225 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 10
How many three letter words can be formed using the letters of the words HEXAGON?
(a) 120 (b) 210 (c) 130 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 11
First, second and third prizes are to be awarded at an engineering fair in which 13 exhibits
have been entered. In how many different ways can the prizes be awarded?
(a) 1,716 (b) 1,720 (c) 1,270 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 12
In how many different ways can 3 students be associated with 4 chartered accountants,
assuming that each chartered accountant can take at most one student?
(a) 24 (b) 25 (c) 30 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 13
When Dr. Ram arrives in his dispensary, he finds 12 patients waiting to see him. If he
can see only one patient at a time, find the number of ways, he can schedule his patients
(a) if they all want their turn, and (b) if 3 leave in disgust before Dr. Ram gets around to
seeing them.
(a) 12 P12 , 12 P9 (b) 12!, 12 P9 (c) Both (d) None
Solution
(c)
CA NISHANT KUMAR
Question 14
Mr. X and Mr. Y enter into a railway compartment having six vacant seats. The number
of ways in which they can occupy the seats is:
(a) 25 (b) 31 (c) 32 (d) 30
Solution
(d)
CA NISHANT KUMAR
Question 15
The number of arrangements of the letters in the word ‘FAILURE’, so that vowels are
always coming together is:
(a) 576 (b) 575 (c) 570 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 16
10 examination papers are arranged in such a way that the best and worst papers never
come together. The number of arrangements is:
(a) 9 8 (b) 10 (c) 8 9 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 17
n articles are arranged in such a way that 2 particular articles never come together. The
number of such arrangements is:
(a) ( n − 2 ) n − 1 (b) ( n − 1) n − 2 (c) n (d) None
Solution
(a)
CA NISHANT KUMAR
Question 18
The number of 4-digit numbers greater than 5,000 can be formed out of the digits 3, 4, 5,
6 and 7 (No digit is repeated). The number of such is:
(a) 72 (b) 27 (c) 70 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 19
The number of ways the letters of the word ‘TRIANGLE’ to be arranged so that the word
‘angle’ will be always present is:
(a) 20 (b) 60 (c) 24 (d) 32
Solution
(c)
CA NISHANT KUMAR
Question 20
If the letters word ‘DAUGHTER’ are to be arranged so that vowels occupy the odd
places, then number of different words are:
(a) 2,880 (b) 676 (c) 625 (d) 576
Solution
(a)
CA NISHANT KUMAR
Question 21
How many arrangements can be made out of the letters of the word ‘DRAUGHT’, the
vowels never beings separated?
(a) 1,440 (b) 676 (c) 625 (d) 576
Solution
(a)
CA NISHANT KUMAR
Question 22
There are 6 books on Economics, 3 on Mathematics and 2 on Accountancy. In how many
ways can these be placed on a shelf if the books on the same subject are to be together?
(a) 1,440 (b) 51,840 (c) 52,740 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 23
A family of 4 brothers and three sisters is to be arranged for a photograph in one row. In
how many ways can they be seated if (i) all the sisters sit together, (ii) no two sisters sit
together?
(a) 720; 1,440 (b) 1,440; 720 (c) 840; 720 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 24
Six boys and five girls are to be seated for a photograph in a row such that no two girls
sit together and no two boys sit together. Find the number of ways in which this can be
done.
(a) 72,000 (b) 14,440 (c) 86,400 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 25
The number of arrangements of 10 different things taken 4 at a time in which one
particular thing always occurs is:
(a) 2015 (b) 2016 (c) 2014 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 26
The number of permutations of 10 different things taken 4 at a time in which one
particular thing never occurs is:
(a) 3,020 (b) 3,025 (c) 3,024 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 27
The number of numbers lying between 10 and 1000 can be formed with the digits 2, 3,
4, 0, 8, 9 is:
(a) 124 (b) 120 (c) 125 (d) None
Solution
(c)
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Question 28
The total number of 9 digit numbers of different digits is:
(a) 10 9 (b) 8 9 (c) 9 9 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 29
There are 5 speakers A, B, C, D and E. The number of ways in which A will speak always
before B is:
(a) 24 (b) 4  2 (c) 5 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 30
There are 10 trains plying between Calcutta and Delhi. The number of ways in which a
person can go from Calcutta to Delhi and return by a different train is:
(a) 99 (b) 90 (c) 80 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 31
Number ways of painting of a face of a cube by 6 colours is:
(a) 36 (b) 6 (c) 24 (d) 20
Solution
(b)
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Question 32
How many six-digit telephone numbers can be formed by using 10 distinct digits?
(a) 108 (b) 610 (c) 10 C9 (d) 10 P6
Solution
(d)
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Question 33
The number of ways in which 8 sweats of different sizes can be distributed among 8
persons of different ages so that the largest sweat always goes to be younger assuming
that each one of then gets a sweat is:
(a) 8 (b) 5040 (c) 5039 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 34
The number of arrangements in which the letters of the word ‘MONDAY’ be arranged
so that the words thus formed begin with M and do not end with N is:
(a) 720 (b) 120 (c) 96 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 35
How many numbers of seven-digit numbers which can be formed from the digits 3, 4, 5,
6, 7, 8, 9, no digit being repeated are not divisible by 5?
(a) 4320 (b) 4690 (c) 3900 (d) 3890
Solution
(a)
CA NISHANT KUMAR
Question 36
Eight guests have to be seated 4 on each side of a long rectangular table. 2 particular
guests desire to sit on one side of the table and 3 on the other side. The number of ways
in which the sitting arrangements can be made is:
(a) 1732 (b) 1728 (c) 1730 (d) 1278
Solution
(b)
CA NISHANT KUMAR
Question 37
The number of even numbers greater than 300 can be formed with the digits 1, 2, 3, 4, 5
without repetition is:
(a) 110 (b) 112 (c) 111 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 38
The letters of the words ‘CALCUTTA’ and ‘AMERICA’ are arranged in all possible
ways. The ratio of the number of these arrangements is:
(a) 1 : 2 (b) 2 : 1 (c) 2 : 2 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 39
The number of words that can be made by rearranging the letters of the word APURNA
so that vowels and consonants appear alternate is:
(a) 18 (b) 35 (c) 36 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 40
Every two persons shakes hands with each other in a party and the total number of
handshakes is 66. The number of guests in the party is:
(a) 11 (b) 12 (c) 13 (d) 14
Solution
(b)
CA NISHANT KUMAR
Question 41
There are 12 points in a plane of which 5 are collinear. The number of triangles is:
(a) 200 (b) 211 (c) 210 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 42
The total number of ways in which six ‘+’ and four ‘–’ signs can be arranged in a line
such that no two ‘–’ signs occur together is:
(a) 7 / 3 (b) 6  7 / 3 (c) 35 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 43
A person has 12 friends of whom 8 are relatives. In how many ways can he invite 7 guests
such that 5 of them are relatives?
(a) 420 (b) 446 (c) 336 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 44
The number of parallelograms that can be formed from a set of four parallel lines
intersecting another set of three parallel lines is:
(a) 6 (b) 18 (c) 12 (d) 9
Solution
(b)
CA NISHANT KUMAR
Question 45
The Supreme Court has given a 6 to 3 decision upholding a lower court; the number of
ways it can give a majority decision reversing the lower court is:
(a) 256 (b) 276 (c) 245 (d) 226
Solution
(a)
CA NISHANT KUMAR
Question 46
Five bulbs of which three are defective are to be tried in two bulb points in a dark room.
Number of trials the room shall be lighted is:
(a) 6 (b) 8 (c) 5 (d) 7
Solution
(d)
CA NISHANT KUMAR
Question 47
The number of different words that can be formed with 12 consonants and 5 vowels by
taking 4 consonants and 3 vowels in each word is:
(a) 12 C4  5C3 (b) 17 C7 (c) 4950  7! (d) None
Solution
(c)
CA NISHANT KUMAR
Question 48
Out of 7 gents and 4 ladies a committee of 5 is to be formed. The number of committees
such that each committee includes at least one lady is:
(a) 400 (b) 440 (c) 441 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 49
There are 7 men and 3 ladies. Find the number of ways in which a committee of 6 can be
formed of them if the committee is to include atleast two ladies?
(a) 420 (b) 140 (c) 168 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 50
A committee of 7 members is to be chosen from 6 Chartered Accountants, 4 Economists
and 5 Cost Accountants. In how many ways can this be done if in the committee, there
must be at least one member from each group and at least 3 Chartered Accountants?
(a) 3,570 (b) 3,750 (c) 7,350 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 51
A committee of 3 ladies and 4 gents is to be formed out of 8 ladies and 7 gents. Mrs. X
refuses to serve in a committee in which Mr. Y is a member. The number of such
committees is:
(a) 1530 (b) 1500 (c) 1520 (d) 1540
Solution
(d)
CA NISHANT KUMAR
Question 52
A boy has 3 library tickets and 8 books of his interest in the library. Of these 8, he does
not want to borrow Mathematics Part II unless Mathematics Part I is also borrowed. In
how many ways can he choose the three books to be borrowed?
(a) 41 (b) 51 (c) 61 (d) 71
Solution
(a)
CA NISHANT KUMAR
Question 53
The ways of selecting 4 letters from the word ‘EXAMINATION’ is
(a) 136 (b) 130 (c) 125 (d) None
Solution
(a)
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Question 54
The number of 4-digit numbers formed with the digits 1, 1, 2, 2, 3, 4 is:
(a) 100 (b) 101 (c) 201 (d) None
Solution
(d)
CA NISHANT KUMAR
Question 55
In how many ways can 8 persons be seated at a round table? In how many cases will 2
particular persons sit together?
(a) 5,040; 1,440 (b) 5,040; 720 (c) 5,040; 120 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 56
The number of ways in which 7 boys sit in a round table so that two particular boys may
sit together is:
(a) 240 (b) 200 (c) 120 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 57
3 ladies and 3 gents can be seated at a round table so that any two and only two of the
ladies sit together. The number of ways is:
(a) 70 (b) 27 (c) 72 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 58
5 persons are sitting in a round table in such way that Tallest Person is always on the
right–side of the shortest person; the number of such arrangements is:
(a) 6 (b) 8 (c) 24 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 59
If 15 persons are to be seated around 2 round tables, one occupying 8 persons and another
7 persons. Find the number of ways in which they can be seated.
15! 7!
(a) (b) 15 C7
18! 8!
15
(c) 7!.8! (d) 2. C7 6! 7!
Solution
(d)
CA NISHANT KUMAR
Question 60
The sum of all 4 digit number containing the digits 1, 3, 5, 7, without repetitions is:
(a) 1,49,550 (b) 1,06,656 (c) 1,07,750 (d) 1,06,556
Solution
(b)
CA NISHANT KUMAR
Question 61
The results of 8 matches (Win, Loss or Draw) are to be predicted. The number of different
forecasts containing exactly 6 correct results is:
(a) 316 (b) 214 (c) 112 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 62
Eight chairs are numbered from 1 to 8. Two women and three men are to be seated by
allowing one chair for each. First, the women choose the chairs from the chairs numbered
1 to 4 and then men select the chairs from the remaining. The number of possible
arrangements is:
(a) 120 (b) 288 (c) 32 (d) 1440
Solution
(d)
CA NISHANT KUMAR
Question 63
n locks and n corresponding keys are available but the actual combination is not known.
The maximum number of trials that are needed to assigns the keys to the corresponding
locks is:
n n
(a) ( n −1)
C2 (b) ( n +1)
C2 (c)  ( k − 1)
k =2
(d) k
k =2
Solution
(c)
CA NISHANT KUMAR
Some Standard Results
1
1. The number of necklaces formed with n beads of different colours is ( n − 1)!.
2
2. Number of ways of selecting some or all items from a set of n items –
a. When there are 2 choices for each item: ( 2n − 1) .
b. When there are 3 choices for each item: ( 3n − 1) .
n +1
3. Cr = nCr + nCr −1
n
Cr r + 1 n Cr −1 r
4. n = ; n =
Cr +1 n − r Cr n − r +1
5. If n Cx = nC y , and x  y , then x + y = n.
6. If n Px = n Py , and x  y , then x + y = 2n − 1.
CA NISHANT KUMAR
1
7. The number of diagonals in a polygon of n sides is n ( n − 3) .
2
8. Division of Items in Groups –
a. Division of Distinct Items in Groups –
i. Equal items in every group – The number of ways to divide n students
n!
into k groups of h students each is given by .
k !( h!)
k
ii. Unequal items in every group – The number of ways to divide n items into
3 groups → one containing a items, the second containing b items, and
n!
the third containing c items, such that a + b + c = n , is given by .
a !b!c!
CA NISHANT KUMAR
b. Division of Identical Items in Groups – The number of ways to divide n
n!
identical objects into k groups of h items each is given by .
( h!)
k
9. Number of Factors of a number – Factors of a number N refers to all the numbers

which divide N completely.
Step 1 – Express the number N in the form of N = p a .qb .r c , where p, q, and r are the
prime factors of the number N.
Step 2 – Use the formula: Number of factors of N = ( a + 1)( b + 1)( c + 1) .
10. The maximum number of points of intersection of n circles will be n ( n − 1) .
CA NISHANT KUMAR
Question 64
The number of ways in which 8 different beads be strung on a necklace is:
(a) 2500 (b) 2520 (c) 2250 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 65
An examination paper with 10 questions consists of 6 questions in Algebra and 4
questions in Geometry. At least one question from each section is to be attempted. In how
many ways can this be done?
(a) ( 26 − 1)( 24 − 1) (b) ( 26 − 1) (c) ( 24 − 1) (d) ( 210 − 1)
Solution
(a)
There are two choices for each question in Algebra – either to attempt, or, to not attempt.
( )
Therefore, 26 − 1 . Further, there are two choices for each question in Geometry – either
CA NISHANT KUMAR
( )
to attempt, or to not attempt. Therefore, 24 − 1 . So, the total number of ways =
(2 6
− 1)( 24 − 1) .
CA NISHANT KUMAR
Question 66
There are 12 questions to be answered in Yes or No. How many ways can these be
answered?
(a) 1024 (b) 2048 (c) 4096 (d) None
Solution
(c)
Every question can be answered in 2 ways, i.e., Yes, or No.
Therefore, all the 12 questions can be answered in 212 = 4096 ways.
CA NISHANT KUMAR
Question 67
In an examination, a candidate has to pass in each of the 4 papers. In how many different
ways can be failed?
(a) 14 (b) 16 (c) 15 (d) None
Solution
(c)
The candidate would be failed if he fails in one or more papers.
No. of ways of selecting one or more items from n items is given by 2n − 1.
Therefore, no. of ways he can be failed = 24 − 1 = 16 − 1 = 15
CA NISHANT KUMAR
Question 68
In an election the number of candidates is one more than the number of members to be
elected. If a voter can vote in 254 different ways; find the number of candidates.
(a) 8 (b) 10 (c) 7 (d) None
Solution
(a)
In an election the number of candidates is one more than the number of members to be
elected. This means that if, suppose the total number of candidates is 11, then only 10 are
to be selected. In other words, if, suppose the total number of candidates is n, then the
number of candidates to be voted for are n – 1.
CA NISHANT KUMAR
Given that a voter can vote in 254 different ways, it is clear that the voter can vote for
one or more members.
Now, number of ways of selecting one or more items from a set of n items = 2n − 1.
However, this would also consider the one extra candidate which cannot be voted for.
Therefore, we need to subtract that one extra candidate as well.
 2n − 1 − 1
= 2n − 2
Given that a voter can vote in 254 different ways.
 2n − 2 = 254
 2n = 254 + 2
CA NISHANT KUMAR
 2n = 256
 2n = 28
n =8
CA NISHANT KUMAR
Question 69
n
C1 + nC2 + nC3 + nC4 + ... + nCn equals
(a) 2n − 1 (b) 2n (c) 2n + 1 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 70
A question paper contains 6 questions, each having an alternative. In how many ways
can an examinee answer one or more questions?
(a) 720 (b) 728 (c) 729 (d) None
Solution
(b)
There are three choices for each question – either to attempt alternative 1, or, to attempt
alternative 2, or, to not attempt the question. Therefore, 3n − 1 = 36 − 1 = 728 ways.
CA NISHANT KUMAR
Question 71
Find x if 12 C5 + 2 12C4 + 12C3 = 14Cx
(a) 5 (b) 6 (c) 7 (d) 8
Solution
(a)
12
C5 + 2 12C4 + 12C3
12
C5 + 12C4 + 12C4 + 12C3
( 12
C5 + 12C4 ) + ( 12C4 + 12C3 )
CA NISHANT KUMAR
( 12 +1
C5 ) + ( 12+1 C4 )
13
C5 + 13C4
13+1
C5
14
C5
CA NISHANT KUMAR
Question 72
If n Cr −1 = 56 , n Cr = 28 , and n Cr +1 = 8 , find the value of r.
(a) 8 (b) 6 (c) 5 (d) None
Solution
(b)
n
Cr r +1 r + 1 28 r +1 7
=  =  =  7 n − 9r = 2 … Eq. (1)
n
Cr +1 n − r n−r 8 n−r 2
n
Cr −1 r 56 r r
Now, =  =  = 2  2n − 3r = −2 …Eq. (2)
n
Cr n − r + 1 28 n − r + 1 n − r + 1
CA NISHANT KUMAR
Solving both the equations, r = 6.
CA NISHANT KUMAR
Question 73
If n C10 = nC14 , then what is the value of 25
Cn ?
(a) 24 (b) 25 (c) 1 (d) None
Solution
(b)
We know that if n Cx = nC y , and x  y , then x + y = n . Therefore, n = 10 + 14 = 24.
 25C24 = 25
CA NISHANT KUMAR
Question 74
If n Pr = n Pr +1 , and n Cr = nCr −1 , then find the value of n.
(a) 3 (b) 4 (c) 5 (d) 6
Solution
(a)
We know that if n Px = n Py , and x  y , then x + y = 2n − 1. Therefore, r + r + 1 = 2n − 1.
2n − 2
 2r + 1 = 2n − 1  2 r = 2 n − 2  r =  r = n − 1.
2
Also, we know that if n Cx = nC y , and x  y , then x + y = n . Therefore, r + r − 1 = n .
CA NISHANT KUMAR
n +1
 2r − 1 = n  2r = n + 1  r = .
2
n +1
Therefore, n − 1 =  2n − 2 = n + 1  2n − n = 1 + 2  n = 3 .
2
CA NISHANT KUMAR
Question 75
The number of diagonals in a decagon is:
(a) 30 (b) 35 (c) 45 (d) None
Solution
(b)
1
The number of diagonals in a polygon of n sides is n(n − 3) .
2
1 1
n(n − 3) =  10  (10 − 3) = 35
2 2
CA NISHANT KUMAR
Question 76
If a polygon has 44 diagonals, then the number of sides are:
(a) 6 (b) 7 (c) 8 (d) 11
Solution
(d)
1
The number of diagonals in a polygon of n sides is n ( n − 3) .
2
1
n ( n − 3) = 44
2
CA NISHANT KUMAR
n ( n − 3) = 44  2 = 88
n ( n − 3) = 88
Try the options.
Option (d) → 11
CA NISHANT KUMAR
Question 77
In how many number of ways can 12 students be equally divided into three groups?
(a) 5775 (b) 7575 (c) 7755 (d) None
Solution
(a)
The number of ways to divide n students into k groups of h students each is given by
n!
k .
k !( h!)
We have, n = 12; k = 3; h = 4.
CA NISHANT KUMAR
n! 12!
Therefore, = = 5,775 .
k !( h!) 3!( 4!)
k 3
CA NISHANT KUMAR
Question 78
The number of ways in which 9 things can be divided into twice groups containing 2, 3,
and 4 things respectively is:
(a) 1250 (b) 1260 (c) 1200 (d) None
Solution
(b)
The number of ways to divide n items into 3 groups → one containing a items, the second
containing b items, and the third containing c items, such that a + b + c = n , is given by
n!
.
a !b!c!
CA NISHANT KUMAR
Here, n = 9; a = 2; b = 3; c = 4
n! 9!
= = 1,260
a !b!c! 2!  3!  4!
CA NISHANT KUMAR
Question 79
In how many number of ways can 15 mangoes be equally divided among 3 students?
(a) 15 / ( 5 ) (b) 15 / ( 5 ) (c) 15 / ( 5 )
4 3 2
(d) None
Solution
(b)
The number of ways to divide n identical objects into k groups of h items each is given
n!
by k .
( h!)
We have, n = 15; k = 3; h = 5.
CA NISHANT KUMAR
n! 15!
Therefore, = = 7,56,756 .
( h!) ( 5!)
k 3
CA NISHANT KUMAR
Question 80
The number of different factors of the number 75,600 has is:
(a) 120 (b) 121 (c) 119 (d) None
Solution
(c)
75,600 = 24.33.52.7
Therefore, total number of factors of 75,600 = ( 4 + 1)( 3 + 1)( 2 + 1)(1 + 1) = 120
CA NISHANT KUMAR
However, the question has asked us the different factors of the number 75,600. Since one
of the factors is the number itself, the different factors would be determined by
subtracting 1 from the total number of factors.
Therefore, no. of different factors of the number 75,600 = 120 – 1 = 119.
CA NISHANT KUMAR
Question 81
The maximum number of points of intersection of 10 circles will be ________.
(a) 90 (b) 100 (c) 110 (d) 120
Solution
The maximum number of points of intersection of n circles will be n ( n − 1) .
Therefore, 10 (10 − 1) = 10  9 = 90 .
CA NISHANT KUMAR
Chapter 6 – Sequence and Series
CA NISHANT KUMAR
CA NISHANT KUMAR
CA NISHANT KUMAR
CA NISHANT KUMAR
CA NISHANT KUMAR
Questions Based on Arithmetic Progression
CA NISHANT KUMAR
Question 1
The value of x such that 8x + 4, 6x – 2, 2x + 7 will form an AP is:
(a) 15 (b) 2 (c) 15/2 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 2
The last term of the A.P. 0.6, 1.2, 1.8, … to 13 terms is:
(a) 8.7 (b) 7.8 (c) 7.7 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 3
Which term of the progression –1, –3, –5, … is –39?
(a) 21st (b) 20th (c) 19th (d) None
Solution
(b)
CA NISHANT KUMAR
Question 4
The number of numbers between 74 and 25,556 divisible by 5 is:
(a) 5090 (b) 5097 (c) 5095 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 5
The nth element of the sequence –1, 2, –4, 8, … is:
(a) ( −1) 2n−1
n
(b) 2n−1 (c) 2n (d) None
Solution
(a)
CA NISHANT KUMAR
Question 6
The n th term of the series 3 + 7 + 13 + 21 + 31 + … is:
(a) 4n − 1 (b) n 2 + 2n (c) n 2 + n + 1 (d) n3 + 2
Solution
(c)
Try the options.
CA NISHANT KUMAR
Question 7
The two arithmetic means between –6 and 14 is:
1 1
(a) 2/3, 1/3 (b) 2/3, 7 (c) −2 / 3, −7 (d) None
3 3
Solution
(b)
CA NISHANT KUMAR
Question 8
The 4 arithmetic means between –2 and 23 are
(a) 3, 13, 8, 18 (b) 18, 3, 8, 13 (c) 3, 8, 13, 18 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 9
The sum of the series 9, 5, 1, … to 100 terms is:
(a) –18,900 (b) 18,900 (c) 19,900 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 10
The sum of all natural numbers between 500 and 1000 which are divisible by 13, is:
(a) 28,405 (b) 24,805 (c) 28,540 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 11
The sum of all natural numbers from 100 to 300 which are exactly divisible by 4 and 5
is:
(a) 2,200 (b) 2,000 (c) 2,220 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 12
The sum of all natural numbers from 100 to 300 which are exactly divisible by 4 or 5 is:
(a) 10,200 (b) 15,200 (c) 16,200 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 13
A person is employed in a company at ₹3,000 per month and he would get an increase of
₹100 per year. Find the total amount which he receives in 25 years and the monthly salary
in the last year.
(a) ₹14,60,000 (b) ₹13,60,000 (c) ₹12,60,000 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 14
A sum of ₹6240 is paid off in 30 instalments such that each instalment is ₹10 more than
the preceding installment. The value of the 1st instalment is:
(a) ₹36 (b) ₹30 (c) ₹60 (d) None
Solution
(d)
CA NISHANT KUMAR
Question 15
A person saved ₹16,500 in ten years. In each year after the first year, he saved ₹100 more
than he did in the preceding year. The amount of money he saved in the 1st year was:
(a) ₹1,000 (b) ₹1,500 (c) ₹1,200 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 16
The sum of a certain number of terms of an AP series –8, –6, –4, … is 52. The number
of terms is:
(a) 12 (b) 13 (c) 11 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 17
The first and the last term of an AP are –4 and 146. The sum of the terms is 7171. The
number of terms is:
(a) 101 (b) 100 (c) 99 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 18
2 1
The number of terms of the series 10 + 9 + 9 + 9 + ... will amount to 155 is:
3 3
(a) 30 (b) 31 (c) 32 (d) Both (a) and (b)
Solution
(d)
CA NISHANT KUMAR
Question 19
If 8th term of an AP is 15, the sum of its first 15 terms is:
(a) 15 (b) 0 (c) 225 (d) 225/2
Solution
(c)
t8 = a + 7d = 15
15
S15 = 2a + 14d 
2
S15 =
15
2
2 ( a + 7d )
CA NISHANT KUMAR
15
S15 = 2 15 = 225
2
CA NISHANT KUMAR
Question 20
A person pays ₹975 by monthly instalment each less than the former by ₹5. The first
instalment is ₹100. The time by which the entire amount will be paid is:
(a) 10 months (b) 15 months (c) 14 months (d) None
Solution
(b)
CA NISHANT KUMAR
Question 21
The nth term of the series whose sum to n terms is 5n 2 + 2n is:
(a) 3n – 10 (b) 10n – 2 (c) 10n – 3 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 22
The pth term of an AP is (3p – 1)/6. The sum of the first n terms of the AP is:
(a) n ( 3n + 1) (b) n ( 3n + 1) / 12 (c) n / 12 ( 3n − 1) (d) None
Solution
(b)
CA NISHANT KUMAR
Question 23
If 5th and 12th terms of an AP are 14 and 35 respectively, find the AP.
(a) 2, 5, 8, 11 (b) 2, 5, 8, 9 (c) 2, 5, 9, 13 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 24
7

i =4
2i − 1 can be written as:
(a) 7 + 9 + 11 + 13 (b) 2 7 + 2 9 + 2 11 + 2 13
(c) 2 7 + 2 9 + 2 11 + 2 13 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 25
The sum to ∞ of the series –5, 25, –125, 625, … can be written as:
  
 ( −5) 5  −5
k k k
k =1 k =1 k =1
Solution
(a)
CA NISHANT KUMAR
Question 26
The mth term of an AP is n and the nth term is m. The rth term of it is:
(a) m + n + r (b) n + m − 2r (c) m + n + r / 2 (d) m + n − r
Solution
(d)
CA NISHANT KUMAR
Question 27
The first term of an A.P is 14 and the sums of the first five terms and the first ten terms
are equal in magnitude but opposite in sign. The 3rd term of the AP is:
4
(a) 6 (b) 6 (c) 4/11 (d) None
11
Solution
(a)
CA NISHANT KUMAR
Question 28
If unity is added to the sum of any number of terms of the A.P. 3, 5, 7, 9, … the resulting
sum is:
(a) a perfect cube (b) a perfect square (c) a number (d) None
Solution
(b)
CA NISHANT KUMAR
Question 29
The sum of the progression ( a + b ) , a , ( a − b ) …n terms is:
n n n n
(a)  2a + ( n − 1) b  (b)  2a + ( 3 − n ) b  (c)  2a + ( 3 − n )  (d)  2a + ( n − 1) 
2 2 2 2
Solution
(b)
Here, the first term is ( a + b ) , and the common difference is a − ( a + b ) = a − a − b = −b
Therefore, a = ( a + b ) ; d = −b
CA NISHANT KUMAR
Sum to n terms is given by: Sn =
n
2
2a + ( n − 1) d 
 Sn =
n
2
2 ( a + b ) + ( n − 1)( −b )
 Sn =
n
2
2a + 2b + ( −bn + b )
n
 Sn = 2a + 2b − bn + b
2
n
 Sn = 2a + 3b − bn
2
CA NISHANT KUMAR
 Sn =
n
2
2a + b ( 3 − n )
CA NISHANT KUMAR
Question 30
n 
Find the sum of first twenty-five terms of A.P. series whose n th term is  + 2  .
5 
(a) 105 (b) 115 (c) 125 (d) 135
Solution
(b)
n
tn = +2
5
1 1 + 10 11
t1 = + 2 = =
5 5 5
CA NISHANT KUMAR
2 2 + 10 12
t2 = +2= =
5 5 5
3 3 + 10 13
t3 = + 2 = =
5 5 5
11 12 11 1
Therefore, a = ; d = − = ; n = 25
5 5 5 5
We know that Sn =
n
2
2a + ( n − 1) d 
25  11   1 
S 25 =  2   + ( 25 − 1)    = 115
2  5  5 
CA NISHANT KUMAR
Question 31
The sum of the first 3 terms in an AP is 18 and that of the last 3 is 28. If the AP has 13
terms, what is the sum of the middle three terms?
(a) 23 (b) 18 (c) 19 (d) None
Solution
(a)
Let the first term be a and the common difference be d.
t1 + t2 + t3 = 18
 ( a ) + ( a + d ) + ( a + 2d ) = 18
CA NISHANT KUMAR
 a + a + d + a + 2d = 18
 3a + 3d = 18
 3 ( a + d ) = 18
18
a+d = =6
3
 a + d = 6 …Eq. (1)
t11 + t12 + t13 = 28
 ( a + 10d ) + ( a + 11d ) + ( a + 12d ) = 28
 a + 10d + a + 11d + a + 12d = 28

 3a + 33d = 28
CA NISHANT KUMAR
 3 ( a + 11d ) = 28
28
 a + 11d = …Eq. (2)
3
Subtracting Eq. (2) from Eq. (1), we get:
28
d − 11d = 6 −
3
18 − 28
 −10d =
3
10
 −10d = −
3
CA NISHANT KUMAR
1
d =
3
Putting this value in Eq. (1), we get:
1
a+ =6
3
1 18 − 1 17
 a =6− = =
3 3 3
17 1
Therefore, a = ;d=
3 3
Middle three terms of the series are t6 , t7 , and t8
t6 + t7 + t8
CA NISHANT KUMAR
= ( a + 5d ) + ( a + 6 d ) + ( a + 7 d )
= a + 5d + a + 6d + a + 7d
= 3a + 18d
 17   1
=  3   + 18  
 3  3
= 17 + 6 = 23
CA NISHANT KUMAR
Question 32
The first term of an A.P. is 100 and the sum of whose first 6 terms is 5 times the sum of
the next 6 terms, then the c.d. is:
(a) –10 (b) 10 (c) 5 (d) None
(a)
Try the options.
Option (a) → –10
If the common difference is –10, the series is:
100, 90, 80, 70, 60, 50, 40, 30, 20, 10, 0, –10
CA NISHANT KUMAR
Sum of the first 6 terms = 100 + 90 + 80 + 70 + 60 + 50 = 450
Sum of the next 6 terms = 40 + 30 + 20 + 10 + 0 + (–10) = 90
Since 450 = 5 × 90, therefore, clearly sum of the first 6 terms, i.e., 450, is 5 times the sum
of the next 6 terms, i.e. 90.
CA NISHANT KUMAR
Question 33
1 + 3 + 5 + ... + n terms 2
If = , the value of n is:
2 + 4 + 6 + ... + 50 terms 51
(a) 9 (b) 10 (c) 12 (d) 13
Solution
(b)
Try the options.
Option (b) → 10
This becomes the sum of first 10 odd numbers
CA NISHANT KUMAR
Numerator → 1 + 3 + 5 + … 10 terms
S10 =
10
2
( 2 1) + (10 − 1) 2 = 100
Denominator → S50 =
50
2
( 2  2 ) + ( 50 − 1) 2 = 2550
100 2
On calculator =
2550 51
CA NISHANT KUMAR
Question 34
The sum of n terms of an A.P. is 3n 2 + n ; then its pth term is:
(a) 6 p + 2 (b) 6 p − 2 (c) 6 p − 1 (d) None
(b)
Given Sn = 3n 2 + n
Therefore, S1 = 3(1) + 1 = 3 + 1 = 4 . This means that the sum of the first term is 4.
2
Now, obviously, the sum of the first term is the first term itself.
This means that the first term is 4. Therefore, a = 4
CA NISHANT KUMAR
Also, S2 = 3( 2 ) + 2 = ( 3  4 ) + 2 = 14 .
2
This means that the sum of the first two terms is 14.
Clearly, second term is 14 – 4 = 10.
Therefore, first term is 4, and the second term is 10. Clearly, common difference is 10 –
4 = 6.
Therefore, we have a = 4 , and d = 6 .
Therefore, the pth term is given by:
t p = a + ( p − 1) d
t p = 4 + ( p − 1) 6
CA NISHANT KUMAR
tp = 4 + 6 p − 6
tp = 6 p − 2
CA NISHANT KUMAR
Questions Based on Geometric Progression
CA NISHANT KUMAR
Question 35
t12 of the series –128, 64, –32, … is:
(a) –1/16 (b) 16 (c) 1/16 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 36
The last term of the series 1, –3, 9, –27 up to 7 terms is:
(a) 297 (b) 729 (c) 927 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 37
The last term of the series x2, x, 1, …. to 31 terms is:
(a) x28 (b) 1/x (c) 1/x28 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 38
Which term of the progression 1, 2, 4, 8, … is 256?
(a) 9th (b) 10th (c) 11th (d) None
Solution
(a)
CA NISHANT KUMAR
Question 39
Insert 3 geometric means between 1/9 and 9.
(a) 1/3, 1, 3 (b) 1/9, 1, 9 (c) ¼, 1, 4 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 40
The sum of the series –2, 6, –18, …. to 7 terms is:
(a) –1094 (b) 1094 (c) –1049 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 41
The sum of the series 243, 81, 27, …. to 8 terms is:
 13  1
(a) 36 (b)  36  (c) 36 (d) None
 30  9
Solution
(d)
CA NISHANT KUMAR
Question 42
1 3
The sum of the series +1+ + ... to 18 terms is:
3 3
(a) 9841
(1+ 3)
(b) 9841 (c)
9841
(d) None
3 3
Solution
(a)
CA NISHANT KUMAR
Question 43
If you save 1 paise today, 2 paise the next day 4 paise the succeeding day and so on, then
your total savings in two weeks will be:
(a) ₹163 (b) ₹183 (c) ₹163.83 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 44
The sum of the series 1 + 2 + 4 + 8 + … to n terms is:
(a) 2n – 1 (b) 2n – 1 (c) 1/2n – 1 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 45
The number of terms to be taken so that 1 + 2 + 4 + 8 + will be 8191 is:
(a) 10 (b) 13 (c) 12 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 46
The sum of the infinite GP 14, – 2, + 2/7, – 2/49, + … is:
1 1
(a) 4 (b) 12 (c) 12 (d) None
12 4
Solution
(b)
CA NISHANT KUMAR
Question 47
The sum of the infinite G. P. 1 – 1/3 + 1/9 – 1/27 + … is:
(a) 0.33 (b) 0.57 (c) 0.75 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 48
The nth term of the series 16, 8, 4, … is 1/217. The value of n is:
(a) 20 (b) 21 (c) 22 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 49
The sum of 1 + 1/3 + 1/32 + 1/33 + … + 1/3n–1 is:
(a) 2/3 (b) 3/2 (c) 4/5 (d) None
Solution
(d)
If we take the first 4 terms, we can see that in the last term, the power of 3 is 3, which is
one less than the total number of terms (4). Therefore, when n = 4, the power of the last
3 is (4 – 1). Similarly, when the total number of terms is n, the power of the last 3 is (n –
1).
Therefore, we have a = 1; r = 1/ 3 ; n = n
CA NISHANT KUMAR
1− rn 
Sn = a  
 1 − r 
 1 − (1/ 3)n 
Sn = 1 
 1 − (1/ 3) 
 
 1 − (1/ 3)n 
Sn = 1 
 2/3 
 
3   1  
n
Sn =  1 −   
2   3  
CA NISHANT KUMAR
Question 50
The sum of 1.03 + (1.03)2 + (1.03)3 + … to n terms is:

(a) 103 (1.03) − 1
n
  
(b) 103 / 3 (1.03) − 1
n
(c) (1.03) − 1
n
(d) None
Solution
(b)
Here a = 1.03 ; r = 1.03
 rn −1 
Sn = a  
 r − 1 
CA NISHANT KUMAR
 (1.03)n − 1 
Sn = 1.03  
 1.03 − 1 
 
 (1.03)n − 1 
Sn = 1.03  
 0.03 
 
Sn =
1.03
0.03
(1.03) − 1
n

Sn =
103
3
(1.03) − 1
n

CA NISHANT KUMAR
Question 51
The sum of the infinite series 1 + 2/3 + 4/9 + … is:
(a) 1/3 (b) 3 (c) 2/3 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 52
Find the G.P where 4th term is 8 and 8th term is 128/625:
(a) 125, 50, 20, … (b) –125, 50, –20 (c) 120, 60, 30, … (d) Both (a) and (b)
Solution
(d)
CA NISHANT KUMAR
Question 53
If x, y, and z are in GP, then:
(a) y 2 = xz ( ) (
(b) y z 2 + x 2 = x z 2 + y 2 ) (c) 2y = x + z (d) None
Solution
(a)
CA NISHANT KUMAR
Question 54
In a G.P., the product of the first three terms 27/8. The middle term is:
(a) 3/2 (b) 2/3 (c) 2/5 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 55
The sum of the first 20 terms of a G.P. is 244 times the sum of its first 10 terms. The
common ratio is:
(a)  3 (b) 3 (c) 3 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 56
The sum of the first two terms of a G.P. is 5/3 and the sum to infinity of the series is 3.
The common ratio is:
(a) 1/3 (b) 2/3 (c) –2/3 (d) Both (b) and (c)
Solution
(d)
CA NISHANT KUMAR
Question 57
If y = 1 + x + x 2 + ... +  , then x =
y −1 y +1 y y
(a) (b) (c) (d)
y y y +1 y −1
Solution
(a)
y = S
a
y=
1− r
CA NISHANT KUMAR
1
y=
1− x
 y (1 − x ) = 1
 y − xy = 1
 xy = y − 1
y −1
x=
y
CA NISHANT KUMAR
Question 58
1 1 1 1 1
Sum upto infinity of series: + 2 + 3 + 4 + 5 + ...
2 3 2 3 2
(a) 19/24 (b) 24/19 (c) 5/24 (d) None
Solution
(a)
This is a combination of two separate series:
1 1 1  1 1 
 + + + ... +
  2 + + ... 
2 2 2  3 3 
3 5 4
CA NISHANT KUMAR
1/ 2 1/ 32
= +
1 − (1/ 4 ) 1 − (1/ 32 )
1/ 2 1/ 9
= +
3/ 4 8/9
1 4 1 9
=  +  
2 3 9 8
2 1 16 + 3 19
= + = =
3 8 24 24
CA NISHANT KUMAR
Question 59
If 2 + 6 + 10 + 14 + 18 + … + x = 882 then the value of x
(a) 78 (b) 80 (c) 82 (d) 86
Solution
(c)
We have a = 2 ; d = 4 ; Sn = 882
Sn =
n
2
2a + ( n − 1) d 
 882 =
n
2
( 2  2) + ( n − 1)( 4)
CA NISHANT KUMAR
 882  2 = n 4 + 4n − 4
 882  2 = n 4n
 882  2 = 4n 2
882  2
 n2 =
4
882  2
n= = 21
4
x = t21
 t21 = a + 20d
CA NISHANT KUMAR
 t21 = 2 + ( 20  4 ) = 82
 x = 82
CA NISHANT KUMAR
Question 60
The sum of n terms of a G.P. whose first term is 1 and the common ratio is 1/2, is equal
127
to 1 . The value of n is:
128
(a) 7 (b) 8 (c) 6 (d) None
Solution
(b)
1 127 255
We have a = 1 ; r = ; Sn = 1 =
2 128 128
CA NISHANT KUMAR
1 − r n 
Sn = a  
 1− r 
255 1 − (1/ 2 ) 
n
 = 1 
128  1 − 1/ 2 
1  1 
n
255
 = 1 −   
128 1/ 2   2  
1 / 2  255
n
1
 = 1−  
128 2
CA NISHANT KUMAR
n
1
 0.99609375 = 1 −  
2
n
1
   = 1 − 0.99609375 = 0.00390625
2
8
1
  = 0.00390625
2
n =8
CA NISHANT KUMAR
Question 61
In a G.P., if the fourth term is ‘3’ then the product of first seven terms is:
(a) 35 (b) 37 (c) 36 (d) 38
Solution
(b)
t4 = 3
t4 = ar 3
 ar 3 = 3
t1  t2  t3  t4  t5  t6  t7
CA NISHANT KUMAR
= a  ar  ar 2  ar 3  ar 4  ar 5  ar 6
= a1+1+1+1+1+1+1r1+ 2+3+ 4+5+ 6
= a 7 r 21
= ( ar )
7
3
= 37
CA NISHANT KUMAR
Question 62
If t4 of a GP is x, t10 = y , and t16 = z , then,
(a) x2 = yz (b) z 2 = xy (c) y 2 = zx (d) None
Solution
(c)
ar 3 = x ; ar 9 = y ; ar 15 = z
Try the options.
Option (a) → x2 = yz
CA NISHANT KUMAR
( )
2
LHS → ar 3
= a 2r 6
RHS → ar 9  ar15 = a 2 r 9+15 = a 2 r 24

Option (b) → z 2 = xy
( )
2
LHS → ar 15
= a 2 r 30
RHS → ar 3  ar 9 = a 2 r 3+9 = a 2 r12

