Rise School of Accountancy

09-05-2024
2 HOURS–100 Marks

QM (B-45 & Crash)

MOCK EXAM

1. A two-digit number is equal to “4 times the sum of its digits” and “12 times equal to the difference of its
digits.” If xy represents the required number, solving which of the following simultaneous equations could
lead to that number?
A) 4x+xy=4y and 12x – xy=12y B) xy – 4y =4x and 12y – xy=12x
C) xy – 4x = 4y and xy +12y =12x D) xy – 4x = 4y and xy – 12x =12y
2. Which of the following is NOT the limitation of scatter diagram?
A) It is useful in giving a visual impression of the relationship between variables
B) They might indicate a relationship where there is none
C) They can just show relationship between only two variables at a time
D) They might lead to incorrect conclusions if there are only few data points available
3. A factory produces two products x and y. Each product passes through two departments A and B which
have a capacity of 1120 hours and 1400 hours The Product X requires 7 hoursin department A and 4
hours in department B, the product Y requires 8 hours in departmentA and 5 hours in department B. The
constraints representing the above data:
A) 7x+4y ≤ 1120 and 8x+5y ≤ 1400 B) 7x+8y ≤ 1400 and 4x+5y ≤ 1120
C) 7x+5y ≤ 1400 and 8x+4y ≤ 1120 D) 7x+8y ≤ 1120 and 4x+5y ≤ 1400
4. 6 years ago the age of father was 3 times of his son’s age. After 9 years it will be twice theage of his
son. The present ages of father and son are:
A) 48 and 20 B) 51 and 21
C) 54 and 22 D) 57 and 23
5. Saad invested Rs. 12000 for 7 years. Return on investment is 12 % for the first 3 years and 15 percent for
the rest of the period. Calculate the total interest received by Saad under simple interest.
A) Rs. 16320 B) Rs. 16112 C) Rs. 18520 D) Rs. 11520
6. A business requires a minimum expected rate of return of 12% on its investments. Present value at 10% is +2057
and Present value at 15% is (5920). Find IRR
A) 12% B) 11.3% C) 11.9% D) 14%
7. A company intends to invest Rs 9 million into a project which would yield 8, 12 and 14 percent during
first three years respectively. The company would also recover the originalinvestment after 3 years. If
the company’s cost of capital is 9%, NPV of the project would be:
A) Rs 393,745 B) Rs 438,204 C) Rs 648,634 D) Rs 492,167
8. Which of the following statements as regards Histogram is correct?
A) A vertical rectangle is drawn to represent each class of the frequency distribution
B) The frequency of the class is represented by the height of rectangles
C) Histogram cannot represent continuous data
D) Both (A) and (B)
9. √𝑥 4 − 18𝑥 2 + 81 = 0 which of the following represent the roots of the equation?
A) ± 2 B) ± 3 C) ± 9 D) ± 5
10. Which of the following statement as regards to variance is/are correct?
i) It can never be smaller than the standard deviation
ii) It can never be zero
A) Only statement (i) is correct B) Only statement (ii) is correct
C) Both statements are correct D) Both statements are not correct
11. A project costing 4 million is expected to yield Rs. 600000, Rs. 800000 and Rs. 4000000 at the end of each
year for next 3 years respectively. Find the IRR of the project:
A) 12.22% B) 21.22% C) 22.12% D) 22.21%
12. ∑(x-𝑥)(y-𝑦)=835 and standard deviation of x is 21.5 and standard deviation of y is 10.61 r=0.524 then find
n=?
A) 20 B) 8 C) 19 D) 7
13. A wallet contains 65 notes of Rs. 1000 and 35 notes of Rs. 500. Four notes are selected at random, find the
probability that sum of notes are Rs. 3000?
A) 0.3156 B) 0.6844 C) 0.3105 D) 0.6895
14. How many 3-digit numbers can be formed from the digits 1, 3, 4, 5, 7 and 9, which are divisible by 2 and
none of the digits is repeated?
A) 6 B) 20 C) 30 D) 90
15. Calculate the standard deviation and variance for the following data
X 0 1 2 3 4 5 6
f 8 7 3 1 1 6 11
A) 1.095, 1.2 B) 1.2, 0.346 C) 2.473, 6.12 D) 1, 1.44
16. Online booking system of food channel receives an average of two orders in every four minutes. Assuming
an approximate Poisson distribution that three or more orders will be received during a period of seven
minutes?
