CMA JANUARY 2023 EXAMINATION

FOUNDATION LEVEL
BUSINESS QUANTITATIVE ANALYSIS

Course Code : TA112 Total Marks : 100

Reading Time : 15 minutes Writing Time : 180 minutes

Instructions to Candidates
 You MUST NOT write anything during the reading time.
 You should attempt ALL questions.
 Answers should be properly structured and relevant.
 Carefully read ALL the requirements and sub-questions before attempting a specific
question.
 ALL answers must be written in the answer book.
 AVOID WRITING/MARKING on the question paper at any time which may cause disciplinary
action.
 Start answering each question from a fresh sheet.
 Answers should be clearly numbered with the sub-question number.

Allowable Materials
 Writing Stationaries
 Non-programmable Calculator

Assessment Structure
Sub- Expected Time
Marks
question Required
Question 1 Multiple Choice Questions 10 10 16 minutes
Question 2 Modified True/False 10 10 15 minutes
Section
Question 3 Essay/Computational/Case 2 10 18 minutes
A
Question 4 Essay/Computational/Case 2 10 18 minutes
Question 5 Essay/Computational/Case 2 10 18 minutes
Question 6 Multiple Choice Questions 10 10 16 minutes
Question 7 Modified True/False 10 10 15 minutes
Section
Question 8 Essay/Computational/Case 2 10 18 minutes
B
Question 9 Essay/Computational/Case 3 10 18 minutes
Question 10 Essay/Computational/Case 2 10 18 minutes
Revision 10 minutes
Total 100 180 minutes

RESTRICTED USE
This paper MUST NOT BE REMOVED from the examination venue

Do not turn the page until instructed

 SECTION A [50 MARKS]
THERE ARE 5 (FIVE) QUESTIONS IN THIS SECTION FROM BUSINESS MATHEMATICS.
ANSWER ALL THE QUESTIONS IN THE ANSWER SCRIPT FOLLOWING THE EXAMPLE
PROVIDED FOR THE SPECIFIC QUESTION.

QUESTION 1 [10 × 1 = 10 MARKS]

There are ten (10) multiple-choice questions with five options. Pick the option that best explains
the given question. Write your answer on the answer script [DO NOT PUT ANY MARK ON THE
QUESTION PAPER]. Follow the example given below in providing your answer.

Example:
(i) ICMAB stands for the –
(a) Institute of Cost Management Accounting of Bangladesh
(b) Institute of Cost and Management Accountants of Bangladesh
(c) Institute for Cost Managers and Accounting of Bangladesh
(d) Institute of Cost Management Accountants of Bangladesh
(e) Industrial Cost Management Accountants of Bangladesh

Answer: i (b)

(i) Every rational number is a

(a) Whole Number
(b) Real Number
(c) Natural Number
(d) Imaginary Number
(e) None
(ii) Between any two numbers, there are
(a) Two rational numbers
(b) No rational number
(c) Infinite rational numbers
(d) Ten numbers
(e) None of above
(iii) The expression (𝑋 3 )2 /𝑋 4 equals?
(a) 1/X
(b) 1
(c) X
(d) 𝑋 2
(e) None of above
(iv) Solve for Y from the inequalities: (- 5X + 10Y +120 ≥ 25X+ 5Y+ 320)
(a) Y ≥ 6X + 40
(b) Y ≥ 12X + 40
(c) 4Y ≥ 6X + 40
(d) 3Y ≥ 12X + 10
(e ) None of above

CMA January 2023 Examination, TA112 [Page 2 of 7]

(v) In a colony, there are 55 members. Every member posts a greeting card to all the members.
How many greeting cards were posted by them?
(a) 990
(b) 890
(c) 2970
(d) 1980
(e) None of the above
(vi) How many equations to be given for getting values of a 2 unknown variables?
(a) 1
(b) 2
(c) 3
(d) 4
(e) None of above
(vii) Solve 7,467 - 356.1÷ (44.846 - 2) to 3 significant figures (s.f ):
(a) 7,461.023
(b) 7,460
(c) 7,458.689
(d) 7,459
(e) None of above
(viii) A Prices of land have been rising by 18% per annum. What does that equate to as a rise over
9 months?
(a) 13.50%
(b) 1.13%
(c) 13.22%
(d) 24.69%
(e) None of above
(ix) Factorizing the expression 9𝑎3 𝑎𝑏 2 − 15𝑎𝑏 3 + 6𝑎2 𝑏 gives the following
(a) 3𝑎𝑏(3𝑎2 𝑏 − 5𝑏 2 + 2𝑎)
(b) 𝑎𝑏(3𝑎2 𝑏 − 5𝑏 2 + 2𝑎)
(c) 3𝑎2 𝑏(3𝑎2 𝑏 − 𝑏 2 + 2𝑎)
(d) 3𝑎𝑏 2 (3𝑎2 𝑏 − 5𝑏 2 + 2𝑎)
(e) None of above.
(x) What does net present value give?
(a) Future values of present cash flow
(b) Present value of present cash flow
(c) Present value of future cash flow
(d) Future value of future cash flow
(e) None of above

CMA January 2023 Examination, TA112 [Page 3 of 7]

QUESTION 2 [10 × 1 = 10 MARKS]
There are ten (10) statements given under the question. Identify the statements as True or False.
If the statement is false, rewrite the statement on the answer script to make it ‘True’. Reasoning is
NOT required. Follow the example given below in providing your answer.