Option (c) → y 2 = zx
( )
2
LHS → ar 9 = a 2 r18
RHS → ar15  ar 3 = a 2 r15+3 = a 2 r18
CA NISHANT KUMAR
Alternatively,
We can see that t10 is the middle term between t4 and t16 . Therefore, t10 is the geometric
mean. Therefore, ( t10 ) = t4  t16  y 2 = xz
2
CA NISHANT KUMAR
Question 63
If p, q and r, are in A.P. and x, y, z are in G.P., then xq−r . y r − p .z p −q is equal to:
(a) 0 (b) –1 (c) 1 (d) None
Solution
(c)
Since p, q, and r, are in AP, we have q − p = r − q = d
 q − p = d  p − q = −d
And r − q = d  q − r = −d
Also, r − p = ( r − q ) + ( q − p ) = d + d = 2d
CA NISHANT KUMAR
Also, since x, y, and z are in GP, we have y 2 = xz
Now, we have:
x q − r . y r − p .z p − q
x − d . y 2 d .z − d (Since q − r = −d ; r − p = 2d ; p − q = −d )
( xz )
−d
. y 2d
( y 2 ) . y 2d (Since y2 = xz )
−d
y −2d . y 2d = 1
CA NISHANT KUMAR
Question 64
Given x, y, and z are in GP and x p = y q = z , then 1/ p , 1/ q , 1/  are in:
(a) AP (b) GP (c) Both (d) None
Solution
(a)
Let x p = y q = z = k
1
 xp = k  x = k p
 yq = k  y = k q
CA NISHANT KUMAR
1

 z = k  z = k
Since x, y, and z are in GP, y 2 = xz
2
 1q  1 1
 k  = k k
p 
 
 
2 1 1
+
p 
k =k
q
2 1 1
 = +
q p 
1 1 1 1
 + = +
q q p 
CA NISHANT KUMAR
1 1 1 1
 − = −
p q q 
Therefore, they are in AP.
CA NISHANT KUMAR
Question 65
If A be the A.M. of two positive unequal quantities x and y and G be their G.M., then:
(a) A < G (b) A > G (c) A ≥ G (d) A ≤ G
Solution
(b)
CA NISHANT KUMAR
Question 66
If x, y, z, are in A.P. and x, y, (z + 1) are in G.P., then:
(a) ( x − z ) = 4 x (c) z = x − y
2
(b) z 2 = x − y (d) None
Solution
(a)
x+z
Since x, y, and z are in AP, y = …Eq. (1)
2
Also, since x, y, (z + 1) are in G.P., y 2 = x ( z + 1) …Eq. (2)
Putting the value of y from Eq. (1) in Eq. (2), we have:
CA NISHANT KUMAR
 x+z
2
  = xz + x
 2 
x 2 + z 2 + 2 xz
= xz + x
4
x 2 + z 2 + 2 xz = 4 xz + 4 x
x 2 + z 2 + 2 xz − 4 xz = 4 x
x 2 + z 2 − 2 xz = 4 x
( x − z ) = 4x
2
CA NISHANT KUMAR
Question 67
The numbers x, 8, y are in G.P. and the numbers x, y, –8 are in A.P. The value of x and y
are:
(a) (–8, –8) (b) (16, 4) (c) (8, 8) (d) Both (a) and (b)
Solution
(d)
Try the options.
CA NISHANT KUMAR
Question 68
The series 1 + 10−1 + 10−2 + 10−3... to ∞ is:
(a) 9/10 (b) 1/10 (c) 10/9 (d) None
Solution
(c)
Given series 1 + 10−1 + 10−2 + 10−3...
1 1 1
1+ + 2 + 3 + ...
10 10 10
CA NISHANT KUMAR
1
Here, a = 1; r =
10
a 1 1 10
S = = = =
1− r 1− 1 9 9
10 10
CA NISHANT KUMAR
Question 69
The sum of the first two terms of an infinite geometric series is 15 and each term is equal
to the sum of all the terms following it; then the sum of the series is:
(a) 20 (b) 15 (c) 25 (d) None
(a)
Let the first term of the GP be a, and the second term of the GP be ar.
Given:
a + ar = 15
 a (1 + r ) = 15
CA NISHANT KUMAR
15
a= …Eq. (1)
1+ r
Also, we are given that every term is equal to the sum of all the terms following it. This
means that t2 = S − S2 .
a
Now, we know that S = , and S2 is given as 15.
1− r
a
Therefore, t2 = − 15
1− r
Also, we know that t2 = ar
a
Therefore, ar = − 15 …Eq. (2)
1− r
CA NISHANT KUMAR
Putting the value of a from Eq. (1) to Eq. (2), we get:
15
 r = 1 + r − 15
15
1+ r 1− r
15r  15 
=  1 − r  − 15
1+ r 1+ r 
15r  15 1 
=   − 15
1+ r 1+ r 1− r 
15r 15
= − 15
1 + r (1 + r )(1 − r )
CA NISHANT KUMAR
15r 15 − 15 (1 + r )(1 − r )
=
1+ r (1 + r )(1 − r )
151 − (1 + r )(1 − r )
15r =
1− r
r=
1 − (1 − r )2
1− r
r (1 − r ) = 1 − 1 + r 2
r − r2 = r2
r2 + r2 − r = 0
CA NISHANT KUMAR
2r 2 − r = 0
r ( 2r − 1) = 0
1
Therefore, either r = 0 , or r =
2
Since r cannot be 0, it’ll be ½.
Putting the value of r in Eq. (1), we get:
15
a= = 10
1
1+
2
Therefore, we have a = 10, and r = ½.
CA NISHANT KUMAR
a 10
S = = = 20
1− r 1− 1
2
CA NISHANT KUMAR
Question 70
If the pth term of a GP is x and the qth term is y, then find the n th term.
( n−q )  ( p −q )
1
 x( n−q )  x x ( n−q ) p−q
(a)  ( n − p )  (b)  ( n − p )  (c) 1 (d)  ( n − p ) 
y  y  y 
Solution
(d)
t p = ar p −1 = x …Eq. (1)
tq = ar q −1 = y …Eq. (2)
CA NISHANT KUMAR
Dividing Eq. (1) by Eq. (2)
ar p −1 x
=
ar q −1 y
p −1− ( q −1) x
r =
y
x
r p −1− q +1 =
y
x
r p−q =
y
CA NISHANT KUMAR
1
x p −q
r = 
 y
tn = ar n −1
Adding p and subtracting p in the power of r, we get:
tn = ar n −1+ p − p
tn = ar (
n − p ) + ( p −1)
tn = ar (
p −1)
r(
n− p )
CA NISHANT KUMAR
1
x p −q
We know that ar p −1 = x and r =   . Putting these values above, we get:
 y
n− p
 1

  −q
t n = x   
x p
 y  
 
n− p
x p−q
tn = x  
 y
CA NISHANT KUMAR
 np−−pq 
x 
tn = x  n − p 
 y p−q 
 
n− p
p−q
x.x
tn = n− p
p−q
y
n− p
1+
p−q
x
tn = n− p
p−q
y
CA NISHANT KUMAR
p−q+n− p
p−q
x
tn = n− p
p−q
y
n−q
p −q
x
tn = n− p
p−q
y
1
x  n−q p −q
tn =  n − p 
y 
CA NISHANT KUMAR
Question 71
The sum of three numbers in a geometric progression is 28. When 7, 2, and 1 are
subtracted from the first, second, and the third numbers respectively, the resulting
numbers are in Arithmetic Progression. What is the sum of squares of the original three
numbers?
(a) 510 (b) 456 (c) 400 (d) 336
Solution
(d)
a
Let the numbers in GP be , a , and ar respectively.
r
CA NISHANT KUMAR
Given that the sum is 28.
a
Therefore, + a + ar = 28
r
1 
 a  + 1 + r  = 28 …Eq. (1)
r 
Also, given that if we subtract 7, 2, and 1 from the first, second and third terms
respectively, we get an AP.
On subtracting 7, 2, and 1 from first, second and third terms, we get:
a 
 − 7  , ( a − 2 ) , and ( ar − 1)
 r 
CA NISHANT KUMAR
a 
Since these numbers are in AP, we have ( a − 2 ) −  − 7  = ( ar − 1) − ( a − 2 )
r 
a
 a−2− + 7 = ar − 1 − a + 2
r
a
a− + 5 = ar − a + 1
r
a
a− − ar + a = 1 − 5
r
a
 2a − − ar = −4
r
CA NISHANT KUMAR
 1 
 a  2 − − r  = −4 …Eq. (2)
 r 
Dividing Eq. (1) by Eq. (2), we get:
1 
a +1+ r 
r  = 28
 1  −4
a 2 − − r 
 r 
1 + 1r + r 2
 r = −7
2r − 1 − r 2
r
CA NISHANT KUMAR
1+ r + r2
 = −7
2r − 1 − r 2
 1 + r + r 2 = −7 ( 2r − 1 − r 2 )
 1 + r + r 2 = −14r + 7 + 7r 2
 7r 2 + 7 − 14r − 1 − r − r 2 = 0
 6r 2 − 15r + 6 = 0
Here, a = 6 ; b = −15; c = 6
b −15 15
 + =− =− =
a 6 6
CA NISHANT KUMAR
c 6
 = = =1
a 6
 15  15 
As per fastest method,  + x  − x =1
 6 2  6  2 
2
 15 
   − x2 = 1
 12 
2
 15 
x 2 =   − 1 = 1.5625 − 1 = 0.5625
 12 
x = 0.5625 = 0.75
CA NISHANT KUMAR
15
= + 0.75 = 2
12
15
= − 0.75 = 0.5
12
Therefore, common ratio could either be 2, or 0.5
Taking the common ratio to be 2, let’s find out the value of a.
Putting the value of r = 2 in Eq. (1), we’ll get:
1 
a  + 1 + 2  = 28
2 
 a ( 3.5 ) = 28
CA NISHANT KUMAR
28
a= =8
3.5
8
Therefore, the GP will be , 8, 8  2 = 4, 8, 16
2
We can see that the sum of these numbers = 4 + 8 + 16 = 28
Subtracting 7, 2, and 1 from first, second, and third terms, we’ll get 4 – 7 = –3, 8 – 2 = 6,
16 – 1 = 15.
These terms are clearly in AP as 15 – 6 = 6 – (–3) = 9
The sum of squares of the numbers 4, 8, and 16 = 42 + 82 + 162 = 336
Now, taking 0.5 as the common ratio, let’s find out the value of a.
Putting the value of r = 0.5 in Eq. (1), we’ll get:
CA NISHANT KUMAR
1 
a  + 1 + r  = 28
r 
 1 
 a + 1 + 0.5  = 28
 0.5 
 a ( 3.5 ) = 28
28
a= =8
3.5
8
Therefore, the GP will be , 8, 8  0.5 = 16, 8, 4
0.5
We can see that the sum of these numbers = 16 + 8 + 4 = 28
CA NISHANT KUMAR
Subtracting 7, 2, and 1 from first, second, and third terms, we’ll get 16 – 7 = 9, 8 – 2 = 6,
4 – 1 = 3.
These terms are clearly in AP as 6 – 9 = 3 – 6 = –3
The sum of squares of the numbers 16, 8, and 4 = 162 + 82 + 42 = 336
CA NISHANT KUMAR
Special Series
Following are some of the Standard Results:
n ( n + 1)
1. Sum of first n natural or counting numbers (1 + 2 + 3 + 4 + ... + n ) =
2
2. Sum of first n odd numbers 1 + 3 + 5 + ... + ( 2n − 1) = n 2
3. Sum of the Squares of first n natural numbers
n ( n + 1)( 2n + 1)
(12
+ 2 2
+ 32
+ 4 2
+ ... + n 2
) =
6
 n ( n + 1) 
2
4. Sum of the Cubes of first n natural numbers (13 + 23 + 33 + 43 + ... + n3 ) =  

 2 
CA NISHANT KUMAR
5. Sum of the series such as: 1 + 11 + 111 + … to n terms, or 2 + 22 + 222 + … to n
Number 10 (10 − 1) 
n
terms, or 3 + 33 + 333 + … to n terms, and so on:  − n  . For

9  9 
example:
1 10 (10 − 1) 
n
a. 1 + 11 + 111 + … to n terms =   − n
9  9 

2 10 (10 − 1) 
n
b. 2 + 22 + 222 + … to n terms =   − n
9  9 

CA NISHANT KUMAR
3 10 (10 − 1) 
n
c. 3 + 33 + 333 + … to n terms =   − n
9  9 

1   ( ) 
1 − 0.1
n
6. Sum of the series 0.1 + 0.11 + 0.111 + … to n terms =   n −   .

9   9 

Example: Calculate the sum of 0.7 + 0.77 + 0.777 + … to n terms.
Solution:
0.7 + 0.77 + 0.777 + … to n terms = 7 × (0.1 + 0.11 + 0.111 + … to n terms)
7  1 − ( 0.1) 
n
Therefore, 0.7 + 0.77 + 0.777 + … to n terms =   n −  

9   9 

CA NISHANT KUMAR
2  1 − ( 0.1) 
n
Similarly, sum of series 0.2 + 0.22 + 0.222 + … to n terms =   n −  

9   9 

4   ( ) 
1 − 0.1
n
Sum of series 0.4 + 0.44 + 0.444 + … to n terms =   n −   .

9   9 

CA NISHANT KUMAR
Question 72
The ratio of the sum of first n natural numbers to that of the sum of cubes of first n natural
numbers is:
(a) 3 : 16 (b) n ( n + 1) / 2 (c) 2 / n ( n + 1) (d) None
Solution
(c)
n ( n + 1)
Sum of first n natural numbers =
2
CA NISHANT KUMAR
 n ( n + 1) 
2
Sum of cubes of first n natural numbers =  

 2 
n ( n + 1)  n ( n + 1) 
2
Ratio =  
2  2 
n ( n + 1)  n ( n + 1) n ( n + 1) 
=   
2  2 2 
n ( n + 1)  ( ) 
2
 n 2
n + 1 
=  
2 
 4 

CA NISHANT KUMAR
n ( n + 1) 4
=  2
n ( n + 1)
2
2
2
=
n ( n + 1)
CA NISHANT KUMAR
Question 73
Find the sum to n terms of 6 + 27 + 128 + 629 + …
  n ( n + 1) 
( )
(a) 5 5 − 1 + n ( n + 1)
n 5 n
(b)  ( 5 − 1)  + 
4   2 

 n ( n + 1) 
 
(c) 5 ( 5 − 1) + 
n
 2


(d) None
Solution
(b)
6 + 27 + 128 + 629 + …
CA NISHANT KUMAR
 ( 5 + 1) + ( 25 + 2 ) + (125 + 3) + ( 625 + 4 ) + ...
 ( 5 + 25 + 125 + 625 + ...) + (1 + 2 + 3 + 4 + ...)
 ( 5 + 52 + 53 + 54 + ... + 5n ) + (1 + 2 + 3 + 4 + ... + n )
The first bracket is a Geometric Progression with a = 5, and r = 5

  5n − 1    n ( n + 1) 
 5   +  
  5 − 1   2 
  5n − 1    n ( n + 1) 
 5   +  
  4    2 
CA NISHANT KUMAR
5 n   n ( n + 1) 
  ( 5 − 1)  +  
 4   2 
CA NISHANT KUMAR
Question 74
Find the sum to n terms of the series 3 + 33 + 333 + 3333 + …
 (10n +1 − 9n − 10 )  (10n +1 − 9n + 10 )
1 1
(a) (b)
27 27
 (10n +1 + 9n + 10 )
1
(c) (d) None
27
Solution
(a)
CA NISHANT KUMAR
Number 10 (10 − 1) 
n
The sum of such type of series is given by  − n

9  9 
3 10 (10 − 1) 
n
Therefore, sum of 3 + 33 + 333 + 3333 + … is given by:   − n

9  9
 
3 10 (10 − 1) − 9n 
n
  
9  9 


3
81
 
 10 (10n − 1) − 9n
CA NISHANT KUMAR
 10 10n − 10 − 9n
1

27
 (10n +1 − 10 − 9n )
1

27
 (10n +1 − 9n − 10 )
1

27
CA NISHANT KUMAR
Question 75
Find the sum to n terms of the series 0.7 + 0.77 + 0.777 + 0.7777 + …
 9n − 1 − 10− n   9n − 1 + 10n 

7 7
(a) (b)
81 81
(c)  9n − 1 + 10− n 
7
(d) None
81
Solution
(c)
CA NISHANT KUMAR
7  1 − ( 0.1) 
n
The sum to such series is given by   n −  

9   9 


 9n − 1 − ( 0.1)n
 
7  
9  9 
 

7
81

 9n − 1 + ( 0.1)
n

7   1  
n
  9n − 1 +   
81   10  
CA NISHANT KUMAR
7  1 
  9n − 1 + n 
81  10 
 9n − 1 + 10− n 
7

81
CA NISHANT KUMAR
Question 76
Evaluate 0.2175 using the sum of an infinite geometric series.
357 358 359
1650 1650 1650
Solution
(c)
Try the options.
CA NISHANT KUMAR
Question 77
A person borrows ₹8,000 at 2.76% Simple Interest per annum. The principal and the
interest are to be paid in the 10 monthly instalments. If each instalment is double the
preceding one, find the value of the first and the last instalment.
(a) 8; 4,095 (b) 2; 4,096 (c) 8; 4,096 (d) None
Solution
(c)
 10 
Total amount to be paid = 8,000 +  8,000  0.0276   = 8,184
 12 
Since each instalment is to be double the preceding one, it is clearly a GP with r = 2.
CA NISHANT KUMAR
Therefore, we have n = 10 ; r = 2 ; S10 = 8,184
 rn −1 
Since r > 1, S n = a  
 r −1 
Sn 8,184
a= = =8
 r n − 1   210 − 1 
 r −1   2 −1 
   
Therefore, the first instalment is 8.
Now, let’s calculate the last instalment.
t10 = ar 9 = 8  29 = 4,096
CA NISHANT KUMAR
CA NISHANT KUMAR
Chapter 7 – Sets, Relations,
Functions
CA NISHANT KUMAR
Questions Based on Sets
CA NISHANT KUMAR
Question 1
1 − ( −1)
x
 for all integral x is the set:
(a) {0} (b) {2} (c) {0, 2} (d) None
Solution
(c)
For x = 1, 1 − ( −1) = 1 − ( −1) = 1 − ( −1) = 1 + 1 = 2
x 1
For x = 2 , 1 − ( −1) = 1 − ( −1) = 1 − (1) = 1 − 1 = 0

x 2
For x = 3, 1 − ( −1) = 1 − ( −1) = 1 − ( −1) = 1 + 1 = 2

x 3
CA NISHANT KUMAR
For x = 4 , 1 − ( −1) = 1 − ( −1) = 1 − (1) = 1 − 1 = 0 , and so on…
x 4
Therefore, it can be clearly seen that the set is {0, 2}
CA NISHANT KUMAR
Question 2
The set {0, 2, 4, 6, 8, 10} can be written as:
(a) 2 x | 0  x  5 (b)  x : 0  x  5 (c) 2 x : 0  x  5 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 3
The null set is represented by:
(a)  (b) 0 (c)  (d) None
Solution
(c)
CA NISHANT KUMAR
Question 4
 
If A = 1, 2, 3, 5, 7 , and B = x 2 : x  A , then:
(a) n ( B ) = n ( A ) (b) n ( B )  n ( A ) (c) n ( A ) = n ( B ) (d) n ( A )  n ( B )
Solution
(c)
CA NISHANT KUMAR
Question 5
   
The sets V =  x | x + 2 = 0 , R = x | x 2 + 2 x = 0 , and S = x : x 2 + x − 2 = 0 are equal to
one another if x is equal to:
(a) –2 (b) 2 (c) ½ (d) None
Solution
(a)
Try the options.
Option (a) → –2
Set V = –2 + 2 = 0  V = {0}
CA NISHANT KUMAR
Set R = ( −2 ) + 2 ( −2 ) = 4 − 4 = 0  R = {0}
2
Set S = ( −2 ) + ( −2 ) − 2 = 4 − 2 − 2 = 4 − 4 = 0  S = {0}
2
CA NISHANT KUMAR
Question 6
If R is the set of positive rational number and E is the set of real numbers then:
(a) R  E (b) R  E (c) E  R (d) None
Solution
(b)
CA NISHANT KUMAR
Question 7
If I is the set of isosceles triangles and E is the set of equilateral triangles, then:
(a) I  E (b) E  I (c) E = I (d) None
Solution
(b)
CA NISHANT KUMAR
Question 8
If R is the set of isosceles right-angled triangles and I is set of isosceles triangles, then:
(a) R = I (b) R  I (c) R  I (d) None
Solution
(c)
CA NISHANT KUMAR
Question 9
Two finite sets respectively have x and y number of elements. The total number of subsets
of the first is 56 more than the total number of subsets of the second. The value of x and
y respectively?
(a) 6 and 3 (b) 4 and 2 (c) 2 and 4 (d) 3 and 6
Solution:
(a)
CA NISHANT KUMAR
Question 10
The numbers of proper subsets of the set {3, 4, 5, 6, 7} is:
(a) 32 (b) 31
(c) 30 (d) 25
Solution:
(b)
CA NISHANT KUMAR
Question 11
Let A = a, b . Set of subsets of A is called power set of A denoted by P ( A ) . Now,
n ( P ( A ) ) is:
(a) 2 (b) 4 (c) 3 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 12
If E is a set of positive even numbers and O is a set of positive odd numbers, then E  O
is a:
(a) set of whole numbers (b) N (c) set of rational numbers (d) None
Solution
(b)
CA NISHANT KUMAR
Question 13
A  A is equal to:
(a) A (b) E (c)  (d) None
Solution
(a)
CA NISHANT KUMAR
Question 14
A  E is equal to (E is a superset of A):
(a) A (b) E (c)  (d) None
Solution
(b)
CA NISHANT KUMAR
Question 15
E  E is equal to (E is a superset of A):
(a) E (b)  (c) 2E (d) None
Solution
(a)
CA NISHANT KUMAR
Question 16
A  A is equal to:
(a)  (b) A (c) E (d) None
Solution
(b)
CA NISHANT KUMAR
Question 17
A  E is equal to (E is a superset of A):
(a) A (b) E (c)  (d) None
Solution
(a)
CA NISHANT KUMAR
Question 18
A   is equal to (E is a superset of A):
(a) A (b) E (c)  (d) None
Solution
(c)
CA NISHANT KUMAR
Question 19
If AB = ( A − B )  ( B − A ) , and A = {1, 2, 3, 4}, B = {3, 5, 7} then AB is:
(a) {1, 2, 4, 5, 7} (b) {3} (c) {1, 2, 3, 4, 5, 7} (d) None
Solution
(a)
CA NISHANT KUMAR
Question 20
A  E ' is equal to (E is a superset of A)
(a) E (b)  (c) A (d) None
Solution
(b)
CA NISHANT KUMAR
Question 21
A  A ' is equal to (E is a superset of A)
(a) E (b)  (c) A (d) None
Solution
(a)
CA NISHANT KUMAR
Question 22
If the universal set E = {x | x is a positive integer < 25}, A = {2, 6, 8, 14, 22}, B = {4, 8,
10, 14}, then
(a) ( A  B ) ' = A '  B ' (b) ( A  B ) ' = A '  B ' (c) ( A '  B ) ' =  (d) None
Solution
(a)
CA NISHANT KUMAR
Question 23
A survey shows that 74% of the Indians like grapes, whereas 68% like bananas. What
percentage of the Indians like both grapes and bananas?
(a) 36% (b) 42% (c) 55% (d) None
Solution
(b)
CA NISHANT KUMAR
Question 24
In a class of 60 students, 40 students like Maths, 36 like Science, and 24 like both the
subjects. Find the number of students who like either Maths or Science.
(a) 36 (b) 42 (c) 52 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 25
subjects. Find the number of students who like neither Maths nor Science.
(a) 8 (b) 60 (c) 52 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 26
At a certain conference of 100 people there are 29 Indian women and 23 Indian men. Out
of these Indian people 4 are doctors and 24 are either men or doctors. There are no foreign
doctors. The number of women doctors attending the conference is:
(a) 2 (b) 4 (c) 1 (d) None
Solution
(c)
We have n (U ) = 100 , n (W ) = 29 , n ( M ) = 23 , n ( D ) = 4 , n ( M  D ) = 24
CA NISHANT KUMAR
We have to find out the number of female doctors, i.e., n (W  D ) . We have n (W ) , and
n ( D ) , but we don’t have n (W  D ) . Therefore, we cannot apply the formula
n (W  D ) = n (W ) + n ( D ) − n (W  D ) .
However, if we find out the number of Male Doctors, we can then subtract them from the
total doctors to find out the number of female doctors.
n(M  D) = n(M ) + n( D) − n(M  D)
 n ( M  D ) = 23 + 4 − 24 = 3
Therefore, number of female doctors = 4 – 3 = 1.
CA NISHANT KUMAR
Question 27
subjects. Find the number of students who Maths only.
(a) 16 (b) 42 (c) 52 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 28
In a survey of 300 companies, the number of companies using different media –
Newspapers (N), Radio (R) and Television (T) are as follows: n ( N ) = 200 , n ( R ) = 100 ,
n (T ) = 40 , n ( N  R ) = 50 , n ( R  T ) = 20 , n ( N  T ) = 25 , n ( N  R  T ) = 5 . Find the
number of companies using none of these media.
(a) 20 (b) 250 (c) 30 (d) 50
Solution
(d)
CA NISHANT KUMAR
Question 29
Out of 2000 employees in an office, 48% preferred Coffee (C), 54% liked Tea (T), 64%
used to smoke (S). Out of the total 28% used C and T, 32% used T and S and 30%
preferred C and S, only 6% did none of these. The number having all the three is:
(a) 360 (b) 300 (c) 380 (d) None
Solution
(a)
n ( A  B  C ) = n ( A) + n ( B ) + n (C ) − n ( A  B ) − n ( B  C ) − n ( A  C ) + n ( A  B  C )
We have
CA NISHANT KUMAR
n ( C ) = 48%  2,000 = 960 ,
n (T ) = 54%  2,000 = 1,080 ,
n ( S ) = 64%  2,000 = 1, 280 ,
n ( C  T ) = 28%  2,000 = 560 ,
n (T  S ) = 32%  2,000 = 640 ,
n ( C  S ) = 30%  2,000 = 600 ,
n ( C  T  S ) ' = 6%  2,000 = 120 ,
n ( C  T  S ) = 2,000 − 120 = 1,880 ,
CA NISHANT KUMAR
We know that:
n ( C  T  S ) = n ( C ) + n (T ) + n ( S ) − n ( C  T ) − n ( C  S ) − n (T  S ) + n (C  T  S )
or,
n ( C  T  S ) = n ( C  T  S ) − n ( C ) − n (T ) − n ( S ) + n ( C  T ) + n (C  S ) + n (T  S )
n ( C  T  S ) = 1,880 − 960 − 1,080 − 1, 280 + 560 + 600 + 640 = 360
CA NISHANT KUMAR
Question 30
Out of a group of 20 teachers in a school, 10 teach Mathematics, 9 teach Physics and 7
teach Chemistry. 4 teach Mathematics and Physics but none teach both Mathematics and
Chemistry. How many teach Chemistry and Physics? How many teach only Physics?
(a) 3; 2 (b) 2; 3 (c) 4; 5 (d) None
Solution
(b)
Let the number of teachers teaching both Physics and Chemistry be x.
CA NISHANT KUMAR
CA NISHANT KUMAR
In the absence of information, it is safe to assume that all the teachers teach at least one
of the subjects. Therefore,
9 – x – 0 – 4 + x + 7 – x – 0 – 0 + 4 + 0 + 0 + 6 = 20
 9 – 4 + 7 + 4 + 6 – x + x – x = 20
 22 – x = 20
 x = 22 – 20 = 2
Therefore, number of teachers teaching both Physics and Chemistry = 2.
Number of teachers teaching only Physics = 9 – 2 – 4 = 3
CA NISHANT KUMAR
Question 31
Let Z be the universal set for two sets – A and B. If n ( A ) = 300 , n ( B ) = 400 and
n ( A  B ) = 200 , then n ( A ' B ') is equal to 400 provided n ( Z ) is equal to:
(a) 900 (b) 800 (c) 700 (d) 600
Solution
(a)
Given: n ( A ) = 300 ; n ( B ) = 400 ; n ( A  B ) = 200 ; n ( A ' B ') = 400 ; n ( Z ) = ?
n ( A ' B ') = n ( A  B ) ' = n ( Z ) − n ( A  B )
CA NISHANT KUMAR
 n ( A ' B ') = n ( Z ) − n ( A  B )
 n ( Z ) = n ( A ' B ') + n ( A  B )
n ( A  B ) = n ( A) + n ( B ) − n ( A  B )
 n ( A  B ) = 300 + 400 − 200 = 500
n ( Z ) = n ( A ' B ') + n ( A  B )
 n ( Z ) = 400 + 500 = 900
CA NISHANT KUMAR
Question 32
The number of integers from 1 to 100 which are neither divisible by 3 nor by 5 nor by 7
is:
(a) 67 (b) 55 (c) 45 (d) 33
Solution
(c)
CA NISHANT KUMAR
Questions Based on Relations
CA NISHANT KUMAR
Question 33
Let P = {1, 3, 6} and Q = {3, 5}, find P × Q.
(a) {(1, 3), (1, 5), (3, 3), (5, 5), (6, 3), (6, 5)}
(b) {(1, 3), (1, 5), (3, 3), (3, 5), (6, 3), (5, 6)}
(c) {(1, 3), (1, 5), (3, 3), (3, 5), (6, 3), (6, 5)}
(d) None
Solution
(c)
CA NISHANT KUMAR
Question 34
Given A = {2, 3}, B = {4, 5}, C = {5, 6} then A × (B  C) is:
(a) {(2, 5), (3, 5)} (b) {(5, 2), (5, 3)} (c) {(2, 3), (5, 5)} (d) None
Solution
(a)
CA NISHANT KUMAR
Question 35
If A × B = {(3, 2), (3, 4), (5, 2), (5, 4)}, find A and B.
(a) A = {3, 5}; B = {2, 4} (b) A = {2, 4}; B = {3, 5} (c) A = {1}; B = {2} (d) None
Solution
(a)
CA NISHANT KUMAR
Question 36
If the set P has 3 elements, Q four and R two then the set P × Q × R contains:
(a) 9 elements (b) 20 elements (c) 24 elements (d) None
Solution
(c)
CA NISHANT KUMAR
Question 37
If A = {1, 2, 3, 4} and B = {5, 6, 7,6}, then cardinal number of the set A × B is:
(a) 7 (b) 1 (c) 16 (d) None
Solution
(d)
CA NISHANT KUMAR
Question 38
For the relation R = {(1, 2), (1, 4), (3, 2), (3, 4)}, find the Domain and Range.
(a) Dom ( R ) = 1, 3 ; Range ( R ) = 2, 4 (b) Dom ( R ) = 1, 4 ; Range ( R ) = 2, 4
(c) Dom ( R ) = 1, 3 ; Range ( R ) = 2, 3 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 39
Consider the relation R = {(1, 1), (2, 2), (3, 3)} on set A = {1, 2, 3}. This relation is:
(a) Identity Relation (b) Reflexive Relation (c) Transitive Relation (d) None
Solution
(a)
CA NISHANT KUMAR
Question 40
Let A = {1, 2, 3}, then R1 = {(1, 1), (2, 2), (3, 3), (1, 2)}
(a) Only Reflexive (b) Reflexive & Symmetric
(c) Reflexive & Transitive (d) Equivalence
Solution
(c)
1. This is a Reflexive relation because every element in set A is related to itself. Also,
there exists an additional ordered pair (1, 2) and both the elements belong to set A
only.
2. This relation is not a symmetric relation because we do not have (2, 1)
corresponding to (1, 2).
CA NISHANT KUMAR
3. This relation is a transitive relation because we are unable to prove that it is not a
transitive relation.
a. For the first ordered pair, (1, 1), let’s find another ordered pair which starts
with 1. Another ordered pair which starts with 1 is (1, 2). Now, we have two
ordered pairs (1, 1), and (1, 2). In order for the relation to be Transitive, it must
contain the pair (1, 2). Clearly it contains this ordered pair, and hence this is a
Transitive relation.
b. For the second ordered pair, (2, 2), we do not have any other ordered pair which
starts with 2. So, there’s no way of proving that this is not a Transitive relation.
c. For the third ordered pair, (3, 3), we do not have any other ordered pair which
starts with 3. So, there’s no way of proving that this is not a Transitive relation.
d. For the fourth ordered pair, (1, 2), let’s find another ordered pair which starts
with 2. Another ordered pair which starts with 2 is (2, 2). Now, we h ave two
CA NISHANT KUMAR
contain the ordered pair (1, 2). Clearly it contains this ordered pair, and hence
this is a Transitive relation.
CA NISHANT KUMAR
Question 41
Let A = {1, 2, 3}, then R2 = {(1, 1), (2, 2), (1, 2), (2, 1)}
(a) Only Symmetric (b) Reflexive & Symmetric
(c) Reflexive & Transitive (d) Symmetric & Transitive
Solution
(d)
1. This is not a Reflexive relation because (3, 3) is not present in the relation.
2. This relation is a symmetric relation because:
a. For the first ordered pair (1, 1), we need (1, 1) to make the relation symmetric.
We already have it.
CA NISHANT KUMAR
b. For the second ordered pair (2, 2), we need (2, 2) to make the relation
symmetric. We already have it.
c. For the third ordered pair (1, 2), we need (2, 1) to make the relation symmetric.
We have that as well.
d. For the fourth ordered pair (2, 1), we need (1, 2) to make the relation
symmetric. We have that as well.
3. This relation is a transitive relation because we are unable to prove that it is not a
transitive relation.
CA NISHANT KUMAR
b. For the second ordered pair, (2, 2), let’s find another ordered pair which starts
c. For the third ordered pair, (1, 2), let’s find another ordered pair which starts
with 2. We have two ordered pairs which start with 2 → (2, 2), and (2, 1).
i. First, let’s look at (1, 2), and (2, 2). For the relation to be transitive, we
need (1, 2). Since we have it, it is a transitive relation.
ii. Next, let’s look at (1, 2), and (2, 1). For the relation to be transitive, we
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 42
Let A = {1, 2, 3}, then R3 = {(1, 1), (2, 2), (3, 3), (1, 2), (2, 1), (2, 3), (3, 2)}
(a) Only Symmetric (b) Reflexive & Symmetric
(c) Reflexive & Transitive (d) Symmetric & Transitive
Solution
(b)
1. This is a Reflexive relation because every element in set A is related to itself. Also,
there exists some additional pairs and both the elements of these additional pairs
belong to set A.
2. This relation is a symmetric relation because:
CA NISHANT KUMAR
a. For the first ordered pair (1, 1), we need (1, 1) to make the relation symmetric.
We already have it.
b. For the second ordered pair (2, 2), we need (2, 2) to make the relation
symmetric. We already have it.
c. For the third ordered pair (3, 3), we need (3, 3) to make the relation symmetric.
We already have it.
d. For the fourth ordered pair (1, 2), we need (2, 1) to make the relation
e. For the fifth ordered pair (2, 1), we need (1, 2) to make the relation symmetric.
f. For the sixth ordered pair (2, 3), we need (3, 2) to make the relation symmetric.
CA NISHANT KUMAR
g. For the seventh ordered pair (3, 2), we need (2, 3) to make the relation
3. This relation is a NOT transitive relation because:
b. For the second ordered pair, (2, 2), let’s find another ordered pair which starts
CA NISHANT KUMAR
c. For the third ordered pair, (3, 3), let’s find another ordered pair which starts
with 2. We have three ordered pairs which start with 2 → (2, 2), (2, 1) and (2,
3).
CA NISHANT KUMAR
iii. Next, let’s look at (1, 2), and (2, 3). For the relation to be transitive, we
need (1, 3). Since we don’t have it, it is NOT a transitive relation.
CA NISHANT KUMAR
Question 43
“is perpendicular to” over the set of straight lines in a given plane is:
(a) Reflexive (b) Symmetric (c) Transitive (d) Equivalence
Solution
(b)
1. Since no line is perpendicular to itself, this relation cannot be Reflexive.
2. If line A is perpendicular to line B, then obviously line B will also be perpendicular
to line A. Therefore, this relation is Symmetric.
3. If line A is perpendicular to line B, and line B is perpendicular to line C, then lines
A and C will be parallel to each other and not perpendicular. Therefore, this relation
is not transitive.
CA NISHANT KUMAR
Question 44
“is the reciprocal of” over the set of non-zero real numbers is:
(a) Symmetric (b) Reflexive (c) Transitive (d) None
Solution
(a)
1. Since no number is reciprocal of itself, this relation cannot be Reflexive.
2. If, say, 2 is the reciprocal of ½, then, obviously, ½ is the reciprocal of 2. Therefore,
this relation is Symmetric.
3. Clearly, this relation is not transitive.
CA NISHANT KUMAR
Question 45
“Is smaller than” over the set of eggs in a box is:
(a) Transitive (b) Symmetric (c) Reflexive (d) Equivalence
Solution
(a)
1. Since no egg can be smaller than itself, this relation cannot be reflexive.
2. If, say, egg A is smaller than egg B, then obviously, egg B cannot be smaller than
egg A. Therefore, this relation is not symmetric.
3. If, say, egg A is smaller than egg B, and egg B is smaller than egg C, then, obviously,
egg A would be smaller than egg C. Therefore, this relation is transitive.
CA NISHANT KUMAR
Question 46
“Is parallel to” over the set of straight lines is:
Solution
(d)
CA NISHANT KUMAR
Question 47
“Is equal to” over the set of all rational numbers is
Solution
(d)
CA NISHANT KUMAR
Question 48
“has the same father as” over the set of children:
Solution
(d)
CA NISHANT KUMAR
Question 49
( x, y ) : y = x is:
Solution
(d)
CA NISHANT KUMAR
Question 50
{(x, y) : x + y = 2x where x and y are positive integers}, is:
Solution
(d)
CA NISHANT KUMAR
Question 51
“Is the square of” over n set of real numbers is:
Solution
(d)
CA NISHANT KUMAR
Question 52
Let A = {1, 2, 3} and R = {(1, 2), (2, 2), (3, 1), (3, 2)}. Find the Domain and Range of
R −1.
(a) Dom ( R −1 ) = 2, 1; Range ( R −1 ) = 1, 2, 3
( ) ( )
(b) Dom R −1 = 2, 3; Range R −1 = 1, 2, 3
(c) Dom ( R ) = 1, 3; Range ( R ) = 1, 2, 3
−1 −1
(d) None
Solution
(a)
R −1 = ( 2, 1) , ( 2, 2 ) , (1, 3) , ( 2, 3)
CA NISHANT KUMAR
Dom ( R −1 ) = 2, 1
Range ( R −1 ) = 1, 2, 3
CA NISHANT KUMAR
Questions Based on Functions
CA NISHANT KUMAR
Question 53
x +1 f ( 3)
If f ( x ) = x 2 − 1, and g ( x ) = , then is:
2 f ( 3) + g ( 3)
(a) 5/4 (b) 4/5 (c) 3/5 (d) 5/3
Solution
(b)
f ( 3) 32 − 1 9 −1 8 8 4
= = = = =
f ( 3) + g ( 3) 32 − 1 + 3 + 1 9 − 1 + 4 8 + 2 10 5
( ) 2 ( ) 2
CA NISHANT KUMAR
Question 54
 x2 − 4 
If f ( x ) =   , then f ( 2 ) is:
 x − 2 
(a) 0 (b) 2 (c) 4 (d) 1
Solution
(c)
CA NISHANT KUMAR
Question 55
If f ( x ) = x + 3 , g ( x ) = x 2 , then f ( x ) .g ( x ) is:
(a) ( x + 3)
2
(b) x 2 + 3 (c) x 3 + 3 x 2 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 56
Let f : R → R be defined by:
2 x for x  3

f ( x ) =  x 2 for 1  x  3
3x for x  1

The value of f ( −1) + f ( 2 ) + f ( 4 ) is:
(a) 9 (b) 14 (c) 5 (d) 6
Solution:
(a)
CA NISHANT KUMAR
Question 57
Let N be the set of all natural numbers; then is the rule f : N → N : f ( x ) = 2 xx  N a
function?
(a) Yes (b) No (c) Can’t Say (d) None
Solution
(a)
CA NISHANT KUMAR
Question 58
Let X = {1, 2, 3, 4} and Y = {1, 2, 3}. Is the relation {(1, 2), (1, 3), (2, 3)} a function from
X to Y?
Solution
(b)
CA NISHANT KUMAR
Question 59
Solution
(b)
CA NISHANT KUMAR
Question 60
Let A = {1, 2, 3, 4} and B = {1, 4, 9, 16, 25}. Consider the rule f ( x ) = x 2 . Find the
domain and range of the function.
(a) Domain = {1, 2, 3, 4}; Range = {1, 4, 9, 16}
(b) Domain = {1, 2, 3, 4}; Range = {1, 4, 9, 16, 25}
(c) Domain = {1, 2, 3, 4}; Range = {1, 4, 9}
(d) None
Solution
(a)
CA NISHANT KUMAR
Question 61
The domain and range of ( x, y ) : y = x  where x, y  R is:
2
(a) (Reals, Natural Numbers) (b) (Reals, Non-Negative Reals)