A) 0.3712 B) 0.4679 C) 0.5321 D) 0.3208
17. Find the IRR of an investment having initial cash outflow of Rs.213,000. The cash inflows during the first,
second, third and fourth years are expected to be Rs.65,200, Rs.96,000, Rs.73,100 and Rs.55,400
respectively.
A) 12.76% B) 14.05% C) 0.1276% D) 0.1405%
18. From the given population with  = 5.6 kilograms and sample were drawn with replacement, how may the
standard error of the mean change when the sample size is increased from 64 to 196.
A) Decreased from 0.7 to 0.4 B) Increased from 0.7 to 0.4
C) Decreased from 0.0875 to 0.0286 D) Increased from 0.0286 to 0.0875
19. The probability of rejecting the true null hypothesis is called:
A) Level of significance B) Test statistic
C) Level of confidence D) Type-II error
20. The term degree of freedom is used with reference to:
A) Test of goodness of fit only B) Z-test and test of goodness of fit
C) T-test and test of goodness of fit D) T-test and Z-test
21. An LED light manufacturing company claims that the light produced by them have a mean life time of
10.000 hours. Construct an appropriate null and alternative hypothesis:
A) 𝐻𝑜 : 𝜇 = 10,000 B) 𝐻𝑜 : 𝜇 ≥ 10,000
𝐻𝑜 : 𝜇 ≠ 10,000 𝐻𝑜 : 𝜇 < 10,000
C) 𝐻𝑜 : 𝜇 ≤ 10,000 D) 𝐻𝑜 : 𝜇 = 10,000
𝐻𝑜 : 𝜇 > 10,000 𝐻𝑜 : 𝜇 > 10,000
22. If the fee earned by a school in 10th year is 5M and fee is increased each year by 10% and number of students
increase by 5%. What will be the fee earned by school in 1st year?
A) 1.37M B) 1.93M C) 1.24M D) 1.56M
23. Imran and Ahmad invested in a business. The sum of investment of Imran and seven times the investment
of Ahmad amounts to Rs 18 million. Difference between thrice the investment of Imran and twice the
investment of Ahmad is Rs 8 million. Amount invested by Imran and Ahmad is:
A) Rs 11 and 1 million respectively B) Rs 7 and 4 million respectively
C) Rs 4 and 2 million respectively D) Rs 8 million and 3 million respectively
24. A company makes and sells a single product. The company is required to calculate its variable production
cost of per unit. The product has a variable selling cost of Rs.2.5 per unit and a selling price of the product
is Rs.6. Number of units sold are 50 and a contribution margin of 50.
A) 2.5 B) 3.5 C) 4 D) 5
25. The constraint does not affect the feasible region and has no impact on the solution is called:
A) Linear constraint B) Bounded constraint
C) Redundant constraint D) None of these
26. 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 of these
27. Which of the following is correct about Paasche’s index?
A) It fails to account for the fact that people will buy less of those items which have risen in prices
B) The denominator in the Paasche’s price index does not change from year to year.
C) It is based on the most recent quantities purchased.
D) It tends to overstate inflation
28. You have a retirement account with Rs.2000 in it. The account earns 6.2% interest, compounded monthly, and
you deposit Rs.50 every month for the next 20 years. How much will be the account at the end of those 20 years.
A) Rs.30546.62 B) Rs.31546.62 C) Rs.82546.62 D) Rs.44546.62
29. A company is considering whether to invest in a new item of equipment costing Rs.45,000 to make a new
product. The product would have a four-year life, and the estimated cash profits over the four-year period
are as follows:
Years 1 2 3 4
Cash inflows 17000 25000 16000 4000
What would be the NPV of the project? If interest rate is 12% p.a compounded yearly (approximately)
A) Rs.5040 B) Rs.5100 C) Rs.5000 D) Rs.4040
30. Which of the following statements is/are correct about random sample?
(i) It is bias free sample
(ii) Where every member of the population has an equal chance of being selected as a member of the
sample.
A) Both statements are correct B) Both statements are not correct
C) Only statement (i) is correct D) Only statement (ii) is correct
31. Four year ago the price index of a particular product was 60. If the same index is now 108. Compute
percentage increase in the price of product.