Example:
(a) If every element of a set A is also an element of a set B then set B is called sub-set of
set A.
Answer:
(a) False. If every element of a set A is also an element of a set B then set A is called
sub-set of set B.
Note:
 You will not get any mark if you simply rewrite as ICMAB does not stand for the
Industrial Cost Management Accountants of Bangladesh.
 If the statement is true, you need NOT to rewrite the statement rather only mention that
the statement is True.
(a) Capital Budgeting is the process of identifying, analyzing, and selecting investment projects
whose cash flows will all be received within one (1) year.
(b) 𝑙𝑜𝑔5 (𝑥𝑦) = (𝑙𝑜𝑔5 𝑥) (𝑙𝑜𝑔5 𝑦)
(c) 𝑙𝑜𝑔5 4 = 𝐿𝑜𝑔4/𝐿𝑜𝑔5 .
(d) Compound interest is the interest calculated on the previous year’s amount.
(e) The difference between permutation and combination can be defined as; when a set of data
is selected from a certain group, it is known as permutation; while the order in which the data
is arranged is known is combination.
(f) Grouping of data and its interpretation is not possible with the help of permutation and
combination.
(g) 12
C3 = 222
(i) The rate at which discounted cash flow is equal to zero is called Average Rate of Return (ARR).
(j) The total compound interest of tk.215.50 on tk.1000 for 4 years at 5% per annum.
(k) To increase a given present value, the discount rate should be upward.

QUESTION 3
(a) A company studies the product preferences of 20000 consumers. It was found that each of
the products A B C was liked by 7020,6230, and 5980 respectively and all the products were
liked by 1500; products A and B were liked by 2580, products A and C were liked by 1200
and products B and C were liked by 1950.Prove that the study results are not correct.
𝑥+𝑦 1 𝑥 𝑦
(b) If log 7
= 2 (𝑙𝑜𝑔𝑥 + 𝑙𝑜𝑔𝑦). Show that 𝑦 + 𝑥 = 47
[Marks: (5 + 5) = 10]
QUESTION 4
(a) What is Annuity due? Assume a person has the opportunity to receive an ordinary annuity that pays
$50,000 per year for the next 25 years, with a 6% discount rate. Find the value of annuity due?
(b) Suppose a project requires an initial investment of ＄2000 and it is expected to generate a
cash flow of ＄100 for 3 years plus ＄12500 in the third year. The target rate of return of the
project is 10% per annum. Calculate the net present value of the project.
[Marks: (4 + 6) = 10]
QUESTION 5
(a) Solve for x if log(x-1)+log(x+1)=log21
1
(b) Solve 2 (4𝑥 + 4−𝑥 ) = 2 for x
[Marks: (4 + 6) = 10]

END OF SECTION A

CMA January 2023 Examination, TA112 [Page 4 of 7]

 SECTION B [50 MARKS]
THERE ARE 5 (FIVE) QUESTIONS IN THIS SECTION FROM BUSINESS STATISTICS.
ANSWER ALL THE QUESTIONS IN THE ANSWER SCRIPT FOLLOWING THE EXAMPLE
PROVIDED FOR THE SPECIFIC QUESTION.

QUESTION 6 [10 × 1 = 10 MARKS]

There are ten (10) multiple-choice questions with five options. Pick the option that best explains
the given question. Write your answer on the answer script [DO NOT PUT ANY MARK ON THE
QUESTION PAPER]. Follow the example given below in providing your answer.

Example:
(i) ICMAB stands for the –
(a) Institute of Cost Management Accounting of Bangladesh
(b) Institute of Cost and Management Accountants of Bangladesh
(c) Institute for Cost Managers and Accounting of Bangladesh
(d) Institute of Cost Management Accountants of Bangladesh
(e) Industrial Cost Management Accountants of Bangladesh
Answer: (i) (b)

(i) Which of the following is not a measure of dispersion?

