CMA MAY-2022 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 Essay/Computational/Case 2 10 18 minutes
10
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) What is the average of first 150 natural numbers?

(a) 70
(b) 70.5
(c) 75
(d) 75.5
(e) 72.5
(ii) What is the rate of discount if a car which price was Tk.4000 was sold for Tk. 3200?
(a) 14%
(b) 16%
(c) 18%
(d) 20%
(e) 15%
(iii) At an interest rate of 10%, what would be the future value of Tk.2000 after 5 years?
(a) 3221.02
(b) 2221.02
(c) 3331.02
(d) 2331.02
(e) 2313.02
(iv) If x is a set and the set contains an integer which is neither positive nor negative then
the set x is.
(a) Set is empty
(b) Set is Non-empty
(c) Set is finite
(d) Set is both Non-empty and finite
(e) Set is infinite

CMA May 2022 Examination, TA112 [Page 2 of 8]

(v) Which of the following statement is not correct?
(a) log10 10 =1
(b) log (2+3) = log (2x3)
(c) log10 1 = 0
(d) log (1+2+3) = log 1 + log 2 + log 3
(e) log x 𝑟 = r log𝑥
(vi) From a group of 7 men and 6 women, five persons are to be selected to form a
committee so that at least 3 men are there on the committee. In how many ways can it
be done?
(a) 564
(b) 645
(c) 735
(d) 756
(e) 556
(vii) In how many different ways can the letters of the word ‘LEADING’ be arranged in such
a way that the vowels always come together?
(a) 360
(b) 480
(c) 720
(d) 5040
(e) 4050
(viii) In the following Formula substitute Q=100, C=10, P=6 and R=0.2
2𝐷𝐶
Q2 = 𝑃𝑅
D, to the nearest unit, is
(a) 598
(b) 599
(c) 600
(d) 601
(e) 603
(ix) If a number P is increased by 5 per cent, what will its new valuebe? Which of the
Following answers is/are correct?
(a) P+5P/100
(b) 1.05 P
(c) 0.95 P
(d) 0.05 P
(e) 0.06 P
(x) The expression(x4)3/x6 equals:
(a) 0
(b) 1
(c) x
(d) x6
(e) x8

CMA May 2022 Examination, TA112 [Page 3 of 8]

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.

(1) Natural logarithms and common logarithms are always equal to each other.
(2) log(x+y) = log(xy)
(3) A set of natural number is a subset of a set of real number.
(4) Two sets are said to be equal if they contain exactly the same elements.
(5) In an account earning simple interest, the interest from the first year is reinvested at the
beginning of the second year, shortening
The period of loan lowers the total interest paid.
(6) The accumulated series of deposits as future sum of money is classified as sinking fund.
(7) The number of permutations of the word ‘ACCOUNTANT’ is 226500.
(8) A cricket club consists of 16 members of which only 6 can boul. In 3312 ways can an
eleven be chosen to include at least 4 boulers.
(9) The root of all financial decision is time value of money.
(10) By discounting technique it is calculated interest.
QUESTION 3 [5+5 MARKS]
(a) A candidate is selected for interview of Management Accountant for three companies.
For the first company there are 12 candidates, for the second company there are 15
candidates and for the third company there are 10 candidates. What are the chances
of his getting the job at least at one of the companies?
(b) A man retires at the age of 60 years and his employer gives him pensions of Tk. 1,500
monthly paid in half yearly installment for the rest of his life.
Reckoning his expectation of life to be 15 years and that interest is 5% per annum
payable half yearly, what single sum is equivalent to his pension?

QUESTION 4 [4+ 6 = 10 MARKS]

(a) How many arrangements can be made with the letters of the word MATHEMATICS
and in how many of them vowels occur together?
(b) If 𝑎2 + 𝑏 2 = 7ab, show that
2 log (a+b) = log a + log b + 2 log 3

CMA May 2022 Examination, TA112 [Page 4 of 8]

QUESTION 5 [6+4 = 10 MARKS]
1 1
(a) If A and B be the roots of x2+px+q=0, find the equation whose roots are 𝐴2 and 𝐵2 .
(b) Superior Products Ltd. is considering a project to purchase additional equipment for its
miniature battery manufacturing plant. The equipment will cost Tk. 52,000. The
company Accountant estimates the following cash flows.
Year 1 2 3 4
Cash flows (Tk.) 21,000 26,000 18,000 1000
At the end of year 4 the equipment will have a disposal value of Tk. 5,000. The
company uses a cost of capital of 16% for investment proposals. Calculate the Net
present value (NPV) and the Internal Rate of Return (IRR) on the project:

END OF SECTION A

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) Symbolically a marginal probability is

