3/4/2019 Free Mock Test for JAIIB & CAIIB

Sign In/Sign
Dedicated to the Young and Energetic Force of Bankers Out

AdSense has paid more

than $11 billion to
publishers

WELCOME

ABM-Case Studies DAILY QUIZ - CAIIB - 03-03-2019

ABM-Recollected
ABM-Last Minute A college senior is interested in determining the relationship between her GPA and her weekly hours of
BFM-Case Studies
study for her prior 6 terms in college. The data on her GPAs and hours of study, in the form of (Hours of
Study, GPA), are (2.8, 12), (3.0, 15), (3.0, 18), (3.1, 20), (3.5, 30), and (3.9, 42).
BFM-Recollected
BFM-Last Minute 1. What is the sum of squares for Hours of Study?
Important Circulars
Master Circulars a. 3,757.0
b. 628.8
Bank DA Rates
c. 137.0
Bank Holidays
d. 25.1
Life Ins Companies
List of PSBs Ans - b
List of Private Banks
Solution:
List of Foreign Banks

The SSHours = 3,757 - 1372/6 = 628.833

.............................................

2. What is the sum of squares for GPA?

a. 0.828
b. 628.8
c. 0.883
d. 2.717

Ans - a

Solution:

The SSGPA = 62.91 - 19.32/6 = 0.828

.............................................

3. What is the sum of squares for Hours times GPA?

a. 463.4
b. 137.0
c. 22.717
d. 19.3

Ans - c

Solution:

The SSHours*GPA = 463.4 - 19.3*137/6 = 22.717

.............................................

4. What is the covariance between Hours of Study and GPA?

a. 4.543
b. 2.828
c. 62.91
d. 628.8

Ans - a

Solution:

http://www.jaiibcaiibmocktest.com/03-03-19-caiib.php 1/4
3/4/2019 Free Mock Test for JAIIB & CAIIB
Cov(Hours, GPA) = 22.717 / (6-1) = 4.543
.............................................

5. What is the correlation between Hours of Study and GPA?

a. 0.005
b. -0.995
c. 1.995
d. 0.995

Ans - d

Solution:

Corr(Hours, GPA) = 22.717 / (√0.828 * √628.833 = 0.9954

.............................................

Given the following sample data: 2, 4, 8, 6, 10, and 12.

1. Calculate Mean

a. 6
b. 7
c. 8
d. 9

Ans - b

2. Calculate standard deviation

a. 2.34
b. 2.43
c. 3.42
d. 4.23

Ans - c

3. Calculate coefficient of Standard Deviation

a. 0.39
b. 0.43
c. 0.49
d. 0.57

Ans - c

4. Calculate coefficient of variance

a. 46.86
b. 48.86
c. 53.86
d. 56.86

Ans - b

Solution :

1. Mean - X(bar) = ∑X/n

= 42/6
=7

X - (X−X(bar))^2
2 - (2−7)^2 = 25
4 - (4−7)^2 = 9
8 - (8−7)^2 = 1
6 - (6−7)^2 = 1
10 - (10−7)^2 = 9
12 - (12−7)^2 = 25

∑X=42
∑(X−X(bar))^2=70

2. Standard Deviation = √[(∑(X−X(bar))^2)/n]

S = √70/6
= √35/3
= 3.42

http://www.jaiibcaiibmocktest.com/03-03-19-caiib.php 2/4
3/4/2019 Free Mock Test for JAIIB & CAIIB
3. Coefficient of Standard Deviation =S/X(bar)
= 3.427
= 0.49

4. Coefficient of Variation (C.V) = S/X(bar)×100

= (3.42/7) × 100
= 48.86%
.............................................

In a survey of 150 people in a city, it was found that there were 50 smokers. Calculate the following based
on the above data.

1. The estimate of population proportion

a. 0.3333
b. 0.5
c. 0.6666
d. 1.0

2. Estimated standard error of population

a. 0.0015
b. 0.2211
c. 0.0385
d. 0.4725

3. Binominal standard deviation of population

a. 1.76
b. 2.26
c. 5.77
d. 7.87

4. 95% confidence interval level of population proportion

a. 0.4326, 0.2340
b. 0.5468, 0.3178
c. 0.4088, 0.2578
d. 0.5568, 0.2778

5. 99% confidence interval level of population proportion

a. 0.4326, 0.2340
b. 0.5468, 0.3178
c. 0.4088, 0.2578
d. 0.5568, 0.2778

Ans - 1-a, 2-c, 3-c, 4-c, 5-a

Solution :

1. P = 50/150 = 0.3333

2. Estimated standard error = sqrt [P (1-P) / n]

P = 0.3333
1-P = 1 - 0.3333 = 0.6666
n = 150
So, sqrt [P (1-P) / n] = sqrt [0.3333 x 0.6666 / 150]
= sqrt (0.2222 / 150)
= sqrt (0.00148)
σx = 0.0385

3. Binominal standard deviation = √n*p*q

= √150*.333*.666
= √33.27
= 5.77

4. Level of Confidence and their Multiplier Number (z*) (Commonly used)

99% - 2.58
95% - 1.96
90% - 1.645

95% confidence interval = P +/- (1.96 (σx))

= 0.3333 + (1.96 x 0.0385)
= 0.3333 + 0.0755
= 0.4088

http://www.jaiibcaiibmocktest.com/03-03-19-caiib.php 3/4
3/4/2019 Free Mock Test for JAIIB & CAIIB
and

= 0.3333 - (1.96 x 0.0385)

= 0.3333 - 0.0755
= 0.2578

5. 99% confidence interval = P +/- (2.58 (σx))

= 0.3333 + (2.58 x 0.0385)
= 0.3333 + 0.0993
= 0.4326

and

= 0.3333 - (2.58 x 0.0385)

= 0.3333 - 0.0993
= 0.2340
.............................................

A bond has been issued with a face value of Rs. 1000 at 10% Coupon for 3 years. The required rate of
return is 8%. What is the value of the bond if the Coupon amount is payable on half-yearly basis?

a. 1520
b. 1052
c. 1205
d. 1025

Ans - b

Explanation :

Here,

FV = 1000
CR = 10% half-yearly = 5% p.a.
Coupon = FV × CR = 50
R = 8% yearly = 4% p.a.
t = 3 years

Bond Price = (1/(1+R)^t)((coupon*((1+R)^t-1)/R)+Face Value)

= 1052

(Since Coupon rate > YTM, so FV < Bond’s Value)

.............................................

In a random sample of 900 adults, 513 approved of the “war on terror”. Find a 95% confidence interval for
the true proportion of adults who approve.

a. 0.4373, 0.5027
b. 0.5

http://www.jaiibcaiibmocktest.com/03-03-19-caiib.php 4/4