(c) (Reals, Reals) (d) None
Solution
(b)
CA NISHANT KUMAR
Question 62
The range of {(3, 0), (2, 0), (1, 0), (0, 0)} is:
(a) {0, 0} (b) {0} (c) {0, 0, 0, 0} (d) None
Solution
(b)
CA NISHANT KUMAR
Question 63
The range of the function f ( x ) = log10 (1 + x ) for the domain of real values of x when
0  x  9 is:
(a)  0, 1 (b)  0, 1, 2 (c) 0, − 1 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 64
For the function h ( x ) = 101+ x , the domain of real values of x where 0  x  9 , the range
is:
(a) 10  h ( x )  1010 (b) 0  h ( x )  1010 (c) 0  h ( x )  10 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 65
Let A = {1, 2, 3} and B = {2, 4, 6}. Consider f : A → B : f ( x ) = 2 x . Is this a one-one
function?
Solution
(a)
CA NISHANT KUMAR
Question 66
( x, y ) | x + y = 5 where x, y  R is:
(a) Not a function (b) Composite function (c) One-one mapping (d) None
Solution
(c)
CA NISHANT KUMAR
Question 67
The function f ( x ) = 2 x is:
(a) One-one mapping (b) One-many (c) Many-one (d) None
Solution
(a)
CA NISHANT KUMAR
Question 68
Let N be the set of all natural numbers and E be the set of all even natural numbers. Then,
the function f : N → E : f ( x ) = 2 xx  N is:
(a) Onto (b) Into (c) Can’t Say (d) None
Solution
(a)
CA NISHANT KUMAR
Question 69
Let A = {2, 3, 5, 7}, B = {0, 1, 3, 5, 7}. Then, the function f : A → B : f ( x ) = x − 2 is:
(a) Onto (b) Into (c) Can’t Say (d) None
Solution
(b)
CA NISHANT KUMAR
Question 70
Let A = {1, 2, 3}, B = {5, 7, 9}. Then, the function f : A → B : f ( x ) = 5 for all x  A is:
(a) One-one (b) Onto (c) Constant function (d) None
Solution
(c)
CA NISHANT KUMAR
Question 71
If f ( x ) = 1 / 1 − x and g ( x ) = ( x − 1) / x , then fog ( x ) is:
(a) x (b) 1/x (c) –x (d) None
Solution
(a)
CA NISHANT KUMAR
Question 72
If f ( x ) = 1 / 1 − x and g ( x ) = ( x − 1) / x , then gof ( x ) is:
(a) x – 1 (b) x (c) 1/x (d) None
Solution
(b)
CA NISHANT KUMAR
Question 73
If f ( x ) = x + 3 , and g ( x ) = x 2 , then fog ( x )
(c) ( x + 3)
2
(a) x 2 + 3 (b) x 2 + x + 3 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 74
If f ( x ) = x + 3 , g ( x ) = x 2 , then gof ( x ) is:
(a) ( x + 3) (c) x 2 ( x + 3)
2
(b) x 2 + 3 (d) None
Solution
(a)
CA NISHANT KUMAR
Question 75
Find gof for the functions f ( x ) = x , g ( x ) = 2 x 2 + 1
(a) 2 x 2 + 1 (b) 2 x + 1 (
(c) 2 x 2 + 1)( x ) (d) x
Solution
(b)
gof ( x ) = 2   f ( x ) + 1
2
 gof ( x ) = 2  ( x)
2
+1
CA NISHANT KUMAR
 gof ( x ) = 2  x + 1
 gof ( x ) = 2 x + 1
CA NISHANT KUMAR
Question 76
Let R be the set of real numbers such that the function f : R → R and g : R → R are
defined by f ( x ) = x 2 + 3x + 1 and g ( x ) = 2 x − 3 . Find ( fog ) .
(a) 4 x 2 + 6 x + 1 (b) x 2 + 6 x + 1 (c) 4 x 2 − 6 x + 1 (d) x 2 − 6 x + 1
Solution
(c)
CA NISHANT KUMAR
Question 77
If A = {1, 2, 3, 4}; B = {2, 4, 6, 8}; f (1) = 2 ; f ( 2 ) = 4 ; f ( 3) = 6 ; f ( 4 ) = 8 ; and
f : A → B , then find f −1 .
(a) f −1 = ( 2, 1) , ( 4, 2 ) , ( 6, 3) , (8, 4 ) (b) f −1 = ( 2, 1) , ( 4, 2 ) , ( 6, 3) , ( 3, 4 )
(c) f −1 = ( 3, 1) , ( 4, 2 ) , ( 6, 3) , ( 3, 4 ) (d) None
Solution
(a)
CA NISHANT KUMAR
Question 78
Find the inverse of f ( x ) = 2 x is:
x
(a) 1/ 2x (b) (c) 1/ x (d) None
2
Solution
(b)
CA NISHANT KUMAR
Question 79
The inverse h −1 when h ( x ) = log10 x is:
(a) log10 x (b) 10 x (c) log10 (1 / x ) (d) None
Solution
(b)
CA NISHANT KUMAR
Question 80
If f ( x ) = 1 / 1 − x , then f −1 ( x ) is:
(a) 1 − x (b) ( x − 1) / x (c) x / ( x − 1) (d) None
Solution
(b)
CA NISHANT KUMAR
Question 81
The inverse function f −1 of f ( y ) = 3 y is:
(a) 1 / 3y (b) y / 3
(c) −3y (d) 1 / y
Solution:
(b)
CA NISHANT KUMAR
Question 82
A function f ( x ) is an even function, if:
(a) − f ( x ) = f ( x ) (b) f ( − x ) = f ( x ) (c) f ( − x ) = − f ( x ) (d) None
Solution
(b)
CA NISHANT KUMAR
Number Series, Coding-Decoding,
Odd Man Out
CA NISHANT KUMAR
Question 1 – January, 2021
In a certain code RIPPLE is written as 613382 and LIFE is written as 8192. How will
RIFFLE be written in that code?
(a) 618892 (b) 689912 (c) 619982 (d) 629981
Solution
(c)
CA NISHANT KUMAR
In a certain code language, BEAT is written as YVZG, then what will be code for MILD?
(a) ONRW (b) NOWR (c) ONWR (d) NROW
Solution
(d)
Backward 26 25 24 23 22 21 20 19 18 17 16 15 14
Forward 1 2 3 4 5 6 7 8 9 10 11 12 13
A B C D E F G H I J K L M
N O P Q R S T U V W X Y Z
Forward 14 15 16 17 18 19 20 21 22 23 24 25 26
Backward 13 12 11 10 9 8 7 6 5 4 3 2 1
CA NISHANT KUMAR
B is the second letter moving forwards, and Y is the second letter moving backwards.
Similarly, E is the 5th letter moving forwards, V is the 5th letter moving backwards. A is
the first letter moving forwards, and Z is the first letter moving backwards. T is the 20th
letter moving forwards, and G is the 20th letter moving backwards.
Now, we have to code MILD.
M is the 13th letter moving forwards, N is the 13th letter moving backwards. I is the 9th
letter moving forwards, R is the 9th letter moving backwards. L is the 12th letter moving
forwards, O is the 12th letter moving backwards. D is the 4th letter moving forwards, W
is the 4th letter moving backwards.
Therefore, the code for MILD is NROW.
CA NISHANT KUMAR
Find out the odd man out in the sequence 8, 25, 64, 125, 216.
(a) 25 (b) 64 (c) 125 (d) 216
Solution
(a)
The sequence is 23 = 8; 33 = 27; 43 = 64; 53 = 125; 63 = 216
In place of 27, we have 25, therefore, 25 is the odd one out.
CA NISHANT KUMAR
Find the missing term: P3C, R5F, T8I, V12L, ?
(a) Y17O (b) X17M (c) X17O (d) X16O
Solution
(c)
First letter → P + 2 = R; R + 2 = T; T + 2 = V; V + 2 = X
Number → 3 + 2 = 5; 5 + 3 = 8; 8 + 4 = 12; 12 + 5 = 17
Third letter → C + 3 = F; F + 3 = I; I + 3 = L; L + 3 = O
Therefore, X17O
CA NISHANT KUMAR
Find the next term 1, 5, 21, 57, ?
(a) 105 (b) 138 (c) 121 (d) 101
Solution
(c)
1 5 21 57 121
+4 +16 +36 +64
   
22 42 62 82
CA NISHANT KUMAR
Find the wrong term in G4T, J10R, M20P, P43N, S90L
(a) M20P (b) P43N (c) J10R (d) G4T
Solution
(c)
Look at the numbers 4, 10, 20, 43, 90
The pattern of this series is as follows:
4
( 4  2) + 1 = 8 + 1 = 9
( 9  2 ) + 2 = 18 + 2 = 20
CA NISHANT KUMAR
( 20  2 ) + 3 = 40 + 3 = 43
( 43  2 ) + 4 = 86 + 4 = 90
CA NISHANT KUMAR
The missing term of the series 4, 13, ________, 49, 76 is:
(a) 26 (b) 28 (c) 30 (d) 32
Solution
(b)
CA NISHANT KUMAR
CA NISHANT KUMAR
If GOODNESS is coded as HNPCODTR, then how GREATNESS can be written in that
code?
(a) HQZSMFRT (b) HQFZUFRTM (c) HQFZUODTR (d) HQFZUMFRT
Solution
(d)
G O O D N E S S
↓+1 ↓–1 ↓+1 ↓–1 ↓+1 ↓–1 ↓+1 ↓–1
H N P C O D T R
CA NISHANT KUMAR
G R E A T N E S S
↓+1 ↓–1 ↓+1 ↓–1 ↓+1 ↓–1 ↓+1 ↓–1 ↓+1
H Q F Z U M F R T
CA NISHANT KUMAR
In certain code language, if TOUR, is written as 1234, CLEAR is written 5678 and
SPARE is written as 90847, Find the code for TEARS?
(a) 17847 (b) 14847 (c) 15247 (d) 17849
Solution
(d)
T O U R C L E A R S P A R E
↓ ↓ ↓ ↓ ↓ ↓ ↓ ↓ ↓ ↓ ↓ ↓ ↓
1 2 3 4 5 6 7 8 9 0 8 4 7
From the above, we can see that the code of R is the word CLEAR should also have been
4, as R is coded 4 is TOUR as well as in SPARE.
CA NISHANT KUMAR
Therefore, the code for TEARS would be:
T E A R S
↓ ↓ ↓ ↓ ↓
1 7 8 4 9
CA NISHANT KUMAR
Find the missing number in the following series: 2, 5, 10, 17, 26, ?
(a) 49 (b) 47 (c) 37 (d) 36
Solution
(c)
Clearly, we can see that every number is increasing by +3 , +5, +7, +9, and so on…
Therefore,
2+3=5
5 + 5 = 10
CA NISHANT KUMAR
10 + 7 = 17
17 + 9 = 26
26 + 11 = 37
CA NISHANT KUMAR
Find the odd man out: 34, 105, 424, 2125, 12755
(a) 12755 (b) 2125 (c) 424 (d) 34
Solution
(a)
The pattern is:
(34 × 3) + 3 = 102 + 3 = 105
(105 × 4) + 4 = 420 + 4 = 424
(424 × 5) + 5 = 2,120 + 5 = 2,125
CA NISHANT KUMAR
(2,125 × 6) + 6 = 12,750 + 6 = 12,756
Therefore, the last term should be 12,756, and not 12,755. Hence, 12,755 is the odd one
out.
CA NISHANT KUMAR
Find next term of the series 10, 69, 236, 595, ?
(a) 1254 (b) 1020 (c) 1320 (d) 1200
Solution
(a)
10 69 236 595 1254
↓ ↓ ↓ ↓ ↓
32 + 1 82 + 5 152 + 11 242 + 19 352 + 29
+5 +4 +7 +6 +9 +8 +11 +10
CA NISHANT KUMAR
In certain code language, BOARD is coded as CQDVI, what is the code for the word
CONSULTING?
(a) DQQWZRARNQ (b) DQQWZARQWQ (c) DQQWZRAQWQ (d) None
Solution
(c)
B O A R D C O N S U L T I N G
↓+1 ↓+2 ↓+3 ↓+4 ↓+5 ↓+1 ↓+2 ↓+3 ↓+4 ↓+5 ↓+6 ↓+7 ↓+8 ↓+9 ↓+10
C Q D V I D Q Q W Z R A Q W Q
CA NISHANT KUMAR
In a certain code language if CAMP is written as 9, then in the same code how will the
word TEAM be written?
(a) 14 (b) 19 (c) 27 (d) 33
Solution
(c)
C = 3; A = 1; M = 13; P = 16
Adding these, we get 3 + 1 + 13 + 16 = 33
Multiplying these digits, we get 3 × 3 = 9.
Therefore, the code of TEAM will be:
CA NISHANT KUMAR
T = 20; E = 5; A = 1; M = 13
Adding these, we get 20 + 5 + 1 + 13 = 39
Multiplying these digits, we get 3 × 9 = 27.
CA NISHANT KUMAR
Which number will come next in the following series: 675, 623, 573, 525?
(a) 491 (b) 479 (c) 423 (d) 456
Solution
(b)
To identify the next number in the given series 675, 623, 573, 525, we need to analyze
the pattern or rule behind the sequence. Let's examine the differences between
consecutive numbers in the series:
675 – 623 = 52
623 – 573 = 50
CA NISHANT KUMAR
573 – 525 = 48
From the differences, we observe a decreasing pattern where each difference is
decreasing by 2. Therefore, we can assume that the next difference should be 48 – 2 =
46.
To find the next number, we subtract 46 from the last number in the series:
525 – 46 = 479
Hence, the next number in the series should be 479.
CA NISHANT KUMAR
105, 115.5, 150, 162.5, 203, ?
(a) 217 (b) 217.5 (c) 210.5 (d) None
Solution
(b)
105 115.5 150 162.5 203 217.5
+10.5 +34.5 +12. 5 +40.5 +14.5
+2 +6 +2
CA NISHANT KUMAR
Question 17 – MTP May, 2019
GO = 32, SHE = 49, then SOME will be equal to:
(a) 56 (b) 58 (c) 62 (d) 64
Solution
(a)
Backward 26 25 24 23 22 21 20 19 18 17 16 15 14
Forward 1 2 3 4 5 6 7 8 9 10 11 12 13
A B C D E F G H I J K L M
N O P Q R S T U V W X Y Z
Forward 14 15 16 17 18 19 20 21 22 23 24 25 26
Backward 13 12 11 10 9 8 7 6 5 4 3 2 1
CA NISHANT KUMAR
Step 1 – Decoding GO and SHE
G is the 20th alphabet from back; O is the 12th alphabet from back. Add 20 and 12, you
get 32.
S is the 8th alphabet from back; H is the 19th alphabet from back; E is the 22nd alphabet
from back. Add 8, 19, and 22, you get 49.
Step 2 – Coding SOME
S is the 8th alphabet from back; O is the 12th alphabet from back; M is the 14th alphabet
from back; E is 22nd alphabet from back. Add 8, 12, 14, and 22, you get 56.
CA NISHANT KUMAR
a_c_ba_ca_cb
(a) abcc (b) acba (c) bcaa (d) bcba
Solution
(d)
The sequence is made of repetition of abc in different orders.
Therefore, identify the missing alphabet in abc.
The first three positions are a_c. Clearly, the letter b is missing.
The next three positions are _ba. Clearly, the letter c is missing.
CA NISHANT KUMAR
The next three positions are _ca. Clearly, the letter b is missing.
The next three positions are _cb. Clearly, the letter a is missing.
Therefore, the missing letters are bcba.
CA NISHANT KUMAR
Find the alphabet missing series ac_cab_baca_aaa_aba
(a) aabc (b) aacb (c) babb (d) bcbb
(a)
The series is aca / cab / aba / cab / aaa / cab / a
CA NISHANT KUMAR
aab__aaa__bba__
(a) baa (b) abb (c) bab (d) bba
Solution
(a)
The series is aabb, aaaa, bbaa
Therefore, the answer is baa.
CA NISHANT KUMAR
Direction Sense Test
CA NISHANT KUMAR
Question 1
One day, Ram ran away from home. He first ran 10 km to South, then turned right at 45,
and ran for 10 km, then turned right at 45 and ran for 10 km. In which direction is he
facing now?
(a) North (b) East (c) West (d) South
Solution
(c)
CA NISHANT KUMAR
Question 2
I started walking down a road in the morning facing the Sun. After walking for sometime
I turned to my left. Then I turned to my right. In which direction am I from the starting
point?
(a) North-East (b) North-West (c) South-West (d) South-East
Solution
(a)
CA NISHANT KUMAR
Ms. N walks 10 km towards North from there she walks 6 km towards South. Then she
walks 3 km towards East. How far and in which direction is she with reference to her
starting point?
(a) 4 km West (b) 6 km West (c) 3 km West (d) 5 km North-East
(d)
CA NISHANT KUMAR
A man can walk by having long, medium and short steps. He can cover 60 meters by 100
long steps, 100 meters by 200 medium steps and 80 meters by 200 short steps. He walks
taking 5000 long steps, then he turns left and walks by taking 6000 medium steps. He
then turns right and walk by taking 2500 short steps. How far (in meters) is he away from
his starting point?
(a) 5000 m (b) 4000 m (c) 6000 m (d) 7000 m
(a)
CA NISHANT KUMAR
Sun rises behind the tower and sets behind the railway station. In which direction is the
tower from railway station?
(a) North (b) South (c) East (d) West
(c)
CA NISHANT KUMAR
A car travelling from south covers a distance of 8 kms, then turns right and runs another
9 kms and again turns to the right and was stopped. Which direction does it face now?
(a) South (b) North (c) West (d) East
Solution
(a)
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If East is replaced by South-East, then West will be replaced by which replaced by which
of the following directions?
(a) North East (b) North (c) East (d) North West
(d)
CA NISHANT KUMAR
One evening before sunset, two friends Ravi and Raj were talking to each other face to
face. If Ravi’s shadow was exactly to his left side, which direction was Raj facing?
(a) West (b) East (c) North (d) South
Solution
(c)
CA NISHANT KUMAR
Question 9 – June, 2019; MTP June, 2021; MTP December, 2021
Ramu moved a distance of 75 meters towards North. He then turned to left and walked
for about 25 m, turned left again and walks 80 m. Finally, he turned to the right at an
angle of 45. In which direction was he moving finally?
(a) South-East (b) South-West (c) North-West (d) North-East
Solution
(b)
CA NISHANT KUMAR
Question 10 – December, 2020; January, 2021
A man is facing west. He turns 45 in the clockwise direction and then another 180 in
the same direction and then 270 in the anti-clockwise direction. Which is the facing
now?
(a) South-West (b) North-West (c) West (d) South
(a)
CA NISHANT KUMAR
A person facing North moves 70º in clockwise direction. He again moved 300º in
clockwise direction. In which direction is he facing now?
(a) North – West (b) South – East (c) North – East (d) South – West
Solution
(c)
CA NISHANT KUMAR
If A stands on his head with his face towards North, in which direction will his left hand
point?
(a) North-East (b) North (c) East (d) North-West
Solution
(c)
CA NISHANT KUMAR
One morning after sunrise, Vikram and Shailesh were standing in a lawn with their backs
towards each other. Vikram’s shadow fell exactly towards left hand side. Which direction
was Shailesh facing?
(a) East (b) West (c) North (d) South
Solution
(d)
In the morning, the sun would be on the East. This implies that any shadow would fall
on West. Since Vikram’s shadow fell on his left, this means that his left is towards West,
right is towards East, and face is towards North. Since Vikram and Shailesh are standing
with their backs towards each other, Shailesh would face opposite to Vikram, i.e., South.
CA NISHANT KUMAR
It is 3 o’clock in a watch. If the minute hand points towards the North-East, then the hour
hand will point towards the:
(a) South (b) South-West (c) North-West (d) South-East
Solution
(d)
If the minute hand points towards North-East, the hour hand would point towards South-
East as the angle between North-East and South-East is 90 degrees.
CA NISHANT KUMAR
Question 15 – June, 2022 (Similar)
A direction pole was situated on the crossing. Due to an accident, the pole turned in such
a manner that the pointer, which was showing East, started showing North. One traveller
went to the wrong direction thinking it to be West. In what direction was he actually
travelling?
(a) North (b) South (c) East (d) West
Solution
(b)
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 16
Two ladies and two men are playing cards and are seated at North, East, South and West
of a table. No lady is facing East. Persons sitting opposite to each other are not of the
same gender. One man is facing South. Which directions are the ladies facing?
(a) East and West (b) South and East (c) North and East (d) North and West
Solution
(d)
CA NISHANT KUMAR
Ram moves towards South-East a distance of 7 km, then he moves towards West and
travels a distance of 14 km. From there he moves towards North–West for a distance of
7 km and finally he moves a distance of 4 km towards east. How far is he now from the
starting point?
(a) 3 km (b) 4 km (c) 10 km (d) 11 km
Solution
(c)
CA NISHANT KUMAR
CA NISHANT KUMAR
One morning a boy starts walking in a particular direction for 5 Km and then takes a left
turn and walks another 5 Km. Thereafter, he again takes left turn and walks another 5
Km and at last he takes right turn and walks 5 Km. Now he sees his shadow in front of
him. What direction he did start initially?
(a) South (b) North (c) East (d) West
Solution
(b)
In the morning, the sun is in the East direction. Therefore, the shadow would be formed
in the West direction. If the boy sees his shadow in front of him, he must be facing the
west direction.
CA NISHANT KUMAR
Option (a) → South
If the boy starts walking in the South direction, he would be facing the East Direction as
shown below:
Option (b) → North
CA NISHANT KUMAR
If the boy starts walking in the North direction, he would be facing the West direction as
shown below:
CA NISHANT KUMAR
A and B start moving towards each other from two places 200 m apart. After walking 60
m, B turns left and goes 20 m, then he turns right and goes 40 m. He then turns right
again and comes back to the road on which he had started walking. If A and B walk with
the same speed, what is the distance between them now?
(a) 80 m (b) 70 m (c) 40 m (d) 60 m
Solution
(c)
Since both A and B are travelling at the same speed, the total distance covered by B will
be equal to the total distance covered by A.
CA NISHANT KUMAR
Total distance covered by B is 60 m + 20 m + 40 m + 20 m = 140 m
A has travelled the same distance, but on the same straight line.
Distance travelled by B on the same straight line is 60 + 40 = 100 m.
Therefore, the distance between A and B on the straight line is 140 m – 100 m = 40 m.
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 20
There are four towns P, Q, R, and T. Q is to the South-West of P, R is to the East of Q
and South-East of P and T is to the North of R in line with QP. In which direction of P is
T located?
(a) South-East (b) North (c) North-East (d) East
Solution
(c)
CA NISHANT KUMAR
CA NISHANT KUMAR
Seating Arrangements
CA NISHANT KUMAR
Five friends A, B, C, D and E are sitting on a bench. A is sitting next to B; C is sitting
next to D, D is not sitting with E; E is at the left end of bench. C is on second position
from the right; A is on the right side of B who is the right side of E. A and C are sitting
together. What is the position of B?
(a) Second from Right (b) Centre (c) Extreme Left (d) Second from Left
Solution
(d)
CA NISHANT KUMAR
Four Indians, A, B, C and D and four Chinese E, F, G and H are sitting in a circle around
a table facing each other in a conference. No two Indians or Chinese are sitting side by
side. C who is sitting between G and E is facing D, F is between D and A and facing G,
H is to the left of B. Who is sitting left of A?
(a) E (b) F (c) G (d) H
Solution
(a)
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A is seated between D and F at a round table. C is seated opposite to D. E is left to D.
Who sits opposite to B?
(a) A (b) D (c) C (d) F
Solution
(a)
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Eight friends I, J, K, L, M, N, O and P are sitting in a circle facing the centre. J is sitting
between O and L; P is third to the left of J and second to the right of I; K is sitting between
I and O; J & M are not sitting opposite to each other. Which of the following statements
is NOT correct?
(a) K is sitting third to the right of L
(b) I is sitting between K and N
(c) L and I are sitting opposite to each other
(d) M is sitting between N and L
(d)
CA NISHANT KUMAR
Five girls G, H, I, J, K are sitting in a row facing south not necessarily in the same order.
H is sitting between G and K; I is immediate right to K; J is immediate left to G. Which
of the following is true?
(a) J is third to the left of K
(b) G is second to the left of I
(c) H is to the right of K
(d) H is to the left of G
Solution
(a)
CA NISHANT KUMAR
Question 7 – November, 2019
5 persons are standing in a line. One of the 2 persons at the extreme ends is a professor
and the other is a businessman. An advocate is standing to the right of a student. An
author is to the left of the business man. The student is standing between the professor
and advocate. Counting from left, the author is at which place?
(a) 2nd (b) 3rd (c) 4th (d) None
(c)
CA NISHANT KUMAR
Six persons are sitting in a circle facing the center. Parikh is between Bablu and Narender;
Ashok is between Chitra and Pankaj. Chitra is on the immediate left of Bablu. Who is on
the immediate right of Bablu?
(a) Parikh (b) Pankaj (c) Narender (d) Chitra
(a)
CA NISHANT KUMAR
Eight persons A, B, C, D, E, F, G and H are sitting in a line. E sits second right to D. H
sits fourth left to D. C and F are immediate neighbours, but C is not immediate neighbour
of A. G is not neighbour of E. Only two persons sit between A and E. The persons on left
end and right end respectively are:
(a) G and E (b) B and E (c) H and E (d) G and B
(a)
CA NISHANT KUMAR
Six flats on a floor in two rows facing North and South are allotted to P, Q, R, S, T and
U. Q gets a North facing flat and it is not next to S. S and U get diagonally opposite flat.
R next to U gets a South facing flat and T gets a North facing flat. Who’s flat is between
Q and S?
(a) T (b) U (c) R (d) P
(a)
CA NISHANT KUMAR
Five people A, B, C, D and E are seated about a round table. Every chair is spaced
equidistant from adjacent chairs.
1. C is seated next to A
2. A is seated two seats from D
3. B is not seated next to A
Which of the following must be true?
1. D is seated next to B
2. E is seated next to A
Select the correct answer from the codes given below:
(a) Only 1 (b) Only 2 (c) Both (d) Neither
CA NISHANT KUMAR
(c)
CA NISHANT KUMAR
Ten students are A to J are sitting in a row facing west.
1. B and F are not sitting on either of the edges.
2. G is sitting left of D and H is sitting to the right of J.
3. There are four persons between E and A.
4. I is the north of B and F is the south of D.
5. J is between A and D and G is in E and F.
6. There are two persons between H and C.
If G and A interchange their positions, then who become the immediate neighbours of
E?
(a) G and F (b) Only F (c) Only A (d) J and H
CA NISHANT KUMAR
Solution
(c)
E G F D J A H B I C
or or
C H
CA NISHANT KUMAR
Six friends P, Q, R, S, T and U are sitting around a hexagonal table each at one corner
and are facing the centre of the hexagon. P is second to the left of U. Q is the neighbour
of R and S. T is second to the left of S.
Which one is sitting opposite to P?
(a) R (b) Q (c) T (d) S
Solution
(d)
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 14
Four boys and four girls are sitting around a square facing the centre. One person is sitting
at each corner and at the mid-point of each side of the square. Madhu is sitting diagonally
opposite to Usha who is to the right of Geeta. Ram who is to the left of Geeta is diagonally
opposite to Gopi who is to the left of Bose. Position of Suma is not to the right of Madhu
but in front of Prema. Who is sitting opposite to Bose?
(a) Geeta (b) Prema (c) Getta (d) Madhu
Solution
(a)
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 15
Six people – K, L, M, N, O and P live on six different floors of a building not necessarily
in the same order. The lower most floor of the building is numbered 1, the one above is
numbered 2 and so on till the top most floor numbered 6. L lives on an even numbered
floor. L lives immediately below K’s floor and immediately above M’s floor. P lives
immediately above N’s floor. P lives on an even numbered floor. O does not live on floor
number 4.
Three of the following four are alike in a certain way based on the given arrangement
and hence form a group. Which of the following does not belong to that group?
(a) MN (b) OL (c) KM (d) PK
Solution
CA NISHANT KUMAR
(d)
Question 16
CA NISHANT KUMAR
A, B, C, D, E, F and G are sitting on a wall and all of them are facing East. C is on the
immediate right of D. B is at an extreme end and has E as his neighbour. G is between E
and F. D is sitting third from the South end.
Which of the following pairs of people is sitting at the extreme ends?
(a) AB (b) AE (c) CB (d) FB
Solution
(a)
B E G F D C A
CA NISHANT KUMAR
Five students are standing in a circle. Abhinav is between Alok and Ankur. Apurva is on
the left of Abhishek. Alok is on the left of Apurva. Who is sitting next to Abhinav on his
right?
(a) Apurva (b) Ankur (c) Abhishek (d) Alok
Solution
(d)
CA NISHANT KUMAR
CA NISHANT KUMAR
P, Q, R, S, and T are seated in a line facing west. R is sitting at north end and S is sitting
at south end. T is neighbour of R and Q. P and Q are seated together, then who is sitting
the middle?
(a) P (b) Q (c) R (d) S
Solution
(b)
If they are facing West, then North is to their right and South is to their left.
S P Q T R
CA NISHANT KUMAR
Eight friends A, B, C, D, E, F, G and H are sitting in a circle facing the Centre, B is sitting
between G and D. H is third to the left of B and second to the right of A. C is sitting
between A and G and B and E are not sitting opposite to each other. Which of the
following statement is not correct ?
(a) D and A are sitting opposite to each other (b) C is third to the right of D
(c) E is sitting F and D (d) A is sitting C and F
Solution
(c)
CA NISHANT KUMAR
CA NISHANT KUMAR
Study the following information carefully and answer the questions given below.
1. P, Q, R, S, T, U and V are sitting on a wall and all of them are facing West.
2. S is on the immediate left of R.
3. T is at an extreme end and has Q as his neighbour.
4. V is between Q and U.
5. S is sitting third from the north end.
Which of the following pairs of people are sitting at the extreme ends?
(a) QV (b) PR (c) TP (d) ST
Solution
CA NISHANT KUMAR
(c)
T Q V U S R P
CA NISHANT KUMAR
Blood Relations
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Pointing to a lady, Sahil said, “She is the daughter of the woman who is the mother of
the husband of my mother”. What is the lady to Sahil?
(a) Aunt (b) Sister (c) Daughter (d) Sister-in-law
Solution
(a)
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A girl introduced a boy as the son of the daughter of father of her uncle. The boy is girl’s:
(a) Son (b) Brother (c) Son-in-law (d) Uncle
Solution
(b)
CA NISHANT KUMAR
Pointing to a lady in a photograph, Ram said “Her son’s father is the son in law of my
mother”. How is Ram related to the lady?
(a) Aunt (b) Cousin (c) Sister (d) Mother
Solution
(b)
CA NISHANT KUMAR
P is the brother of Q and R, S is the mother of R. T is the father of P. Which of the
following statements cannot be definitely true?
(a) S is the mother of P (b) P is the son of S
(c) T is the husband of S (d) Q is the son of T
Solution
(d)
CA NISHANT KUMAR
Pointing to a lady, A said, “that woman is my nephew’s maternal grandmother”. How is
that woman related to A’s sister who has no sister?
(a) Cousin (b) Son-in-law (c) Mother (d) Mother-in-law
Solution
(c)
CA NISHANT KUMAR
A man said to a lady “your mother’s husband’s sister is my Aunt.” How is the man related
to the lady?
(a) Mother (b) Sister (c) Father (d) Brother
Solution
(d)
CA NISHANT KUMAR
Pointing to an old man, Kailash said, “His son is my son’s uncle”. How is Kailash related
to that old man?
(a) Brother (b) Either Son or Son-in-Law (c) Father (d) Grandfather
(b)
CA NISHANT KUMAR
Pointing to a man in a photograph, a woman said, “the father of his brother is the only
son of my grandfather”, how is the woman related to the man in the photograph?
(a) Mother (b) Aunty (c) Daughter (d) Sister
(d)
CA NISHANT KUMAR
A prisoner introduced a boy who came to visit him to the jailor as “Brothers and sisters I
have none, he is my father’s son’s son”. Who is the boy?
(a) Nephew (b) Son (c) Cousin (d) Uncle
(b)
CA NISHANT KUMAR
In a family, there are six members A, B, C, D, E and F. A and B are a married couple, A
being the male member. D is the only son of C, who is the brother of A. E is the sister of
D. B is the daughter-in-law of F, whose husband has died. How is E related to C?
(a) Sister (b) Daughter (c) Cousin (d) Mother
Solution
(b)
CA NISHANT KUMAR
If A + B means A is brother of B, A – B means A is sister of B, and A × B means A is
the father of B, which of the following means that C is the son of M?
(a) M – N × C + F (b) F – C + N × M (c) N + M – F × C (d) M × N – C + F
Solution
(d)
CA NISHANT KUMAR
Read the following information and answer the question:
‘A + B’ means ‘A is the daughter of B’
‘A × B’ means ‘A is the son of B’
‘A – B’ means ‘A is the wife of B’
If P × Q – S, which of the following is true:
(a) S is the wife of B (b) S is the father of P
(c) P is the daughter of Q (d) Q is the father of P
(b)
CA NISHANT KUMAR
Read the following information carefully to answer the questions that follow.
1. ‘P + Q’ means ‘P is father of Q’
2. ‘P – Q’ means ‘P is mother of Q’
3. ‘P × Q’ means ‘P is brother of Q’
4. ‘P ÷ Q’ means ‘P is sister of Q’
Which of the following means ‘M’ is maternal uncle of T?
(a) M ÷ K – T (b) M × K – T (c) M × K + T (d) M ÷ K + T
Solution
(b)
CA NISHANT KUMAR
Pointing to a lady in a photograph. Meera said. “Her father’s only son’s wife is my
mother-in-law.” How is Meera’s husband related to that lady in the photo?
(a) Nephew (b) Uncle (c) Son (d) Father
(a)
CA NISHANT KUMAR
Suresh’s sister is the wife of Ram. Ram is Rani’s brother. Ram’s father is Madhur.
Sheetal is Ram’s grandmother. Rema is Sheetal is daughter-in-law. Rohit is Rani’s
brother’s son. Who is Rohit to Suresh?
(a) Brother in law (b) Son (c) Brother (d) Nephew
(d)
Let me be Rohit. I am Rani’s brother’s son; and Rani’s brother is Ram; therefore, I’m
Ram’s son. Ram is my dad. Rani is my aunt. Suresh’s sister is my dad’s wife. This
means Suresh is the brother of my mother. Therefore, Suresh is my uncle. So, I’m his
nephew.
CA NISHANT KUMAR
Question 16
If Neha says, “Amruta’s father Raj is the only son of my father-in-law Mahesh.” Then,
how Bindu, who is the sister of Amruta, is related to Mahesh?
(a) Daughter (b) Wife (c) Daughter-in-law (d) Granddaughter
Solution
(d)
CA NISHANT KUMAR
Question 17
If the uncle of the father of Rani is the grandson of the father of Anup and Anup is the
only son of his father, then how Anup is related to Rani?
(a) Grandfather (b) Uncle (c) Maternal Uncle (d) Great Grandfather
Solution
(d)
Let’s call Rani’s father as Z; Z’s uncle as Y; Anup’s father as X.
X – Great-Great-Grandfather
Anup – Great-Grandfather
Y – Grandfather
CA NISHANT KUMAR
Z – Father
Rani – Me
CA NISHANT KUMAR
Question 18
Madhu said, “My mother’s only son Ashok has no son”. Which of the following can be
concluded?
(a) Ashok has only daughters (b) Ashok is not married
(c) Ashok has only one sister (d) None
Solution
(d)
If Ashok is my mother’s only son, then Ashok is my brother. My brother has no son. He
could have daughter/s.
CA NISHANT KUMAR
When Rani saw Vinit, she recollected that “He is the brother of my grandfather’s son”.
How is Rani related to Vinit?
(a) Aunt (b) Daughter (c) Sister (d) Niece
Solution
(d)
Let me be Rani. My grandfather could be my Nanaji, or my Dadaji. If my grandfather is
my Nanaji, his son would be my Mamaji, and his brother would again be my Mamaji.
Hence, Vinit would be my Mamaji (Uncle), and I would be his Niece.
If my grandfather is my Dadaji, his son would be my Dad, and my dad’s brother would
be my uncle, and I would still be his niece.
CA NISHANT KUMAR
CA NISHANT KUMAR
A + B means, “A is the son of B”; A – B means, “A is the daughter of B”; A * B means,
“A is the wife of B”; A $ B means, “A is the sister of B”. If A $ B – C * D is true, how
is D related to B?
(a) Wife (b) Father (c) Grandmother (d) Grandfather
Solution
(b)
Let me be B. A $ B means A is the sister of B. Therefore, A is my sister. B – C means B
is the daughter of C. Therefore, C is either my mom, or my dad. C * D means C is the
wife of D. Therefore, C is my mom, and D is my dad.
CA NISHANT KUMAR
Statistical Description of Data
CA NISHANT KUMAR
Question 1
Which of the following statements is false?
(a) Statistics is derived from the Latin word ‘Status’
(b) Statistics is derived from the Italian word ‘Statista’
(c) Statistics is derived from the French word ‘Statistik’
(d) None of these
Solution
(c)
CA NISHANT KUMAR
Question 2
Statistics is concerned with:
(a) Qualitative information (b) Qualitative information
(c) (a) or (b) (d) Both (a) and (b)
Solution
(d)
CA NISHANT KUMAR
Question 3
Statistics is defined in terms of numerical data in the:
(a) Singular Sense (b) Plural Sense
(c) Either (a) or (b) (d) Both (a) and (b)
Solution
(b)
CA NISHANT KUMAR
Question 4
Statistics is applied in:
(a) Economics (b) Business Management
(c) Commerce and Industry (d) All these
Solution
(d)
CA NISHANT KUMAR
Question 5
An attribute is:
(a) A Qualitative Characteristic (b) A Quantitative Characteristic
(c) A Measurable Characteristic (d) All these
Solution
(a)
CA NISHANT KUMAR
Question 6
Nationality of a student is:
(a) An attribute (b) A continuous variable
(c) A discrete variable (d) (a) or (c)
Solution
(a)
CA NISHANT KUMAR
Question 7
Drinking habit of a person is:
(a) An attribute (b) A variable
(c) A discrete variable (d) A continuous variable
Solution
(a)
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Question 8
Marks of a student is an example of
(a) An attribute (b) A discrete variable
(c) A continuous variable (d) None of these
Solution
(b)
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Question 9
Annual income of a person is
(c) A continuous variable (d) (a) or (c)
Solution
(c)
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Question 10
Age of a person is
(c) A continuous variable (d) A variable
Solution
(c)
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Question 11
The data collected on the height of a group of students after recording their heights with
a measuring tape are
(a) Primary Data (b) Secondary Data
(c) Discrete Data (d) Continuous Data
Solution
(a)
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Question 12
The primary data are collected by
(a) Interview Method (b) Observation Method
(c) Questionnaire Method (d) All these
Solution
(d)
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Question 13
The quickest method to collect primary data is
(a) Personal Interview (b) Indirect Interview
(c) Telephone Interview (d) By observation
Solution
(c)
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Question 14
The best method to collect data, in case of a natural calamity, is
(a) Personal Interview (b) Indirect Interview
(c) Questionnaire Method (d) Direct Observation Method
Solution
(a)
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Question 15
In case of a rail accident, the appropriate method of data collection is by:
(a) Personal Interview (b) Direct Interview
(c) Indirect Interview (d) All these
Solution
(c)
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Question 16
Which method of data collection covers the widest area?
(a) Telephone Interview Method (b) Mailed Questionnaire Method
(c) Direct Interview Method (d) All these
Solution
(b)
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Question 17
The amount of non-responses is maximum in
(a) Mailed Questionnaire Method (b) Interview Method
(c) Observation Method (d) All these
Solution
(a)
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Question 18
Data collected on religion from the census reports are
(a) Primary Data (b) Secondary Data
(c) Sample Data (d) (a) or (b)
Solution
(b)
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Question 19
Some important sources of secondary data are
(a) Some important sources of secondary data are
(b) International and primary sources
(c) Private and primary sources
(d) Government sources.
Solution
(a)
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Question 20
Internal consistency of the collected data can be checked when
(a) Internal data are given (b) External data are given
(c) Two or more series are given (d) A number of related series are given
Solution
(d)
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Question 21
The accuracy and consistency of data can be verified by:
(a) Internal checking (b) External checking
(c) Scrutiny (d) Both (a) and (b)
Solution
(c)
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Question 22
The mode of presentation of data are
(a) Textual, tabulation and diagrammatic (b) Tabular, internal and external
(c) Textual, tabular and internal (d) Tabular, textual and external
Solution
(a)
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Question 23
For tabulation, ‘caption’ is:
(a) The upper part of the table
(b) The lower part of the table
(c) The main part of the table
(d) The upper part of a table that describes the column and sub-column
Solution
(d)
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Question 24
‘Stub’ of a table is the:
(a) Left part of the table describing the columns
(b) Right part of the table describing the columns
(c) Right part of the table describing the rows
(d) Left part of the table describing the rows
Solution
(d)
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Question 25
The entire upper part of a table is known as
(a) Caption (b) Stub
(c) Box Head (d) Body
Solution
(c)
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Question 26
The unit of measurement in tabulation is shown in
(a) Box Head (b) Body
(c) Caption (d) Stub
Solution
(a)
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Question 27
In tabulation source of the data, if any, is shown in the
(a) Footnote (b) Body
(c) Stub (d) Caption
Solution
(a)
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Question 28
Which of the following statements is untrue for tabulation?
(a) Statistical analysis of data requires tabulation
(b) It facilitates comparison between rows and not columns
(c) Complicated data can be presented
(d) Diagrammatic representation of data requires tabulation
Solution
(b)
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Question 29
The most accurate mode of data presentation is
(a) Diagrammatic Method (b) Tabulation
(c) Textual Presentation (d) None of these
Solution
(b)
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Question 30
The chart that uses logarithm of the variable is known as:
(a) Line Chart (b) Ratio Chart
(c) Multiple Line Chart (d) Component Line Chart
Solution
(b)
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Question 31
Multiple line chart is applied for:
(a) Showing multiple charts
(b) Two or more related time series when the variables are expressed in the same unit
(c) Two or more related time series when the variables are expressed in different unit
(d) Multiple variations in the time series
Solution
(b)
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Question 32
Multiple axis line chart is considered when:
(a) There is more than one time series (b) The units of the variables are different
(c) (a) or (b) (d) (a) and (b)
Solution
(d)
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Question 33
Horizontal bar diagram is used for
(a) Qualitative Data (b) Data varying over time
(c) Data varying over space (d) (a) or (c)
Solution
(d)
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Question 34
Vertical bar diagram is applicable when
(a) The data are qualitative (b) The data are quantitative
(c) When the data vary over time (d) (b) or (c)
Solution
(d)
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Question 35
In order to compare two or more related series, we consider:
(a) Multiple Bar Chart (b) Grouped Bar Chart
(c) (a) or (b) (d) (a) and (b)
Solution
(c)
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Question 36
Divided bar chart is considered for:
(a) Comparing different components of a variable
(b) The relation of different components to the table
(c) (a) or (b)
(d) (a) and (b)
Solution
(d)
CA NISHANT KUMAR
Question 37
Pie-diagram is used for:
(a) Comparing different components and their relation to the total
(b) Representing qualitative data in a circle
(c) Representing quantitative data in circle
(d) (b) or (c)
Solution
(a)
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Question 38
Cost of sugar in a month under the heads raw materials, labour, direct production and
others were 12, 20, 35 and 23 units respectively. What is the difference between the
central angles for the largest and smallest components of the cost of sugar?
(a) 72 (b) 48 (c) 56 (d) 92
Solution
(d)
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Question 39
Hidden trend, if any, in the data can be noticed in:
(a) Textual presentation (b) Tabulation
(c) Diagrammatic Representation (d) All these
Solution
(c)
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Question 40
Diagrammatic representation of data is done by
(a) Diagrams (b) Charts
(c) Pictures (d) All these
Solution
(d)
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Question 41
The best method of presentation of data is
(a) Textual (b) Tabular
(c) Diagrammatic (d) (b) and (c)
Solution
(b)
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Question 42
The most attractive method of data presentation is
(a) Tabular (b) Textual
(c) Diagrammatic (d) (a) or (b)
Solution
(c)
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Question 43
The distribution of shares is an example of the frequency distribution of:
(a) A discrete variable (b) A continuous variable
(c) An attribute (d) (a) or (c)
Solution
(a)
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Question 44
The number of accidents for seven days in a locality are given below:
No. of Accidents 0 1 2 3 4 5 6
Frequency 15 19 22 31 9 3 2
What is the number of cases when 3 or less accidents occurred?
(a) 56 (b) 6 (c) 68 (d) 87
Solution
(d)
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Question 45
The distribution of profits of a blue-chip company relates to:
(c) An attribute (d) (a) or (b)
Solution
(b)
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Question 46
Mutually exclusive classification
(a) Excludes both the class limits
(b) Excludes the upper class limit but includes the lower class limit
(c) Includes the upper class limit but excludes the upper class limit
(d) Either (b) or (c)
Solution
(b)
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Question 47
Mutually inclusive classification is usually meant for
(c) An attribute (d) All these
Solution
(a)
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Question 48
Mutually exclusive classification is usually meant for
(c) An attribute (d) Any of these
Solution
(b)
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Question 49
The LCB is
(a) An upper limit to LCL (b) A lower limit to LCL
(c) (a) and (b) (d) (a) or (b)
Solution
(b)
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Question 50
The UCB is
(a) An upper limit to UCL (b) A lower limit to LCL
(c) Both (a) and (b) (d) (a) or (b)
Solution
(a)
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Question 51
Length of a class is:
(a) The difference between the UCB and LCB of that class
(b) The difference between the UCL and LCL of that class
(c) (a) or (b)
(d) Both (a) and (b)
Solution
(a)
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Question 52
For a particular class boundary, the less than cumulative frequency and more than
cumulative frequency add up to:
(a) Total frequency (b) Fifty per cent of the total frequency
(c) (a) or (b) (d) None of these
Solution
(a)
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Question 53
The following data relate to the incomes of 86 persons:
Income in ₹ 500 – 999 1000 – 1499 1500 – 1999 2000 – 2499
No. of Persons: 15 28 36 7
What is the percentage of persons earning more than ₹1,500?
(a) 50 (b) 45 (c) 40 (d) 60
Solution
(a)
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Question 54
The following data relate to the marks of a group of students:
Marks Below 10 Below 20 Below 30 Below 40 Below 50
No. of Students 15 38 65 84 100
How many students got marks more than 30?
(a) 65 (b) 50 (c) 35 (d) 43
Solution
(c)
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Question 55
Find the number of observations between 250 and 300 from the following data:
Value More than 200 More than 250 More than 300 More than 350
No. of Observations 56 38 15 0
(a) 56 (b) 23 (c) 15 (d) 8
Solution
(b)
CA NISHANT KUMAR
Question 56
A frequency distribution
(a) Arranges observations in an increasing order
(b) Arranges observation in terms of a number of groups
(c) Relates to a measurable characteristic
(d) All these
Solution
(b)
CA NISHANT KUMAR
Question 57
The frequency distribution of a continuous variable is known as:
(a) Grouped Frequency Distribution
(b) Simple Frequency Distribution
(c) (a) or (b)
(d) (a) and (b)
Solution
(a)
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Question 58
From the following data find the number class intervals if class length is given as 5.
73, 72, 65, 41, 54, 80, 50, 46, 49, 53
(a) 6 (b) 5 (c) 7 (d) 8
Solution
(d)
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Question 59
Frequency density corresponding to a class interval is the ratio of:
(a) Class frequency to the total frequency
(b) Class frequency to the class length
(c) Class length to the class frequency
(d) Class frequency to the cumulative frequency
Solution
(b)
CA NISHANT KUMAR
Question 60
Relative frequency for a particular class
(a) Lies between 0 and 1
(b) Lies between 0 and 1, both inclusive
(c) Lies between –1 and 0
(d) Lies between –1 to 1
Solution
(a)
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Question 61
Mode of a distribution can be obtained from:
(a) Histogram (b) Less than type Ogives
(c) More than type Ogives (d) Frequency Polygon
Solution
(a)
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Question 62
A comparison among the class frequencies is possible only in:
(a) Frequency Polygon (b) Histogram
(c) Ogives (d) (a) or (b)
Solution
(b)
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Question 63
Frequency curve is a limiting form of
(c) (a) or (b) (d) (a) and (b)
Solution
(d)
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Question 64
Most of the commonly used frequency curves are
(a) Mixed (b) Inverted J-shaped
(c) U-shaped (d) Bell-shaped
Solution
(d)
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Question 65
The distribution of profits of a company follows
(a) J-shaped frequency curve (b) U-shaped frequency curve
(c) Bell-shaped frequency curve (d) Any of these
Solution
(c)
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Question 66
Median of a distribution can be obtained from
(c) Less than type Ogives (d) None of these
Solution
(c)
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Question 67
Out of 1000 persons, 25 per cent were industrial workers and the rest were agricultural
workers. 300 persons enjoyed world cup matches on TV. 30 per cent of the people who
had not watched world cup matches were industrial workers. What is the number of
agricultural workers who had enjoyed world cup matches on TV?
(a) 260 (b) 240 (c) 230 (d) 250
Solution
(a)
No. of Industrial Workers = 25% of 1,000 = 250
CA NISHANT KUMAR
No. of Agricultural Workers = 75% of 1,000 = 750
No. of persons who enjoyed world cup matches on TV = 300
No. of persons who had not watched world cup matches on TV = 1,000 – 300 = 700
Percentage of Industrial Workers who had not watched world cup matches on TV = 30%
⸫ Percentage of Agricultural Workers who had not watched world cup matches on TV =
70%
⸫ No. of Agricultural Workers who had not watched world cup matches on TV = 70% of
700 = 490.
⸫ No. of Agricultural Workers who enjoy world cup matches on TV = Total No. of
Agricultural Workers – No. of Agricultural Workers who had not watched world cup
matches on TV = 750 – 490 = 260.
CA NISHANT KUMAR
Question 68
A sample study of the people of an area revealed that total number of women were 40%
and the percentage of coffee drinkers were 45 as a whole and the percentage of male
coffee drinkers was 20. What was the percentage of female non-coffee drinkers?
(a) 10 (b) 15 (c) 18 (d) 20
Solution
(b)
Total Population = 100
Men = 60
Women = 40
CA NISHANT KUMAR
Total Coffee Drinkers = 45
Male Coffee Drinkers = 20
Female Coffee Drinkers = 45 – 20 = 25
Female Non-Coffee Drinkers = 40 – 25 = 15
CA NISHANT KUMAR
Chapter 14 – Measures of Central
Tendency and Dispersion
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Questions Based on Arithmetic Mean
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Find the mean from the following data:
Marks Less than 10 Less than 20 Less than 30 Less than 40 Less than 50
No. of Students 5 13 23 27 30
(a) 19 (b) 20.45 (c) 21.12 (d) 22.33
Solution
(d)
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If there are 3 observations 15, 20, 25, then the sum of deviation of the observations from
their AM is:
(a) 0 (b) 5 (c) –5 (d) None
Solution
(a)
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If the relationship between two variables u and v are given by 2u + v + 7 = 0 and if the
AM of u is 10, then the AM of v is:
(a) 17 (b) –17 (c) –27 (d) 27
Solution
(c)
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The average salary of a group of unskilled workers is ₹10,000 and that of a group of
skilled workers is ₹15,000. If the combined salary is ₹12,000, then what is the percentage
of skilled workers?
(a) 40% (b) 50% (c) 60% (d) None
Solution
(a)
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At ABC ltd, the average age of employees is 36. Average age of male employees is 38
and that of females is 32. Find the ratio of female to male in the company.
(a) 1 : 3 (b) 2 : 1 (c) 1 : 2 (d) 3 : 1
Solution
(c)
Let the number of male employees be n1 and their average age be x1 ; let the number of
female employees be n2 and their average age be x2 .
Given x = 36 ; x1 = 38 ; x2 = 32
CA NISHANT KUMAR
Try the options.
Option (a) → 1 : 3
Therefore, n1 = 3 ; n2 = 1
x=
( 3  38) + (1 32 ) = 36.5
3 +1
Option (b) → 2 : 1
Therefore, n1 = 1; n2 = 2
x=
(1 38) + ( 2  32 ) = 34
1+ 2
Option (c) → 1 : 2
CA NISHANT KUMAR
Therefore, n1 = 2 ; n2 = 1
x=
( 2  38 ) + (1 32 )
= 36
2 +1
CA NISHANT KUMAR
If the mean of a set of observations x1 , x2 , x3 ,..., xn is x , then the mean of the observations
xi + ki , where i = 1, 2, 3, …, n is:
k k
(a) x + k ( n + 1) (b) x + kn (c) x + (d) x + ( n + 1)
n 2
Solution
(d)
Let x1 = 1; x2 = 2 ; x3 = 3 ; k = 10 ; i = 1, 2, 3
Now, the mean of x1, x2 , x3 = 2
CA NISHANT KUMAR
The observations
x1 + ( k  1) = 1 + 10 = 11
x2 + ( k  2 ) = 2 + (10  2 ) = 2 + 20 = 22
x3 + ( k  3) = 3 + (10  3) = 3 + 30 = 33
The mean of these observations is 22.