(a) Range
(b) Standard deviation
(c) Arithmetic mean
(d) Variance
(ii) If the mean and coefficient of variation of a data are 4 and 87.5% then the standard deviation is
(a) 3.5
(b) 3
(c) 4.5
(d) 2.5
(iii) What will be the probability of losing a game if the winning probability is 0.2?
(a) 0.5
(b) 0.6
(c) 0.7
(d) 0.8
(iv) What is the probability of drawing an ace from a pack of 52 cards?
(a) 4/13
(b) 1/13
(c) 1/52
(d) None of the above
(v) If a number is selected at random from the first 100 natural numbers, what will be the
probability that the selected number is a perfect cube?
(a) 1/25
(b) 2/25
(c) 3/25
(d) 4/25
(vi) If the correlation coefficient is a positive value, then the slope of the regression line
(a) must also be positive
(b) can be either negative or positive
(c) can be zero
(d) cannot be zero

CMA January 2023 Examination, TA112 [Page 5 of 7]

(vii) The correlation coefficient is used to determine:
(a) A specific value of the y-variable given a specific value of the x-variable
(b) A specific value of the x-variable given a specific value of the y-variable
(c) The strength of the relationship between the x and y variables
(d) None of these
(viii) In regression, the equation that describes how the response variable (y) is related to the
explanatory variable (x) is:
(a) the correlation model
(b) the regression model
(c) used to compute the correlation coefficient
(d) None of these alternatives is correct.
(ix) If the assumed hypothesis is tested for rejection considering it to be true is called?
(a) Null Hypothesis
(b) Statical Hypothesis
(c) Simple Hypothesis
(d) Composite Hypothesis
(x) Which of the following are the major characteristics of index numbers?
(a) It is expressed in percentages
(b) It measures the net or relative changes in variables.
(c) It measures changes over a period of time.
(d) All of the above
QUESTION 7 [10 × 1 = 10 MARKS]
There are ten (10) statements given under the question. Identify the statements as True or False.
If the statement is false, rewrite the statement on the answer script to make it ‘True’. Reasoning is
NOT required. Follow the example given below in proving your answer.

Example:
(a) If every element of a set A is also an element of a set B then set B is called sub-set of set A.
Answer:
(a) False. If every element of a set A is also an element of a set B, then set A is called
sub-set of set B.
Note:
 You will not get any mark if you simply rewrite as ICMAB does not stand for the Industrial
Cost Management Accountants of Bangladesh.
 If the statement is true, you need NOT to rewrite the statement rather only mention that
the statement is True.
(a) Mean scores are helpful in the interpretation of nominal data.
(b) Cross-tabulation is a useful way to describe the relationship between two nominal variables.
(c) It is possible to convert a frequency distribution to a grouped frequency distribution without
referring back to the original data.
(d) The mean is the score at the 50th percentile.
(e) A product-moment correlation of -1.00 means that there is no linear relationship between the
variables.
(f) A nonlinear relationship is best indexed with a product-moment correlation.
(g) Alpha is the level of Type II error that we can expect.
(h) A sample is a subset of the people or objects in a population.
(i) Ten cards are selected out of a 52-card deck without replacement and the number of Jacks
is observed. This is an example of a Binomial Experiment.
(j) Null hypothesis is always expressed in an equation form, which makes a claim regarding the
specific value of the population.

CMA January 2023 Examination, TA112 [Page 6 of 7]

QUESTION 8
(a) Discuss the basic concept of Rank Correlation?
(b) As part of its recruitment procedures, a company awards applicants’ ratings from A
(excellent) to E (unsatisfactory) for their interview performance, and marks out of 100 for a
written test. The results for five interviewees are as follows.

Interviewee Interview grade Test score

a A 60
b B 61
c A 50
d C 72
e D 70

Calculate the Spearman’s rank correlation coefficient for this data, and comment on its value.
[Marks: (4+6) = 10]
QUESTION 9
(a) Explain the concept of type-I & type-II errors in testing hypothesis.
(b) In a random sample of the persons taken from town A, 60 are found to be from consuming
tea. In another sample of 200 persons taken from B, 100 persons are found to be consuming
tea. Do the data reveal significant difference between the two towns so far as the habit of
taking tea is concerned?
(c) Of 1000 assembled components, 10 have a working defect and 20 have a structural defect.
There is a good reason to assume that no component has both defects. What is the
probability that randomly chosen component will have either type of defect?
[Marks: (2+4+4) = 10]
QUESTION 10
(a) Compute index number from the following data using Fisher’s ideal index formula:
𝐵𝑎𝑠𝑒 𝑌𝑒𝑎𝑟 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑌𝑒𝑎𝑟
Commodity
𝑄𝑢𝑡𝑦. 𝑃𝑟𝑖𝑐𝑒 𝑄𝑢𝑡𝑦. 𝑃𝑟𝑖𝑐𝑒
A 12 10 15 12
B 15 7 20 5
C 24 5 20 9
D 5 16 5 14

(b) Fit a straight-line trend to the following time series data:

Year 2010 2011 2012 2013 2014
Sales of sugar(in m tones) 80 90 92 83 94

Eliminate the trend from the series. What components are left over?

[Marks: (5+5) = 10]

END OF SECTION B

CMA January 2023 Examination, TA112 [Page 7 of 7]