Business and Finance Basics III and Statistics

1. Mike's condo has a market value of $310,000. The property in Mike's area is assessed at 40% of the market value. The tax rate is $145.10 per $1,000 of assessed valuation. The tax for Mike is

A. $17,992.40. B. $7,999.40. C. $7,999.30. D. $16,992.40.

2. A bond quote of 82.25 in dollars is equal to

A. $8,025.50. B. $8.25. C. $822.50. D. $82.25.

3. Bee Sting bought 400 shares of Google at $399.75 per share. Assume a commission of 2% of the purchase price. What is the total to Bee?

A. $163,098 B. $163,980 C. $159,900 D. $156,702

4. To avoid distortion of extreme values, a good indicator would be the

A. median. B. weighted-mean. C. mode. D. mean.

5. Assume the mean useful life of a particular light bulb is 2,000 hours, which is normally distributed with a standard deviation of 300 hours. What is the range of the useful life of light bulbs within two standard deviations of the mean.

A. Longer than 1,700 hours B. Longer than 2,300 hours C. Between 1,400 and 2,600 hours

D. Between 1,700 and 2,300 hours

6. Matt Miller, age 28, takes out $50,000 of straight-life insurance. His annual premium is $418.20. Using the tables in the Business Math Handbook that accompanies the course textbook, determine the cash value of his policy at the end of 20 years.

A. $26,500 B. $13,250 C. $30,000 D. $26,000

7. Crestwood Paint Supply had a beginning inventory of 10 cans of paint at $25.00 per can. They purchased 20 cans during the month at $30.00 per can. They had an ending inventory valued at $500. How much paint in dollars was used for the month?

A. $850 B. $350 C. $1,350 D. $250

8. Jay Miller insured his pizza shop for $200,000 for fire insurance at an annual rate per $100 of $.49. At the end of 10 months, Jay canceled the policy since his pizza shop went out of business. Using the tables in the Business Math Handbook that accompanies the course textbook, determine the refund to Jay.

A. $852.60 B. $127.40 C. $980 D. $186.20

9. In terms of premium cost, the most expensive type of insurance is _______ insurance.

A. straight-life B. 20-payment life C. term D. 20-year endowment

10. Calculate the optional bodily injury cost for the following:

Class: 10

Optional Bodily Injury: 100/300/50

A. $187 B. $108 C. $94 D. $144

11. During inflation, the best method to use in inventory valuation that produces the smallest amount of profit is

A. FIFO. B. LIFO. C. specific invoice. D. weighted average.

12. The range of 35, 22, 43, 18, 22, 27, 48, 39, 31, and 16 is

A. 32. B. 29. C. 30. D. 22.

13. Kris bought a new fur coat for $8,000. She must pay 5% sales tax and 7% excise tax. The furrier is shipping the coat, so Kris must also pay a $15 insurance charge. What is the total purchase price of the coat?

A. $8,400 B. $8,560 C. $8,960 D. $8,975

14. Determine the mode from the following numbers: 71, 3, 13, 33, 3, 71, 14, 33, 13, and 33.

A. 33 B. 13 C. 3 D. 71

15. The weighted-average method is best used

A. only for fuels.

B. only for grains. C. for homogeneous products.

D. for heterogeneous products.

16. Jim opened a new pizza shop. He insures his store for $90,000.00 for fire. What is his premium if the rate per $100.00 is $0.83?

A. $700.00 B. $747.00 C. $74.70 D. $74,700.00

17. Which one of the following items is subject to sales tax in the District of Columbia?

A. Shampoo B. Tomatoes C. Milk D. Roast beef

18. The tax rate of $.6943 in decimal can be expressed per $100 as A. $6.943. B. $69.43 mills. C. $69.43. D. $690.3.

19. Which one of the following statements is true about reduced paid-up insurance?

A. It continues for 20 years. B. It means the original face amount is continued for a certain number of years.

C. It results in a face amount less than the original amount .

D. It buys protection with paying new premiums.

20. Calculate the median from the following numbers: 16 + 9 + 10 + 5 + 4.

A. 4 B. 5 C. 10 D. 9

21. Find the mean for the following numbers and do not round your answer to the nearest whole number: 38 + 18.05 + 25 + 26 + 46

A. 32.14 B. 23.74 C. 30.61 D. 21.45

22. Personal property items do not include

A. land. B. jewelry. C. autos. D. furniture.

23. Total sales of $400,000 that included a 6% sales tax yields actual sales of

A. $377,358.49. B. $42,800. C. $37,537.58. D. $48,200.

24. What is the retail method? A. It aids a company in not having to calculate an inventory cost for each individual item.

B. It doesn't require a cost ratio. C. It's not an estimate.

D. It eliminates the need to take a physical inventory.

25. Stocks are always quoted in

A. percents. B. quarters of a dollar. C. decimals.

D. quarter lots.