k
Option (d) → x + ( n + 1)
2
10
2+ ( 3 + 1) = 22
2
CA NISHANT KUMAR
Therefore, option (d) is the answer.
CA NISHANT KUMAR
Question 7 – PYQ
Two years ago, a team of four persons had an average age of 14. Now, a new member is
added to the team and the average age of the team is 17. What is the age of the new
member?
(a) 17 (b) 19 (c) 21 (d) 23
Solution
(c)
Now, each person’s age has increased by 2. Therefore, the new average of these 4 persons
would also increase by 2. The mean is 14 + 2 = 16. This means that on an average, the
age of each person is 16. Now, a new person is added to the group and the average age is
CA NISHANT KUMAR
17. This means that the age of all the 5 persons is 17. Therefore, the age of the new person
would be 17 + 1 + 1 + 1 + 1 = 21 years.
CA NISHANT KUMAR
The students of a class Xth have an average weight of 50 kg. The strength of the class is
49 students. On including the weight of the Principal, the average weight shoots up by
0.8 kg. Find the weight of the Principal.
(a) 75 (b) 90 (c) 85 (d) None
Solution
(b)
We know that the average weight of the 49 students in class Xth is 50kg.
Therefore, we have No. of Students (n) = 49; Average ( x ) = 50
CA NISHANT KUMAR
We know that x =
x
n
  x = x  n = 50  49 = 2, 450
Therefore, the total weight of the students is 49 × 50 = 2450kg.

When the weight of the Principal is included, the average weight increases by 0.8 kg.
This means the new average weight is 50 + 0.8 = 50.8 kg. Also, the total number of
persons becomes 50.
Let the weight of the principal be x.
Putting the values in this formula x =

 x , we get:
n
CA NISHANT KUMAR
2, 450 + x
50.8 =
50
 50.8  50 = 2,450 + x
 2,540 = 2,450 + x
 x = 2,540 − 2,450
 x = 90
CA NISHANT KUMAR
The average of ( p + q ) consecutive numbers starting from 1 is ‘r’. If ‘s’ is added to each
of the numbers then the new average will be?
(a) r + s (b) r + ( s / 2 ) (c) r + ( p + q + s ) / ( p + q ) (d) None
Solution
(a)
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The average weight of 40 people is increased by 2.4 kg when one man weight 73 kg is
replaced by another man. Find the weight of the new man?
(a) 121 (b) 169 (c) 154 (d) 149
Solution
(b)
Initial Average ( x ) =
x
n
x=
x
40
CA NISHANT KUMAR
 40x =  x …Eq. (1)
Let the weight of the replacing man be y. When the man (weighing y kgs) replaces the
one weighing 73 kg, then new total becomes  x − 73 + y . New mean ( x ) = x + 2.4 .
Putting these values in the formula for AM, we get:
x + 2.4 =
 x − 73 + y
40
 40 ( x + 2.4 ) =  x − 73 + y
 40 x + 96 =  x − 73 + y
 40 x + 96 + 73 − y =  x
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 40 x + 169 − y =  x …Eq. (2)
Equating Eqs. (1) and (2), we get:
40 x = 40 x + 169 − y
 y = 169 + 40 x − 40 x
 y = 169
Alternatively: New weight = (2.4 kg × 40 persons) + 73 kg = 169
CA NISHANT KUMAR
The average salary of the whole employees in a company is ₹400 per day. The average
salary of officers is ₹800 per day and that of clerks is ₹320 per day. If the number of
officers is 40, then find the number of clerks in the company?
(a) 50 (b) 100 (c) 150 (d) 200
Solution
(d)
We have x = 400 ; n1 = 40 ; x1 = 800 ; x2 = 320 ; n2 = ?
n1 x1 + n2 x2
x=
n1 + n2
CA NISHANT KUMAR
 400 =
( 40  800 ) + ( n2  320 )
40 + n2
Option (d) → 200
RHS:
( 40  800 ) + ( 200  320 ) = 400 = LHS
40 + 200
CA NISHANT KUMAR
The average of 6 numbers is 30. If the average of the first four is 25 and that of the last
three is 35, the fourth number is:
(a) 25 (b) 30 (c) 35 (d) 40
Solution
(a)
Sum of the 6 numbers = 6 × 30 = 180
Sum of the first 4 numbers = 25 × 4 = 100
Therefore, the sum of last two numbers = 180 – 100 = 80
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Sum of the last 3 numbers = 35 × 3 = 105
Therefore, the fourth term = 105 – 80 = 25
CA NISHANT KUMAR
A student’s marks were wrongly entered as 85 instead of 45. Due to that, the average
marks for the whole class got increased by one-fourth. The no. of students in the class is:
(a) 80 (b) 160 (c) 40 (d) 20
Solution
(b)
Let the number of students in the class be n.
Since 85 was entered instead of 45, the total number of marks got increased by 40, and
because of this, the average increased by ¼.
CA NISHANT KUMAR
If the average is increased by ¼, we can say that every observation has increased by ¼;
and this happened due to the total increase of 40 marks.
Therefore,
Per Student Increment × Number of Students = Total Increment
¼ × n = 40
 n = 40 × 4 = 160
CA NISHANT KUMAR
The mean of 100 observations is 50. If one of the observations which was 50 is replaced
by 40, the resulting mean will be:
(a) 40 (b) 49.90 (c) 50 (d) None
Solution
(b)
Mean is given by x = 
x
n
50 =
x
100
CA NISHANT KUMAR
  x = 50  100 = 5,000
Since one observation, which was 50, is replaced by 40, the revised
 x = 5,000 − 50 + 40 = 4,990 .
Therefore, revised mean: x =  =
x 4,990
= 49.90
n 100
CA NISHANT KUMAR
The mean annual salary of all employees in a company is ₹25,000. The mean salary of
male and female employees is ₹27,000 and ₹17,000 respectively. Find the percentage of
males and females employed by the company:
(a) 60% and 40% (b) 70% and 25% (c) 70% and 30% (d) 80% and 20%
Solution
(d)
We have x = 25,000 ; x1 = 27,000 ; x2 = 17,000
Let the total number of employees be 100.
CA NISHANT KUMAR
Option (a) → 60% and 40%.
It means that n1 = 60% 100 = 60 ; n2 = 40% 100 = 40
Using the values n1 = 60 ; n2 = 40 ; x1 = 27,000 ; and x2 = 17,000 , let’s calculate the
combined mean.
n1 x1 + n2 x2
x=
n1 + n2
x=
( 60  27,000 ) + ( 40  17,000 ) = 23,000
60 + 40
Since the value of combined mean is given as 25,000, option (a) is not our answer.
Option (b) → 70% and 25%.
CA NISHANT KUMAR
This doesn’t make any sense as the total is not 100%. Skip it.
Option (c) → 70% and 30%.
Now, we have n1 = 70 ; n2 = 30 ; x1 = 27,000 ; x2 = 17,000
x=
( 70  27,000 ) + ( 30 17,000 ) = 24,000
70 + 30
Option (d) → 80% and 20%
Now, we have n1 = 80 ; n2 = 20 ; x1 = 27,000 ; x2 = 17,000
x=
(80  27,000 ) + ( 20 17,000 ) = 25,000
80 + 20
CA NISHANT KUMAR
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Questions Based on Geometric Mean
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What is the GM for the numbers 8, 24 and 40?
(a) 24 (b) 12 (c) 8. 3 15 (d) 10
Solution
(c)
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If GM of x is 10 and GM of y is 15, then the GM of xy is:
(a) 150 (b) log 10 × log 15 (c) log 150 (d) None
Solution
(a)
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Question 18
If GM of x is 10, and GM of y is 15, then GM of x/y is:
(a) 150 (b) 2/3 (c) log 2/log 3 (d) None
Solution
(b)
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If the rates return from three different shares are 100%, 200% and 400% respectively.
The average rate of return will be:
(a) 350% (b) 233.33% (c) 200% (d) 300%
Solution
(c)
Since percentages are given, we’ll use Geometric Mean.
1
GM = (100  200  400 ) 3
 GM 3 = 8000000
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Option (c) → 200
LHS = 2003 = 8000000 = RHS
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The geometric mean of the series 1, k , k 2 ,..., k n , where k is a constant is:
(a) k ( n+1)/2 (b) k n +0.5 (c) k n +1 (d) k n /2
Solution
(d)
Let the value of k be 10.
Then the series would be: 1, 10, 102, 103
The geometric mean = 4 110 100 1000 = 31.62
Now, try the options:
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Option (d) → k n /2 = 103/2 = 101.5 = 31.62
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Questions Based on Harmonic Mean
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Compute the HM for the numbers 6, 8, 12, 36.
(a) 9.93 (b) 5.77 (c) 6.77 (d) None
Solution
(a)
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If there are two groups with 75 and 65 as harmonic means and containing 15 and 13
observations then the combined HM is given by:
(a) 65 (b) 70.36 (c) 70 (d) 71
Solution
(c)
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An aeroplane flies from A to B at the rate of 500 km/hour and comes back from B to A
at the rate of 700 km/hour. The average speed of the aeroplane is:
(a) 600 km per hour (b) 583.33 km per hour
(c) 10 35 km per hour (d) 620 km per hour
Solution
(b)
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If the AM and HM for two numbers are 5 and 3.2 respectively then the GM will be
(a) 16.00 (b) 4.10 (c) 4.05 (d) 4.00
Solution
(d)
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AM and GM are both negative values, HM is equal to:
G G2 G2
(a) H = 2 (b) H = (c) H = (d) None
A A A
Solution
(b)
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Partition Values – Summary of Formulae
No. No. of Rank for Rank for Rank for
Partition
of Partition Symbol Individual Discrete Continuous
Value
Parts Values Series Series Series
n +1 N +1 N
Median 2 1 M
2 2 2
n +1 N +1 N
Q1 = , Q1 = , Q1 = ,
Q1 to 4 4 4
3 ( n + 1) 3 ( N + 1)
Quartile 4 3
Q3 3N
Q3 = Q3 = Q3 =
4 4 4
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n +1 N +1 N
D1 = , D1 = , D1 = ,
10 10 10
5 ( n + 1) 5 ( N + 1)
D1 to
Decile 10 9 5N
D9 D5 = D5 = D5 =
10 10 10
and so on… and so on… and so on…
n +1 N +1 N
P1 = , P1 = , P1 = ,
100 100 100
5 ( n + 1) 5 ( N + 1)
P1 to
Percentile 100 99 5N
P99 P5 = P5 = P5 =
100 100 100
and so on… and so on… and so on…
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Rank − c
The formula for any partition value of a continuous series is l + i
f
Property of a Median/Quartile/Decile/Percentile
If x and y are two variables related by y = a + bx for any two constants a and b, then the
median of y is given by yme = a + bxme .
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Questions Based on Median
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Question 26
What is the median for the following observations?
5, 8, 6, 9, 11, 4
(a) 6 (b) 7 (c) 8 (d) None
Solution
(b)
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Question 27
Find the median of the following data:
Variable (x) 10 50 40 30 20
Frequency ( f ) 50 20 30 10 40
(a) 20 (b) 30 (c) 40 (d) None
Solution
(a)
As per the algorithm,
1. Arrange the series in ascending order of the variable:
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Variable (x) Frequency (f)
10 50
20 40
30 10
40 30
50 20
Total 150
2. Find the cumulative frequency:
Variable (x) Frequency (f) Cumulative Frequency (cf)
10 50 50
20 40 90
30 10 100
40 30 130
50 20 150
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Total 150
 N +1
3. Find out the rank using the formula   , where N is the total of frequencies
 2 
N + 1 150 + 1 151
Rank = = = = 75.5
2 2 2
Now, the first cumulative frequency is 50. We know that 75.5 doesn’t come under
50. Therefore, we move on to the next cumulative frequency. The next cumulative
frequency is 90. We know that 75.5 comes under 90. Now, the median is the variable
corresponding to the cumulative frequency 90, i.e. 20. Therefore, 20 is the median.
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What is the value of median for the following data?
Marks 5 – 14 15 – 24 25 – 34 35 – 44 45 – 54 55 – 64
No. of Students 10 18 32 26 14 10
(a) 28 (b) 30 (c) 32.94 (d) 33.18
Solution
(c)
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Two variables x and y are given by y = 2x – 3. If the median of x is 20, what is the median
of y?
(a) 20 (b) 40 (c) 37 (d) 35
Solution
(c)
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Questions Based on Quartiles
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What is the value of the first quartile for observations 15, 18, 10, 20, 23, 28, 12, 16?
(a) 17 (b) 16 (c) 12.75 (d) 12
Solution
(c)
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The third quartile for the following data are:
Profits in ‘000 ₹ Less than 10 10 – 19 20 – 29 30 – 39 40 – 49 50 – 59
No. of Firms 5 18 38 20 9 2
(a) ₹33,500 (b) ₹33,000 (c) ₹33,600 (d) ₹33,250
Solution
(a)
Given data:
Profits in ’000 0–9 10 – 19 20 – 29 30 – 39 40 – 49 50 – 59
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No. of Firms 5 18 38 20 9 2
Let’s convert it into exclusive series:

CI –0.5 – 9.5 9.5 – 19.5 19.5 – 29.5 29.5 – 39.5 39.5 – 49.5 49.5 – 59.5
f 5 18 38 20 9 2
N 5 + 18 + 38 + 20 + 9 + 2
Rank of Quartile = = = 23
4 4
Rank of Q3 = 3 × 23 = 69
Let’s find out the cumulative frequency now:
CI Frequency Cumulative Frequency
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–0.5 – 9.5 5 5
9.5 – 19.5 18 23
19.5 – 29.5 38 61
29.5 – 39.5 20 81
39.5 – 49.5 9 90
49.5 – 59.5 2 92
Clearly, the Rank of Q3 comes under the cumulative frequency 81. Therefore, the
Quartile Class Interval is 29.5 – 39.5.
Therefore, l = 29.5 ; f = 20 ; i = 10 ; c = 61
Rank − c
Q3 = l + i
f
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69 − 61
Q3 = 29.5 +  10 = 33.5 = 33,500
20
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Questions Based on Decile
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The third decile for the numbers 15, 10, 20, 25, 18, 11, 9, 12 is:
(a) 13 (b) 10.70 (c) 11 (d) 11.50
Solution
(b)
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Following distribution relates to the distribution of monthly wages of 100 workers.
Compute D7.
Profits in ‘000 Less than 500 – 700 – 900 – 1100 – More than
₹ 500 699 899 1099 1499 1500
No. of Firms 5 23 29 27 10 6
(a) ₹1,032.83 (b) ₹1,048.96 (c) ₹995.80 (d) None
Solution
(c)
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Questions Based on Percentile
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Following are the wages of the labourers: ₹82, ₹56, ₹90, ₹50, ₹120, ₹75, ₹75, ₹80, ₹130,
₹65. Find P82.
(a) 62.75 (b) 81.20 (c) 120.20 (d) None
Solution
(c)
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The 65th percentile for the following data are:
Profits in ‘000 ₹ Less than 10 10 – 19 20 – 29 30 – 39 40 – 49 50 – 59
No. of Firms 5 18 38 20 9 2
(a) ₹29,000 (b) ₹28,680 (c) ₹29,184 (d) ₹29,250
Solution
(c)
Given data:
Profits in ’000 0–9 10 – 19 20 – 29 30 – 39 40 – 49 50 – 59
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No. of Firms 5 18 38 20 9 2
Let’s convert it into exclusive series:

CI –0.5 – 9.5 9.5 – 19.5 19.5 – 29.5 29.5 – 39.5 39.5 – 49.5 49.5 – 59.5
f 5 18 38 20 9 2
N 65  92
Rank of P65 = 65  = = 59.8
100 100
This comes under the cumulative frequency of 61 corresponding to the class interval
19.5 – 29.5.
Therefore, l = 19.5 ; i = 10 ; f = 38 ; c = 23
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Rank − c
P65 = l + i
f
59.8 − 23
P65 = 19.5 +  10 = 29.184 = 29,184
38
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Questions Based on Mode
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The modal profits for the following data is:
Profit in ₹ ’000 Below 5 Below 10 Below 15 Below 20 Below 25 Below 30
No. of Firms 10 25 45 55 62 65
(a) 11.50 (b) ₹11267 (c) ₹11667 (d) 11.67
Solution
(c)
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If y = 2 + 1.50 x , and mode of x is 15, what is the mode of y?
(a) ₹64.00 (b) 24.50 (c) ₹63.21 (d) ₹64.25
Solution
(b)
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For a moderately skewed distribution of marks in statistics for a group of 200 students,
the mean mark and median mark were found to be 55.60 and 52.40. What is the modal
mark?
(a) 20 (b) 13 (c) 46 (d) 23
Solution
(c)
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Question 39 – PYQ
Given that for a distribution, the mean, median and mode are 23, 24, and 25.5. It is most
likely that the distribution is _________ skewed.
(a) Positively (b) Symmetrically (c) Asymptotically (d) Negatively
Solution
(d)
For a positively skewed distribution, Mean > Median > Mode.
For a negatively skewed distribution, Mean < Median < Mode.
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Which of the following is the correct relation between mean, median and mode?
(a) Median = Mode + 2/3(Mean – Mode) (b) 2Mean = Mode – 3Median
(c) 2Mean = Mode + 3Median (d) Mode = 3Median + 2Mean
Solution
(a)
Mode = 3Median – 2Mean
Try the options.
Option (a) → Median = Mode + 2/3(Mean – Mode)
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2
Median = Mode + ( Mean − Mode )
3
2Mean 2Mode
 Median = Mode + −
3 3
3Mode + 2Mean − 2Mode
 Median =
3
3Mode + 2Mean − 2Mode
 Median =
3
 3Median = Mode + 2Mean
 Mode = 3Median − 2Mean
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If mean ( x ) is 10, and mode ( z ) is 7, find out the value of median ( M ) .
(a) 9 (b) 17 (c) 3 (d) 4.33
Solution
(a)
We know that Mode = 3Median – 2Mean
Mode + 2Mean 7 + ( 2  10 )
Therefore, Median = = =9
3 3
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Questions Based on Range
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What is the coefficient of range for the following wages of 8 workers?
₹80, ₹65, ₹90, ₹60, ₹75, ₹70, ₹72, ₹85.
(a) ₹30 (b) ₹20 (c) 30 (d) 20
Solution
(d)
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What is the coefficient of range for the following distribution?
Class Interval 10 – 19 20 – 29 30 – 39 40 – 49 50 – 59
Frequency 11 25 16 7 3
(a) 22 (b) 50 (c) 72.46 (d) 75.82
Solution
(c)
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If the relationship between x and y is given by 2 x + 3 y = 10 , and the range of x is ₹15,
what would be the range of y?
(a) ₹20 (b) ₹5 (c) ₹15 (d) ₹10
Solution
(d)
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Questions Based on Mean Deviation
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Question 45
The mean deviation about mode for the numbers
4/11, 6/11, 8/11, 9/11, 12/11, 8/11 is:
(a) 1/6 (b) 1/11 (c) 6/11 (d) 5/11
Solution
(a)
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Questions Based on Standard Deviation
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What is the coefficient of variation of the following numbers?
53, 52, 61, 60, 64.
(a) 8.09 (b) 18.08 (c) 20.23 (d) 20.45
Solution
(a)
SD
Coefficient of Variation =  100
AM
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 ( xi − x )
2
( SD ) =
n
Step 1 – Calculation of Mean
53 + 52 + 61 + 60 + 64
x= = 58
5
Step 2 – Calculation of Deviations
x x - Mean (x - Mean)2
53 -5 25
52 -6 36
61 3 9
60 2 4
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64 6 36
110
Step 3 – Calculation of Standard Deviation
 ( xi − x )
2
( SD ) =
n
 ( xi − x )
2
110
( SD ) = = = 4.69
n 5
Step 4 – Calculation of Coefficient of Variation
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SD 4.69
CV =  100 =  100 = 8.09
AM 58
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A student computes the AM and SD for a set of 100 observations as 50 and 5 respectively.
Later on, she discovers that she has made a mistake in taking one observation as 60
instead of 50. What would be the correct mean and SD if the wrong observation is
replaced by the correct observation?
(a) 49.90; 6.91 (b) 49.40; 4.91 (c) 49.90; 4.90 (d) None
Solution
(c)
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If the SD of the first n natural numbers is 2, then the value of n must be:
(a) 2 (b) 7 (c) 6 (d) 5
Solution
(b)
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If AM and coefficient of variation of x are 10 and 40 respectively, what is the variance
of 15 – 2x?
(a) 8 (b) 64 (c) 74 (d) None
Solution
(b)
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x−a
If the mean and standard deviation of x are a and b respectively, then the SD of is:
b
(a) –1 (b) 1 (c) ab (d) a/b
Solution
(b)
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If x and y are related by 2x + 3y + 4 = 0 and SD of x is 6, then SD of y is:
(a) 22 (b) 4 (c) 5 (d) 9
Solution
(b)
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If two samples of sizes 30 and 20 have means as 55 and 60 and variances as 16 and 25
respectively, then what would be the SD of the combined sample of size 50?
(a) 5.00 (b) 5.06 (c) 5.23 (d) 5.35
Solution
(b)
n1s12 + n2 s2 2 + n1d12 + n2 d 2 2
SD =
n1 + n2
where,
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d1 = x1 − x
d2 = x2 − x
n x +n x
x= 1 1 2 2
n1 + n2
30  55 + 20  60
x= = 57
30 + 20
d1 = 55 − 57 = −2
d2 = 60 − 57 = 3
SD =
( 30 16 ) + ( 20  25) + ( 30  4 ) + ( 20  9 ) = 5.06
30 + 20
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The standard deviation is independent of change of:
(a) Scale (b) Origin (c) Both (a) and (b) (d) None
Solution
(b)
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The best statistical measure used for comparing two series is:
(a) Mean Deviation (b) Range (c) Coefficient of Variation (d) Standard Deviation
Solution
(c)
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If sum of squares of the values = 3390, N = 30 and standard deviation = 7, find out the
mean.
(a) 113 (b) 210 (c) 8 (d) None
Solution
(c)
( x)
2
−(x)
2
SD =
n
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3390
−(x)
2
7=
30
2
 3390 2 
(7) −(x) 
2
=
 30 
3390
−(x)
2
49 =
30
49 = 113 − ( x )
2
(x)
2
= 113 − 49 = 64
x = 64 = 8
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The standard deviation of 10, 16, 10, 16, 10, 10, 16, 16 is:
(a) 4 (b) 6 (c) 3 (d) 0
Solution
(c)
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The of mean and SD of a series is a + b, if we add 2 to each observation of the series then
the sum of the mean and SD will be:
(a) a + b + 2 (b) 6 – a + b (c) 4 + a – b (d) a + b + 4
Solution
(a)
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There are two startups in ecommerce sector struggling to acquire the market. Following
data is for Mean and Standard Deviation of billing amount of bought items per month on
their website:
Startup No. of Customers/Month Mean Billing Amount SD of Billing Amount
A 40 ₹2,500 ₹10
B 30 ₹2,200 ₹11
Which startup has a better consistency when it comes to sales numbers?
(a) Startup A (b) Startup B (c) Both A and B (d) Need More Information
Solution
(a)
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Better consistency would be of that startup whose coefficient of variation is less.
SDA 10
CVA = 100 =  100 = 0.4
AM A 2,500
SDB 11
CVB = 100 =  100 = 0.5
AM B 2,200
Therefore, Startup A is more consistent.
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If the coefficient of variation and standard deviation are 60 and 12 respectively, then the
arithmetic mean of the distribution is:
(a) 40 (b) 36 (c) 20 (d) 19
Solution
(c)
SD
CV =  100
AM
SD 12
 AM =  100 =  100 = 20
CV 60
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If the sum of square of the value equals to 3390, number of observations are 30 and
Standard deviation is 7, what is the mean value of the above observation?
(a) 14 (b) 11 (c) 8 (d) 5
Solution
(c)
Given: x 2
= 3390 ; n = 30 ; SD = 7
SD =
x −(x)
2
2
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3390
−(x)
2
7=
30
Squaring both sides, we have:
2
 3390 2 
(7) −(x) 
2
=
 30 
3390
−(x)
2
 49 =
30
3390
 (x) =
2
− 49
30
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3390
x= − 49
30
 x =8
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If the variance of random variable x is 18, then what is variance of y = 2x + 5?
(a) 34 (b) 39 (c) 68 (d) 72
Solution
(d)
When two variables x and y are related as y = a + bx , and SDx is known, SDy = b  SDx .
y = 2x + 5
 y = 5 + 2x
SDy = 2  SDx
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 SDy = 2  18
(
 Var ( y ) = 2  18 )
2
= 72
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In a given set, if all data are of same value, then variance would be:
(a) 0 (b) 1 (c) –1 (d) 0.5
Solution
(a)
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Questions Based on Quartile Deviation
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The quartiles of a variable are 45, 52 and 65 respectively. Its quartile deviation is:
(a) 10 (b) 20 (c) 25 (d) 8.30
Solution
(a)
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In the equation 4 x + 2 y = 3 , quartile deviation for y is 3. Find the quartile deviation for
x.
(a) 4.5 (b) 6 (c) 1.5 (d) None
Solution
(c)
4x + 2 y = 3
 4x = 3 − 2 y
3 2
x= − y
4 4
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QDx = b  QDy
2 2
 QDx = −  3 =  3 = 1.5
4 4
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2
The mean and SD for a, b, and 2 are 3 and respectively. The value of ab would be?
3
(a) 5 (b) 6 (c) 11 (d) 3
Solution
(a)
We have 3 observations → a, b, and 2
a+b+2
Mean ( x ) = =3
3
Therefore, a + b + 2 = 3  3 = 9
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So, a + b = 9 − 2 = 7
( x)
2
−(x)
2
SD =
n
2 a 2 + b 2 + 22
 − ( 3)
2
=
3 3
Squaring both sides, we have:
2
 2   a 2 + b 2 + 22 2 
2
  =  − ( 3) 
 3   3 

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4 a 2 + b2 + 4
 = −9
3 3
a 2 + b2 + 4 4
 = +9
3 3
4 
 a 2 + b2 + 4 = 3 + 9 
3 
 4 
 a 2 + b 2 = 3  + 9   − 4 = 27
 3 
 a 2 + b 2 + 2ab − 2ab = 27
 ( a + b ) − 2ab = 27
2
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 ( 7 ) − 2ab = 27
2
 49 − 2ab = 27
 −2ab = 27 − 49
 −2ab = −22
−22
 ab = = 11
−2
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Which one is an absolute measure of dispersion?
(a) Range (b) Mean Deviation (c) Standard Deviation (d) All these measures
Solution
(d)
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If Quartile deviation is 7, find the value of x from the arranged series: 2, x, 6, 7, 9, 16, 18.
(a) 5 (b) 2 (c) 8 (d) 6
Solution
(b)
n +1 7 +1 8
Rank of Q1 = = = =2
4 4 4
Therefore, Q1 is the second term of the series, i.e., x.
Rank of Q3 = 3  2 = 6
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Therefore, Q3 is the 6th term of the series, i.e., 16.
Q3 − Q1
QD =
2
16 − x
7=
2
 7  2 = 16 − x
 14 = 16 − x
 x = 16 − 14 = 2
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Chapter 15 – Probability
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Introduction
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Question 1
A dice is rolled. Find the probability that even number appears.
(a) ½ (b) 2/3 (c) ¾ (d) None
Solution
(a)
No. of favourable outcomes = 3 (i.e., 2, 4, 6)
3 1
Therefore, Probability = =
6 2
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Question 2
A coin is tossed three times. What is the probability of getting at least 2 heads?
(a) 1/2 (b) 2/3 (c) ¾ (d) None
Solution
(a)
We can see that no. of events containing at least two heads are 4, i.e., HHH, HHT, HTH,
THH.
Therefore, Probability = 4/8 = 0.5.
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Question 3
A dice is rolled twice. What is the probability of getting a difference of 2 points?
(a) 8/36 (b) 2/3 (c) ¾ (d) None
Solution
(a)
Here, the experiment is rolling of a dice, containing 6 outcomes. This experiment is
repeated twice. Therefore, total number of outcomes is 62 = 36.
Events in which the difference is of 2 points are {(1, 3), (2, 4), (3, 5), (4, 6), (3, 1), (4, 2),
(5, 3), (6, 4)}. Therefore, total number of outcomes in favour of the event = 8.
Therefore, probability = 8/36 = 0.22.
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Question 4
Two dice are thrown simultaneously. Find the probability that the sum of points on the
two dice would be 7 or more.
OR
What is the chance of throwing at least 7 in a single cast with 2 dice?
(a) 5/12 (b) 7/12 (c) ¼ (d) 17/36
Solution
(b)
Two dice are thrown simultaneously is the same as one dice being thrown twice.
Therefore, the total number of outcomes are 62 = 36.
CA NISHANT KUMAR
The question asks the probability of the sum being 7 or more. We know that the highest
sum can be 12 when both the dice show 6. Now, a total of 7 or more, i.e., 7, or 8, or 9, or
10, or 11, or 12 can occur in the following combinations:
Condition Events Corresponding to Condition Total Events
Sum of 7 {(1, 6), (2, 5), (3, 4), (4, 3), (5, 2), (6, 1)} 6
Sum of 8 {(2, 6), (3, 5), (4, 4), (5, 3), (6, 2)} 5
Sum of 9 {(3, 6), (4, 5), (5, 4), (6, 3)} 4
Sum of 10 {(4, 6), (5, 5), (6, 4)} 3
Sum of 11 {(5, 6), (6, 5)} 2
Sum of 12 {(6, 6)} 1
Total 21
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Question 5
A committee of 7 members is to be formed from a group comprising 8 gentlemen and 5
ladies. What is the probability that the committee would comprise of at least 2 ladies?
(a) 148/429 (b) 392/429 (c) 140/429 (d) None
Solution
(b)
There are 8 + 5 = 13 people in total. A committee of 7 members can be formed in 13 C7 =
13! 13!
= = 1,716 ways.
7!(13 − 7 )! 7!6!
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Committee comprising of at least two ladies
No. of ways a committee can be formed comprising at least two ladies:
Combinations Ladies Gents Total
2 ladies + 5 gents 5 C2 8
C5 5
C2  8C5 560
C4 5
C3  8C4 700
C3 5
C4  8C3 280
C2 5
C5  8C2 28
Total 1,568
Therefore, the probability that the committee would comprise at least of 2 ladies =
1568/1716 = 0.9138
Question 6
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There are three boxes with the following compositions:
Box/Colour Blue Red White Total
I 5 8 10 23
II 4 9 8 21
III 3 6 7 16
One ball drawn from each box. What is the probability that they would be of the same
colour?
(a) 1052/7728 (b) 1053/7728 (c) 1054/7728 (d) None
Solution
(a)
Total Number of Outcomes = 23 × 21 × 16 = 7,728
CA NISHANT KUMAR
Number of Favourable Outcomes:
We’ll get happy if all of them are either blue, or red, or white.
Number of ways of selecting all three blue balls = 5 × 4 × 3 = 60
Number of ways of selecting all three red balls = 8 × 9 × 6 = 432
Number of ways of selecting all three white balls = 10 × 8 × 7 = 560
Total number of favourable outcomes = 60 + 432 + 560 = 1,052
Probability = 1,052/7,728
CA NISHANT KUMAR
Question 7
A bag contains 15 one-rupee coins, 25 two-rupee coins and 10 five-rupee coins. If a coin
is selected at random from the bag, then the probability of not selecting a one-rupee coin
is:
(a) 0.30 (b) 0.70 (c) 0.25 (d) 0.20
Solution
(b)
Total no. of selections = 15 + 25 + 10 = 50
Total no. of selections of two-rupee coins and five-rupee coins = 25 + 10 = 35
Probability = 35/50 = 0.70
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 8
If two letters are taken at random from the word HOME, what is the Probability that none
of the letters would be vowels?
(a) 1/6 (b) ½ (c) 1/3 (d) ¼
Solution
(a)
Total no. of selections = 4 C2
No. of ways of selecting consonants = 2 C2
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2
C2 1
Probability = 4
=
C2 6
CA NISHANT KUMAR
Question 9
Two balls are drawn from a bag containing 5 white and 7 black balls at random. What is
the probability that they would be of different colours?
(a) 35/66 (b) 30/66 (c) 12/66 (d) None
Solution
(a)
12  11
Total Number of Outcomes = 12 C2 = = 66
1 2
We’ll get happy if one white and one black ball appears.
CA NISHANT KUMAR
One white ball can be drawn in 5 ways, and one black ball can be drawn in 7 ways.
Therefore, total number of ways = 5 × 7 = 35
Probability = 35/66
CA NISHANT KUMAR
Question 10
What is the chance of getting at least one defective item if 3 items are drawn randomly
from a lot containing 6 items of which 2 are defective items?
(a) 0.30 (b) 0.20 (c) 0.80 (d) 0.50
Solution
(c)
6 5 4
1 2  3
CA NISHANT KUMAR
No. of ways of selecting at least one defective item = Total no. of ways – no. of ways of
selecting no defective item = 20 − 4C3 = 20 − 4C1 = 20 − 4 = 16
Probability = 16/20
CA NISHANT KUMAR
Question 11
If two unbiased dice are rolled together, what is the probability of getting no difference
of points?
(a) ½ (b) 1/3 (c) 1/5 (d) 1/6
Solution
(d)
Total number of outcomes = 36
Number of Favourable Outcomes = {(1, 1), (2, 2), (3, 3), (4, 4), (5, 5), (6, 6)} = 6
Probability = 6/36
CA NISHANT KUMAR
Question 12
There are 10 balls numbered from 1 to 10 in a box. If one of them is selected at random,
what is the probability that the number printed on the ball would be an odd number greater
that 4?
(a) 0.50 (b) 0.40 (c) 0.60 (d) 0.30
Solution
(d)
Number of favourable outcomes = {5, 7, 9} = 3
Probability = 3/10
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 13
What is the probability that a leap year selected at random would contain 53 Saturdays?
(a) 1/7 (b) 2/7 (c) 1/12 (d) ¼
Solution
(b)
A leap year has 366 days. Any year has 52 weeks = 52 × 7 = 364 days.
Since there are 52 weeks in any year, there are 52 Saturdays in any year.
Now, the remaining two days could be:
1. Sunday, Monday
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2. Monday, Tuesday
3. Tuesday, Wednesday
4. Wednesday, Thursday
5. Thursday, Friday
6. Friday, Saturday
7. Saturday, Sunday
Therefore, the total number of outcomes = 7
Number of favourable outcomes = Outcomes containing a Saturday = 2
Probability = 2/7
CA NISHANT KUMAR
Question 14
If two unbiased dice are rolled, what is the probability of getting points neither 6 nor 9?
(a) 0.25 (b) 0.50 (c) 0.75 (d) 0.80
Solution
(c)
Number of outcomes in which the points are either 6 or 9 = {(1, 5), (5, 1), (2, 4), (4, 2),
(3, 3), (3, 6), (6, 3), (4, 5), (5, 4)} = 9
Number of favourable outcomes = 36 – 9 = 27
CA NISHANT KUMAR
Probability = 27/36
CA NISHANT KUMAR
Question 15
Find the probability that a four-digit number comprising the digits 2, 5, 6 and 7 would be
divisible by 4.
(a) 4/13 (b) 5/13 (c) 8/24 (d) 7/13
Solution
(c)
Total number of 4 digit numbers that can be formed from these 4 digits = 4! = 24.
Any number is divisible by four if the number formed by the last two digits of that number
is divisible by 4. For example, consider the number 45620. Now, the last two digits of
CA NISHANT KUMAR
this number are 2, and 0. The number formed from these two digits is 20, which is
divisible by 4. Therefore, the number 45620 is also divisible by 4.
Now, we have 2, 5, 6, and 7. The two digit numbers that can be formed from these digits
which are divisible by 4 are 52, 56, 72, and 76. Therefore, we know that the last two
digits could either be 52, 56, 72, and 76. Therefore, there are 4 ways to fill the last two
digits of a four-digit number. Now, after filling the last two spaces, we’ll be left with the
first two spaces and two digits to fill them. Hence, the first two digits can be filled in 2!
ways.
Therefore, the no. of 4 digit numbers that can be formed from the digits 2, 5, 6, and 7,
which are divisible by 4 is 2! × 4 = 8.
Question 16
CA NISHANT KUMAR
A pair of dice is thrown together and the sum of points of the two dice is noted to be 10.
What is the probability that one of the two dice has shown the point 4?
(a) ¾ (b) ½ (c) 2/3 (d) None
Solution
(c)
Total Number of Outcomes = {(4, 6), (6, 4), (5, 5)} = 3
Number of Favourable Outcomes = {(4, 6), (6, 4)} = 2
Probability = 2/3
CA NISHANT KUMAR
Question 17
In a group of 20 males and 15 females, 12 males and 8 females are service holders. What
is the probability that a person selected at random from the group is a service holder given
that the selected person is a male?
(a) 12/20 (b) ½ (c) 2/3 (d) None
Solution
(a)
Since the selected person is a male, the total number of outcomes = 20.
Number of Favourable Outcomes = 12
Probability = 12/20
CA NISHANT KUMAR
Question 18
It is given that a family of 2 children has a girl, what is the probability that the other child
is also a girl?
(a) 0.50 (b) 0.75 (c) 1/3 (d) 2/3
Solution
(c)
Since it’s given that one child is a girl, we cannot consider the outcome BB.
Total number of outcomes = {GG, BG, GB} = 3
Number of favourable outcomes = {GG} = 1
CA NISHANT KUMAR
Probability = 1/3
CA NISHANT KUMAR
Question 19
Two coins are tossed simultaneously. What is the probability that the second coin would
show a tail given that the first coin has shown a head?
(a) 0.50 (b) 0.25 (c) 0.75 (d) 0.125
Solution
(a)
Since it is given that the first coin has shown a head, the total number of outcomes would
be: {HH, HT} = 2
Number of favourable outcomes = {HT} = 1
Probability = ½
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Odds
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Question 20
If p : q are the odds in favour of an event, then the probability of that event is:
p p q
q p+q p+q
Solution
(b)
p
Odds in Favour =
q
Therefore, number of favourable outcomes = p
CA NISHANT KUMAR
Number of unfavourable outcomes = q
Total number of outcomes = p + q
p
Therefore, probability =
p+q
CA NISHANT KUMAR
Question 21
If P ( A ) = 5 / 9 , then the odds against the event A is:
(a) 5 : 9 (b) 5 : 4 (c) 4 : 5 (d) 5 : 14
Solution
(c)
Probability = 5/9
Therefore, number of favourable outcomes = 5
Therefore, number of unfavourable outcomes = 9 – 5 = 4
CA NISHANT KUMAR
Odds Against Event = Number of unfavourable outcomes/Number of Favourable
Outcomes
Therefore, Odds Against Event = 4/5 = 4 : 5
CA NISHANT KUMAR
Question 22
If an unbiased die is rolled once, the odds in favour of getting a point which is a multiple
of 3 is:
(a) 1 : 2 (b) 2 : 1 (c) 1 : 3 (d) 3 : 1
Solution
(a)
Number of favourable outcomes = {3, 6} = 2
Number of unfavourable outcomes = 6 – 2 = 4
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Odds in Favour = Number of Favourable Outcomes/Number of Unfavourable Outcomes
Therefore, Odds in Favour = 2 : 4 = 1 : 2
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Types of Events
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CA NISHANT KUMAR
Question 23
If P ( A ) = P ( B ) , then the two events A and B are:
(a) Independent (b) Dependent (c) Equally Likely (d) Both (a) and (c)
Solution
(c)
CA NISHANT KUMAR
Question 24
If P ( A ) = 1, then the event is known as:
(a) Symmetric Event (b) Dependent Event (c) Improbable Event (d) Sure Event
Solution
(d)
CA NISHANT KUMAR
Question 25
Which of the following pairs of events are mutually exclusive?
(a) A: The student reads in School B: He studies Philosophy
(b) A: Raju was born in India B: He is a fine Engineer
(c) A: Ruma is 16 years old. B: She is a good Singer
(d) A: Peter is under 15 years of age B: Peter is a voter of Kolkata
Solution
(d)
CA NISHANT KUMAR
Question 26
An event that can be split into further events is known as:
(a) Complex Event (b) Mixed Event (c) Simple Event (d) Composite Event
Solution
(d)
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Question 27
If an unbiased coin is tossed once, then the two events Head and Tail are:
(a) Mutually Exclusive (b) Exhaustive (c) Equally Likely (d) All
Solution
(d)
CA NISHANT KUMAR
Question 28
If P ( A ) = P ( B ) , then
(a) A and B are the same events (b) A and B must be same events
(c) A and B may be different events (d) A and B are mutually exclusive events
Solution
(c)
CA NISHANT KUMAR
Set Theoretic Approach to Probability
• Sample space represents the Universal Set, denoted by S or  .
• An event A is defined as a non-empty subset of S.
n ( A)
• Then, probability of event A is given by: P ( A ) = , where, n ( A ) is the cardinal
n(S )
number of the set A; and n ( S ) is the cardinal number of the set S.
CA NISHANT KUMAR
Set Theoretic Approach
Two Events Three Events Other Formulas
Mutually Mutually Equally Only A Only B

