Numerical Test Tutorial Kenexa Style

Comprehensive aptitude test tutorial pack

including eBook, tutorial videos and practice tests

Graduate test solutions by

www.graduatemonkey.com
Data Context 2
Price Indices
 PSL Numerical Test: Data Context 2
Price indices
One of the most common data contexts is asset prices and indices, with questions
focussed on past growth or future growth based on an annual rate.
Question 5: What would the price of a tonne of corn would be in Year 10 if it rose by 6% per annum from its
Year 6 price?

Price of Corn

Year $ Price per ton Consumer Price Index

(31-Dec) (1-Jan 31-Dec)
1$ 400 3.10%
2$ 415 3.50%
3$ 420 2.20%
4$ 450 5.50%
5$ 510 4.10%
6$ 590 6.20%

A: $744.86 B: $567.89 C: $652.65 D: $788.78 E: $444.12

 PSL Numerical Test: Data Context 2
Price indices (e.g. CPI, RPI)
Solution to Question 5: What would the price of a tonne of corn would be in Year 10 if it rose by 6% per
annum from its Year 6 price?

Task: Calculate the compounded price growth of corn for the 4 years (from 6 th to 10th year), then multiply Year 6 price
by this number.
Solution: From 6th year through 10th year there would be 4 years. Using standard formula (1+6%)^4 = 1.26248
1.26 (compounded price growth rate) x 590 (Year 6 price) = 744.86

Shortcut method: Note that compounded growth by 6% over

Price of Corn
4 years i.e. (1+6%)^4-100% = 26% will only be slightly higher
Year $ Price per ton Consumer Price Index
than direct multiplication i.e. 6% x 4 years = 24%. So to
estimate you could take 6%x4+1=124% or 1.24 AND multiply (31-Dec) (1-Jan 31-Dec)
this by 590 = 731.6. Because the answer should only be 1$ 400 3.10%
slightly lower the real answer, the closest answer choice 2$ 415 3.50%
would be 744.86. 3$ 420 2.20%
Tip 2: This is for estimation questions only: When annual 4$ 450 5.50%
rate is below 10%, the compounded growth rate over a few 5$ 510 4.10%
years is only slightly higher than direct multiplication of
growth rate by the number of years. So you can multiply 6$ 590 6.20%
growth rate by the number of years, then look for a slightly
bigger number as the correct answer.
 Data Context 8
Comparing Several Companies
 PSL Numerical Test: Data Context 8
Comparing Market Shares
Typically compares market shares of one or several companies in a specific market in terms of
revenue, sales or costs.
Question 29: Between which two years did WPPs percentage share of the global advertising market sales
increase?

Global Advertising Market Sales ($ billions)

25
22.02
23.61 23.92
22.54 19.22
20 18.53
billions $

17.58
15 16.75 WPP
15.68
14.68 The rest
12.43 13.33
10

5
2006 2007 2008 2009 2010 2011

A: 2006-2007 B: 2007-2008 C: 2008-2009 D: 2009-2010 E: 2010-2011

 PSL Numerical Test: Data Context 8
Comparing Market Shares
Solution to Question 29: Between which two years did WPPs percentage share of the global advertising
market sales increase?

Task: First of all, understand the question and look for clues in the graph. For example, percentage share of global sales
means that you need to calculate the ratio of WPP sales to the total sales (including WPP), for each year. Then you
need to identify where this percentage has fallen from the previous year. The problem is that 1 minute would not be
sufficient to calculate the above percentage shares of WPP for each of the 6 years! See Shortcut method below.
Solution: Traditional method would be to calculate WPP market share as % of total market for each year (as follows).
2006: 22.54 / (22.54 + 12.43) = 64.46% 2007: 23.61 / (23.61 + 13.33) = 63.91%
2008: 22.02 / (22.02 + 14.68) = 60% 2009: 23.92 / (23.92 + 15.68) = 60.4% - an increase from 2008

Shortcut:
The graph comes with an answer. Notice that the trend
Global Advertising Market Sales ($ billions)
for The Rest of the world is up while WPP trend is 25
down with an upward spike in 2008-2009 period. 22.02
23.61 23.92
The task is to identify the period where WPP market 22.54 19.22
share increased from the previous year. WPP actual 20 18.53
sales increased from 2008 to 2009. Hence, 2008 and
billions $

2009 would be the best data points to start with - to 17.58

15 16.75 WPP
save a lot of time! If you dont have time to calculate 15.68
you could just choose 2008-2009 period from the 14.68 The rest
12.43 13.33
graph. 10
Indeed, 23.92 / (23.92 + 15.68) = 60.4% which is an
increase from 22.02 / (22.02 + 14.68) = 60%
Tip: Look for clear trend changes and noticeable 5
spikes in linear graphs for quick answers. 2006 2007 2008 2009 2010 2011
 Data Context 4
Pie charts with value components
 PSL Numerical Test: Data Context 4
Pie charts with several % components (of total sales, costs or investment value)
Pie charts are used for data representation, especially, when the data has various
compositions. Most common pie charts show sales, cost and investment values.
Question 12: If 11% of the value of the China holding is moved to India, what proportion of the total fund
will the India investment represent?

Current Value of Global Government Bond

Fund
Total value = 210 million

Brazil
China
US 5%
10%
25% India
9%
Russia
12%

UK
39%

A: 11.7% B: 12.5% C: 10.1% D: 9.9% E: 9.5%

 PSL Numerical Test: Data Context 4
Pie charts with several % components (of total sales, costs or investment value)
Solution to Question 12: If 11% of the value of the China holding is moved to India, what proportion of the
total fund will the India investment represent?

Task: The key task is to calculate the value that will move from China holding to India holding. Then add it to the actual
value of existing India holding, then divide the sum by the total value of the Fund.
Solution: Total value of China holding: 210m x 10% = 21m
11% of China holding: 21m x 11% = 2.31m
Total existing value of India holding: 210m x 9% = 18.9m
Total new value of India holding: 18.9m + 2.31m = 21.21m.
Percentage representation: 21.21m / 210m = 10.1%
Current Value of Global Government
Bond Fund
Shortcut: There is no need to use the actual value of the Fund in Total value = 210 million
the calculations. Simply, take 10% China holding, multiply by 11%, Brazil
China
then add the result to the existing 9% India holding: US 5%
10%
10% x 11% + 9% = 10.1% 25% India
9%
Russia
12%

UK
39%
WHAT YOU JUST READ IS A SAMPLE FROM KENEXA STYLE
NUMERICAL REASONING TEST TUTORIAL EBOOK

www.graduatemonkey.com

Legal Rights and Disclaimer:

You are not allowed to share, post or distribute the given material prior to obtaining
permission from the authors. Attempts to distribute the material via the internet may be
detected and action may be taken against the person(s) who violate our copyright

All the information presented was specifically assembled or created for test preparation
purposes only.