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Numerical Reasoning Formulas

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Numerical Reasoning

Formulas

Although taking a numerical reasoning test is not the same as taking a maths

exam, in order to succeed on a numerical test you will need to have mastered

some basic maths skills.

1. Addition

2. Subtraction

3. Multiplication

4. Division

5. Averages

6. Percentages

7. Ratios

become simpler with the use of specific formulas. Such is the case with

algebraic questions that involve rate problems (work/ speed/ distance/ time)

as well as financial-oriented problems.

In this PDF we offer a short guide to basic as well as advanced formulas that

you are expected to be able to apply in your numerical test. We will focus on

the following subjects:

1. Averages

2. Percentages

3. Ratios

4. Rate formulas

5. Finance

Copyright https://www.jobtestprep.co.uk 1

Averages

Average

Definition: A calculated “central” value of a set of numbers.

Sum of items

Average =

Number of items

∑x

̅=

X

n

Weighted average

Definition: A calculated “central” value of a set of numbers, in which each

value or set of values is assigned a different weight.

Weighted average =

Sum of weights

∑ x ∗ wi

̅w =

X

∑ wi

Copyright https://www.jobtestprep.co.uk 2

Percentages

Definition: A percentage is a part of a whole, where the whole is defined as

100. A fraction is a part of a whole, where the whole can be any number.

%= fraction ×

them into decimals and use the decimals in percentages calculations. For

example, 50% = 0.5; 120% = 1.2; 11% = 0.11 etc.

Calculating a percentage

�

%=( )×

��

For example, if you own 20 company shares and the total number of shares is

Percentage Increase/Decrease

% Increase:

% Decrease:

For example, if a shirt cost £30 and a week later was offered at a 15%

discount, how much does the shirt cost? − . 5 × = . 5 × = £ 5.5

Copyright https://www.jobtestprep.co.uk 3

Calculating Percentage Change

increase or decrease in the original amount.

% Increase:

ew − igi ew

× = - ×

igi igi

% Decrease:

igi − ew ew

× = - ×

igi igi

For example, if a shirt cost £30 and a week later was offered for the price of

−

£24, what was the discount on that shirt? × = 20%

percentage change is calculated in relation to the original amount, absolute

change is calculated as an absolute amount. In other words, it is not divided

by the original amount.

Definition: Percentage difference refers to the relative percentage change in a

certain amount, when you are not able to determine which amount is the

original one.

| | ×

First amount + Second amount /

For example, “Molly's designs” gets 200 customers a week while “Best wear”

gets 240 customers. What is the percentage difference in customers between

− − −

the two stores? | |× = | | × = | | × = ��. ��%

+ / /

Copyright https://www.jobtestprep.co.uk 4

Reversed Percentages

ew

% Increase: Original amount =

+I e e

ew

% Decrease: Original amount =

−De e e

For example, if a shirt costs £33 after a 20% increase in price, how much did

it cost prior to the price change? = = £27.5

+ . .

Percentage Points

percentage. This is an absolute term (in contrast to percentage

change/difference).

Ratios

Definition: The relative size of two or more values. The values are usually

separated by a colon sign.

N is the total sum of items.

+

For example, there are 70 red and blue marbles in a jar. The ratio of red to

blue marbles is 3:4. How many red marbles are there?

× = × =

+

Copyright https://www.jobtestprep.co.uk 5

Rate Formulas

A rate is a mathematical way of relating two quantities, which are usually

measured in different units. Rate problems usually involve three variables

such as speed/distance/time or product/time/number of workers etc. You are

usually given 2 variables and are required to find the missing variable

according to the data given in the question.

For example, Jill drove across a 0.3 mile long bridge. The time it took her car

to travel from one side to the other was 20 seconds. How fast was Jill

.

driving? . = V × V = V = . 5 Miles per second

(or 0.9 miles per minute).

Finance

Fixed and variable costs: Fixed costs are set expenses a company has which

never change and variable costs are costs that vary depending on a

company's production volume.

For example, if the rent a pencil company pays for its offices is £100 per

month, each pencil costs them £0.10 to make, and they make 100 pencils

each month, what is the company's total monthly cost?

�� � = + . × = + =£

as a percentage.

Gain − Cost

ROI = ×

Cost

Copyright https://www.jobtestprep.co.uk 6

Profit margin: measures how much out of every dollar of sales a company

actually keeps in earnings.

Gross profit

Profit margin =

Total revenue

Copyright https://www.jobtestprep.co.uk 7

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