Others Others Exhaustive Events
Exclusive Exclusive Likely Occurs Occurs
𝑃(𝐴 ∪ 𝐵
∪ 𝐶) Two Three
𝑃 𝐴∪𝐵 𝑃(𝐴 ∪ 𝐵 =𝑃 𝐴
𝑃 𝐴∪𝐵 =𝑃 𝐴 ∪ 𝐶) +𝑃 𝐵 Events Events 𝑃 𝐴
𝑃 𝐴−𝐵 𝑃 𝐵−𝐴
+𝑃 𝐶 =𝑃 𝐴 =𝑃 𝐵
=𝑃 𝐴 +𝑃 𝐵 =𝑃 𝐴 −𝑃 𝐴∩𝐵 =𝑃 𝐵
− 𝑃(𝐴 − 𝑃(𝐴
+ 𝑃(𝐵) − 𝑃(𝐴 +𝑃 𝐵 −𝑃 𝐵∩𝐶 = 𝑃(𝐶)
∩ 𝐵) ∩ 𝐵)
∩ 𝐵) + 𝑃(𝐶) −𝑃 𝐴∩𝐶 𝑃 𝐴∪𝐵 𝑃(𝐴 ∪ 𝐵
+ 𝑃(𝐴 ∩ 𝐵 =1 ∪ 𝐶) = 1
∩ 𝐶)
CA NISHANT KUMAR
Question 29
If P ( A  B ) = 0 , then the two events A and B are:
(a) Mutually Exclusive (b) Exhaustive (c) Equally Likely (d) Independent
Solution
(a)
CA NISHANT KUMAR
Question 30
If, for two events A and B, P ( A  B ) = 1 , then A and B are:
(a) Mutually Exclusive (b) Equally Likely (c) Exhaustive (d) Dependent
Solution
(c)
CA NISHANT KUMAR
Question 31
If A, B and C are mutually exclusive and exhaustive events, then P ( A ) + P ( B ) + P ( C )
equals to:
1
(a) (b) 1 (c) 0 (d) any value between 0 and 1
3
Solution
(b)
Since these events are mutually exclusive, we have P ( A  B ) = 0 ; P ( A  C ) = 0 ;
P(B C) = 0; P( A  B C) = 0
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Since these events are exhaustive, P ( A  B  C ) = 1
We know that:
P ( A  B  C ) = P ( A) + P ( B ) + P (C ) − P ( A  B ) − P ( A  C ) − P ( B  C ) + P ( A  B  C )
Therefore,
1 = P ( A) + P ( B ) + P (C ) − 0 − 0 − 0 + 0
 P ( A) + P ( B ) + P (C ) = 1
CA NISHANT KUMAR
Question 32
If A denotes that a student reads in a school and B denotes that he plays cricket, then:
(a) P ( A  B ) = 1 (b) P ( A  B ) = 1 (c) P ( A  B ) = 0 (d) P ( A ) = P ( B )
Solution
(c)
CA NISHANT KUMAR
Question 33
Three events A, B and C are mutually exclusive, exhaustive, and equally likely. What is
the probability of the complementary event of A?
(a) 6/11 (b) 3/11 (c) 1/6 (d) 2/3
Solution
(d)
P(B C) = 0; P( A  B C) = 0
Since the events are exhaustive, we have P ( A  B  C ) = 1
CA NISHANT KUMAR
Since the events are equally likely, we have P ( A ) = P ( B ) = P ( C )
We know that:
Therefore,
1 = P ( A) + P ( B ) + P (C )
 P ( A) + P ( B ) + P (C ) = 1
Since P ( A ) = P ( B ) = P ( C )
 P ( A) + P ( A) + P ( A) = 1
CA NISHANT KUMAR
 3P ( A ) = 1
1
 P ( A) =
3
1 2
 P ( A ') = 1 − =
3 3
CA NISHANT KUMAR
Question 34
A, B and C are three mutually exclusive and exhaustive events such that
P ( A ) = 2 P ( B ) = 3P ( C ) . What is P ( B ) ?
(a) 6/11 (b) 3/11 (c) 1/6 (d) 1/3
Solution
(b)
P(B C) = 0; P( A  B C) = 0
Since these events are exhaustive, P ( A  B  C ) = 1
CA NISHANT KUMAR
We know that:
Therefore,
1 = P ( A) + P ( B ) + P (C )
 P ( A) + P ( B ) + P (C ) = 1
2
Now, Since P ( A ) = 2 P ( B ) = 3P ( C ) , P ( C ) = P( B)
3
2
Therefore, 2 P ( B ) + P ( B ) + P ( B ) = 1
3
CA NISHANT KUMAR
6 P ( B ) + 3P ( B ) + 2 P ( B )
 =1
3
 6 P ( B ) + 3P ( B ) + 2 P ( B ) = 3
 11P ( B ) = 3
3
 P( B) =
11
CA NISHANT KUMAR
Question 35
A number is selected at random from the first 1000 natural numbers. What is the
probability that the number so selected would be a multiple of 7 or 11?
(a) 0.25 (b) 0.32 (c) 0.22 (d) 0.33
Solution
(c)
Total Number of Outcomes n ( S ) = 1000
1000
Numbers divisible by 7 n ( 7 ) = = 142.86 = 142
7
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1000
Numbers divisible by 11 n (11) = = 90.90 = 90
11
There could be some numbers divisible both by 7 as well as by 11. For this, we need to
take the LCM of 7 and 11, i.e. 77. Any number divisible by 77 is divisible by 7 as well
as by 11.
1000
Numbers divisible by 77 n ( 77 ) = = 12.98 = 12
77
1000
Therefore, Numbers divisible by 7 and 11 n ( 7  11) = = 12.98 = 12
77
n ( 7 ) 142
Probability that the number is divisible by 7 = P ( 7 ) = =
n ( S ) 1000
CA NISHANT KUMAR
n (11) 90
Probability that the number is divisible by 11 = P (11) = =
n ( S ) 1000
n ( 7  11) 12
Probability that the number is divisible by both 7 and 11 = P ( 7  11) = =
n(S ) 1000
Probability that the number is divisible by 7 or 11 =
P ( 7  11) = P ( 7 ) + P (11) − P ( 7  11)
142 90 12 220
P ( 7  11) = + − = = 0.22
1000 1000 1000 1000
CA NISHANT KUMAR
Question 36
The probability that an Accountant’s job applicant has a B. Com. Degree is 0.85, that he
is a CA is 0.30 and that he is both B. Com. and CA is 0.25 out of 500 applicants, how
many would be B. Com. or CA?
(a) 450 (b) 500 (c) 900 (d) 950
Solution
(a)
Let B. Com be denoted by B and CA be denoted by C.
We have P ( B ) = 0.85 ; P ( C ) = 0.30 ; P ( B  C ) = 0.25 ; n ( S ) = 500
CA NISHANT KUMAR
We know that P ( B  C ) = P ( B ) + P ( C ) − P ( B  C )
 P ( B  C ) = 0.85 + 0.30 − 0.25 = 0.90
n( B  C )
Also, we know that P ( B  C ) =
n(S )
 n ( B  C ) = P ( B  C )  n ( S ) = 0.90  500 = 450
CA NISHANT KUMAR
Question 37
If P ( A − B ) = 1 / 5 , P ( A ) = 1 / 3 and P ( B ) = 1 / 2 , what is the probability that out of the
two events A and B, only B would occur?
(a) 10/30 (b) 11/30 (c) 9/30 (d) None
Solution
(b)
P ( A − B ) = P ( A) − P ( A  B )
1 1
 = − P( A  B)
5 3
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1 1 5−3 2
 P( A  B) = − = =
3 5 15 15
1 2 15 − 4 11
P ( B − A) = P ( B ) − P ( A  B ) = − = =
2 15 30 30
CA NISHANT KUMAR
Question 38
There are three persons A, B and C having different ages. The probability that A survives
another 5 years is 0.80, B survives another 5 years is 0.60 and C survives another 5 years
is 0.50. The probabilities that A and B survive another 5 years is 0.46, B and C survive
another 5 years is 0.32 and A and C survive another 5 years 0.48. The probability that all
these three persons survive another 5 years is 0.26. Find the probability that at least one
of them survives another 5 years.
(a) 0.30 (b) 0.90 (c) 0.45 (d) None
Solution
(b)
CA NISHANT KUMAR
We have P ( A ) = 0.80 ; P ( B ) = 0.60 ; P ( C ) = 0.50 ; P ( A  B ) = 0.46 ; P ( B  C ) = 0.32
; P ( A  C ) = 0.48 ; P ( A  B  C ) = 0.26
We know that
 P ( A  B  C ) = 0.80 + 0.60 + 0.50 − 0.46 − 0.48 − 0.32 + 0.26 = 0.90
CA NISHANT KUMAR
Question 39
If a card is drawn at random from a pack of 52 cards, what is the chance of getting a
Spade or an ace?
(a) 4/13 (b) 5/13 (c) 0.25 (d) 0.20
Solution
(a)
Let event A be drawing of a Spade, and event B be drawing of an Ace.
13 4 1
P ( A) = ; P( B) = ; P ( A  B) =
52 52 52
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We know that P ( A  B ) = P ( A ) + P ( B ) − P ( A  B )
13 4 1 16
Therefore, P ( A  B ) = + − = = 0.30769
52 52 52 52
CA NISHANT KUMAR
Question 40
( ) ( )
If P A  B = 5 / 6 , P ( A ) = 1 / 2 and P B = 2 / 3 , what is P ( A  B ) ?
(a) 1/3 (b) 5/6 (c) 2/3 (d) 4/9
Solution
(c)
5 1 2
P ( A ' B ') = ; P ( A ) = ; P ( B ') =
6 2 3
5
P ( A ' B ') =
6
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5
 P( A  B)' =
6
5
 1− P( A  B) =
6
5
1− = P( A  B)
6
1
 P( A  B) =
6
2
P ( B ') =
3
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2
 1− P( B) =
3
2
1− = P( B)
3
1
 P( B) =
3
1 1 1 2
P ( A  B ) = P ( A) + P ( B ) − P ( A  B ) = + − =
2 3 6 3
CA NISHANT KUMAR
Conditional Probability and Compound Theorem of
Probability
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CA NISHANT KUMAR
Question 41
A box contains 5 white and 7 black balls. Two successive draws of 3 balls are made with
replacement. The probability that the first draw would produce white balls and the second
draw would produce black balls are respectively:
(a) 6/321 (b) 1/20 (c) 35/144 (d) 7/968
Solution
(d)
The balls are drawn “with replacement”. This means that after the first draw of three balls
is made, those three balls are returned to the bag, and thereafter another draw of three
balls is made.
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12  11 10
Total number of outcomes = n ( S ) = 5+7C3 = 12C3 = = 220
1 2  3
Let event A be the event of first draw of three balls. Since we need all white balls,
5 4
n ( A) = 5C3 = = 10
1 2
n ( A) 10
Therefore, P ( A) = =
n ( S ) 220
Let event B be the event of second draw of three balls. Since we need all black balls,
765
n ( B ) = 7C3 = = 35
1 2  3
CA NISHANT KUMAR
n ( B ) 35
Therefore, P ( B ) = =
n ( S ) 220
We need P ( A  B ) .
Since the number of favourable outcomes of event B won’t change because of happening
of event A, these events are independent, P ( A  B ) = P ( A )  P ( B )
10 35
 P( A  B) =  = 0.00723
220 220
CA NISHANT KUMAR
Question 42
A box contains 5 white and 7 black balls. Two successive draws of 3 balls are made
without replacement. The probability that the first draw would produce white balls and
the second draw would produce black balls are respectively:
(a) 3/926 (b) 1/30 (c) 35/108 (d) 5/264
Solution
(d)
The balls are drawn without replacement. This means that after the first draw of three
balls is made, these balls are not returned to the box.
CA NISHANT KUMAR
Let A be the event of first draw. Currently, there are 12 balls in the box. So, total number
12  11 10
of outcomes = n ( S ) = 5+7C3 = 12C3 = = 220
1 2  3
5 4
Since we need all white balls, n ( A) = 5C3 = = 10
1 2
n ( A) 10
Therefore, P ( A) = =
n ( S ) 220
Let B be the event of second draw. Now, there are only 9 balls in the box since 3 balls
have already drawn and not been returned. So, total number of outcomes
98 7
= n ( S ) = 9C3 = = 84
1 2  3
CA NISHANT KUMAR
765
Since we need all black balls, n ( B ) = 7C3 = = 35
1 2  3
n ( B ) 35
Therefore, P ( B ) = =
n ( S ) 84
We need P ( A  B ) .
Since the number of favourable outcomes of event B won’t change because of happening
of event A, these events are independent, P ( A  B ) = P ( A )  P ( B )
10 35
 P( A  B) =  = 0.018939
220 84
CA NISHANT KUMAR
Question 43
There are two urns containing 5 red and 6 white balls and 3 red and 7 white balls
respectively. If two balls are drawn from the first urn without replacement and transferred
to the second urn and then a draw of another two balls is made from it, what is the
probability that both the balls drawn are red?
(a) 7/20 (b) 35/88 (c) 65/726 (d) 3/20
Solution
(c)
Following three cases arise:
Case 1 – Both balls drawn from Urn I are Red
CA NISHANT KUMAR
Case 2 – Both balls drawn from Urn I are White
Case 3 – One ball drawn from Urn I is Red and the other ball is White
Case 1 – Both balls drawn from Urn I are Red

5
C2 10
Probability of drawing both red balls from Urn I = 11
=
C2 55
When these balls get transferred to Urn II, Urn II will have 5 Red and 7 White balls.
5
C2 10
Probability of drawing both red balls from Urn II = 12
=
C2 66
CA NISHANT KUMAR
Therefore, Probability of drawing both red balls from Urn II when both balls drawn from
 10 10 
Urn I are red =   
 55 66 
Case 2 – Both balls drawn from Urn I are White
6
C2 15
Probability of drawing both white balls from Urn I = 11
=
C2 55
3
C2 3
=
C2 66
CA NISHANT KUMAR
 15 3 
 55 66 
Case 3 – One ball drawn from Urn I is Red and the other ball is White
C1  6C1 30
5
Probability of drawing one red and one white ball from Urn I = 11 =
C2 55
4
C2 6
=
C2 66
CA NISHANT KUMAR
 11 6 
 55 66 
 10 10   15 3   30 6 
Therefore, Probability =    +    +    = 0.0891
 55 66   55 66   55 66 
CA NISHANT KUMAR
Question 44
What is the probability of having at least one ‘six’ from 3 throws of a perfect die?
(b) ( 5 / 6 ) (c) 1 − (1/ 6 ) (d) 1 − ( 5 / 6 )
3 3 3
(a) 5 / 6
Solution
(d)
CA NISHANT KUMAR
Question 45
Tom speaks truth in 30 percent cases and Dick speaks truth in 25 percent cases. What is
the probability that they would contradict each other?
(a) 0.325 (b) 0.400 (c) 0.925 (d) 0.075
Solution
(b)
30
Probability that Tom speaks truth = = 0.30
100
Probability that Tom does not speak truth = 1 – 0.30 = 0.70
Probability that Dick speaks truth = 0.25
CA NISHANT KUMAR
Probability that Dick does not speak truth = 1 – 0.25 = 0.75
They both would contradict each other when one speaks the truth and the other does not.
So, we’ll have two cases –
1. Either Tom speaks the truth and Dick does not, or
2. Dick speaks the truth and Tom does not
Probability that Tom speaks the truth and Dick does not = 0.30 × 0.75 = 0.225
Probability that Dick speaks the truth and Tom does not = 0.25 × 0.70 = 0.175
Probability that both of them contradict each other = 0.225 + 0.175 = 0.4000
CA NISHANT KUMAR
Question 46
There are three persons aged 60, 65 and 70 years old. The survival probabilities for these
three persons for another 5 years are 0.7, 0.4 and 0.2 respectively. What is the probability
that at least two of them would survive another five years?
(a) 0.425 (b) 0.456 (c) 0.392 (d) 0.388
Solution
(d)
Person Probability of Survival Probability of Non-Survival
A 0.7 0.3
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B 0.4 0.6
C 0.2 0.8
(0.7 × 0.4 × 0.8) + (0.7 × 0.2 × 0.6) + (0.4 × 0.2 × 0.3) + (0.7 × 0.4 × 0.2) = 0.388
CA NISHANT KUMAR
Question 47
A problem in probability was given to three CA students A, B and C whose chances of
solving it are 1/3, 1/5 and 1/2 respectively. What is the probability that the problem would
be solved?
(a) 4/15 (b) 7/8 (c) 8/15 (d) 11/15
Solution
(d)
Student Probability of Solving Probability of Non-Solving
A 1/3 2/3
B 1/5 4/5
C ½ ½
CA NISHANT KUMAR
2 4 1
1 −     = 0.733
3 5 2
CA NISHANT KUMAR
Question 48
Rupesh is known to hit a target in 5 out of 9 shots whereas David is known to hit the
same target in 6 out of 11 shots. What is the probability that the target would be hit once
they both try?
(a) 79/99 (b) 77/88 (c) 88/150 (d) 11/15
Solution
(a)
4 5 
1 −    = 0.7979
 9 11 
Question 49
CA NISHANT KUMAR
If 8 balls are distributed at random among three boxes, what is the probability that the
first box would contain 3 balls?
OR
8 identical balls are placed at random in three bags. What is the probability that the first
bag will contain 3 balls?
(a) 0.2731 (b) 0.3256 (c) 0.1924 (d) 0.3443
Solution
(a)
The first ball can be distributed to the 1st box or 2nd box or 3rd box, i.e., it can be distributed
in 3 ways. Similarly, the second ball also can be distributed in 3 ways. Thus, the first two
CA NISHANT KUMAR
balls can be distributed in 32 ways. Proceeding this way, we find that 8 balls can be
distributed to 3 boxes in 38 ways which is the total number of elementary events.
Let A be the event that the first box contains 3 balls which implies that the remaining 5
balls must go to the remaining 2 boxes which, as we have already discussed, can be done
in 25 ways. Since 3 balls out of 8 balls can be selected in 8C3 ways, the event can occur
in 8C3 × 25 ways, thus we have:
8
C3  25 56  32 1792
P ( A) = = =
38 6561 6561
CA NISHANT KUMAR
Question 50
For two events A and B, P ( B ) = 0.3, P ( A but not B ) = 0.4 , and P ( not A ) = 0.6 . The
events A and B are:
(a) exhaustive (b) independent (c) equally likely (d) mutually exclusive
Solution
(d)
P ( B ) = 0.3
P ( A − B ) = 0.4
P ( A ') = 0.6
CA NISHANT KUMAR
P ( A − B ) = P ( A) − P ( A  B )
P ( A ') = 1 − P ( A )
P ( A ) = 1 − P ( A ' ) = 1 − 0.6 = 0.4
P ( A − B ) = P ( A) − P ( A  B )
P ( A  B ) = P ( A) − P ( A − B )
P ( A  B ) = 0.4 − 0.4 = 0
CA NISHANT KUMAR
Question 51
2 2
If, for two independent events A, and B, P ( A  B ) = and P ( A ) = , what is P ( B ) ?
3 5
(a) 4/15 (b) 4/9 (c) 5/9 (d) 7/15
Solution
(b)
P ( A  B ) = P ( A) + P ( B ) − P ( A  B )
= + P ( B ) − P ( A)  P ( B )
2 2
3 5
CA NISHANT KUMAR
2 2 2 
= + P ( B ) −   P ( B )
3 5 5 
2 2 2
= + P( B) − P( B)
3 5 5
2 2 3
= + P( B)
3 5 5
3 2 2
P( B) = −
5 3 5
2 2 5 4
P ( B) =  −   =
3 5 3 9
Question 52
CA NISHANT KUMAR
A packet of 10 electronic components is known to include 2 defectives. If a sample of 4
components is selected at random from the packet, what is the probability that the sample
does not contain more than 1 defective?
(a) 1/3 (b) 2/3 (c) 13/15 (d) 3/15
Solution
(c)
10  9  8  7
1 2  3  4
Case 1 – No defectives
CA NISHANT KUMAR
No. of ways of selecting 4 components such that none is defective =
8 7  6 5
8
C4 = = 70
1 2  3  4
Case 2 – Only 1 defective
We need one defective; this can be obtained in 2 C1 = 2 ways.
8 7  6
We need the other three non-defectives; this can be obtained in 8 C3 = = 56 ways.
1 2  3
Therefore, only one defective in a sample of 4 can be obtained in 2 × 56 = 112 ways.
Therefore, number of favourable outcomes = 70 + 112 = 182
Probability = 182/210 = 0.867
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 53
Mr. Roy is selected for three separate posts. For the first post, there are three candidates,
for the second, there are five candidates and for the third, there are 10 candidates. What
is the probability that Mr. Roy would be selected?
(a) 13/25 (b) 14/25 (c) 15/25 (d) None
Solution
(a)
Let Post 1 be denoted by A, Post 2 be denoted by B, and Post 3 be denoted by C.
1
Probability that Mr. Roy would get selected in A = P ( A ) = ;
3
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1
Probability that Mr. Roy would get selected in B = P ( B ) = ;
5
1
Probability that Mr. Roy would get selected in C = P ( C ) =
10
Probability that Mr. Roy would get selected in A or B or C = P ( A  B  C )
If we subtract the probability of Mr. Roy not getting selected at all from the total
probability, i.e., 1, we’ll get the desired result.
Probability that Mr. Roy would not get selected at all =
P ( A ' B ' C ') = P ( A ' )  P ( B ' )  P ( C ' )
CA NISHANT KUMAR
 1  1  1
= 1 −   1 −   1 −  = 0.48
 3   5   10 
Probability that Mr. Roy would get selected = 1 – 0.48 = 0.52
CA NISHANT KUMAR
Question 54
X and Y stand in a line with 6 other people. What is the probability that there are 3 persons
between them?
(a) 1/5 (b) 1/6 (c) 1/7 (d) 1/3
Solution
(c)
There are 8 people in total. They can be arranged in 8! ways.
Therefore, total number of outcomes = 8! = 40,320
We need to select 3 people out of 6 people (since we need to exclude X and Y). This can
be done in 6 C3 ways. Now, let’s consider them as one unit.
CA NISHANT KUMAR
Now, we have X, these three, Y, and the remaining 3 persons.
Let’s see in how many ways they can be arranged. Consider X, the selected three, and Y
as 1 unit. Now, there are 4 distinct units:
1. X, the three selected, and Y
2. The remaining three persons
These four people can be arranged in 4! ways.
Also, the three selected can be arranged among themselves in 3! ways.
Also, X and Y can be arranged among themselves in 2! ways.
65 4
⸫ Favourable number of outcomes = 6 C3  4!  3!  2! =  24  6  2 = 5,760
1 2  3
Probability = 5,760/40,320 = 0.142857
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 55
Given that P ( A ) = 1 / 2 , P ( B ) = 1 / 3 , P ( A  B ) = 1 / 4 , what is P ( A '/ B ' ) ?
(a) ½ (b) 7/8 (c) 5/8 (d) 2/3
Solution
(c)
P ( A ' B ') P ( A  B ) ' 1 − P ( A  B ) 1 −  P ( A) + P ( B ) − P ( A  B ) 
P ( A '/ B ') = = = =
P ( B ') 1− P( B) 1− P( B) 1− P( B)
CA NISHANT KUMAR
1 1 1
1−  + − 
P ( A '/ B ') =  2 3 4  = 0.625
1
1−
3
CA NISHANT KUMAR
Question 56
The odds in favour of an event is 2 : 3 and the odds against another event is 3 : 7. Find
the probability that only one of the two events occurs.
(a) 25/50 (b) 27/50 (c) ½ (d) None
Solution
(b)
2
Odds in Favour of ( A ) =
3
Therefore, number of favourable outcomes of A = 2
Number of unfavourable outcomes of A = 3
CA NISHANT KUMAR
Total number of outcomes of A = 3 + 2 = 5
2
Therefore, P ( A ) =
5
3
Odds Against ( B ) =
7
Therefore, number of unfavourable outcomes of B = 3
Number of favourable outcomes of B = 7
Total number of outcomes of B = 10
7
P( B) =
10
CA NISHANT KUMAR
2 7 7
P ( A  B ) = P ( A)  P ( B ) =  =
5 10 25
Probability that only one of them occurs:
2 7  7 
P ( A) + P ( B ) − 2 P ( A  B ) = + −  2   = 0.54
5 10  25 
CA NISHANT KUMAR
Question 57
For a group of students, 30%, 40% and 50% failed in Physics, Chemistry, and at least
one of the two subjects respectively. If an examinee is selected at random, what is the
probability that he passed in Physics if it is known that he failed in Chemistry?
(a) ½ (b) 1/3 (c) ¼ (d) 1/6
Solution
(a)
Given P ( P ) = 0.30 ; P ( C ) = 0.40 ; P ( P  C ) = 0.50
P ( P  C ) = P ( P ) + P (C ) − P ( P  C )
CA NISHANT KUMAR
 P ( P  C ) = 0.30 + 0.40 − 0.50 = 0.20
P ( P ' C ) P ( C ) − P ( P  C ) 0.40 − 0.20

Therefore, P ( P '/ C ) = = = = 0.50
P (C ) P (C ) 0.40
CA NISHANT KUMAR
Expected Value of a Random Variable
CA NISHANT KUMAR
Question 58
In a business venture, a man can make a profit of ₹50,000 or incur a loss of ₹20,000. The
probabilities of making profit or incurring loss, from the past experience, are known to
be 0.75 and 0.25 respectively. What is his expected profit?
(a) ₹42,500 (b) ₹32,500 (c) ₹35,000 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 59
A bag contains 6 white and 4 red balls. If a person draws 2 balls and receives ₹10 and
₹20 for a white and red balls respectively, then his expected amount is:
(a) ₹25 (b) ₹26 (c) ₹29 (d) ₹28
Solution
(d)
Both White Balls = 20
Both Red Balls = 40
One White One Red = 30
CA NISHANT KUMAR
 6 C2   4 C2   6 C1  4C1 
=  10  20  +  10  40  +  10  30 
 C2   C2   C2 
 15   6   24 
=   20  +   40  +   30  = 28
 45   45   45 
CA NISHANT KUMAR
Question 60
Moidul draws 2 balls from a bag containing 3 white and 5 Red balls. He gets ₹500 if he
draws a white ball and ₹200 if he draws a red ball. What is his expectation? If he is asked
to pay ₹400 for participating in the game, would he consider it a fair game and
participate?
(a) ₹625; No (b) ₹625; Yes (c) ₹450; Yes (d) ₹450; No
Solution
(b)
CA NISHANT KUMAR
Question 61
A packet of 10 electronic components is known to include 3 defectives. If 4 components
are selected from the packet at random, what is the expected value of the number of
defective?
(a) 1.20 (b) 1.21 (c) 1.69 (d) 1.72
Solution
(a)
There could be 0 defectives, 1 defective, 2 defectives, or 3 defectives.
CA NISHANT KUMAR
765
7 7
P ( x = 0 ) = 10 4 = 10 3 = 1 2  3 =
C C 35
C4 C4 10  9  8  7 210
1 2  3  4
7
C3  3C1 35  3 105
P ( x = 1) = 10 = =
C4 210 210
7
C2  3C2 7 C2  3C1 21 3 63
P ( x = 2 ) = 10 = 10 = =
C4 C4 210 210
7
C1  3C3 7  1 7
P ( x = 3) = 10 = =
C4 210 210
E ( x ) =  px
CA NISHANT KUMAR
 35   105   63   7 
E ( x) =   0 +   1 +   2 +   3  = 1.2
 210   210   210   210 
CA NISHANT KUMAR
Question 62
The probability that there is at least one error in an account statement prepared by 3
persons A, B and C are 0.2, 0.3 and 0.1 respectively. If A, B and C prepare 60, 70 and 90
such statements, then the expected number of correct statements is:
(a) 170 (b) 176 (c) 178 (d) 180
Solution
(c)
The probability that there is at least one error in an account statement prepared by 3
persons A, B and C are 0.2, 0.3 and 0.1 respectively.
CA NISHANT KUMAR
Therefore, probability that there is no error in an account statement prepared by 3 persons
A, B and C are (1 – 0.2), (1 – 0.3) and (1 – 0.1) respectively.
A, B and C prepare 60, 70 and 90 such statements.
Therefore, probability that there is no error in an account statement prepared by 3 persons
A, B and C are 0.80, 0.70, and 0.90 respectively.
Expected Number of Correct Statements = ( 60  0.80 ) + ( 70  0.70 ) + ( 90  0.90 ) = 178
CA NISHANT KUMAR
Question 63
A random variable x has the following probability distribution:
x 0 1 2 3 4 5 6 7
P(x) 0 2k 3k k 2k k2 7k2 2k2 + k
Find the value of k.
(a) 0.10 (b) 0.50 (c) 0.40 (d) 0.31
Solution
(a)
 P ( x) = 1
0 + 2k + 3k + k + 2k + k 2 + 7k 2 + 2k 2 + k = 1
CA NISHANT KUMAR
10k 2 + 9k = 1
10k 2 + 9k − 1 = 0
10k 2 + 10k − k − 1 = 0
10k ( k + 1) − 1( k + 1) = 0
(10k − 1)( k + 1) = 0
1
k= = 0.10
10
CA NISHANT KUMAR
Question 64
A random variable x has the following probability distribution:
x 0 1 2 3 4 5 6 7
P(x) 0 2k 3k k 2k k2 7k2 2k2 + k
Find the value of P ( x  3) .
(a) 0.10 (b) 0.50 (c) 0.40 (d) 0.31
Solution
(b)
P ( x  3) = P ( x = 0 ) + P ( x = 1) + P ( x = 2 )
CA NISHANT KUMAR
P ( x  3) = 0 + ( 2  0.10 ) + ( 3  0.10 ) = 0.50
CA NISHANT KUMAR
Question 65
A random variable has the following probability distribution:
x: 4 5 7 8 10
P: 0.15 0.20 0.40 0.15 0.10
Find E  x − E ( x )  . Also, find v ( 3 x − 4 ) .
2
(a) 3.04; 29.36 (b) 3.04; 27.36 (c) 4.04; 27.36 (d) None
Solution
(b)
Formulas to be used:
CA NISHANT KUMAR
 = E ( x ) =  px
E ( x 2 ) =  px 2
 2 = E ( x −  ) = E ( x2 ) −  2
2
E ( x ) =  px = ( 0.15  4 ) + ( 0.20  5 ) + ( 0.40  7 ) + ( 0.15  8 ) + ( 0.10  10 ) = 6.60
E ( x − E ( x )) = E ( x −  ) = E ( x2 ) −  2
2 2
E ( x 2 ) =  px 2 = ( 0.15  42 ) + ( 0.20  52 ) + ( 0.40  7 2 ) + ( 0.15  82 ) + ( 0.10  102 ) = 46.60
 2 = ( 6.60 ) = 43.56
2
CA NISHANT KUMAR
E ( x − E ( x ) ) = E ( x −  ) = E ( x 2 ) −  2 = 46.60 − 43.56 = 3.04
2 2
This is the variance.

Therefore,  x 2 = 3.04
y = 3x − 4
Variancey = ( y )
2
Variancey = ( b   x )
2
( )
2
Variancey = 3  3.04 = 27.36
Question 66
CA NISHANT KUMAR
The following data relate to the distribution of wages of a group of workers:
Wages in ₹: 50-60 60-70 70-80 80-90 90-100 100-110 110-120
No. of Workers: 15 23 36 42 17 12 5
If a worker is selected at random from the entire group of workers, what is the probability
that his wage would be more than ₹100?
37 17 19
(a) 0 (b) (c) (d)
75 150 30
Solution
(c)
CA NISHANT KUMAR
Theoretical Distributions
CA NISHANT KUMAR
Binomial Distribution
Binomial Distribution is used to find out the probability where the total no. of outcomes
is huge. The probability is given by the following formula:
P ( x ) = nCx p x q n− x , for x = 0, 1, 2, 3, …, n
Here,
n = number of times the experiment is repeated
x = the requirement of the question
p = probability of success in each trial
q = probability of failure in each trial = 1 – p
Sometimes, P ( x ) is also written as f ( x ) . f ( x ) is called “Probability Mass Function”.
CA NISHANT KUMAR
Conditions
Binomial distribution is applicable only if the following conditions are satisfied:
1. All the trials are independent, and
2. Each trial has only two outcomes.
CA NISHANT KUMAR
Page 16.4 – Example 16.1 (i)
A coin is tossed 10 times. Assuming the coin to be unbiased, what is the probability of
getting 4 heads?
(a) 107/512 (b) 105/512 (c) 106/512 (d) None
Solution
(b)
Here n = 10; p = ½; q = ½; x = 4
We know that P ( x ) = nCx p x q n− x
CA NISHANT KUMAR
4 10 − 4
1 1
Therefore, P ( 4 ) = 10C4     = 0.20507
2 2
CA NISHANT KUMAR
Page 16.4 – Example 16.2
If 15 dates are selected at random, what is the probability of getting two Sundays?
(a) 0.29 (b) 0.48 (c) 0.56 (d) None
Solution
(a)
Here n = 15; p = 1/7; q = 1 – 1/7 = 6/7; x = 2
2 13
1 6
P ( x = 2 ) = 15C2     = 0.2888  0.29
7 7
CA NISHANT KUMAR
Exercise – Set B – Question 6
What is the probability of getting 3 heads if 6 unbiased coins are tossed simultaneously?
(a) 0.50 (b) 0.25 (c) 0.3125 (d) 0.6875
Solution
(c)
Here, n = 6; p = 0.5; q = 0.5; x = 3
P ( x ) = nC x p x q n − x
P ( x = 3) = 6C3 ( 0.5) ( 0.5)

3 6 −3
= 0.3125
CA NISHANT KUMAR
What is the probability of making 3 correct guesses in 5 True – False answer type
questions?
(a) 0.3125 (b) 0.5676 (c) 0.6875 (d) 0.4325
Solution
(a)
Here, n = 5; p = 0.5; q = 0.5; x = 3
P ( x ) = nC x p x q n − x
P ( x = 3) = 5C3 ( 0.5) ( 0.5)

3 5 −3
= 0.3125
CA NISHANT KUMAR
Page 16.4 – Example 16.1 (ii)
getting at least 4 heads?
(a) 848/1024 (b) 848/1025 (c) 849/1024 (d) None
Solution
(a)
Here n = 10; p = ½; q = ½; x ≥ 4
P ( x  4 ) = P ( x = 4 ) + P ( x = 5 ) + P ( x = 6 ) + P ( x = 7 ) + P ( x = 8 ) + P ( x = 9 ) + P ( x = 10 )
CA NISHANT KUMAR
Or P ( x  4 ) = 1 − P ( x  4 )
 P ( x  4 ) = 1 −  P ( x = 0 ) + P ( x = 1) + P ( x = 2 ) + P ( x = 3) 
 10  1 0  1 10 10  1 1  1 9 10  1  2  1 8 10  1 3  1 7 
 P ( x  4 ) = 1 −  C0     + C1     + C2     + C3     
 2 2 2 2 2 2  2   2  
 P ( x  4 ) = 1 −  0.171875 = 0.828125
CA NISHANT KUMAR
Page 16.4 – Example 16.1 (iii)
getting at most 3 heads?
(a) 13/64 (b) 12/64 (c) 11/64 (d) None
Solution
(c)
Here n = 10; p = ½; q = ½; x ≤ 4
P ( x  3) = P ( x = 0 ) + P ( x = 1) + P ( x = 2 ) + P ( x = 3)
CA NISHANT KUMAR
0 10 1 9 2 8 3 7
1 1 1 1 1 1 1 1
 P ( x  3) = 10C0     + 10C1     + 10C2     + 10C3    
2 2 2 2 2  2  2  2
 P ( x  3) = 0.171875
CA NISHANT KUMAR
The incidence of occupational disease in an industry is such that the workmen have a
10% chance of suffering from it. What is the probability that out of 5 workmen, 3 or more
will contract the disease?
(a) 0.0906 (b) 0.0086 (c) 0.8006 (d) None
Solution
(b)
Here n = 5; p = 0.10; q = 1 – 0.10 = 0.90; x ≥ 3
CA NISHANT KUMAR
P ( x  3) = P ( x = 3) + P ( x = 4 ) + P ( x = 5 )
 P ( x  3) = 5C3 ( 0.10 ) ( 0.90 ) + 5C4 ( 0.10 ) ( 0.90 ) + 5C5 ( 0.10 ) ( 0.90)

3 2 4 1 5 0
 P ( x  3) = 0.00856  0.0086
CA NISHANT KUMAR
If the overall percentage of success in an exam is 60, what is the probability that out of a
group of 4 students, at least one has passed?
(a) 0.6525 (b) 0.9744 (c) 0.8704 (d) 0.0256
Solution
(b)
Pass percentage is 60. This means 60%. This means that p = 0.6. Therefore, q = 0.4.
Therefore, we have, n = 4; p = 0.6; q = 0.4; x  1
P ( x ) = nC x p x q n − x
CA NISHANT KUMAR
P ( x  1) = 1 − P ( x  1)
P ( x  1) = 1 − P ( x = 0 )
P ( x  1) = 1 − 4C0 ( 0.6 ) ( 0.4 )

0 4 −0
P ( x  1) = 1 − 0.0256
P ( x  1) = 0.9744
CA NISHANT KUMAR
Exercise – Set C – Question 1
If it is known that the probability of a missile hitting a target is 1/8, what is the probability
that out of 10 missiles fired, at least 2 will hit the target?
(a) 0.4258 (b) 0.3968 (c) 0.5238 (d) 0.3611
Solution
(d)
1
We have n = 10; p = = 0.125; q = 1 − 0.125 = 0.875; x  2
8
P ( x  2) = 1 − P ( x  2)
CA NISHANT KUMAR
P ( x  2 ) = 1 −  P ( x = 0 ) + P ( x = 1) 
P ( x  2 ) = 1 −  10 C0 ( 0.125) ( 0.875) +10 C1 ( 0.125) ( 0.875) 