A) 48% B) 80% C) 58% D) 60%
32. Following Consumer Price Indices (CPI) have been computed taking 20X9 as base year:
Year CPI
20X8 104.98
20X9 100
20Y0 116.19
20Y1 115.11
20Y2 132.01
Yearly Inflation (Deflation) for the above data would be
A) (4.98%), 5.83%, (7.75%), 12.80% B) 4.98%, 6.19%, 8.41%, 14.69%
C) (4.74%), 16.19%, (0.92%), 14.68% D) 4.74%, 6.17%, 8.40%, 14.68%
33. Asad wants to took a loan for 5 years. Which would be the least beneficial for him?
A) 11% simple interest B) 8% compounded quarterly
C) 10% compounded annually D) 9% compounded semi-annually
34. Naina and Maina invested equal sum of amount in two banks at the rate of 9% and 10% interest compounded
annually. In 6 years, how much percent of amount will Maina earns more than the Naina?
A) 8.45% B) 9.45% C) 6.45% D) 7.45%
35. Which of the following statements as regards the Normal Distribution is NOT correct?
A) Both tail of the distribution approach and meet the horizontal axis at a finite but high value
B) Higher standard deviation leads to a flatter curve
C) The total area under the curve is 1.
D) It is described by its mean and standard deviation.
36. One empire from Sindh, two from Baluchistan, two from Punjab and four from KPK, what is the probability
that one is selected from each province?
A) 6.8% B) 12.7% C) 9.8% D) None of these
37. The population of a city was 8 million on January 1, 2010. The population is growing at the exponential rate
of 2% per year. What will the population be on January 1, 2015.
A) 8.74 million B) 8.84 million C) 8.64 million D) 7.84 million
38. A 4 digit pin code can begin with any number except 0 and 1. If repetition of the same digit is allowed
then probability of a pin code beginning with a 7 and end with 8 is
A) 1/10 B) 1/70 C) 1/80 D) 1/40
39. The difference between simple and compound interest on a certain amount of money for 8 years at 14% per
annum is Rs.12,500. Find the amount.
A) Rs.18,062.8 B) Rs.15,062.8 C) Rs.17,062.8 D) None of these
40. An unprepared student makes random guess for ten MCQs question having 4 options, on a quiz. The
probability of at most two correct answer is:
A) 0.5255 B) 0.4744 C) 0.7251 D) 0.9437
41. The regression coefficients are affected by the change of:
A) Origin B) Scale C) Origin and Scale D) None of these
42. The average performance of the students of a college over last 10 years shows that the percentages of
students securing A, B and C grades are 10%, 40% and 50% respectively. The number of students securing
A, B and C grades aggregated to 88, 188 and 280 respectively. Calculated value of chi square for this data
would be?
A) 3.44 B) 24.22 C) 8.63 D) 8.16
43. Mr. K is planning for loan from a bank. The installment increases 25% every year. If the installment starting
in 2020 is Rs.4000. What would be their installment in the year 2027.
A) 19073.6 B) 21073.6 C) 18073.6 D) 20073.6
44. A sample of 100 employees of an entity had a mean weight of 170 pound with a standard deviation of 5
pounds. Which of the following sample size will result in a confidence interval of the mean ±1 pound for
this data at the 90% confidence interval?
A) 3 B) 280 C) 20 D) 68
45. Mr. Ali invests Rs.400,000 at the start of each quarter @12% for 8 years. What will be the total amount
after 8 years?
A) Rs.4,919,877 B) Rs.5,510,263
C) Rs.211,001,103 D) Rs.21631137
46. A pharmaceutical company claims that the amount of alcohol in each bottle of a drug is 0.750 ml. A random
sample of 50 bottles of that drugs was tested and found to have mean alcohol contents of 0.767 ml with a
standard deviation of 0.06 ml. If we test the company’s claim at 6% level significance, which of the
following statement will become true?
A) Reject the company’s claim as calculated B) Calculated value of Z is 1.985
value of Z is more than table value of Z
C) Table value of Z is 1.96 D) All of the above
47. A bank launched a new scheme where it offers 400000 per year for indefinite times after 8 years. How
much amount should bank require to collect from customer today if it offers 5% interest compounded
annually?
A) 8 million B) 5.96 million C) 5.41 million D) 5.6 million
48. Which of the following statements is/are correct?
i) Mode can never be smaller than 1st Quartile.
ii) Mean can never be smaller than 1st Quartile
A) Both statements are correct B) Both statements are not correct
C) Only statement (i) is correct D) Only statement (ii) is correct
49. If the level of significance is increased, the area of the critical region will:
A) Increased B) Decreased
C) Remain unchanged D) None of these
50. Consider the following sample
4.5, 4.9, 5.2, 5.6, 6.2
With 99% confidence level, the population mean is between
A) 3.94 and 6.62 B) 5.92 and 6.08 C) 4.99 and 5.91 D) 5.22 and 6.08