(a) P (AB)
(b) P (BA)
(c) P (B A)
(d) P (ABC)
(e) None of these
(ii) The standard deviation of a binomial distribution depends on
(a) Probability of success
(b) Probability of failure
(c) Number of trials
(d) (a) and (b) but not (c)
(e) (a), (b) and (c)

CMA May 2022 Examination, TA112 [Page 5 of 8]

(iii) Suppose the estimating equation y = 5-2x has been calculated for a set of data. Which
of the following is true for the situation?
(a) The y intercept of the line is 2
(b) The slope of the line is negative.
(c) The line represents an inverse relationship
(d) All of these
(e) (b) and (c) but not (a)
(iv) For a given year, if an adjusted seasonal index for some period is greater than 100,
then the following must be true.
(a) The adjustment index for some other period is > 100.
(b) The adjustment index for some other period is < 100.
(c) The adjustment index for some other period is = 100.
(d) (a) and (b) but not (c)
(e) None of the above.
(v) If a time series has an even number of years and we use coding, then each coded
interval is equal to :
(a) 1 year
(b) 2 year
(c) 1 month
(d) 6 month
(e) None of these
(vi) Which of the following is Not a measure of central tendency?
(a) Geometric mean
(b) Median
(c) Mode
(d) Arithmetic mean
(e) All of these are measures of central tendency.
(vii) If the probability of hitting an object is 0.8, the variance will be
(a) 0.18
(b) 0.16
(c) 0.14
(d) 0.12
(e) 0.17
(viii) E(X) = λ is used for which distribution?
(a) Binomial distribution
(b) Poisson's distribution
(c) Bernoulli's distribution
(d) Laplace distribution
(e) None of these
(ix) The Mean of a random variable K is given by equation
(a) E(K)
(b) (EK)2
(c) E2 - K2
(d) None of these
(e) E2 K2
(x) If K denotes the expectation, the variance of a random variable X is denoted as?
(a) (K(X)2)
(b) 2K(X)
(c) K(X2) - (K(X)2)
(d) K(X)2
(e) 2K(X2)

CMA May 2022 Examination, TA112 [Page 6 of 8]

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 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.

(1) Quantitative tools and techniques are basically important for improving the quality of
managerial decision.
(2) Internal data refers to the measurement that are the by-product of routine business record
keeping like accounting, finance, production, personnel, quality control, R & D, etc.
(3) Correlation observed between variable that could not conceivably be causally related
are called positive or negative correlation.
(4) The regression equation of Y on X is expressed as Y=aX+b.
(5) Range is defined as the average between the value of the smallest observation and the
value of the largest observation included in the distribution.
(6) The standard deviation is the best measure of variation because of its mathematical
characteristics.
(7) When a distribution is not symmetrical it is called skewed distribution.
𝑄3−𝑄1−𝑀𝑒𝑑𝑖𝑎𝑛
(8) Bowley’s Co-efficient of skewness, Sk= .
𝑄3−𝑄1
(9) The rejection of the null hypothesis (𝐻0 ) indicates that there is enough evidence to
show that alternate hypothesis (𝐻1 ) is true.
(10) A random variable is a variable which takes specified values with specified
probabilities.

QUESTION 8 [10 MARKS]

(a) Calculate mean, median and standard deviation from the following data:
Wages (Tk. ‘000) 0-10 10-20 20-30 30-40 40-50 50-60
No. of workers 12 17 23 39 16 3
(b) Calculate Karl Pearson’s co-efficient of skewness from the following data and comment
on the nature of the distribution:
Daily Wage (Taka) f
50-60 10
60-70 20
70-80 40
80-90 20
90-100 10

CMA May 2022 Examination, TA112 [Page 7 of 8]

QUESTION 9 (2+4+4 = 10 Marks)
(a) What is random sampling? What are the advantages and limitations of random
sampling method?
(b) A dice is thrown 49152 times and of these 25145 yielded either 4 or 5 or 6. Is this
consistent with the hypothesis that the dice must be unbiased?
(c) An article manufactured by a company consists of two part of A and B. In the process
of manufacture of part A, 9 out of 100 are likely to be defective. Similarly, 5 out of 100
are likely to be defective in the manufacture of part B. Calculate the probability that the
assembled part will not be defective.

QUESTION 10 [(6+4) = 10 MARKS]

(a) The following data about the sales and advertisement expenditure of a firm is given
below:

Sales Advertisement Expenditure

Lakh taka Lakh Taka

Mean 40 6
S.D 10 1.5
r 0.9

(i) Estimate the likely sales for a proposed advertisement expenditure of Taka 10
Lakhs.
(ii) What should be the advertisement budget if the company wants to attain a sales
target of Taka 60 Lakhs.
(b) What is business forecasting? What are the assumptions on which business forecast
are made? Discuss the techniques of forecasting that are commonly employed by big
business houses.

END OF SECTION B

CMA May 2022 Examination, TA112 [Page 8 of 8]