0 10 1 9
 
P ( x  2 ) = 0.3611
CA NISHANT KUMAR
In 10 independent rollings of a biased die, the probability that an even number will appear
5 times is twice the probability that an even number will appear 4 times. What is the
probability that an even number will appear twice when the die is rolled 8 times?
(a) 0.0304 (b) 0.1243 (c) 0.2315 (d) 0.1926
Solution
(a)
Since it is a biased die, we can’t say that the probability of even number in every trial is
3/6. Therefore, p ≠ 3/6. From the given information, we’ll have to calculate the value of
p first.
CA NISHANT KUMAR
Clearly, n = 10; p = p; q = 1 – p
Given:
P ( x = 5) = 2P ( x = 4 )
 10C5 p 5q 5 = 2  10 C4 p 4 q 6 
 252 p5q5 = 2  210 p 4q6

p 5 2  210 q 6
 4=  5
p 252 q
5
 p= q
3
CA NISHANT KUMAR
 3 p = 5q
 3 p = 5 (1 − p )
 3p = 5 − 5p
 3p + 5p = 5
8p = 5
5
 p=
8
5 3
 q = 1− =
8 8
Now, we have n = 8; p = 5/8; q = 3/8; x = 2
CA NISHANT KUMAR
2 6
5  3
P ( x = 8 ) = 8C2     = 0.0304
8 8
CA NISHANT KUMAR
Find the probability of a success for the binomial distribution satisfying the following
relation 4 P ( x = 4 ) = P ( x = 2 ) and having the parameter n as six.
(a) 1 (b) 1/3 (c) 2/3 (d) None
Solution
(b)
4P ( x = 4) = P ( x = 2)
 4  6C4 p 4 q 2 = 6C2 p 2 q 4
CA NISHANT KUMAR
p4 q4
 4 2 = 2
p q
 4 p2 = q2
 4 p 2 = (1 − p )
2
Now try the options.
CA NISHANT KUMAR
An experiment succeeds thrice as after it fails. If the experiment is repeated 5 times, what
is the probability of having no success at all?
(a) 1/1024 (b) 2/3 (c) 1/1025 (d) None
Solution
(a)
We have n = 5; p = 3q ; x = 0
p = 3q
 p = 3 (1 − p )
CA NISHANT KUMAR
 p = 3− 3p
 4p = 3
3
 p=
4
1
q=
4
0 5
3 1 1
P ( x = 0 ) = C0     =
5
 4   4  1024
CA NISHANT KUMAR
Important Points
1. Binomial Distribution is applicable when the random variable (x) is discrete.
2. As n  0 , p, q  0 , therefore, f ( x )  0 for every x.
Also,  f ( x ) = f ( 0 ) + f (1) + f ( 2 ) + f ( 3) + ... + f ( n ) = 1
3. Binomial distribution is known as bi-parametric distribution as it is characterised by
two parameters n and p. This means that if the values of n and p are known, then the
distribution is known completely.
4. The mean of the binomial distribution is given by  = np .
5. A binominal distribution is symmetrical when p = q.
CA NISHANT KUMAR
x is a binomial variable with n = 20. What is the mean of x if it is known that x is
symmetric?
(a) 5 (b) 10 (c) 2 (d) 8
Solution
(b)
If x is symmetric, p = q = 0.5.
Therefore, mean = np = 20 × 0.5 = 10
CA NISHANT KUMAR
x is a binomial variable such that 2 P ( x = 2 ) = P ( x = 3) and mean of x is known to be
10/3. What would be the probability that x assumes at most the value 2?
(a) 16/81 (b) 17/81 (c) 47/243 (d) 46/243
Solution
(b)
10
Mean = np =
3
2 P ( x = 2 ) = P ( x = 3)
CA NISHANT KUMAR
2  nC2 p 2 q n−2 = nC3 p3q n−3
n! n!
2  p 2q n−2 =  p 3  q n −3
2!( n − 2 )! 3!( n − 3)!
n! n!
 p 2q n−2 =  p 3  q n −3
( n − 2 )! 6 ( n − 3 )!
1 1
 q n−2 =  p  q n −3
( n − 2 )! 6 ( n − 3 )!
( n − 3)! = pq n−3
( n − 2 )! 6 q n − 2
CA NISHANT KUMAR
( n − 3 )! = pq
n − 3− ( n − 2 )
( n − 2 )( n − 3)! 6
1 pq n −3− n + 2
=
n−2 6
1 pq −1
=
n−2 6
1 p
=
n − 2 6q
6q = np − 2 p
6 (1 − p ) = np − 2 p
CA NISHANT KUMAR
6 − 6 p = np − 2 p
6 − np = 6 p − 2 p
10
6− = 4p
3
10 18 − 10
6−
p= 3 = 3 = 8 4= 8 1 = 2
4 4 3 3 4 3
1
q=
3
2 10
n =  2n = 10  n = 5
3 3
CA NISHANT KUMAR
P ( x  2 ) = P ( x = 0 ) + P ( x = 1) + P ( x = 2 )
0 5 1 4 2 3
 2 1 2 1 5  2 1
P ( x  2 ) = 5C0     + 5C1     + C2    
 3 3 3  3  3 3
P ( x  2 ) = 0.20987
CA NISHANT KUMAR
If a random variable x follows binomial distribution with mean as 5 and satisfying the
condition 10 P ( x = 0 ) = P ( x = 1) , what is the value of P ( x  1 / x  0 ) ?
(a) 0.67 (b) 0.56 (c) 0.99 (d) 0.82
Solution
(c)
Given Mean = np = 5
Given 10 P ( x = 0 ) = P ( x = 1)
 10  nC0 p 0q n = nC1 p1q n −1
CA NISHANT KUMAR
 10 11 q n = n  p  q n−1
 10  (1 − p ) = np (1 − p )
n n −1
np (1 − p )
n
 10 (1 − p )
n
=
(1 − p )
 10 (1 − p ) (1 − p ) = np (1 − p )
n n
 10 (1 − p ) = np
 10 − 10 p = np
Putting the value of np = 5 above, we get:
10 − 10 p = 5
CA NISHANT KUMAR
 10 p = 10 − 5
 10 p = 5
5 1
 p= =
10 2
1
q=
2
Putting the value of p in np = 5, we get:
np = 5
1
 n =5
2
CA NISHANT KUMAR
 n = 5  2 = 10
P ( x  1)  P ( x  0 ) 1 − P ( x  1) 1 − P ( x = 0 )
P ( x  1/ x  0 ) = = = =1
P ( x  0) 1 − P ( x = 0) 1 − P ( x = 0)
CA NISHANT KUMAR
Important Points (Contd.)
6. Mode of a Binomial Distribution is given by 0 = ( n + 1) p
a. If the value of ( n + 1) p is an integer (i.e., without decimal part), then the
binomial distribution is said to have two modes. It is called a bi-modal binomial
distribution. The two modes are given by:
i. ( n + 1) p , and
ii. ( n + 1) p  − 1
CA NISHANT KUMAR
1
For example, if, in a binomial distribution, n = 11, and p = , then ( n + 1) p =
2
1 12
(11 + 1) = = 6 (Integer). Therefore, this binomial distribution will have

2 2
two modes:
i. ( n + 1) p = 6
ii. ( n + 1) p  − 1 = 6 − 1 = 5
b. If the value of ( n + 1) p is a fraction (i.e., with a decimal part), then the binomial
distribution is said to have one mode. It is called a unimodal binomial
distribution. Its mode is given by the largest integer contained in ( n + 1) p.
CA NISHANT KUMAR
1
For example, if, in a binomial distribution, n = 12 , and p = , then ( n + 1) p =
3
1 13
(12 + 1) = = 4.33

3 3
Since the answer is a fraction, this binomial distribution has only one mode. Its
mode is given by the largest integer contained in ( n + 1) p . Therefore, the mode
is 4.
CA NISHANT KUMAR
If x is a binomial variate with parameter 15 and 1/3, what is the value of mode of the
distribution?
(a) 5 and 6 (b) 5 (c) 5.50 (d) 6
Solution
(b)
1
Mode = ( n + 1) p = (15 + 1)  = 5.33
3
Since this is a fraction, mode is the highest integer, i.e., 5.
CA NISHANT KUMAR
7. The variance of the binomial distribution is given by  2 = npq .
a. Variance of a binomial distribution is always less than its mean.
n
b. If p = q = 0.5, variance is the maximum, and is given by .
4
8. Standard Deviation of a binomial distribution is given by  = npq .
CA NISHANT KUMAR
If X ~ B (n, p), what would be the greatest value of the variance of x when n = 16?
(a) 2 (b) 4 (c) 8 (d) 5
Solution
(b)
In a binomial distribution, the value of the variance is maximum when p = q = 0.5.
Variance is given by n/4 = 16/4 = 4.
CA NISHANT KUMAR
What is the standard deviation of the number of recoveries among 48 patients when the
probability of recovering is 0.75?
(a) 36 (b) 81 (c) 9 (d) 3
Solution
(d)
Here, n = 48; p = 0.75
Standard Deviation of a Binomial Distribution =  = npq = 48  0.75  0.25 = 3
CA NISHANT KUMAR
What is the number of trials of a binomial distribution having mean and SD as 3 and 1.5
respectively?
(a) 2 (b) 4 (c) 8 (d) 12
Solution
(d)
Mean of a Binomial Distribution is given by np = 3
SD of a Binomial Distribution is given by npq = 1.5
Putting the value of np = 3 above, we get 3q = 1.5
CA NISHANT KUMAR
( ) = (1.5 )
2

2
3q
 3q = 2.25
2.25
q= = 0.75
3
If q = 0.75, p = 1 – 0.75 = 0.25
Therefore, we have n 0.25 = 3
3
n= = 12
0.25
CA NISHANT KUMAR
Find the binomial distribution for which mean and standard deviation are 6 and 2
respectively.
x 18 − x x 18 − x x 18 − x
181  2 20 1  2 22 1  2
(a) C x     (b) Cx     (c) Cx     (d) None
3  3 3  3 3  3
Solution
(a)
Mean = np = 6
Standard Deviation = npq = 2
CA NISHANT KUMAR
Squaring both sides, we get:
( )
2
npq = 22
 npq = 4
Substituting the value of np = 6 in the above equation, we get:
6q = 4
4 2
q= =
6 3
2 1
 p = 1− =
3 3
Substituting the value of p from above in the equation np = 6, we get:
CA NISHANT KUMAR
np = 6
1
 n = 6
3
 n = 6  3 = 18
x n− x
1  2
Therefore, Binomial Distribution = 18 C x    
3  3
CA NISHANT KUMAR
What is the mode of the distribution for which mean and SD are 10 and 5 respectively?
(a) 10 (b) 11 (c) 10 and 11 (d) None
Solution
(a)
Mean = np = 10
Standard Deviation = npq = 5
Squaring both sides:
CA NISHANT KUMAR
( ) = ( 5)
2 2
npq
 10q = 5
5 1
q= =
10 2
1
 p=
2
Putting the value of p from above in the equation np = 10
1
n = 10
2
 n = 2 10 = 20
CA NISHANT KUMAR
Mode is dependent on the value of ( n + 1) p
1 21
( n + 1) p = ( 20 + 1)  = = 10.5
2 2
Since it is fractional, Mode is the largest integer contained in it.
Therefore, Mode = 10
CA NISHANT KUMAR
9. Additive property of binomial distribution:
Let x and y be two independent binomial distributions where x has the parameters
n1 and p, and y has the parameters n2 and p. Then ( x + y ) will be a binomial
distribution with parameters ( n1 + n2 ) and p.
CA NISHANT KUMAR
If x and y are 2 independent binomial variables with parameters 6 and ½ and 4 and ½
respectively, what is P ( x + y  1) ?
(a) 1023/1024 (b) 1024/1023 (c) Both (d) None
Solution
(a)
1
We have n1 = 6 ; n2 = 4 ; p =
2
Let z = x + y
CA NISHANT KUMAR
1
The parameters of z will be: n1 + n2 = 6 + 4 = 10 and p =
2
P ( z  1) = 1 − P ( z  1)
 P ( z  1) = 1 − P ( z = 0 )
 10  1 0  1 10 
 P ( z  1) = 1 −  C0     
  2   2  
 P ( z  1) = 1 − 0.0009765625 = 0.9990234375
CA NISHANT KUMAR
10. Sometimes, Binomial Distribution is also written as B(n, p). So, if, in a question
you find something like “X~B(5, 0.4)”, it means that n = 5, and p = 0.4. Here, X
denotes the requirement of the question.
CA NISHANT KUMAR
General Questions
CA NISHANT KUMAR
Exercise – Set A – Question 9
The probability mass function of binomial distribution is given by:
(a) f ( x ) = p x q n− x (b) f ( x ) = nCx p x q n− x (c) f ( x ) = nCx q x p n− x (d) f ( x ) = nCx p n− x q x
Solution
(b)
CA NISHANT KUMAR
If x is a binomial variable with parameters n and p, then x can assume:
(a) any value between 0 and n
(b) any value between 0 and n, both inclusive.
(c) any whole number between 0 and n, both inclusive.
(d) any number between 0 and infinity.
Solution
(c)
CA NISHANT KUMAR
The mean of a binomial distribution with parameter n and p is
(a) n (1 − p ) (b) np (1 − p ) (c) np (d) np (1 − p )
Solution
(c)
CA NISHANT KUMAR
The mean of binomial distribution is:
(a) always more than its variance.
(b) always equal to its variance
(c) always less than its variance
(d) always equal to its standard deviation
Solution
(a)
CA NISHANT KUMAR
For a binomial distribution, mean and mode
(a) are never equal
(b) are always equal.
(c) are equal when q = 0.50
(d) do not always exist
Solution
(c)
CA NISHANT KUMAR
For a binomial distribution, there may be:
(a) one mode (b) two modes (c) Multi-mode (d) (a) or (b)
Solution
(c)
CA NISHANT KUMAR
The variance of a binomial distribution with parameters n and p is:
(a) np 2 (1 − p ) np (1 − p ) (c) nq (1 − q ) (d) n2 p 2 (1 − p )
2
(b)
Solution
(c)
CA NISHANT KUMAR
The maximum value of the variance of a binomial distribution with parameters n and p
is:
(a) n/2 (b) n/4 (c) np (1 − p ) (d) 2n
Solution
(b)
CA NISHANT KUMAR
Poisson Distribution
Poisson Distribution is used to find out the probability where the total no. of outcomes is
too huge and the probability of success is extremely small. The probability is given by
the following formula:
e− m  m x
P ( x) = , for x = 0, 1, 2, 3, …, n
x!
Here,
e = exponential constant = 2.71828
m = mean = np
x = the requirement of the question
Sometimes, P ( x ) is also written as f ( x ) . f ( x ) is called “Probability Mass Function”.
CA NISHANT KUMAR
If 1 per cent of an airline’s flights suffer a minor equipment failure in an aircraft, what is
the probability that there will be exactly two such failures in the next 100 such flights?
(a) 0.50 (b) 0.184 (c) 0.265 (d) 0.256
Solution
(b)
1
Here, we have n = 100; p = = 0.01
100
Therefore, m = np = 100  0.01 = 1
CA NISHANT KUMAR
( 2.71828 ) (1)
−1 2
P ( x = 2) =
2!
1
P ( x = 2) = = 0.1839
2  2.71828
CA NISHANT KUMAR
If 1.5 per cent of items produced by a manufacturing unit are known to be defective, what
is the probability that a sample of 200 items would contain no defective item?
(a) 0.05 (b) 0.15 (c) 0.20 (d) 0.22
Solution
(a)
1.5
Here n = 200; p = = 0.015
100
Therefore, m = np = 200  0.015 = 3
CA NISHANT KUMAR
( 2.71828 )  ( 3)
−3 0
P ( x = 0) =
0!
1
P ( x = 0) = = 0.0497
( 2.71828)
3
CA NISHANT KUMAR
Page 16.14 – Example 16.15 (1)
Between 9 AM and 10 AM, the average number of phone calls per minute coming into
the switchboard of a company is 4. Find the probability that during one particular minute,
there will be no phone calls. (given e−4 = 0.018316 )
(a) 0.018316 (b) 0.18416 (c) 0.018416 (d) None
Solution
(a)
m=4
e− m .m x
P ( x) =
x!
CA NISHANT KUMAR
e −4 ( 4 )
0
0.018316  1
P ( x = 0) = = = 0.018316
0! 1
CA NISHANT KUMAR
Page 16.14 – Example 16.15 (2)
Between 9 AM and 10 AM, the average number of phone calls per minute coming into
the switchboard of a company is 4. Find the probability that during one particular minute,
there will be at most 3 phone calls. (given e−4 = 0.018316 )
(a) 0.33 (b) 0.43 (c) 0.55 (d) None
Solution
(b)
e− m .m x
P ( x) =
x!
P ( x  3) = P ( x = 0 ) + P ( x = 1) + P ( x = 2 ) + P ( x = 3)
CA NISHANT KUMAR
e −4 ( 4 ) e −4 ( 4 ) e −4 ( 4 ) e −4 ( 4 )
0 1 2 3
P ( x  3) = + + +
0! 1! 2! 3!
0.018316  ( 4 ) 0.018316  ( 4 ) 0.018316  ( 4 ) 0.018316  ( 4 )
0 1 2 3
P ( x  3) = + + +
0! 1! 2! 3!
P ( x  3)  0.43
CA NISHANT KUMAR
Page 16.15 – Example 16.16 (1)
If 2 per cent of electric bulbs manufactured by a company are known to be defectives,
what is the probability that a sample of 150 electric bulbs taken from the production
process of that company would contain exactly one defective bulb?
(a) 0.33 (b) 0.43 (c) 0.15 (d) None
Solution
(c)
2
Here, n = 150; p = = 0.02
100
m = np = 150  0.02 = 3
CA NISHANT KUMAR
e− m .m x
P ( x) =
x!
2.71828−3  31 3
P ( x = 1) = = 3
 0.15
1! 2.71828
CA NISHANT KUMAR
Page 16.15 – Example 16.16 (2)
If 2 per cent of electric bulbs manufactured by a company are known to be defectives,
what is the probability that a sample of 150 electric bulbs taken from the production
process of that company would contain more than 2 defective bulbs?
(a) 0.33 (b) 0.58 (c) 0.15 (d) None
Solution
(b)
2
Here, n = 150; p = = 0.02
100
m = np = 150  0.02 = 3
CA NISHANT KUMAR
e− m .m x
P ( x) =
x!
P ( x  2 ) = 1 − P ( x  2)
P ( x  2 ) = 1 −  P ( x = 0 ) + P ( x = 1) + P ( x = 2 ) 
 2.71828−3  30 2.71828−3  31 2.71828−3  32 

P ( x  2) = 1 −  + + 
 0! 1! 2! 
P ( x  2 )  0.58
CA NISHANT KUMAR
The manufacturer of a certain electronic component is certain that two per cent of his
product is defective. He sells the components in boxes of 120 and guarantees that not
more than two per cent in any box will be defective. Find the probability that a box,
selected at random, would fail to meet the guarantee? Given that e–2.40 = 0.0907.
(a) 0.43 (b) 0.58 (c) 0.15 (d) None
Solution
(a)
2
Here, n = 120; p = = 0.02
100
CA NISHANT KUMAR
m = np = 120  0.02 = 2.40
e− m .m x
As per Poisson Distribution, P ( x ) =
x!
A box, selected at random would fail to meet the guarantee if more than 2.40 components
turn out to be defective.
P ( x  2.40 ) = 1 − P ( x  2.40 )
P ( x  2.40 ) = 1 −  P ( x = 0 ) + P ( x = 1) + P ( x = 2 ) 
 e−2.40 .( 2.40 )0 e−2.40 .( 2.40 )1 e−2.40 .( 2.40 )2 

P ( x  2.40 ) = 1 −  + + 
 0! 1! 2! 
CA NISHANT KUMAR
 0.0907  1 0.0907  2.40 0.0907.( 2.40 )2 
P ( x  2.40 ) = 1 −  + + 
 1 1 2 
P ( x  2.40 )  0.43
CA NISHANT KUMAR
A renowned hospital usually admits 200 patients every day. One per cent patients, on an
average, require special room facilities. On one particular morning, it was found that only
one special room is available. What is the probability that more than 3 patients would
require special room facilities?
(a) 0.1428 (b) 0.1732 (c) 0.2235 (d) 0.3450
Solution
(a)
1
Here n = 200 ; p =
100
CA NISHANT KUMAR
1
Therefore, m = np = 200  =2
100
e− m m x
P ( x) =
x!
P ( x  3) = 1 − P ( x  3)
P ( x  3) = 1 −  P ( x = 0 ) + P ( x = 1) + P ( x = 2 ) + P ( x = 3) 
 e −2  20 e −2  21 e −2  22 e −2  23 
P ( x  3) = 1 −  + + + 
 0! 1! 2! 3! 
CA NISHANT KUMAR
 ( 2.71828)−2  20 ( 2.71828)−2  21 ( 2.71828)−2  22 ( 2.71828)−2  23 
P ( x  3) = 1 −  + + + 
 0! 1! 2! 3! 
 1 2 4 8 
P ( x  3) = 1 −  + + + 2
 ( 2.71828) ( 2.71828) 2  ( 2.71828) 6  ( 2.71828) 
2 2 2
 1  4 8 
P ( x  3) = 1 −  2 
1 + 2 + + 
 ( 2.71828)  2 6 
P ( x  3) = 1 −  0.8571 = 0.1428
CA NISHANT KUMAR
Exercise – Set C – Question 12 – Ambiguous
A car hire firm has 2 cars which are hired out every day. The number of demands per day
for a car follows Poisson distribution with mean 1.20. What is the proportion of days on
which some demand is refused? (Given e1.20 = 3.32)
(a) 0.25 (b) 0.3012 (c) 0.12 (d) 0.03
Solution
(d)
Here, m = 1.20 ; x  2
e− m m x
P ( x) =
x!
CA NISHANT KUMAR
P ( x  2) = 1 − P ( x  2)
P ( x  2 ) = 1 −  P ( x = 0 ) + P ( x = 1) + P ( x = 2 ) 
 e −1.20  1.200 e −1.20  1.201 e −1.20  1.202 

P ( x  2) = 1 −  + + 
 0! 1! 2! 
 1 1.20 1.44 
P ( x  2 ) = 1 −  1.20 + 1.20 +
e e 2  e1.20 
 1  1.44 
P ( x  2 ) = 1 −  1.20  1 + 1.20 + 
e  2 
CA NISHANT KUMAR
 1  1.44 
P ( x  2) = 1 −   1 + 1.20 +  = 0.12
 3.32  2 
CA NISHANT KUMAR
X is a Poisson variate satisfying the following condition
9 P ( X = 4 ) + 90 P ( X = 6 ) = P ( X = 2 ) . What is the value of P ( X  1) ?
(a) 0.5655 (b) 0.6559 (c) 0.7358 (d) 0.8201
Solution
(c)
9 P ( X = 4 ) + 90 P ( X = 6 ) = P ( X = 2 )
e− m m4 e − m m6 e − m m 2
 9 + 90  =
4! 6! 2!
CA NISHANT KUMAR
9e− m m4 90e− m m6 e− m m2
 + =
24 720 2
3e− m m4 e− m m6 e− m m 2
 + =
8 8 2
3e− m m4 + e− m m6 e − m m 2
 =
8 2
e− m m4 ( 3 + m2 ) e− m m2
 =
8 2
m2 ( 3 + m2 )
 =1
4
CA NISHANT KUMAR
 m2 ( 3 + m2 ) = 4
 3m2 + m4 = 4
 m 4 + 3m 2 − 4 = 0
Let t = m2
Then t 2 + 3t − 4 = 0
 t 2 + 4t − t − 4 = 0
 t ( t + 4 ) − 1( t + 4 ) = 0
 ( t − 1)( t + 4 ) = 0
 t = 1; − 4
CA NISHANT KUMAR
Since t cannot be negative, therefore, t = 1.
m2 = 1  m = 1
P ( X  1) = P ( X = 0 ) + P ( X = 1)
e− m m0 e− m m1
 P ( X  1) = +
0! 1!
e−1  1 e−1  1
 P ( X  1) = +
1 1
 P ( X  1) = e−1 + e−1
2 2
 P ( X  1) = 2e−1 = = = 0.7358
e 2.71828
CA NISHANT KUMAR
A discrete random variable x follows Poisson Distribution. Find the value of
P ( x = at least1) . You are given E ( x ) = 2.20 and e −2.20 = 0.1108
(a) 0.89 (b) 0.95 (c) 0.10 (d) None
Solution
(a)
P ( x = at least1)
P ( x  1) = 1 − P ( x  1)
P ( x  1) = 1 − P ( x = 0 )
CA NISHANT KUMAR
e −2.20 .( 2.20 )
0
P ( x  1) = 1 −
0!
0.1108  1
P ( x  1) = 1 − = 0.8892
1
CA NISHANT KUMAR
A discrete random variable x follows Poisson Distribution. Find the value of
P ( X  2 / X  1) . You are given E ( x ) = 2.20 and e −2.20 = 0.1108
(a) 0.89 (b) 0.58 (c) 0.10 (d) None
Solution
(b)
P ( x  2 / x  1)
P ( x  2 )  ( x  1) 
P ( x  2 / x  1) =
P ( x  1)
CA NISHANT KUMAR
P ( x = 1) + P ( x = 2 )
P ( x  2 / x  1) = (Imagine a number line, and then imagine the
1 − P ( x  1)
common shaded region between ( x  2 ) and ( x  1) .
P ( x = 1) + P ( x = 2 )
P ( x  2 / x  1) =
1 − P ( x = 0)
e −2.20  2.201 e −2.20  2.202

+
P ( x  2 / x  1) = 1!
−2.20
2!
e  2.200
1−
0!
CA NISHANT KUMAR
0.1108  2.202
0.1108  2.20 +
P ( x  2 / x  1) = 2  0.58
1 − 0.1108
CA NISHANT KUMAR
Important Points
1. Poisson Distribution is applicable when the random variable (x) is discrete.
1
2. Since e− m = m  0, whatever may be the value of m (>0), it follows that f ( x )  0
e
for every x.
Also,  f ( x ) = f ( 0 ) + f (1) + f ( 2 ) + f ( 3) + ... + f ( n ) = 1.
3. Poisson distribution is known as a uniparametric distribution as it is characterised
by only one parameter m.
4. The mean of Poisson distribution is given by m, i.e.,  = m = np.
5. The variance of Poisson distribution is given by  2 = m = np.
6. The standard deviation of Poisson distribution is given by  = m = np .
CA NISHANT KUMAR
If the mean of a Poisson variable x is 1, what is P (x = takes the value at least 1)?
(a) 0.456 (b) 0.821 (c) 0.632 (d) 0.254
Solution
(c)
e− m  m x
P ( x) =
x!
Here, we have m = 1; x  1
P ( x  1) = 1 − P ( x  1)
CA NISHANT KUMAR
P ( x  1) = 1 − P ( x = 0 )
( 2.71828 ) (1)
−1 0
P ( x  1) =1−
0!
1
P ( x  1) = 1 −
2.71828
P ( x  1) = 0.6321
CA NISHANT KUMAR
For a Poisson variate x, P (x = 1) = P (x = 2). What is the mean of x?
(a) 1.00 (b) 1.50 (c) 2.00 (d) 2.50
Solution
(c)
P ( x = 1) = P ( x = 2 )
e− m m1 e− m m 2
=
1! 2!
CA NISHANT KUMAR
m2
m=
2
2m = m 2
m=2
CA NISHANT KUMAR
Find the mean and standard deviation of x where x is a Poisson variate satisfying the
condition P ( x = 2 ) = P ( x = 3) .
(a) 3.00 (b) 1.50 (c) 2.00 (d) 2.50
Solution
(a)
P ( x = 2 ) = P ( x = 3)
e− m .m2 e− m .m3
=
2! 3!
CA NISHANT KUMAR
m 2 m3
=
2 6
6 m 2 = 2 m3
6 m3
= 2
2 m
m=3
Therefore, mean = 3.
Standard Deviation ( ) = m = 3
CA NISHANT KUMAR
The standard deviation of a Poisson variate is 1.732. What is the probability that the
variate lies between –2.3 to 3.68?
(a) 3.00 (b) 1.50 (c) 0.65 (d) 2.50
Solution
(c)
 = m = 1.732
 m = (1.732 ) = 3
2
P ( −2.3  x  3.68 ) = P ( x = 0 ) + P ( x = 1) + P ( x = 2 ) + P ( x = 3)
CA NISHANT KUMAR
e−3 .30 e−3 31 e−3 32 e−3 33
P ( −2.3  x  3.68) = + + +
0! 1! 2! 3!
 1 3 9 27 
P ( −2.3  x  3.68) = e−3  + + + 
1 1 2 6 
1  1 3 9 27 
P ( −2.3  x  3.68 ) =   + + +  = 0.647  0.65
( 2.71828)  1 1 2 6 
3
CA NISHANT KUMAR
x is a Poisson variate satisfying the following relation:
P ( x = 2 ) = 9 P ( x = 4 ) + 90 P ( x = 6 )
What is the standard deviation of x?

(a) 2 (b) 1 (c) 4 (d) 3
Solution
(b)
P ( x = 2 ) = 9 P ( x = 4 ) + 90 P ( x = 6 )
CA NISHANT KUMAR
e− m .m2 e− m .m4 e− m .m6
= 9 + 90 
2! 4! 6!
e− m .m2 9e− m .m4 90e − m .m6
= +
2 24 720
e− m .m2 3e− m .m4 e− m .m6
= +
2 8 8
e− m .m2 3e − m m 4 + e − m m6
=
2 8
e− m m2 e m ( 3 + m )
−m 4 2
=
2 8
CA NISHANT KUMAR
1 m (3 + m )
2 2
=
2 8
m2 ( 3 + m2 ) = 4

Option (a) → 2
If Standard Deviation is 2, then m = 4.
(
LHS: 42 3 + 42  4 )
Option (b) → 1
CA NISHANT KUMAR
If Standard Deviation is 2, then m = 1
( )
LHS: 12 3 + 12 = 4
CA NISHANT KUMAR
If the standard deviation of a Poisson variate x is 2, what is P (1.5 < x < 2.9)?
(a) 0.231 (b) 0.158 (c) 0.15 (d) 0.144
Solution
(d)
Standard Deviation = m =2m=4
e− m  m x
We know that P ( x ) = , for x = 0, 1, 2, 3, …, n
x!
Since x can only take integral values, 1.5 < x < 2.9  x = 2.
CA NISHANT KUMAR
( 2.71828)
−4
 42 16
Therefore, P ( x = 2 ) = = = 0.1465
( 2.71828)
4
2! 2
CA NISHANT KUMAR
If X ~ P (m) and its coefficient of variation is 50, what is the probability that X would
assume only non-zero values?
(a) 0.018 (b) 0.982 (c) 0.989 (d) 0.976
Solution
(b)
SD
CV =  100
AM
m
50 =  100
m
CA NISHANT KUMAR
50 m
=
100 m m
1
0.5 =
m
0.5 m = 1
1
m=
0.5
2
( m)  1 
2
= 
 0.5 
m=4
CA NISHANT KUMAR
P ( x  0) = 1 − P ( x  0)
P ( x  0) = 1 − P ( x = 0)
e− m m x
P ( x  0) = 1 −
x!
( 2.71828 ) ( 4 )
−4 0
P ( x  0) =1−
0!
1
P ( x  0) = 1 −
( 2.71828 )
4
P ( x  0 ) = 0.982
CA NISHANT KUMAR
CA NISHANT KUMAR
If for a Poisson variable x, f ( 2 ) = 3 f ( 4 ) , what is the variance of x?
(a) 2 (b) 4 (c) 2 (d) 3
Solution
(a)
f ( 2) = 3 f ( 4)
 P ( x = 2 ) = 3P ( x = 4 )
e− m m2 e− mm4
 = 3
2! 4!
CA NISHANT KUMAR
1 m2
 = 3
2 24
 6m 2 = 24
24
 m2 =
6
 m2 = 4
m= 4 =2
CA NISHANT KUMAR
A random variable x follows Poisson distribution, and its coefficient of variation is 50.
What is the value of P ( x  1 / x  0 ) ?
(a) 0.1876 (b) 0.2341 (c) 0.9254 (d) 0.8756
Solution
(c)
SD
CV =  100
AM
In Poisson Distribution SD is square root of AM.
CA NISHANT KUMAR
SD = AM
AM
Therefore, CV = 100
AM
100
 CV =
AM
 50 AM = 100
100
 AM = =2
50
 AM ( m ) = 4
CA NISHANT KUMAR
P ( x  1)  P ( x  0 )
P ( x  1/ x  0 ) =
P ( x  0)
P ( x  1)
 P ( x  1/ x  0 ) =
P ( x  0)
1 − P ( x  1)
 P ( x  1/ x  0 ) =
1 − P ( x = 0)
1 − P ( x = 0 ) + P ( x = 1)
 P ( x  1/ x  0 ) =
1 − P ( x = 0)
CA NISHANT KUMAR
 e − m m 0 e − m m1 
1−  + 
 P ( x  1 / x  0) =  0! 1! 
−m 0
e m
1−
0!
 e −4  40 e −4  41 
1−  + 
 P ( x  1 / x  0) =  0! 1! 
−4
e 4 0
1−
0!
CA NISHANT KUMAR
 e −4  1 e −4  4 
1−  + 
 P ( x  1 / x  0) =  1 1 
−4
e 1
1−
1
1 − e−4 + 4e−4 
 P ( x  1/ x  0 ) =
1 − e−4
1 − 5e−4
 P ( x  1/ x  0 ) =
1 − e−4
CA NISHANT KUMAR
5
1−
 P ( x  1 / x  0) = e
1
1− 4
e
5
1−
( 2.71828)

0.90842
 P ( x  1 / x  0) = = = 0.9254
1 0.98168
1−
( 2.71828)
4
CA NISHANT KUMAR
7. Like binomial distribution, Poisson distribution could be also unimodal or bimodal
depending upon the value of the parameter m.
a. If m is an integer, there are two modes:
i. m
ii. m – 1
b. If m is a fraction, the mode is given by the largest integer contained in m.
CA NISHANT KUMAR
The probability that a random variable x following Poisson Distribution would assume a
( )
positive value is 1 − e −2.7 . What is the mode of the distribution?
(a) 2 (b) 3 (c) 4 (d) None
Solution
(a)
Given
P ( x  0 ) = 1 − e−2.7
1 − P ( x  0 ) = 1 − e−2.7
CA NISHANT KUMAR
1 − P ( x = 0 ) = 1 − e−2.7
P ( x = 0 ) = e−2.7
e − m m0
= e−2.7
0!
e − m = e −2.7
m = 2.7
Since m is fractional, mode will be the largest value of integer contained in it. Therefore,
mode = 2.
CA NISHANT KUMAR
8. Poisson approximation to Binomial distribution
When n is rather large and p is rather small so that m = np is moderate then
B ( n, p )  P ( m ) .
9. Additive property of Poisson distribution:
Let x and y be two independent poisson distributions where x has the parameter m1 ,
and y has the parameter m2 . Then ( x + y ) will be a poisson distribution with
parameter ( m1 + m2 ) .
CA NISHANT KUMAR
Normal or Gaussian Distribution
 −( x −  )2 
 
1  2 2 
P( x) = f ( x) = .e  
, for –∞ < x < ∞
 2
Here,
e = exponential constant = 2.71828
x = random variable
μ = mean of the normal random variable x
σ = standard deviation of the given normal distribution
Sometimes, P ( x ) is also written as f ( x ) . f ( x ) is called “Probability Density Function”.
CA NISHANT KUMAR
−( x − 4 )
2
e
For a random variable x, the probability density function is given by: f ( x ) = , for

−  x   . Identify the distribution and find its mean and variance.
1 3 1
(a)  = 4 ;  2 = (b)  = 4 ;  2 = (c)  = 5 ;  2 = (d) None
2 2 2
Solution
(a)
CA NISHANT KUMAR
 −( x −  )2 
 
1  2 2 
The standard normal density function is given by P ( x ) = f ( x ) = .e  
.
 2
−( x − 4 )
2
e
Given: f ( x ) =

The breakup of the power of e is analysed as follows:
Standard Formula Formula as per Question
−( x −  ) − ( x − 4)
2 2
2 2 1
−1 −1
(  ) ( )
2 2
  x −   x − 4
2 2 1
Comparing it with the standard formula, we have:
CA NISHANT KUMAR
(x − ) = ( x − 4)
2 2
Therefore, Mean (  ) = 4
−1 −1
Also, we have =
2 2 1
 2 2 = 1
1
 2 =
2
Therefore, mean is 4 and variance is ½.
CA NISHANT KUMAR
What is the coefficient of variation of x, characterised by the following probability
1
density function: f ( x ) = −( x −10 ) /32
2
e for −  x   ?
4 2
(a) 50 (b) 60 (c) 40 (d) 30
Solution
(c)
 −( x −  )2 
 
1  2 2 
The standard form is P ( x ) = f ( x ) = .e  
 2
CA NISHANT KUMAR
1
Given: f ( x ) = −( x −10 ) /32
2
e
4 2
−( x −  ) − ( x − 10 )
2 2
2 2 32
−1 −1
(  )   ( x − 10 )
2 2
  x −
2 2 32
Comparing the given equation with the standard form, we have  = 10 .
CA NISHANT KUMAR
1 1
Also, we have − =− 2
32 2
2 2 = 32
 2 = 16
 =4
SD 4
CV =  100 =  100 = 40
AM 10
CA NISHANT KUMAR
Important Points
1. Normal Distribution is applicable when the random variable (x) is continuous.
2. If we plot the probability function y = f ( x ) , then the curve, known as probability
curve, takes the following shape:
The area under this curve gives us the probability.
CA NISHANT KUMAR
3. The area between –∞ and μ = the area between μ and ∞ = 0.5
 − z2 
 
1
4. If μ = 0, and σ = 1, we have f ( z ) = e  2 
, for –∞ < z < ∞.
2
The random variable z is known as standard normal variate (or variable) or standard
x−
normal deviate. It is given by z = .

5. Normal distribution is bell shaped.
6. It is unimodal.
7. The normal distribution is known as biparametric distribution as it is characterised
by two parameters μ and σ2. Once the two parameters are known, the normal
distribution is completely specified.
8. Since the normal distribution is symmetrical about its mean (μ), Mean = Median =
Mode.
CA NISHANT KUMAR
9. Relationship between MD, SD, and QD → 4SD = 5MD = 6QD
10. Mean Deviation = 0.8σ.
11. Quartile Deviation = 0.675σ.
CA NISHANT KUMAR
( )
If the two quartiles of N  ,  2 are 14.6 and 25.4 respectively, what is the standard
deviation of the distribution?
(a) 9 (b) 6 (c) 10 (d) 8
Solution
(d)
We know that Quartile Deviation = 0.675σ
Q3 − Q1 25.4 − 14.6
Quartile Deviation = = = 5.4
2 2
CA NISHANT KUMAR
QD 5.4
Therefore,  = = =8
0.675 0.675
CA NISHANT KUMAR
The quartile deviation of a normal distribution with mean 10 and SD 4 is:
(a) 0.675 (b) 67.50 (c) 2.70 (d) 3.20
Solution
(c)
QD = 0.675SD
QD = 0.675 × 4 = 2.70
CA NISHANT KUMAR
If the mean deviation of a normal variable is 16, what is its quartile deviation?
(a) 10 (b) 13.5 (c) 15 (d) 12.05
Solution
(b)
We know that 4SD = 5MD = 6QD
5 × 16 = 6QD
QD = 80 ÷ 6 = 13.33
CA NISHANT KUMAR
If the 1st quartile and mean deviation about median of a normal distribution are 13.25 and
8 respectively, then the mode of the distribution is
(a) 20 (b) 10 (c) 15 (d) 12
Solution
(a)
Q1 = 13.25
MD = 8
Mean Deviation = 0.8σ
CA NISHANT KUMAR
Quartile Deviation = 0.675σ
Standard Deviation = 8/0.8 = 10
Quartile Deviation = 0.675 × 10 = 6.75
Q3 − Q1
QD =
2
Q3 − 13.25
6.75 =
2
Q3 = ( 2  6.75 ) + 13.25 = 26.75
Q1 + Q3 13.25 + 26.75
Median = = = 20
2 2
CA NISHANT KUMAR
The mean deviation about median of a standard normal variate is:
(a) 0.675 (b) 0.675 (c) 0.80 (d) 0.80
Solution
(d)
A standard normal random variable is a normally distributed random variable with mean
μ = 0 and standard deviation σ = 1.
Therefore, mean deviation = 0.80 × 1 = 0.80
CA NISHANT KUMAR
If the quartile deviation of a normal curve is 4.05, then its mean deviation is:
(a) 5.26 (b) 6.24 (c) 4.24 (d) 4.80
Solution
(d)
4SD = 5MD = 6QD
5MD = 6QD
MD = 6QD/5 = (6 × 4.05)/5 = 4.86
CA NISHANT KUMAR
If the two quartiles of a normal distribution are 47.30 and 52.70 respectively, what is the
mode of the distribution? Also find the mean deviation about median of this distribution.
(a) 50; 3.20 (b) 100; 4.20 (c) 50; 4.20 (d) None
Solution
(a)
We know Q1 =  − 0.675 and Q2 =  + 0.675
Therefore,
 − 0.675 = 47.30 …Eq. (1)
CA NISHANT KUMAR
 + 0.675 = 52.70 …Eq. (2)
Adding both the equations, we’ll get:
2 = 100
100
= = 50
2
In a normal distribution, Mean = Median = Mode; therefore, Mode = 50
Putting the value of  = 50 in Eq. (1), we’ll get:
50 − 0.675 = 47.30
 0.675 = 50 − 47.30 = 2.70
CA NISHANT KUMAR
2.70
 = =4
0.675
We know that MD = 0.8SD
 MD = 0.8  4 = 3.20
CA NISHANT KUMAR
12. Q1 and Q3 are equidistant from the median, therefore,
i. Q1 =  − 0.675 , and
ii. Q3 =  + 0.675
CA NISHANT KUMAR
What is the first quartile of x having the following probability density function?
1
f ( x) =
−( x −10 ) /72
2
e for −  x  
72
(a) 4 (b) 5 (c) 5.95 (d) 6.75
Solution
(c)
Q1 =  − 0.675
CA NISHANT KUMAR
 −( x −  )2 
 
1  2 2 
The standard format is P ( x ) = f ( x ) = .e  
 2
Comparing this with the given expression, we have  = 10 .
1 1
Also, we have − =− 2
72 2
2 2 = 72
 2 = 36
 =6
Q1 =  − 0.675 = 10 − ( 0.675  6 ) = 5.95
CA NISHANT KUMAR
13. Median − Q1 = Q3 − Median.
14. The normal distribution is symmetric about Therefore, its skewness is zero,
i.e., the curve is neither tilted towards right (negatively skewed), nor towards left
(positively skewed).
CA NISHANT KUMAR
15. Points of inflexion – A normal curve has two inflexion points, i.e., the points
where the curve changes its shape from concave to convex, and from convex to
concave. These two points are given by:
i. x =  −  , and
ii. x =  + 
CA NISHANT KUMAR
CA NISHANT KUMAR
For a standard normal distribution, the points of inflexion are given by:
(a)  −  and  +  (b) − and  (c) –1 and 1 (d) 0 and 1
Solution
(c)
A standard normal random variable is a normally distributed random variable with mean
μ = 0 and standard deviation σ = 1.
CA NISHANT KUMAR
If the points of inflexion of a normal curve are 40 and 60 respectively, then its mean
deviation is:
(a) 8 (b) 45 (c) 50 (d) 60
Solution
(a)
Points of inflexion are given by x =  −  , and x =  +  .
Therefore, 40 =  −  , and 60 =  + 
Adding them, we get 100 = 2   = 50
CA NISHANT KUMAR
Putting this value in equation 1, we get  = 50 − 40 = 10
We know that 4SD = 5MD = 6QD
4SD = 5MD
4 × 10 = 5MD
MD = 8
CA NISHANT KUMAR
1
Find the points of inflexion of the normal curve f ( x ) =
−( x −10 ) /32
2
.e for −  x  .
4 2
Solution
(a)
 −( x −  )2 
 
1  2 2 
The standard normal density function is given by P ( x ) = f ( x ) = .e  
.
 2
CA NISHANT KUMAR
1
Given: f ( x ) =
−( x −10 ) /32
2
.e
4 2
−( x −  ) − ( x − 10 )
2 2
2 2 32
−1 −1
(  ) ( )
2 2
  x −   x − 10
2 2 32
Comparing it with the standard formula, we have:
(x − ) = ( x − 10 )
2 2
Therefore, Mean (  ) = 10
CA NISHANT KUMAR
−1 −1
Also, we have =
2 2 32
 2 2 = 32
32
 2 = = 16
2
  = 16 = 4
We know that points of inflexion are given by  −  and  + 
Therefore,  −  = 10 − 4 = 6 ;  +  = 10 + 4 = 14
CA NISHANT KUMAR
16. In a normal distribution, μ ± 1σ covers 68.27% of area, μ ± 2σ covers 95.45%
of area, and μ ± 3σ covers 99.73% of area.
CA NISHANT KUMAR
The interval (  − 3 ,  + 3 ) covers:
(a) 95% area of a normal distribution
(b) 96% area of a normal distribution
(c) 99% area of a normal distribution
(d) all but 0.27% area of a normal distribution
Solution
(d)
CA NISHANT KUMAR
17. Under a normal distribution, the area enclosed between mean (μ) and 1σ is
0.34135; mean and 2σ is 0.47725; and mean and 3σ is 0.49865.
18. In case of normal distribution
i. Highest Value = Mean + Half of Range, and
ii. Lowest Value = Mean – Half of Range
19. Normal Distribution with X = 0 , and  = 1 is known as Standard Normal
Distribution.
20. The height of normal curve is maximum at the Mean Value.
21. Additive Property: If there are two Independent Normal Distributions
( ) ( )
x ~ N 1 ,  12 and y ~ N 2 ,  2 2 , then z = x + y follows normal distribution with
mean ( 1 +  2 ) and SD =  12 +  2 2 respectively.
CA NISHANT KUMAR
CA NISHANT KUMAR
x and y are independent normal variables with mean 100 and 80 respectively and standard
deviation as 4 and 3 respectively. What is the distribution of (x + y)?
(a) 180; 5 (b) 190; 10 (c) 180; 10 (d) None
Solution
(a)
Mean of z = 100 + 80 = 180
SD =  12 +  2 2
SD = 42 + 32 = 25 = 5
CA NISHANT KUMAR
If x and y are 2 independent normal variables with mean as 10 and 12 and SD as 3 and 4,
then (x + y) is normally distributed with:
(a) Mean = 22 and SD = 7 (b) Mean = 22 and SD = 25
(c) Mean = 22 and SD = 5 (d) Mean = 22 and SD = 49
Solution
(c)
Mean = 10 + 12 = 22
SD =  12 +  2 2
CA NISHANT KUMAR
SD = 32 + 42 = 25 = 5
CA NISHANT KUMAR
Problems on Finding Probability Through Graph
CA NISHANT KUMAR
x follows normal distribution with mean as 50 and variance as 100. What is P ( x  60 ) ?
Given  (1) = 0.8413 .
(a) 0.16 (b) 0.26 (c) 0.36 (d) None
Solution
(a)
Given:  = 50 ;  = 100 = 10
x− 60 − 50
For x = 60, Z = = =1
 10
CA NISHANT KUMAR
P ( x  60 ) = P ( Z  1)
Z = –3 Z = –2 Z = –1 Z=0 Z=1 Z=2 Z=3
CA NISHANT KUMAR
As can be seen from the above diagram, the area to the right side of Z = 1 is 13.59 + 2.14
+ 0.14 = 15.87%  16% or 0.16
However, this is not always so straightforward and simple. The  (1) = 0.8413 given in
the question denotes the area from the left end to Z = 1; and we know that the total area
of the graph is 1. So, if we subtract 0.8413 from 1, we’ll get the desired area.
Therefore, 1 – 0.8413 = 0.1587  0.16
CA NISHANT KUMAR
In a sample of 500 workers of a factory, the mean wage and SD of wages are found to be
₹500 and ₹48 respectively. Find the number of workers having wages more than ₹600.
Given that  ( 2.08 ) = 0.9812
(a) 0.0188 (b) 9 (c) 10 (d) None
Solution
(b)
Given:  = 500 ;  = 48
x−
Z=

CA NISHANT KUMAR
600 − 500
For x = 600; Z = = 2.08
48
P ( x  600 ) = P ( Z  2.08 ) = 1 −  ( 2.08 ) = 1 − 0.9812 = 0.0188
Therefore, number of workers = 0.0188 × 500 = 9.4  9
CA NISHANT KUMAR
₹500 and ₹48 respectively. Find the number of workers having wages less than ₹450.
Given that  (1.04 ) = 0.8508 .
(a) 0.1492 (b) 75 (c) 10 (d) None
Solution
(b)
Given:  = 500 ;  = 48
x−
Z=

CA NISHANT KUMAR
450 − 500
For x = 450; Z = = −1.04
48
Since the graph is symmetrical,  ( − k ) = 1 −  ( k )
P ( x  450 ) = P ( z  −1.04 ) =  ( −1.04 ) = 1 −  ( 0.14 ) = 1 − 0.8505 = 0.1492
CA NISHANT KUMAR
Page 16.27 – Example 16.27 (iii)
₹500 and ₹48 respectively. Find the number of workers having wages between ₹548 and
₹600. Given that  ( 2.08 ) = 0.9812 ;  (1) = 0.8413 .
(a) 70 (b) 75 (c) 0.1399 (d) None
Solution
(a)
Given:  = 500 ;  = 48
x−
Z=

CA NISHANT KUMAR
548 − 500
For x = 548; Z = =1
48
600 − 500
For x = 600; Z = = 2.08
48
P ( 548  x  600 ) = P (1  z  2.08 ) =  ( 2.08 ) −  (1) = 0.9812 − 0.8413 = 0.1399
CA NISHANT KUMAR
In a sample of 800 students, the mean weight and standard deviation of weight are found
to be 50 kg and 20 kg respectively. On the assumption of normality, what is the number
of students weighing between 46 kg and 62 kg? Given area of the standard normal curve
between z = 0 to z = 0.20 = 0.0793 and area between z = 0 to z = 0.60 = 0.2257.
(a) 250 (b) 244 (c) 240 (d) 260
Solution
(b)
Here, n = 800;  = 50 ;  = 20
CA NISHANT KUMAR
x−
z=

46 − 50
For x = 46; z = = −0.2
20
62 − 50
For x = 62; z = = 0.6
20
P ( 46  x  62 ) = P ( −0.2  x  0.6 )
We need the area from –0.2 to 0, and then from 0 to 0.6. We are given the area from 0
to 0.2. This will be obviously the same as the area from –0.2 to 0.
Therefore, the area = 0.0793 + 0.2257 = 0.305
Therefore, number of students = 0.305 × 800 = 244
CA NISHANT KUMAR
CA NISHANT KUMAR
The distribution of wages of a group of workers is known to be normal with mean ₹500
and SD ₹100. If the wages of 100 workers in the group are less than ₹430, what is the
total number of workers in the group? Given  ( 0.70 ) = 0.758 .
(a) 413 (b) 400 (c) 500 (d) None
Solution
(a)
Given:  = 500 ;  = 100
x−
Z=

CA NISHANT KUMAR
430 − 500
For x = 430; Z = = −0.70
100
We know that  ( − k ) = 1 −  ( k )
P ( x  430 ) = P ( z  −0.70 ) =  ( −0.70 ) = 1 −  ( 0.70 ) = 1 − 0.758 = 0.242

Let the total number of workers be n.
Number of workers whose wages are less than 430 = 0.242 × n
Therefore, 100 = 0.242 × n
n = 100 ÷ 0.242 = 413.22  413
CA NISHANT KUMAR
The salary of workers of a factory is known to follow normal distribution with an average
salary of ₹10,000 and standard deviation of salary as ₹2,000. If 50 workers receive salary
more than ₹14,000, then the total no. of workers in the factory is:
(a) 2,193 (b) 2,000 (c) 2,200 (d) 2,500
Solution
(a)
Given:  = 10,000 ;  = 2,000
x−
Z=

CA NISHANT KUMAR
14,000 − 10,000
For x = 14,000; Z = =2
2,000
P ( x  14,000 ) = P ( z  2 )
CA NISHANT KUMAR
Therefore, P ( z  2 ) = 0.0228
Let the total number of workers be n.
Number of workers whose salary is more than 14,000 = 0.0228 × n
Therefore, 50 = 0.0228 × n
n = 50 ÷ 0.0228 = 2,192.98  2,193
CA NISHANT KUMAR
The mean of a normal distribution is 500 and 16 per cent of the values are greater than
600. What is the standard deviation of the distribution? (Given that the area between
z = 0 and z = 1 is 0.34;  (1) = 0.84 )
(a) 50 (b) 100 (c) 200 (d) None
Solution
(b)
Given  = 500 ; x = 600
x−
Z=

CA NISHANT KUMAR
600 − 500 100
For x = 600; Z = =
 
 100 
P ( x  600 ) = P  z   = 0.16
  
Now, draw the graph. From the graph, you’ll find that P ( z  1) = 0.16
 100 
Then, P  z   = P ( z  1)
  
100
= 1   = 100

CA NISHANT KUMAR
CA NISHANT KUMAR
For a normal distribution with mean as 500 and SD as 120, what is the value of k so that
the interval [500, k] covers 40.32 percent area of the normal curve? Given
 (1.30 ) = 0.9032 .
(a) 740 (b) 750 (c) 656 (d) 800
Solution
(c)
Given:  = 500 ;  = 120
x−
Z=

CA NISHANT KUMAR
The interval given is [500, k]. 500 is the mean. Z = 0 at mean. Hume isse right side ka
thoda sa area chahiye, jisse mean se le ke us area tak ka area 40.32% ho jaaye. Hume
 (1.30 ) = 0.9032 diya hua hai. Isme se agar –∞ se z = 0 tak ka area minus karen, toh
0.4032 aayega…aur wohi toh hume chahiye.
Matlab, jo z aayega, wohi  diya hua hai. Matlab z 1.30 aayega.
x−
Z=

k − 500
1.30 =
120
Try the options.
CA NISHANT KUMAR
If a random variable x follows normal distribution with mean as 120 and standard
deviation as 40, what is the probability that P ( x  150 / x  120 ) ? Given that area of the
normal curve between Z = 0 and Z = 0.75 is 0.2734.
(a) 0.55 (b) 0.96 (c) 0.26 (d) None
Solution
(a)
Given:  = 120 ;  = 40
x−
Z=

CA NISHANT KUMAR
150 − 120
For x = 150; Z = = 0.75
40
120 − 120
For x = 120; Z = =0
40
P ( x  150 )  P ( x  120 )
P ( x  150 / x  120 ) =
P ( x  120 )
P ( z  0.75)  P ( z  0 ) 0.2734
P ( x  150 / x  120 ) = = = 0.5468  0.55
P ( z  0) 0.50
CA NISHANT KUMAR
The mean height of 2000 students at a certain college is 165 cms and SD 9 cms. What is
the probability that in a group of 5 students of that college, 3 or more students would
have height more than 174 cm? Given  (1) = 0.8413 .
(a) 0.1587 (b) 0.1857 (c) 0.03106 (d) None
Solution
(c)
Given n = 2000 ;  = 165 ;  = 9 ; x = 174
First let’s find out the probability that any student chosen at random has height more than
174 cms.
CA NISHANT KUMAR
x−
Z=

174 − 165
For x = 174; Z = =1
9
P ( x  174 ) = P ( Z  1) = 1 −  (1) = 1 − 0.8413 = 0.1587
Now, this problem will be solved further as a Binomial Distribution problem.

We have n = 5; x ≥ 3; p = 0.1587; q = 0.8413
P ( x  3) = P ( x = 3) + P ( x = 4 ) + P ( x = 5 )
P ( x  3) = 5C3 ( 0.1587 ) ( 0.8413) + 5C4 ( 0.1587 ) ( 0.8413) + 5C5 ( 0.1587 ) ( 0.8413)

3 2 4 1 5 0
CA NISHANT KUMAR
P ( x  3) = 0.03106
CA NISHANT KUMAR
The symbol  ( a ) indicates the area of the standard normal curve between:
(a) 0 to a (b) a to ∞ (c) –∞ to a (d) –∞ to ∞
Solution
(c)
CA NISHANT KUMAR
If the area of a standard normal curve between Z = 0 to Z = 1 is 0.3413, then the value of
 (1) is:
(a) 0.5000 (b) 0.8413 (c) –0.5000 (d) 1
Solution
(b)
 (1) = Area from left end till Z = 1.
 (1) = 0.5000 + 0.3413 = 0.8413
CA NISHANT KUMAR
The total area of the normal curve is:
(a) one (b) 50 per cent (c) 0.50 (d) any value between 0 and 1
Solution
(a)
CA NISHANT KUMAR
Chapter 17 – Correlation and
Regression
CA NISHANT KUMAR
Correlation
Consider two variables x and y. If we need to find out the extent of relationship between
these two variables, we take help of correlation. For example, the demand of a commodity
in the market depends upon a lot of factors, such as price, number of consumers in the
market, income of the people, changes in prices of related goods, and so on. If we need
to find out the effect on demand due to a change in say, price, then we’ll use correlation.
Therefore, correlation is used to find out the extent to which two variables are related to
each other.
CA NISHANT KUMAR
Correlation is expressed using r. The value of correlation ranges from –1 to +1, both
inclusive. Therefore, –1 ≤ r ≤ 1. If:
1. r = –1, it is called a perfect negative correlation
2. –1 < r < 0, it is called a negative correlation
3. r = 0, it is called no correlation
4. 0 < r < 1, it is called a positive correlation
5. r = +1, it is called a perfect positive correlation
CA NISHANT KUMAR
Question 1
Correlation analysis aims at
(a) Predicting one variable for a given value of the other variable
(b) Establishing relation between two variables
(c) Measuring the extent of relation between two variables
(d) Both (b) and (c)
Solution
(d)
CA NISHANT KUMAR
Question 2
The correlation between shoe-size and intelligence is:
(a) Zero (b) Positive (c) Negative (d) None
Solution
(a)
CA NISHANT KUMAR
Question 3
The correlation between the speed of an automobile and the distance travelled by it after
applying the brakes is
(a) Negative (b) Zero (c) Positive (d) None
Solution
(a)
CA NISHANT KUMAR
Measures of Correlation
1. Scatter Diagram
2. Karl Pearson’s Product Moment Correlation Coefficient
3. Spearman’s Rank Correlation Co-efficient
4. Co-efficient of Concurrent Deviations
CA NISHANT KUMAR
Scatter Diagram
In this method, points a plotted on a graph paper for different values of x and y.
Thereafter, the shape of the diagram on the graph determines the kind of correlation
between those two variables.
CA NISHANT KUMAR
CA NISHANT KUMAR
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 4
Scatter diagram is considered for measuring:
(a) Linear relationship between two variables
(b) Curvilinear relationship between two variables
(c) Neither (a) nor (b)
Solution
(d)
CA NISHANT KUMAR
Question 5
If the plotted points in a scatter diagram lie from upper left to lower right, then the
correlation is:
(a) Positive (b) Zero (c) Negative (d) None
Solution
(c)
CA NISHANT KUMAR
Question 6
If the plotted points in a scatter diagram are evenly distributed, then the correlation is:
(a) Zero (b) Negative (c) Positive (d) (a) or (b)
Solution
(a)
CA NISHANT KUMAR
Question 7
If all the plotted points in a scatter diagram lie on a single line, then the correlation is:
(a) Perfect Positive (b) Perfect Negative (c) Both (a) and (b) (d) Either (a) or (b)
Solution
(d)
CA NISHANT KUMAR
Question 8
Scatter diagram helps us to:
(a) Find the nature correlation between two variables
(b) Compute the extent of correlation between two variables
(c) Obtain the mathematical relationship between two variables
(d) Both (a) and (c)
Solution
(a)
CA NISHANT KUMAR
Question 9
If the value of correlation coefficient is positive, then the points in a scatter diagram tend
to cluster:
(a) From lower left corner to upper right corner
(b) From lower left corner to lower right corner
(c) From lower right corner to upper left corner
(d) From lower right corner to upper right corner
Solution
(a)
CA NISHANT KUMAR
Question 10
When r = 1, all the points in a scatter diagram would lie:
(a) On a straight line directed from lower left to upper right
(b) On a straight line directed from upper left to lower right
(c) On a straight line
Solution
(a)
CA NISHANT KUMAR
Karl Pearson’s Product Moment Correlation Coefficient
Cov ( x, y ) Cov ( x, y )
Correlation coefficient is given by r = rxy = =
Sx  S y  x  y
Here,
1. Cov ( x, y ) means co-variance of x and y, and is given by:
Cov ( x, y ) =
 ( x − x )( y − y ) =  xy − x . y
n n
2. S x means the standard deviation of x ( x ) , and is given by:
( x − x ) x
2 2
Sx = = − x2
n n
CA NISHANT KUMAR
3. S y means the standard deviation of y ( y ) , and is given by:
( y − y ) y
2 2
Sy = = − y2
n n
Alternatively, Correlation coefficient can also be directly calculated using the following
formula:
n xy −  x   y
Correlation coefficient is given by r =
n x 2 − (  x ) n y 2 − (  y )
2 2
CA NISHANT KUMAR
Question 11
Find product moment correlation coefficient from the following information:
x 2 3 5 5 6 8
y 9 8 8 6 5 3
(a) 0.48 (b) 0.93 (c) –0.93 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 12
Compute the correlation coefficient between x and y from the following data:
n = 10 ;  xy = 220 ;  x 2
= 200 ; y 2
= 262 ;  x = 40 ;  y = 50
(a) 0.91 (b) 0.92 (c) 0.93 (d) 0.94
Solution
(a)
CA NISHANT KUMAR
Question 13
If for two variable x and y, the covariance, variance of x and variance of y are 40, 16 and
256 respectively, what is the value of the correlation coefficient?
(a) 0.01 (b) 0.625 (c) 0.4 (d) 0.5
Solution
(b)
Cov ( x, y ) 40
r= = = 0.625
 x y 16 256
CA NISHANT KUMAR
Question 14
If the covariance between two variables is 20 and the variance of one of the variables is
16, what would be the variance of the other variable?
(a) S y 2  25 (b) More than 10 (c) Less than 10 (d) More than 1.25
Solution
(a)
Cov ( x, y ) 20 20 5
r= = = =
 x y 16   y 4 y  y
Therefore, denominator should be more than 5.
CA NISHANT KUMAR
y 5
( y )  (5)
2 2
 y 2  25
CA NISHANT KUMAR
Question 15
For two variables x and y, it is known that Cov (x, y) = 8, r = 0.4, variance of x is 16 and
sum of squares of deviation of y from its mean is 250. The number of observations for
this bivariate data is:
(a) 7 (b) 8 (c) 9 (d) 10
Solution
(d)
CA NISHANT KUMAR
Question 16
If Cov ( x, y ) = 15 , what restrictions should be put for the standard deviations of x and y?
(a) No restriction
(b) The product of the standard deviations should be more than 15.
(c) The product of the standard deviations should be less than 15.
(d) The sum of the standard deviations should be less than 15.
Solution
(b)
CA NISHANT KUMAR
Properties
1. Karl Pearson’s method is the best method for finding correlation between two
variables provided the relationship between the two variables is linear.
2. The Coefficient of Correlation is a unit-free measure.
3. The coefficient of correlation remains invariant under a change of origin and/or
scale of the variables under consideration depending on the sign of scale factors.
In other words, let there be two variables x and y. Let the correlation coefficient
between them be rxy . Now, if they are changed to another set of variables, say, u and
v, then,
ruv = rxy , if b and d have the same sign, or
ruv = −rxy , if b and d have opposite signs.
Here,
CA NISHANT KUMAR
−Coefficient of u −Coefficient of v
b= , and d =
Coefficient of x Coefficient of y
CA NISHANT KUMAR
Question 17
If u + 5x = 6 and 3 y − 7v = 20 and the correlation coefficient between x and y is 0.58,
then what would be the correlation coefficient between u and v?
(a) 0.58 (b) –0.58 (c) –0.84 (d) 0.84
(b)
u + 5x = 6
5x + u − 6 = 0
−Coefficient of u − (1) 1
b= = =−
Coefficient of x 5 5
CA NISHANT KUMAR
Similarly,
3 y − 7v = 20
3 y − 7v − 20 = 0
−Coefficient of v − ( −7 ) 7
d= = =
Coefficient of y 3 3
Since b and d have opposite signs,
ruv = −rxy = −0.58
CA NISHANT KUMAR
Question 18
Given that the correlation coefficient between x and y is 0.8, write down the correlation
coefficient between u and v where 2u + 3x + 4 = 0 and 4v + 16 y + 11 = 0 .
(a) 0.8 (b) –0.8 (c) –0.9 (d) 0.9
Solution
(a)
CA NISHANT KUMAR
Question 19
If the relation between x and u is 3x + 4u + 7 = 0 and the correlation coefficient between
x and y is –0.6, then what is the correlation coefficient between u and y?
(a) –0.6 (b) 0.8
(c) 0.6 (d) –0.8
Solution
(c)
We have 3x + 4u + 7 = 0
−Coefficient of u −4 4
b= = =−
Coefficient of x 3 3
CA NISHANT KUMAR
In this question, we are not given the equation in terms of v and y. Therefore, we cannot
calculate d.
We’ll use the following formula:
bd
rxy = .ruv
b d
In the above formula, we calculate b and d in the same manner. However, since we do
not have the equation in terms of v and y, we cannot calculate d.
b
Therefore, the formula reduces to rxy = .ruy .
b
CA NISHANT KUMAR
4
rxy  b −0.6 
Therefore, ruy = = 3 = 0.6
b 4
−
3
CA NISHANT KUMAR
Question 20
From the following data:
x 2 3 5 4 7
y 4 6 7 8 10
The coefficient of correlation was found to be 0.93. What is the correlation between u
and v as given below?
u –3 –2 0 –1 2
v –4 –2 –1 0 2
(a) –0.93 (b) 0.93

(c) 0.57 (d) –0.57
CA NISHANT KUMAR
Solution
(b)
We need to find the relationship between x and u, and v and y.
For x = 2 , it is given that u = −3 . Also, for x = 3, it is given that u = −2 .
Clearly, by observation we find that x − 5 = u  x − u − 5 = 0
−Coefficient of u − ( −1)
b= = =1
Coefficient of x 1
Also, for y = 4 , it is given that v = −4 . Also, for y = 6 , it is given that v = −2 .
Clearly, by observation we find that y − 8 = v  y − v − 8 = 0
CA NISHANT KUMAR
−Coefficient of v − ( −1)
d= = =1
Coefficient of y 1
Since b and d have the same signs, ruv = rxy = 0.93
CA NISHANT KUMAR
Question 21
Pearson’s correlation coefficient is used for finding:
(a) Correlation for any type of relation
(b) Correlation for linear relation only
(c) Correlation for curvilinear relation only
(d) Both (b) and (c)
Solution
(b)
CA NISHANT KUMAR
Question 22
Product moment correlation coefficient is considered for
(a) Finding the nature of correlation
(b) Finding the amount of correlation
(c) Both (a) and (b)
(d) Either (a) and (b)
Solution
(c)
CA NISHANT KUMAR
Question 23
Product moment correlation coefficient may be defined as the ratio of:
(a) The product of standard deviations of the two variables to the covariance between
them
(b) The covariance between the variables to the product of the variances of them
(c) The covariance between the variables to the product of their standard deviations
(d) Either (b) or (c)
Solution
(c)
CA NISHANT KUMAR
Question 24
The covariance between two variables is:
(a) Strictly positive (b) Strictly negative
(c) Always 0 (d) Either positive or negative or zero.
Solution
(d)
CA NISHANT KUMAR
Spearman’s Rank Correlation Coefficient
This method is used to find the correlation between two qualitative characteristics, say,
beauty and intelligence. Let’s see the following questions to understand Spearman’s
Rank Correlation Coefficient.
CA NISHANT KUMAR
Question 25
Compute the coefficient of rank correlation between sales and advertisement expressed
in thousands of rupees from the following data:
Sales: 90 85 68 75 82 80 95 70
Advertisement: 7 6 2 3 4 5 8 1
(a) 0.65 (b) 0.90 (c) 0.92 (d) 0.95
Solution
(d)
CA NISHANT KUMAR
Solution
Let sales be denoted by x, and advertisement be denoted with y. The largest value of x is
given the rank 1, and thereafter, the next largest value is given the rank 2, and so on.
Rank of x is denoted by Rx. Similarly, largest value of y is given the rank 1, and thereafter,
the next largest value is given the rank 2, and so on. Rank of y is denoted by Ry.
Thereafter, the difference between the two ranks is calculated, which is denoted by d.
CA NISHANT KUMAR
Following table is prepared:
x y Rx Ry d = Rx – Ry d2
90 7 2 2 0 0
85 6 3 3 0 0
68 2 8 7 1 1
75 3 6 6 0 0
82 4 4 5 –1 1
80 5 5 4 1 1
95 8 1 1 0 0
70 1 7 8 –1 1
Total 4
CA NISHANT KUMAR
6 d 2
Spearman’s Rank Correlation Coefficient is given by rR = 1 − .
n ( n 2 − 1)
6 d 2 6 4 24
Therefore, rR = 1 − = 1− = 1 − = 0.95
n ( n 2 − 1) 8 ( 8 − 1)
2
8 ( 64 − 1)
CA NISHANT KUMAR
Question 26
Compute the coefficient of rank correlation between Eco. marks and stats. Marks as given
below:
Eco Marks: 80 56 50 48 50 62 60
Stats Marks: 90 75 75 65 65 50 65
(a) 0.15 (b) 0.10 (c) 0.12 (d) 0.25
Solution
(a)
CA NISHANT KUMAR
Let Economics Marks be denoted by x, and Statistics Marks be denoted with y. The
largest value of x is given the rank 1, and thereafter, the next largest value is given the
rank 2, and so on. Rank of x is denoted by Rx. Following table shows the arrangement of
values of x in descending order and corresponding ranks:
x Rx
80 1
62 2
60 3
56 4
50 5
50 6
48 7
CA NISHANT KUMAR
We can see from the above table that the value 50 is present twice, corresponding to ranks
5 and 6. Now, since we can’t discriminate between the same two values by giving one of
them rank 5 and the other one rank 6, we would take the average of the ranks 5 and 6, i.e.
5.50, and give both the 50s the rank 5.50. All the other ranks would remain the same.
Thus, the revised ranks are:
x Rx
80 1
62 2
60 3
56 4
50 5.5
50 5.5
48 7
CA NISHANT KUMAR
Similarly, largest value of y is given the rank 1, and thereafter, the next largest value is
given the rank 2, and so on. Rank of y is denoted by Ry. Following table shows the
arrangement of values of y in descending order and corresponding ranks:
y Ry
90 1
75 2
75 3
65 4
65 5
65 6
50 7
Again, we can see from the above table that the value 75 is present twice, corresponding
to ranks 2 and 3. Now, since we can’t discriminate between the same two values by giving
CA NISHANT KUMAR
one of them rank 2 and the other one rank 3, we would take the average of the ranks 2
and 3, i.e. 2.50, and give both the 75s the rank 2.50.
Also, we can see from the above table that the value 65 is present thrice, corresponding
to ranks 4, 5, and 6. Now, since we can’t discriminate between the same three values, we
4+5+6
would take the average of the ranks 4, 5, and 6, i.e., = 5 , and give all the 65s the
3
rank 5. All the other ranks would remain the same. Thus, the revised ranks are:
y Ry
90 1
75 2.5
75 2.5
65 5
65 5
CA NISHANT KUMAR
65 5
50 7
CA NISHANT KUMAR
Therefore, our ultimate table is:
x y Rx Ry d = Rx – Ry d2
80.00 90.00 1.00 1.00 0.00 0.00
56.00 75.00 4.00 2.50 1.50 2.25
50.00 75.00 5.50 2.50 3.00 9.00
48.00 65.00 7.00 5.00 2.00 4.00
50.00 65.00 5.50 5.00 0.50 0.25
62.00 50.00 2.00 7.00 –5.00 25.00
60.00 65.00 3.00 5.00 –2.00 4.00
Total 44.50
CA NISHANT KUMAR

6  d +
2  ( t j
3
−tj )

 12 
Spearman’s Rank Correlation Coefficient is given by rR = 1 − .
n ( n − 1)
2
Here, t j represents the number of times a particular rank is repeated. In our question,
( )
• the Rank of x (5.50) is repeated twice; therefore, tj = 2. Hence t j 3 − t j = 23 − 2 ;
• the Rank of y (2.50) is repeated twice; therefore, tj = 2. Hence t j 3 − t j = ( 2 − 2) ;
3
• the Rank of y (5.00) is repeated thrice; therefore, tj = 3. Hence t j 3 − t j = ( 3 − 3) .

3
Spearman’s Rank Correlation Coefficient is given by:
CA NISHANT KUMAR

6  d +
2  ( t j
3
−tj )

 12 
rR = 1 −
n ( n 2 − 1)

6  44.50 +
( 23 − 2 ) + ( 23 − 2 ) + ( 33 − 3) 

 12 
rR = 1 −
7 ( 7 2 − 1)
 6 + 6 + 24 
6  44.50 + 
rR = 1 −  12
7  48
CA NISHANT KUMAR
6  44.50 + 3
rR = 1 −
336
rR = 0.15
CA NISHANT KUMAR
Question 27
For a number of towns, the coefficient of rank correlation between the people living
below the poverty line and increase of population is 0.50. If the sum of squares of the
differences in ranks awarded to these factors is 82.50, find the number of towns.
(a) 9 (b) 10 (c) 8 (d) 11
Solution
(b)
CA NISHANT KUMAR
Question 28
While computing rank correlation coefficient between profit and investment for the last
6 years of a company the difference in rank for a year was taken 3 instead of 4. What is
the rectified rank correlation coefficient if it is known that the original value of rank
correlation coefficient was 0.4?
(a) 0.3 (b) 0.2 (c) 0.25 (d) 0.28
Solution
(b)
CA NISHANT KUMAR
Question 29
For finding correlation between two attributes, we consider
(a) Pearson’s correlation coefficient
(b) Scatter diagram
(c) Spearman’s rank correlation coefficient
(d) Coefficient of concurrent deviations
Solution
(c)
CA NISHANT KUMAR
Question 30
For finding the degree of agreement about beauty between two Judges in a Beauty
Contest, we use:
(a) Scatter diagram
(b) Coefficient of rank correlation
(c) Coefficient of correlation
(d) Coefficient of concurrent deviation
Solution
(b)
CA NISHANT KUMAR
Question 31
If there is a perfect disagreement between the marks in Geography and Statistics, then
what would be the value of rank correlation coefficient?
(a) Any value (b) Only 1 (c) Only –1 (d) (b) or (c)
Solution
(c)
CA NISHANT KUMAR
Co-efficient of Concurrent Deviations
This method is used when we are not serious about the magnitude of the two variables,
i.e., we just need to determine whether there exists a positive or a negative correlation.
Let’s understand it with the help of a question.
CA NISHANT KUMAR
Question 32
What is the coefficient of concurrent deviations for the following data:
Supply 68 43 38 78 66 83 38 23 83 63 53
Demand 65 60 55 61 35 75 45 40 85 80 85
(a) 0.82 (b) 0.85 (c) 0.89 (d) –0.81
Solution
(c)
CA NISHANT KUMAR
Supply Sign of deviation Demand Sign of deviation Product of
from the previous from the previous deviation (a ×
figure (a) figure (b) b)
68 65
43 – 60 – +
38 – 55 – +
78 + 61 + +
66 – 35 – +
83 + 75 + +
38 – 45 – +
23 – 40 – +
83 + 85 + +
63 – 80 – +
53 – 85 + –
CA NISHANT KUMAR
From the above table, we can see that we have calculated the deviations 10 times. These
are called the total number of deviations, denoted by the letter m. Therefore, m = 10.
It can also be seen that the last column (product of deviation) contains 9 positive signs.
These are known as the concurrent deviations, denoted by the letter c. Therefore, c = 9.
The coefficient of concurrent deviation is given by:
( 2c − m ) , if
rc = ( 2c − m )  0 ; or
m
( 2c − m )
rc = − − , if ( 2c − m )  0 .
m
In our question, we have 2c − m = 2 ( 9 ) − 10 = 18 − 10 = 8 .
CA NISHANT KUMAR
Since ( 2c − m )  0 , the coefficient of concurrent deviation is given by:
rc =
( 2c − m ) = 8
= 0.8 = 0.89
m 10
Therefore, there is a positive correlation between Supply and Demand.
CA NISHANT KUMAR
Question 33
For 10 pairs of observations, no. of concurrent deviations was found to be 4. What is the
value of the coefficient of concurrent deviation?
(a) 0.2 (b) − 0.2 (c) 1/ 3 (d) −1/ 3
Solution
(d)
We have m = 9; c = 4
2c − m = ( 2  4 ) − 9 = 8 − 9 = −1
Since ( 2c − m )  0 , the coefficient of concurrent deviation is given by:
CA NISHANT KUMAR
rc = − −
( 2c − m ) = − −
−1
=−
1
= −1 / 3
m 9 9
CA NISHANT KUMAR
Question 34
The coefficient of concurrent deviation for p pairs of observations was found to be 1/ 3.
If the number of concurrent deviations was found to be 6, then the value of p is.
(a) 10 (b) 9 (c) 8 (d) None
Solution
(a)
We have rc = 1/ 3 ; c = 6
Since r is positive, it is safe to assume that 2c − m  0
CA NISHANT KUMAR
rc =
( 2c − m )
m

1
=
( 2  6) − m
3 m
1 12 − m
 =
3 m
If there are p pairs of observations, the number of deviations (m), would be p – 1.
Let’s try the options now.
Option (a) → 10
If p = 10, then m = 10 – 1 = 9
CA NISHANT KUMAR
12 − 9 3 1 1
RHS = = = =
9 9 3 3
CA NISHANT KUMAR
Question 35
When we are not concerned with the magnitude of the two variables under discussion,
we consider:
(a) Rank correlation coefficient (b) Product moment correlation coefficient
(c) Coefficient of concurrent deviation (d) (a) or (b) but not (c)
Solution
(c)
CA NISHANT KUMAR
Question 36
What is the quickest method to find correlation between two variables?
(a) Scatter diagram (b) Method of concurrent deviation
(c) Method of rank correlation (d) Method of product moment correlation
Solution
(b)
CA NISHANT KUMAR
Question 37
What are the limits of the coefficient of concurrent deviations?
(a) No limit
(b) Between –1 and 0, including the limiting values
(c) Between 0 and 1, including the limiting values
(d) Between –1 and 1, the limiting values inclusive
Solution
(d)
CA NISHANT KUMAR
Regression
In regression analysis, we are concerned with the estimation of one variable for a given
value of another variable on the basis of an average mathematical relationship between
the two variables. For example, consider the following data:
x y
2 5
4 9
6 13
8 17
We can see that the values of y are related to the values of x by y = 2x + 1. Using this, we
can easily find out the value of y for any given value of x. Similarly, y = 2x + 1  2x = y
– 1  x = (y – 1)/2. Using this, we can easily find out the value of x for any given value
of y.
CA NISHANT KUMAR
When there are two variables x and y and if y is influenced by x i.e. if y depends on x,
then we get a simple linear regression or simple regression. y is known as dependent
variable or regression or explained variable and x is known as independent variable or
predictor or explanator.
In case of a simple regression model:
1. if y depends on x, then the regression line of y on x is given by:
a. either y = a + bx , where,
n xy − (  x )(  y ) y Cov ( x, y )
i. b = byx = , or, byx = r , or, byx = , and
n x 2 − (  x ) x ( x )
2 2
ii. a = a yx = y − ( x  byx )
byx is known as the regression coefficient.
CA NISHANT KUMAR
b. or, ( y − y ) = byx ( x − x )
2. if x depends on y, then the regression line of x on y is given by:
a. either x = a + by , where,
n xy − (  x )(  y ) x Cov ( x, y )
i. b = bxy = , or, bxy = r , or, bxy = , and
n y − (  y ) y ( )
2 2 2
y
ii. a = axy = x − ( y  bxy )

bxy is known as the regression coefficient.
b. or, ( x − x ) = bxy ( y − y )
CA NISHANT KUMAR
Question 38
The following data relate to the mean and SD of the prices of two shares in a Stock
Exchange:
Share Mean (in ₹) SD (in ₹)
Company A 44 5.60
Company B 58 6.30
Coefficient of correlation between the share prices = 0.48.
Find the most likely price of share A corresponding to a price of ₹60 of share B and the
most likely price of share B for a price of ₹50 of share A.
(a) 61.24; 44.85 (b) 44.85; 61.24 (c) 55.48; 44.85 (d) None
Solution
CA NISHANT KUMAR
(b)
Let the share of Company A be denoted by x and the share of Company B be denoted by
y.
We have x = 44 ;  x = 5.60 ; y = 58 ;  y = 6.30 ; r = 0.48
y 6.30
byx = r = 0.48  = 0.54
x 5.60
a yx = y − byx x = 58 − ( 0.54  44 ) = 34.24
y = ayx + byx x
 y = 34.24 + 0.54 x
CA NISHANT KUMAR
Therefore, when the share price of Company A (x) is ₹50, the share price of Company B
(y) is given by: y = 34.24 + ( 0.54  50 ) = 61.24 .
Again,
x 5.60
bxy = r = 0.48  = 0.4267
y 6.30
axy = x − bxy y = 44 − ( 0.4267  58 ) = 19.25

x = axy + bxy y
 x = 19.25 + 0.4267 y
Therefore, when the share price of Company B (y) is ₹60, the share price of Company A
(x) is given by: x = 19.25 + ( 0.4267  60 ) = 44.85 .
CA NISHANT KUMAR
Question 39
If the regression coefficient of y on x, the coefficient of correlation between x and y and
3
variance of y are –3/4, , and 4 respectively, what is the variance of x?
2
(a) 2 / 3 / 2 (b) 16/3 (c) 4/3 (d) 4
Solution
(b)
3 3
We have byx = − ; r = ;  y2 = 4
4 2
CA NISHANT KUMAR
y
byx = r 
x
y 3 4
x = r = 
byx 2 −3 / 4
2
 3 4 
  x2 =   = 5.33
 2 −3 / 4 
CA NISHANT KUMAR
Properties of Regression Lines
CA NISHANT KUMAR
The regression coefficients remain unchanged due to a shift of origin but
change due to a shift of scale.
CA NISHANT KUMAR
Question 40
If the relationship between two variables x and u is u + 3x = 10 and between two other
variables y and v is 2y + 5v = 25, and the regression coefficient of y on x is known as
0.80, what would be the regression coefficient of v on u?
(a) 7/75 (b) 8/75 (c) 9/75 (d) None
Solution
(b)
u + 3x = 10  u = 10 − 3x
25 2
2 y + 5v = 25  v = − y
5 5
CA NISHANT KUMAR
Scale of v −2 / 5
bvu =  byx =  0.80 = 0.1067
Scale of u −3
Option (b) → 8/75 = 0.1067
CA NISHANT KUMAR
Question 41
If u = 2x + 5 and v = –3y – 6 and regression coefficient of y on x is 2.4, what is the
regression coefficient of v on u?
(a) 3.6 (b) –3.6 (c) 2.4 (d) –2.4
Solution
(b)
u = 2x + 5  u = 5 + 2x
v = −3 y − 6  v = −6 − 3 y
Scale of v −3
bvu =  byx =  2.4 = −3.6
Scale of u 2
CA NISHANT KUMAR
The two lines of regression intersect at the mean of x and mean of y where
x and y are the variables under consideration
CA NISHANT KUMAR
Question 42
For the variables x and y, the regression equations are given as 7x – 3y – 18 = 0 and 4x –
y – 11 = 0. Find the arithmetic means of x and y.
(a) (3, 2) (b) (3, 1) (c) (4, 2) (d) None
Solution
(b)
Try the options.
CA NISHANT KUMAR
Question 43
If the regression line of y on x and of x on y are given by 2x + 3y = –1 and 5x + 6y = –1
then the arithmetic means of x and y are given by:
(a) (1, –1) (b) (–1, 1) (c) (–1, –1) (d) (2, 3)
Solution
(a)
CA NISHANT KUMAR
Question 44
If y = 3x + 4 is the regression line of y on x and the arithmetic mean of x is –1, what is
the arithmetic mean of y?
(a) 1 (b) –1 (c) 7 (d) None
Solution
(a)
CA NISHANT KUMAR
The coefficient of correlation between two variables x and y is the simple
geometric mean of the two regression coefficients. The sign of the
correlation coefficient would be the common sign of the two regression
coefficients.
CA NISHANT KUMAR
Question 45
y – 11 = 0. Identify the regression equation of y on x.
(a) 7x – 3y – 18 = 0 (b) 4x – y – 11 = 0 (c) Can’t Say (d) None
Solution
(a)
Let 7x – 3y – 18 = 0 be the regression equation of y on x, and 4x – y – 11 = 0 be the
regression equation of x on y.
18 7 7
7 x − 3 y − 18 = 0  y = − + x  byx =
3 3 3
CA NISHANT KUMAR
11 1 1
4 x − y − 11 = 0  x = + y  bxy =
4 4 4
7 1
r = byx  bxy =  = 0.7638
3 4
Since r lies from –1 to 1, our assumption is correct.
CA NISHANT KUMAR
Question 46
y – 11 = 0. Given the variance of x is 9, find the SD of y.
(a) 9.1647 (b) 9.1467 (c) 9.1764 (d) None
Solution
(a)
Let 7x – 3y – 18 = 0 be the regression equation of y on x, and 4x – y – 11 = 0 be the
regression equation of x on y.
18 7 7
7 x − 3 y − 18 = 0  y = − + x  byx =
3 3 3
CA NISHANT KUMAR
11 1 1
4 x − y − 11 = 0  x = + y  bxy =
4 4 4
7 1
r = byx  bxy =  = 0.7638
3 4
Since r lies from –1 to 1, our assumption is correct.
y
byx = r 
x
7
byx   x 3  9
y = = = 9.1647
r 0.7638
CA NISHANT KUMAR
Question 47
If 4y – 5x = 15 is the regression line of y on x and the coefficient of correlation between
x and y is 0.75, what is the value of the regression coefficient of x on y?
(a) 0.45 (b) 0.9375 (c) 0.6 (d) None
Solution
(a)
4y – 5x = 15 is the regression equation of y on x.
15 5 5
In the standard form, it can be written as y = + x  byx =
4 4 4
CA NISHANT KUMAR
We know that r = byx  bxy
5
 0.75 =  bxy
4
5
( 0.75)
2
=  bxy
4
( 0.75 )
2
4
 bxy = = 0.45
5
CA NISHANT KUMAR
Probable Error and Standard Error
1. Probable Error (P.E.) is given by
1− r2
a. P.E. = 0.674  , or
N
1− r2
b. P.E. = 0.6745  , or
N
1− r2
c. P.E. = 0.675 
N
2. Limits of the correlation coefficient of the population is given by p = r  P.E.
1− r2
3. Standard Error (S.E.) is given by S .E. =
N
CA NISHANT KUMAR
2
4. PE = SE
3
CA NISHANT KUMAR
Question 48
Compute the Probable Error assuming the correlation coefficient of 0.8 from a sample of
25 pairs of items.
(a) 0.0486 (b) 0.4086 (c) 0.5076 (d) None
Solution
(a)
Given r = 0.8; n = 25
1 − ( 0.8 )
2
1− r2
P.E. = 0.6745  = 0.6745  = 0.0486
N 25
CA NISHANT KUMAR
Question 49
If r = 0.7; and n = 64 find out the probable error of the coefficient of correlation and
determine the limits for the population correlation coefficient.
(a) 0.943; (0.743, 0.657) (b) 0.543; (0.743, 0.657) (c) 0.043; (0.743, 0.657) (d) None
Solution
(c)
Given r = 0.7; and n = 64
1 − ( 0.7 )
2
1− r2
P.E. = 0.6745  = 0.6745  = 0.0430
N 64
CA NISHANT KUMAR
p = r  P.E.  0.7  0.043  p = 0.7 + 0.043, 0.7 − 0.043 = ( 0.743, 0.657 )
CA NISHANT KUMAR
Important Points
1. If r < P.E., there is no evidence of correlation.
2. If the value of r is more than 6 times of the probable error, then the presence of
correlation coefficient is certain.
3. Since r lies between –1 and +1 (–1 < r < 1), the probable error is never negative,
i.e., Probable Error is always a positive figure.
4. Coefficient of Determination (Also known as “Percentage of Variation Accounted
( )
for”) r 2 =
Explained Variance
Total Variance
5. Coefficient of Non-Determination (Also known as “Percentage of Variation
Unaccounted for”) = 1 − r 2
CA NISHANT KUMAR
6. The two lines of regression coincide, i.e., become identical when r = –1 or 1. In
other words, if there is a perfect negative or positive correlation between the two
variables under discussion, the two lines of regression coincide.
7. If r = 0, regression lines are perpendicular to each other.
8. If two variables x and y are independent or uncorrelated, then, obviously, the
correlation coefficient between x and y is zero. However, the converse of this
statement is not necessarily true, i.e., if the correlation coefficient, due to Pearson,
between two variables comes out to be zero, then we cannot conclude that the two
variables are independent. All we can conclude is that no linear relationship exists
between the two variables. This, however, does not rule out the existence of some
non-linear relationship between the two variables.
CA NISHANT KUMAR
Question 50
If the coefficient of correlation between two variables is 0.7 then the percentage of
variation unaccounted for is:
(a) 70% (b) 30% (c) 51% (d) 49%
Solution
(c)
Given r = 0.7
Percentage of Variation Unaccounted For = 1 − r 2 = 1 − ( 0.7 ) = 0.51
2
CA NISHANT KUMAR
Question 51
If the coefficient of correlation between two variables is –0.9, then the coefficient of
determination is:
(a) 0.9 (b) 0.81 (c) 0.1 (d) 0.19
Solution
(b)
Given r = –0.9
r 2 = ( −0.9 ) = 0.81
2
CA NISHANT KUMAR
Chapter 19 – Index Numbers and
Time Series
CA NISHANT KUMAR
Introduction
An index number is a ratio of two or more time periods, one of which is the base time
period. The value at the base time period serves as the standard point of comparison.
The base time period is that time period from which the comparisons are to be made. For
example, in 2009 the price of a McAloo Tikki burger was ₹20; in 2020, it’s ₹40. Now, if
I need to compare the price of 2020 with the price of 2009, 2009 will be the base time
period, and 2020 will be current time period. The price in the base time period is denoted
as P0 . The price in the current time period is denoted as P1. The ratio of the price of the
current period (2020, i.e., P1 ) to the price of the base period (or reference period, i.e.,
P
2009, i.e., P0 ), is known as the Price Relative, and is denoted as P01. Therefore, P01 = 1 .
P0
CA NISHANT KUMAR
Pn
Therefore, Price Relative = . It is expressed as a percentage as follows: Price Relative
P0
Pn
= 100.
P0
CA NISHANT KUMAR
Question 1
Price-relative has been expressed in terms of:
Pn P0 Pn P0
(a) P = (b) P = (c) P = 100 (d) P = 100
P0 Pn P0 Pn
Solution
(c)
CA NISHANT KUMAR
Question 2
If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the
prices have increased on average by:
(a) 250% (b) 150% (c) 350% (d) None
Solution
(b)
CA NISHANT KUMAR
Question 3
If the prices of all commodities in a place have increased 1.25 times in comparison to the
base period, the index number of prices of that place now is:
(a) 125 (b) 150 (c) 225 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 4
If the prices of all commodities in a place have decreased 35% over the base period prices,
then the index number of prices of that place is now:
(a) 35 (b) 135 (c) 65 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 5
The index number in wholesale prices is 152 for August 1999 compared to August 1998.
During the year there is net increase in prices of wholesale commodities to the extent of:
(a) 45% (b) 35% (c) 52% (d) 48%
Solution
(c)
CA NISHANT KUMAR
Question 6
If the price of all commodities in a place have increased 1.25 times in comparison to the
base period prices, then the index number of prices for the place is now:
(a) 100 (b) 125 (c) 225 (d) None
Solution
(c)
CA NISHANT KUMAR
Question 7
The prices of a commodity in the year 1975 and 1980 were 25 and 30 respectively taking
1980 as base year the price relative is:
(a) 109.78 (b) 110.25 (c) 113.25 (d) None
Solution
(d)
CA NISHANT KUMAR
Question 8
The prices of a commodity in the years 1975 and 1980 were 25 and 30 respectively,
taking 1975 as base year the price relative is:
(a) 120 (b) 135 (c) 122 (d) None
Solution
(a)
CA NISHANT KUMAR
Simple Aggregative Method
Simple Aggregative Price Index =
 P 100
n
P 0
CA NISHANT KUMAR
Question 9
From the following data
Commodity Base Price Current Price
Rice 35 42
Wheat 30 35
Pulse 40 38
Fish 107 120
The simple aggregative index is:
(a) 115.8 (b) 110.8 (c) 112.5 (d) 113.4
Solution
(b)
CA NISHANT KUMAR
Simple Average of Price Relatives
 P1 
 P  100 
Index =  0 
N
CA NISHANT KUMAR
Question 10
From the following table by the method of relative using Arithmetic mean the price Index
number is:
Commodity Wheat Milk Fish Sugar
Base Price 5 8 25 6
Current Price 7 10 32 12
(a) 140.35 (b) 148.25 (c) 140.75 (d) None
Solution
(b)
CA NISHANT KUMAR
Geometric Mean of Price Relatives
Index = Geometric Mean of Individual Years’ Price Relatives
CA NISHANT KUMAR
Question 11
Commodities Base Year Current Year
A 25 55
B 30 45
The index numbers from G.M. Method is:
(a) 181.66 (b) 185.25 (c) 181.75 (d) None
Solution
(a)
Commodities Base Year Current Year Price Relative
CA NISHANT KUMAR
A 25 55 55 ÷ 25 = 2.2
B 30 45 45 ÷ 30 = 1.5
Geometric Mean = 2.2  1.5 = 1.81659

Index = 1.81659 × 100 = 181.659  181.66
CA NISHANT KUMAR
Weighted Average Method
In this method, we assign a weight to the prices of the commodities. Thereafter, the
average is calculated as follows:
𝑆𝑢𝑚 𝑜𝑓 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑠
𝐺𝑒𝑛𝑒𝑟𝑎𝑙 𝐼𝑛𝑑𝑒𝑥 =
𝑆𝑢𝑚 𝑜𝑓 𝑊𝑒𝑖𝑔ℎ𝑡𝑠
CA NISHANT KUMAR
Question 12
From the following data for the 5 groups combined
Group Weight Index Number
Food 35 425
Cloth 15 235
Power & Fuel 20 215
Rent & Rates 8 115
Miscellaneous 22 150
The general index number is:
(a) 270 (b) 269.2 (c) 268.5 (d) 272.5
Solution
CA NISHANT KUMAR
(b)
Group Weight Index Number Product
Food 35 425 14,875
Cloth 15 235 3,525
Power & Fuel 20 215 4,300
Rent & Rates 8 115 920
Miscellaneous 22 150 3,300
Total 100 26,920
26920
𝑊𝑒𝑖𝑔ℎ𝑡𝑒𝑑 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 = = 269.20
100
CA NISHANT KUMAR
The weights are usually the quantities of the commodities. These indices can be classified
into two broad groups:
1. Weighted Aggregative Index
2. Weighted Average of Relatives
CA NISHANT KUMAR
Weighted Aggregative Index
In this method, weights are assigned to the prices of the commodities. The weights are
usually either the quantities or the value of goods, sold either during the base year, or the
given year, or an average of some years. Various alternative formulae used are as follows:
1. Laspeyres’ Index: In this Index, base year quantities are used as weights:
Laspeyres Index =
 PnQ0 100
 P0Q0
2. Paasche’s Index: In this Index current year quantities are used as weights:
Passche's Index =
 PnQn 100
 P0Qn
3. Methods based on some typical Period:
CA NISHANT KUMAR
Index =
 P Q 100 , where t stands for some typical period of years, the quantities
n t
PQ 0 t
of which are used as weights.

The Marshall-Edgeworth index uses this method by taking the average of the base
year and the current year.
Marshall-Edgeworth Index =
 Pn (Q0 + Qn ) 100
 P0 (Q0 + Qn )
4. Bowley’s Price Index: This index is the arithmetic mean of Laspeyres’ and
Paasche’s.
Laspeyres' + Paasche's
Bowley’s Index =
2
CA NISHANT KUMAR
5. Fisher’s ideal Price Index: This index is the geometric mean of Laspeyres’ and
Paasche’s.
Fisher's Index =
PQ  PQ
n 0 n n
 100
PQ PQ
0 0 0 n
CA NISHANT KUMAR
Laspeyre’s Index
Laspeyres Index =
PQ
n 0
 100
PQ
0 0
CA NISHANT KUMAR
Question 13
If PQ
0 0 = 1360 , PQ
n 0 = 1900 , PQ 0 n = 1344 , PQ
n n = 1880 , then Laspeyre’s
Index Number is:
(a) 0.71 (b) 1.39 (c) 1.75 (d) None
Solution
(b)
Laspeyre’s Index Number =

 PQ n 0
=
1900
= 1.39
PQ 0 0 1360
CA NISHANT KUMAR
Paasche’s Index Number
Passche's Index =
PQ
n n
 100
PQ
0 n
CA NISHANT KUMAR
Question 14
From the following data
Commodities A B C D
1992 Price 3 5 4 1
Base Year Quantity 18 6 20 14
1993 Price 4 5 6 3
Current Year Quantity 15 9 26 15
The Paasche’s Price Index Number is:
(a) 146.41 (b) 148.25 (c) 144.25 (d) None
Solution
(a)
CA NISHANT KUMAR
Paasche’s Index Number:
 P Q = ( 4 15) + (5  9 ) + ( 6  26 ) + (3 15) 100 = 306 100 = 146.41
n n
 P Q ( 3 15) + (5  9 ) + ( 4  26 ) + (115)
0 n 209
CA NISHANT KUMAR
Question 15
If the ratio between Laspeyre’s Index Number and Paasche’s Index Number is 28 : 27,
then the missing figure in the following table P is:
Commodity Base Year Current Year
Price Quantity Price Quantity
X L 10 2 5
Y L 5 P 2
(a) 7 (b) 4 (c) 3 (d) 9
Solution
(b)
CA NISHANT KUMAR
We know that L =
PQ n 0
 100 , and P =
PQ
n n
 100
PQ 0 0 PQ
0 n
L=
( 2 10 ) + ( P  5) 100 = 20 + 5P 100 = 5 ( 4 + P ) 100 = 4 + P 100
( L 10 ) + ( L  5) 10 L + 5L 15L 3L
P=
( 2  5) + ( P  2 ) 100 = 10 + 2 P 100 = 10 + 2 P 100
( L  5) + ( L  2 ) 5L + 2 L 7L
4+ P 4+ P
 100
L 4+ P 7L 4+ P 7 28 + 7 P
= 3L = 3L =  =  =
P 10 + 2 P  100 10 + 2 P 3L 10 + 2 P 3 10 + 2 P 30 + 6 P
7L 7L
CA NISHANT KUMAR
28 28 + 7 P
=
27 30 + 6 P
28 + 7 P
1.037 =
30 + 6 P
Option (b) → 4
28 + ( 7  4 )
RHS = = 1.037
30 + ( 6  4 )
CA NISHANT KUMAR
Marshall Edgeworth Index
Marshall-Edgeworth Index =
 P (Q
n 0 + Qn )
 100
 P (Q
0 0 + Qn )
CA NISHANT KUMAR
Question 16
A 7 17 13 25
B 6 23 7 25
C 11 14 13 15
D 4 10 8 8
The Marshall-Edgeworth Index Number is:
(a) 148.25 (b) 144.19 (c) 147.25 (d) 143.78
Solution
CA NISHANT KUMAR
(b)
Marshall-Edgeworth Index
=
 P (Q + Q )
n 0 n
 100
 (P0 Q 0 + Qn )
=
13(17 + 25) + 7 ( 23 + 25) + 13(14 + 15) + 8 (10 + 8) 100 = 1403 100 = 144.19
7 (17 + 25) + 6 ( 23 + 25) + 11(14 + 15) + 4 (10 + 8) 973
CA NISHANT KUMAR
Bowley’s Price Index
Laspeyres' + Paasche's
Bowley’s Index =
2
CA NISHANT KUMAR
Question 17
Bowley’s Index Number is expressed in the form of:
𝐿𝑎𝑠𝑝𝑒𝑦𝑟𝑒 ′ 𝑠 𝐼𝑛𝑑𝑒𝑥 + 𝑃𝑎𝑎𝑠𝑐ℎ𝑒 ′ 𝑠 𝐼𝑛𝑑𝑒𝑥 𝐿𝑎𝑠𝑝𝑒𝑦𝑟𝑒 ′ 𝑠 𝐼𝑛𝑑𝑒𝑥 × 𝑃𝑎𝑎𝑠𝑐ℎ𝑒 ′ 𝑠 𝐼𝑛𝑑𝑒𝑥
(a) 2
(b) 2
𝐿𝑎𝑠𝑝𝑒𝑦𝑟𝑒 ′ 𝑠 𝐼𝑛𝑑𝑒𝑥 − 𝑃𝑎𝑎𝑠𝑐ℎ𝑒 ′ 𝑠 𝐼𝑛𝑑𝑒𝑥
(c) (d) None
2
Solution
(a)
CA NISHANT KUMAR
Question 18
The Bowley’s Price index number is represented in terms of:
(a) A.M. of Laspeyre’s and Paasche’s Price index number
(b) G.M. of Laspeyre’s and Paasche’s Price index number
(c) A.M. of Laspeyre’s and Walsh’s price index number
(d) None
Solution
(a)
CA NISHANT KUMAR
Fisher’s Ideal Price Index
Fisher's Index =nPQ  PQ
0 n n
 100
0PQ PQ
0 0 n
CA NISHANT KUMAR
Question 19
From the following data base year:-
A 4 3 6 2
B 5 4 6 4
C 7 2 9 2
D 2 3 1 5
Fisher’s Ideal Index is:
(a) 117.3 (b) 115.43 (c) 118.35 (d) 116.48
Solution
CA NISHANT KUMAR
(a)
Fisher's Index
=
PQ  PQ
n 0 n n
 100
PQ PQ
0 0 0 n
=
( 6  3) + ( 6  4 ) + ( 9  2 ) + (1 3)  ( 6  2 ) + ( 6  4 ) + (9  2 ) + (1 5 ) 100
( 4  3) + ( 5  4 ) + ( 7  2 ) + ( 2  3 ) ( 4  2 ) + ( 5  4 ) + ( 7  2 ) + ( 2  5 )
63 59
=   100 = 117.3
52 52
CA NISHANT KUMAR
Question 20
If PQ n n = 249 , PQ
0 0 = 150 , Paasche’s Index Number = 150 and Drobiseh and
Bowely’s Index number = 145, then the Fisher’s Ideal Index Number is:
(a) 75 (b) 60 (c) 145.97 (d) 144.91
Solution
(d)
Paasche’s Index Number = 150
PQ n n
100 = 150
PQ 0 n
CA NISHANT KUMAR
249
  100 = 150
 P0Qn
249 150
 =
 P0Qn 100

 PQ 0 n
=
100
249 150
100  249
  P0Qn = = 166
150
Also, Bowley’s Index Number = 145
CA NISHANT KUMAR
L+P
B=
2
L + 150
 145 =
2
 L = (145  2 ) − 150 = 140
We know that L =
PQ n 0
 100
PQ 0 0
 140 =
 PQ n 0
 100
150
CA NISHANT KUMAR
140  150
  PnQ0 = = 210
100
Now, we know that F =

PQ  PQ
n 0 n n
 100
PQ PQ
0 0 0 n
210 249
F=   100 = 144.91
150 166
CA NISHANT KUMAR
Question 21
Bowley's index number is 150. Fisher's index number is 149.95. Paasche's index number
is:
(a) 146.13 (b) 154 (c) 148 (d) 156
Solution
(a)
L+P
B= = 150  L = (150  2 ) − P  L = 300 − P … Eq. (1)
2
(149.95 )
2
F= L  P = 149.95  L = … Eq. (2)

P
CA NISHANT KUMAR
From Equations (1) and (2), we have:
(149.95 )
2
300 − P =
P
Option (a) → 146.13
LHS = 300 – 146.13 = 153.87
(149.95 )
2
RHS = = 153.87
146.13
CA NISHANT KUMAR
Weighted Average of Relatives
In this method, weighted arithmetic mean is used to calculate the index.
 Pn 
  P  ( P0Q0 )
Index =  0   100
 P0Q0
CA NISHANT KUMAR
Question 22
Given below are the data on prices of some consumer goods and the weights attached to
the various items. Compute price index number for the year 1985 (Base 1984 = 100)
Items Unit 1984 1985 Weight
Wheat Kg. 0.50 0.75 2
Milk Litre 0.60 0.75 5
Egg Dozen 2.00 2.40 4
Sugar Kg. 1.80 2.10 8
Shoes Pair 8.00 10.00 1
Then weighted average of Price Relative Index is:
(a) 125.43 (b) 123.3 (c) 124.53 (d) 124.52
CA NISHANT KUMAR
Solution
(b)
Items Unit 1984 1985 Price Relative Weight Products
Wheat Kg. 0.50 0.75 1.50 2.00 3.00
Milk Litre 0.60 0.75 1.25 5.00 6.25
Egg Dozen 2.00 2.40 1.20 4.00 4.80
Sugar Kg. 1.80 2.10 1.17 8.00 9.33
Shoes Pair 8.00 10.00 1.25 1.00 1.25
Total 20.00 24.63
24.63
𝑊𝑒𝑖𝑔ℎ𝑡𝑒𝑑 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑜𝑓 𝑃𝑟𝑖𝑐𝑒 𝑅𝑒𝑙𝑎𝑡𝑖𝑣𝑒 = × 100 = 123.15
20
CA NISHANT KUMAR
CA NISHANT KUMAR
The Chain Index Numbers
Till now, we have been taking a fixed base; however, when conditions change rapidly,
the fixed base does not suit the required needs. In such a case, changing base is more
suitable. For example, the base for the year 1999 could be 1998; the base for the year
2000 could be 1999 (not 1998), the base for the year 2001 could be 2000 (neither 1998,
nor 1999), and so on. If it is desired to associate these relatives to a common base, the
results are chained. Thus, under this method the relatives of each year are first related to
the preceding year, called the link relatives, and then they are chained together by
successive multiplication to form a chain index.
𝐶ℎ𝑎𝑖𝑛 𝐼𝑛𝑑𝑒𝑥
𝐿𝑖𝑛𝑘 𝑅𝑒𝑙𝑎𝑡𝑖𝑣𝑒 𝑜𝑓 𝑡ℎ𝑒 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑌𝑒𝑎𝑟 × 𝐶ℎ𝑎𝑖𝑛 𝐼𝑛𝑑𝑒𝑥 𝑜𝑓 𝑡ℎ𝑒 𝑃𝑟𝑒𝑣𝑖𝑜𝑢𝑠 𝑌𝑒𝑎𝑟
=
100
CA NISHANT KUMAR
For example,
Year Price Link Relatives Chain Indices
(Taking Previous Year as Base Year) (Taking 1991 as Base Year)
1991 50 100.00 100.00
60 120
1992 60  100 = 120.00  100 = 120.00
50 100
62 103.33
1993 62  100 = 103.33  120 = 124.00
60 100
65 104.84
1994 65  100 = 104.84  124 = 129.90
62 100
CA NISHANT KUMAR
CA NISHANT KUMAR
Question 23
Year 1992 1993 1995 1996 1997
Link Index 100 103 105 112 108
(Base 1992 = 100) for the years 1993–97. The construction of chain index is:
(a) 103, 100.94, 107, 118.72 (b) 103, 108.15, 121.3, 130.82
(c) 107, 100.25, 104, 118.72 (d) None
Solution
(b)
Year Link Relatives Chain Indices
CA NISHANT KUMAR
(Taking Previous Year as Base Year) (Taking 1992 as Base Year)
1992 100.00 100.00
103.00  100.00
1993 103.00 = 103.00
100.00
105.00  103.00
1995 105.00 = 108.15
100.00
112.00  108.15
1996 112.00 = 121.128
100.00
108.00  121.128
1997 108.00 = 130.82
100.00
CA NISHANT KUMAR
Quantity Index Numbers
1. Simple Aggregate of Quantities
Index =
 Qn
 100
 0
Q
2. Simple Average of Quantity Relatives:
 Qn
Index = Q 0
 100
n
3. Weighted Aggregate Quantity Indices:
a. With base year weight (Laspeyre’s index)
CA NISHANT KUMAR
Index =
 Q P 100
n 0
Q P
0 0
b. With current year weight (Paasche’s index)
Index =
 Qn Pn 100
 Q0 Pn
c. Fisher’s Ideal (Geometric mean of the above)
Index =
Q P  Q P
n 0 n n
 100
Q P Q P
0 0 0 n
4. Base-year weighted average of quantity relatives
CA NISHANT KUMAR
 Qn 
  Q ( 0 0 )
 P Q
Index =  0   100
 P0Q0
CA NISHANT KUMAR
Question 24
Commodities Q0 P0 Q1 P1
A 2 2 6 18
B 5 5 2 2
C 7 7 4 24
Then the fisher’s quantity index number is:
(a) 87.34 (b) 85.24 (c) 87.25 (d) 78.93
Solution
(d)
CA NISHANT KUMAR
Value Indices
Value = Price × Quantity
Value Index =
 V PQ
=
n n n
 PQ
V 0 0 0
CA NISHANT KUMAR
Question 25
A 4 3 6 2
B 5 4 6 4
C 7 2 9 2
D 2 3 1 5
Then the value ratio is:
59 49 41 47
(a) (b) (c) (d)
52 47 53 53
CA NISHANT KUMAR
Solution
(a)
Price Quantity Value Price Quantity Value
A 4 3 12 6 2 12
B 5 4 20 6 4 24
C 7 2 14 9 2 18
D 2 3 6 1 5 5
Total 52 59
59
Therefore, the Value Index =
52
CA NISHANT KUMAR
Question 26
The total value of retained imports into India in 1960 was ₹71.5 million per month. The
corresponding total for 1967 was ₹87.6 million per month. The index of volume of
retained imports in 1967 composed with 1960 (= 100) was 62.0. The price index for
retained inputs for 1967 our 1960 as base is:
(a) 198.61 (b) 197.61 (c) 198.25 (d) None
Solution
(b)
“Volume” is just another word for “Quantity”.
We are given the values of 1960 as well as of 1967.
CA NISHANT KUMAR
V1967 87.6
Value Index = =  100 = 122.52
V1960 71.5
Quantity Index = 62
We know that Value Index = Price Index × Quantity Index
87.6
 100
Value Index
Therefore, Price Index = = 71.5  100 = 197.61
Quantity Index 62
CA NISHANT KUMAR
Limitations and Usefulness of Index Numbers
Limitations
1. As the indices are constructed mostly from deliberate samples, chances of errors
creeping in cannot be always avoided.
2. Since index numbers are based on some selected items, they simply depict the broad
trend and not the real picture.
3. Since many methods are employed for constructing index numbers, the result gives
different values and this at times creates confusion.
Usefulness
1. Framing suitable policies in economics and business: They provide guidelines to
make decisions in measuring intelligence quotients, research etc.
CA NISHANT KUMAR
2. They reveal trends and tendencies in making important conclusions in cyclical
forces, irregular forces, etc.
3. They are important in forecasting future economic activity. They are used in time
series analysis to study long-term trend, seasonal variations and cyclical
developments.
4. Index numbers are very useful in deflating i.e., they are used to adjust the original
data for price changes and thus transform nominal wages into real wages.
5. Cost of living index numbers measure changes in the cost of living over a given
period.
CA NISHANT KUMAR
Deflating Time Series Using Index Numbers
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑉𝑎𝑙𝑢𝑒
𝐷𝑒𝑓𝑙𝑎𝑡𝑒𝑑 𝑉𝑎𝑙𝑢𝑒 =
𝑃𝑟𝑖𝑐𝑒 𝐼𝑛𝑑𝑒𝑥 𝑜𝑓 𝑡ℎ𝑒 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑌𝑒𝑎𝑟
or
𝐵𝑎𝑠𝑒 𝑃𝑟𝑖𝑐𝑒 (𝑃0 )
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑉𝑎𝑙𝑢𝑒 =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑃𝑟𝑖𝑐𝑒 (𝑃𝑛 )
𝐴𝑐𝑡𝑢𝑎𝑙 𝑊𝑎𝑔𝑒𝑠
𝑅𝑒𝑎𝑙 𝑊𝑎𝑔𝑒𝑠 = × 100
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐿𝑖𝑣𝑖𝑛𝑔 𝐼𝑛𝑑𝑒𝑥
CA NISHANT KUMAR
Year Wholesale Price Gross National Product at Real Gross National
Index Current Prices Product
7499
1970 113.1 7499  100 = 6630
113.1
7935
1971 116.3 7935  100 = 6823
116.3
8657
1972 121.2 8657  100 = 7143
121.2
9323
1973 127.7 9323  100 = 7301
127.7
CA NISHANT KUMAR
Question 27
In 1980, the net monthly income of the employee was ₹800/- p.m. The consumer price
index number was 160 in 1980. It rises to 200 in 1984. If he has to be rightly
compensated, the additional D.A. to be paid to the employee is:
(a) ₹175/- (b) ₹185/- (c) ₹200/- (d) ₹125/-
Solution
(c)
Consumer Price Index = 160 → Salary = ₹800
Consumer Price Index = 200 → Salary = ?
CA NISHANT KUMAR
200  800
Salary = = ₹1,000
160
Therefore, additional dearness allowance = ₹1,000 – ₹800 = ₹200/-
CA NISHANT KUMAR
Question 28
Consumer price index number goes up from 110 to 200 and the Salary of a worker is also
raised from ₹325 to ₹500. Therefore, in real terms, to maintain his previous standard of
living he should get an additional amount of:
(a) ₹85 (b) ₹90.91 (c) ₹98.25 (d) None
Solution
(b)
CA NISHANT KUMAR
200  325
Salary = = ₹590.91
110
However, he is getting salary of ₹500.
Therefore, additional allowance = ₹590.91 – ₹500 = ₹90.91
CA NISHANT KUMAR
Question 29
Net monthly salary of an employee was ₹3000 in 1980. The consumer price index number
in 1985 is 250 with 1980 as base year. If the has to be rightly compensated, then, the
dearness allowance to be paid to the employee is:
(a) ₹4,800.00 (b) ₹4,700.00 (c) ₹4,500.00 (d) None
Solution
(c)
Consumer Price Index = 100 → Salary = ₹3,000
CA NISHANT KUMAR
250  3,000
Salary = = ₹7,500
100
Therefore, additional dearness allowance = ₹7,500 – ₹3,000 = ₹4,500
CA NISHANT KUMAR
Question 30
Net Monthly income of an employee was ₹800 in 1980. The consumer price Index
number was 160 in 1980. It is rises to 200 in 1984. If he has to be rightly compensated.
The additional dearness allowance to be paid to the employee is:
(a) ₹240 (b) ₹275 (c) ₹250 (d) None
Solution
(d)
CA NISHANT KUMAR
200  800
Salary = = ₹1,000
160
Therefore, additional dearness allowance = ₹1,000 – ₹800 = ₹200
CA NISHANT KUMAR
Question 31
Consumer Price index number for the year 1957 was 313 with 1940 as the base year. The
Average Monthly wages in 1957 of the workers into factory be ₹160/-. Their real wages
is:
(a) ₹48.40 (b) ₹51.12 (c) ₹40.30 (d) None
Solution
(b)
CA NISHANT KUMAR
Question 32
During the certain period the C.L.I. goes up from 110 to 200 and the Salary of a worker
is also raised from 330 to 500, then the real terms is:
(a) loss by ₹50 (b) loss by ₹75 (c) loss by ₹90 (d) None
Solution
(a)
The language is very weird.
They want to ask us the difference between the real wages of the two time periods.
Real wage is the wage as per the base index price (i.e., 100)
CA NISHANT KUMAR
So, real wage when the index was 110:
When the index is 110, the wages are 330
100  330
Therefore, when the index was 100, the wages were = 300
110
Also,
When the index is 200, the wages are 500
100  500
Therefore, when the index was 100, the wages were = 250
200
Therefore, clearly, there is a loss of ₹50 in real terms.
CA NISHANT KUMAR
Question 33
During a certain period the cost of living index number goes up from 110 to 200 and the
salary of a worker is also raised from ₹330 to ₹500. The worker does not get really gain.
Then the real wages decreased by:
(a) ₹45.45 (b) ₹43.25 (c) ₹100 (d) None
Solution
(c)
Clearly, it’s the same question as before. However, ICAI has solved it as follows:
For index 110, the wages were ₹330.
For index 200, the wages should have been (200 × ₹330) ÷ 110 = ₹600
CA NISHANT KUMAR
Clearly, there’s a loss of ₹100.
CA NISHANT KUMAR
Shifting and Splicing of Index Numbers
Shifting of Index Numbers
𝑆ℎ𝑖𝑓𝑡𝑒𝑑 𝑃𝑟𝑖𝑐𝑒 𝐼𝑛𝑑𝑒𝑥
𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑃𝑟𝑖𝑐𝑒 𝐼𝑛𝑑𝑒𝑥
= × 100
𝑃𝑟𝑖𝑐𝑒 𝐼𝑛𝑑𝑒𝑥 𝑜𝑓 𝑡ℎ𝑒 𝑌𝑒𝑎𝑟 𝑜𝑛 𝑤ℎ𝑖𝑐ℎ 𝑖𝑡 ℎ𝑎𝑠 𝑡𝑜 𝑏𝑒 𝑠ℎ𝑖𝑓𝑡𝑒𝑑
CA NISHANT KUMAR
Year Original Price Index Shifted Price Index to Base 1990
125
1988 125  100 = 89.3
140
131
1989 131  100 = 93.6
140
140
1990 140  100 = 100.0
140
147
1991 147  100 = 105.0
140
CA NISHANT KUMAR
Splicing of Index Numbers
Splicing means combining two index covering different bases into a single series.
Splicing two sets of price index numbers covering different periods of time is usually
required when there is a major change in quantity weights. It may also be necessary on
account of a new method of calculation or the inclusion of new commodity in the index.
CA NISHANT KUMAR
Year Old Price Index Revised Price Index Spliced Price Index
[1900 = 100] [1995 = 100] [1995 = 100]
100
1990 100.0  100 = 87.6
114.2
102.3
1991 102.3  100 = 89.6
114.2
105.3
1992 105.3  100 = 92.2
114.2
107.6
1993 107.6  100 = 94.2
114.2
111.9
1994 111.9  100 = 98.0
114.2
1995 114.2 100.0 100.0
CA NISHANT KUMAR
1996 102.5 102.5
1997 106.4 106.4
1998 108.3 108.3
1999 111.7 111.7
2000 117.8 117.8
CA NISHANT KUMAR
Test of Adequacy
There are four tests:
1. Unit Test –
a. This test requires that the formula should be independent of the unit in which
(or, for which) prices and quantities are quoted.
b. All the formulae satisfy this test, except for the simple (unweighted)
aggregative index.
2. Time Reversal Test –
a. It is a test to determine whether a given method will work both ways in time,
forward and backward.
CA NISHANT KUMAR
b. The test provides that the formula for calculating the index number should be
such that two ratios, the current on the base and the base on the current should
multiply into unity.
c. In other words, the two indices should be reciprocals of each other.
P P
Symbolically, P01  P10 = 1, where, P01 = 1 , and P10 = 0 .
P0 P1
d. Check of Different Methods
i. Laspeyres’ method
P01 =
 PQ
1 0
, P10 =
 P0Q0
0 0
P Q  PQ1 0
P01  P10 =
 PQ  P Q
1

0 0 0
1
 P
0 Q 0  PQ
1 0
CA NISHANT KUMAR
Therefore, Laspeyres’ Method does not satisfy this test.
ii. Paasche’s method
P01 =
 PQ
1 n
, P10 =
 P0Qn
0 n
P Q  PQ
1 n
P01  P10 =
 PQ  P Q
1 n 0 n
1
 P Q 0 PQ
n 1 n
Therefore, Paasche’s Method does not satisfy this test.

iii. Fisher’s Ideal
P01 =
 PQ   PQ
1 0 1 1
, P10 =
PQ  PQ
0 1 0 0
PQ PQ
0 0 0 1  PQ  PQ
1 1 1 0
CA NISHANT KUMAR
P01  P10 =
 PQ   PQ
1 0 1 1

PQ  PQ
0 1 0 0
=1
PQ PQ
0 0 0 1  PQ  PQ
1 1 1 0
Therefore, Fisher’s Idea does satisfy this test.

3. Factor Reversal Test –
a. This states that the product of price index and the quantity index should be
equal to the corresponding value index, i.e.,

 PQ
1 1
.
0 0P Q
b. Symbolically, P01  Q01 = V01 .
c. Check for Fisher’s Method
P01 =
 PQ   PQ
1 0 1 1
, Q01 =
Q P  Q P
1 0 1 1
PQ PQ
0 0 0 1 Q P Q P
0 0 0 1
CA NISHANT KUMAR
P01  Q01 =
 PQ   PQ   Q P   Q P
1 0 1 1 1 0 1 1
 P Q  P Q Q P Q P
0 0 0 1 0 0 0 1
P01  Q01 =
 PQ  PQ  Q P  Q P
1
 0
  1 1 1 0 1 1
 P Q
0  P Q
0  Q P Q P
0 1 0 0 0 1
(  PQ )
2
P01  Q01 =
1 1
( P Q )
2
0 0
P01  Q01 =
 PQ
1 1
PQ
0 0
Therefore, Fisher’s Method satisfies this test as well.
CA NISHANT KUMAR
d. While selecting an appropriate index formula, the Time Reversal Test and the
Factor Reversal test are considered necessary in testing the consistency.
e. Since Fisher’s Index number satisfies both the tests (Time Reversal, as well as
Factor Reversal), it is called an Ideal Index Number.
4. Circular Test –
a. As per this test, P01  P12  P20 = 1.
b. Therefore, this property enables us to adjust the index values from period to
period without referring to the original base every time.
c. The test of this shiftability of base is called the circular test.
d. This test is not met by Laspeyres, or Paasche’s or the Fisher’s ideal index.
e. The simple geometric mean of price relatives and the weighted aggregative
with fixed weights meet this test.
CA NISHANT KUMAR
Question 34
If the 1970 index with base 1965 is 200, and 1965 index with base 1960 is 150, the index
1970 on base 1960 will be :
(a) 700 (b) 300 (c) 500 (d) 600
Solution
(b)
Let the year 1960 be P0 , the year 1965 be P1 , and the year 1970 be P2 .
We need to find out the index of 1970 ( P2 ) , on base 1960 ( P0 ) . Therefore, we need to
find P02 .
CA NISHANT KUMAR
As per the question,
• the 1970 index with base 1965 is 200. This means that P12 = 200.
• the 1965 index with base 1960 is 150. This means that P01 = 150.
As per the circular test, we know that P01  P12  P20 = 1.
1 1
Therefore, 150  200  P20 = 1  P20 =  100 = .
150  200 300
1
Therefore, P02 = = 300.
P20
CA NISHANT KUMAR
Miscellaneous Questions
CA NISHANT KUMAR
Question 35
When the cost of Tobacco was increased by 50%, a certain hardened smoker, who
maintained his formal scale of consumption, said that the rise had increased his cost of
living by 5%. Before the change in price, the percentage of his cost of living was due to
buying Tobacco is:
(a) 15% (b) 8% (c) 10% (d) None
Solution
(c)
The language of this question is not correct. They want to ask what percentage of his
Cost of Living his Tobacco consumption is. (Tobacco consumption iski Cost of Living
ka kitna percent hai?)
CA NISHANT KUMAR
Let x be Cost of Living Index and y be Tobacco Price.
Increase in x = 5%  0.05x; increase in y = 50%  0.5y
0.05x = 0.5y
y 0.05
= = 0.10
x 0.5
CA NISHANT KUMAR
Question 36
The consumer price Index for April 1985 was 125. The food price index was 120 and
other items index was 135. The percentage of the total weight given to food index is:
(a) 66.67 (b) 68.28 (c) 90.25 (d) None
Solution
(a)
Let the weight of the food price index be x. Then the weight of the other index would be
(100 – x).
Weighted Average = Sum of Products/Sum of Weights
CA NISHANT KUMAR
120 x + 135 (100 − x )
Consumer Index =
100
120 x + 135 (100 − x )
125 =
100
12500 = 120x + 13500 − 135x
12500 = 13500 − 15x
15x = 13500 − 12500
15x = 1000
1000
x= = 66.67
15
CA NISHANT KUMAR
Question 37
From the following data with 1966 as base year:
Commodity Quantity Units Values (₹)
A 100 500
B 80 320
C 60 150
D 30 360
The price per unit of commodity A in 1966 is:
(a) ₹5 (b) ₹6 (c) ₹4 (d) ₹12
Solution
(a)
CA NISHANT KUMAR
Question 38
The price of a commodity increases from ₹5 per unit in 1990 to ₹7.50 per unit in 1995
and the quantity consumed decreases from 120 units in 1990 to 90 units in 1995. The
price and quantity in 1995 are 150% and 75% respectively of the corresponding price
and quantity in 1990. Therefore, the product of the price ratio and quantity ratio is:
(a) 1.8 (b) 1.125 (c) 1.75 (d) None
Solution
(b)
Base Year (1990) Current Year (1995)
Price (P0) (₹) Quantity (Q0) Price (P1) (₹) Quantity (Q1)
5 120 7.50 90
CA NISHANT KUMAR
Price Ratio = 7.50/5
Quantity Ratio = 90/120
Product = 7.50/5 × 90/120 = 1.125
CA NISHANT KUMAR
Question 39
If the price index for the year, say 1960 be 110.3 and the price index for the year, say
1950 be 98.4, then the purchasing power of money (Rupees) of 1950 in 1960 is:
(a) ₹1.12 (b) ₹1.25 (c) ₹1.37 (d) None
Solution
(a)
Think of it in this way. A McAloo Tikki burger costed ₹20 in 2009, and ₹40 in 2020.
This means that means that ₹40 had the power to purchase 2 burgers back in 2009.
Therefore, the purchasing power of the money of 2009 in 2020 is 2.
CA NISHANT KUMAR
Similarly, in this question, something which could be bought for ₹98.4 back in 1950 is
costing ₹110.3 now, in 1960. Therefore, the purchasing power of the money of 1950 in
1960 = 110.3 ÷ 98.4 = 1.12.
CA NISHANT KUMAR
Question 40
In 1996 the average price of a commodity was 20% more than in 1995 but 20% less than
in 1994; and more over it was 50% more than in 1997 to price relatives using 1995 as
base (1995 price relative 100) Reduce the data is:
(a) 150, 100, 120, 80 for (1994–97) (b) 135, 100, 125, 87 for (1994–97)
(c) 140, 100, 120, 80 for (1994–97) (d) None
Solution
(a)
• In 1996 the average price of a commodity was 20% more than in 1995 → this means
that if the index in 1995 was 100, then the index in 1996 would be 120.
CA NISHANT KUMAR
• but 20% less than in 1994 → this means that 1996 index is 20% less than the index
of 1994. Let the index of 1994 be x. Then the 1996 index = 80% of x. This means
0.8x = 120  x = 120 ÷ 0.8 = 150
• and more over it was 50% more than in 1997 → this means that 1996 index is 50%
more than the index of 1997. Let the index of 1997 be x. 1.5x = 120  x = 120 ÷
1.5 = 80
So, we have:
1994 150
1995 100
1996 120
1997 80
CA NISHANT KUMAR

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BUSINESS MATHEMATICS, LOGICAL

9. Triplicate Ratio – a log a n = n

 log10 5 + log10 ( 5 x + 1) = log10 ( x + 5 ) + log10 10

Taking Anti-log on both sides, we’ll get:

(a) 11 (b) 13 (c) 15 (d) 17

log a a + log a b = x  As log m + log n = log mn 

(a) x 2 + x + e = 0 (b) x 2 + x − e = 0 (c) x 2 + x + 1 = 0 (d) x 2 + x − 1 = 0

 log e x + log e (1 + x ) = log e 1

, then the value of 3( x 2 + y 2 ) will be:

(a) 12 (b) 18 (c) 46 (d) 64

If pqr = a x , qrs = a y , rsp = a z , then find the value of ( pqrs ) 2 .

Taking fourth root on both sides of the equation, we have:

(a) 128 : 81 (b) 2 : 3

 81x − 729 = 48x + 96

(a) 53 (b) 54 (c) 52 (d) 5

 25150 = 2550  x50

Therefore, option (b) is the answer.

(a) 16 (b) 0 (c) –1 (d) None

Simultaneous Linear Equations in Two Variables

Methods of Solving Quadratic Equations

d = 100 (10 − 7 ) = 300

 x = 8252 − ( 456  17 ) = 8252 − 7752 = 500

b2 − 4ac = ( −8) − ( 4 )( 3)( 4 ) = 16

b2 − 4ac = ( −4 ) − ( 4 )( 5)( 2 ) = −24

(a)  1 (b) 2 (c)  2 (d) –2

( 2 p ) + (1) − ( 2)( 2 p )(1) − 4 p2  0

q2r 2 + q2 p2 − 2rpq2 − 4 p2qr + 4 pq 2r + 4 p2r 2 − 4 pqr 2 = 0

If we look closely at the LHS of the following equation,

(a) x 2 + 50 x + 49 = 0 (b) x 2 − 24 x + 144 = 0

Therefore, the equation will be x 2 − ( 49 + 1) x + ( 49 1) = 0

The value of 6 + 6 + 6 + ... is:

(a) 2 (b) 4 (c) 6 (d) 8

The solution of the inequality

 0.05x + 2,100 − 0.07 x = 1,600

A = 3,6001 + ( 0.15  4 ) = 5,760

Cost of Cow = ₹5,760 – ₹4,000 = ₹1,760

Therefore, 15,748 = P (1 + 3i ) …Eq. (1)

 16,510 = P (1.06 + 3i ) …Eq. (2)

 1.5 = (1 + i ) …Eq. (1)

Now, for the first 3 years, we have: P = x; t = 3 years; A = 27,900; (1 + i ) = 1.5

(a) 11.41% (b) 10% (c) 10.41% (d) None

Now, we have P = 100; A = 32 × 100 = 3,200; t = ?

From Eqs. (1) and (2), we have:

= 10,000 ( 0.90 )( 0.95)

= 10,000  0.90  0.7351

(1 + i ) −1 − (i  2) = 0.01

Try the options.

Option (b) → 10%

Therefore, option (b) is the answer.

No. of Conversion Periods Per Year ( NOCPPY ) = 2

(a) ₹34,048 (b) ₹34,185 (c) ₹51,048 (d) ₹21,048

Now, try the options.

Therefore, option (a) is the answer.

9. Number of Factors of a number – Factors of a number N refers to all the numbers

 a + 10d + a + 11d + a + 12d = 28

RHS → ar 9  ar15 = a 2 r 9+15 = a 2 r 24

RHS → ar 3  ar 9 = a 2 r 3+9 = a 2 r12

RHS → ar15  ar 3 = a 2 r15+3 = a 2 r18

4. Sum of the Cubes of first n natural numbers (13 + 23 + 33 + 43 + ... + n3 ) =  