ASSOCIATION OF ACCOUNTING TECHNICIANS

OF SRI LANKA

CURRICULUM 2020

PILOT PAPER

Level I

102 - BUSINESS MATHEMATICS AND

STATISTICS (BMS)

A publication of the Education and Training Division

 Association of Accounting Technicians of Sri Lanka
102-Business Mathematics and Statistics (BMS)
Pilot Paper
Instructions to Candidates (Please Read Carefully)

Time Allowed:

Writing : 03 hours

Structure of Question Paper:

 This paper consists of three Sections: Section A, Section B and Section C.

 All the questions of Section A, Section B and Section C should be answered.

Marks:

 Allocation of marks for each section:

Section Marks
Section A 40
Section B 40
Section C 20
Total 100

 Marks for each question are shown with the question.

 The pass mark for this paper is 50%.

Answers:

 All answers should be written in the booklet provided, answers written on the question paper will not
be considered for marking.
 Begin your answer of each question on a new page.
 All workings should be clearly shown.
 Do not write on the Margins.

Answer Booklets:

 Instructions are shown on the front cover of each answer booklet.

Calculators:

 Candidates may use any calculator except those with the facility for symbolic algebra and
differentiation. No programmable calculators are allowed.

Attached:

 Action verb checklist – Each question will begin with an action verb (excluding OTQ's).
 Candidates should answer the questions based on the definition of the verb given in the checklist.
 Formula sheet and mathematical table

AAT Sri Lanka Business Mathematics & Statistics

1|Page
 Objective Test Questions (OTQs)
Answer ALL fifteen questions
SECTION A
(Total = 40 marks)

Question 01

Select the most correct answer for question No 1.1 to 1.10. Write the number of the selected answer in
your answer booklet with the number assigned to the question.

1.1 Telephone cost of a company in last month was Rs.20,000/-. It has been decided to allocate 60%
of these telephone cost, to Central Administration division and to allocate 35 % of the remainder,
to Finance division.
Telephone cost to be allocated to Finance division is:

(1) Rs.2,000/-. (2) Rs.8,000/-. (3) Rs.5,200/-. (4) Rs.2,800/-.

(03 marks)

1.2 In 2017, the price of a certain commodity was Rs.120 while it was Rs.150/- in 2019. Price
relative using the 2017 as the base year is:

(1) 80%. (2) 125%. (3) 100%. (4) 25%.

(03 marks)

1.3 The information on the cost incurred on advertising ( ) (Rs.000) and the number of items
sold ( ) for the last 5 years are summarized below:

∑ ∑ ∑ ∑ ∑

Based on the above data, the correlation coefficient is:

(1) 0.992 (2) -0.922 (3) -0.992 (4) 0.922

(03 marks)

1.4 The weights of eight items were as follows:-

60, 40, 50, 70, 36, 54, 65,

If the mean of the eight items is 52, the value of would be:

(1) 41. (2) 46. (3) 54. (4) 52.

(03 marks)

1.5 A person has deposited an amount Rs.20,000/- in a fixed deposit account of a bank at an annual
interest rate of 12% compounded quarterly. The maturity value of the fixed deposit at the end of
3 years is (to the nearest integer):

(1) Rs.28,515/-. (2) Rs.27,700/-. (3) Rs.22,400/-. (4) Rs.27,200/-.

(03 marks)

AAT Sri Lanka Business Mathematics & Statistics

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 1.6 The seasonal variations of the sale of readymade garments of a particular company are given
below:
Q1 = -5% Q2 = -20% Q3 = -10% Q4 = +35%

The trend in sales is constant and the actual sales for the first quarter of the year would be
Rs.7,600,000/-.

The forecast sales for the remaining three quarters of the year would be:

(1) Q2 = Rs.7,200,000/-. Q3 = Rs.6,400,000/-. Q4 = Rs.10,800,000/-.

(2) Q2 = Rs.6,000,000/-. Q3 = Rs.7,500,000/-. Q4 = Rs.12,800,000/-.

(3) Q2 = Rs.5,400,000/-. Q3 = Rs.7,000,000/-. Q4 = Rs.10,000,000/-.

(4) Q2 = Rs.6,400,000/-. Q3 = Rs.7,200,000/-. Q4 = Rs.10,800,000/-.

(03 marks)

1.7 An AAT qualified person applies for a job in two firms, and . The probability of him being
selected at firm is 80% and being rejected at is 30%. Also the probability of at least one of his
applications being rejected is 40%.
The probability that he will be selected from one of the firms is:

(1) 0.1 (2) 0.7 (3) 0.9 (4) 0.5

(03 marks)

1.8 A manufacturer keeps a 30% of profit on production cost when goods are sold. If production cost
of a product is Rs.700/-, selling price of a product is:

(1) Rs.910/-. (2) Rs.1,000/-. (3) Rs.1,300/-. (4) Rs.1,120/-.

(03 marks)

1.9 The following information was obtained from the records of a factory relating to monthly wages.
Mean of monthly wages was Rs.32,600/-, and median and standard deviation of the same were
Rs.27,800/- and Rs.16,000/- respectively.

The co-efficient of skewness of the wage distribution is:

(1) 0.6 (2) 0.3 (3) 1.2 (4) 0.9

(03 marks)

1.10 An individual has taken a mortgage of Rs.500,000/-, at a fixed interest rate of 3% per quarter over
5 years. Repayments will be made at the end of each quarter after the mortgage is taken.
The quarterly repayment is (To the nearest integer):

(1) Rs.25,000/-. (2) Rs.34,906/-. (3) Rs.33,609/-. (4) Rs.35,350/-.

(03 marks)

AAT Sri Lanka Business Mathematics & Statistics

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1.11 Relate the component of time series given on the left side to the appropriate example on the right
hand side:

Component of time series Example

A. Trend 1. A fire in a factory delaying productions for one month.

B. Seasonal Variations 2. An economic cycle of ups and downs over 5 years.

3. A 5% increase in demand for rice in the long-run due
C. Cyclical Variations
to increase in population.
4. Decrease in the employment in sugar factory during
D. Random Variations
the off season.

State the corresponding number of the example against each component marked by A, B, C and D.

A.

B.

C.

D.
(01 mark each, 04 marks)

Write the answers to question No. 1.12 – 1.13 in your answer booklet.

1.12 100 students sat for a particular examination of which 60 were boys. Number of students who
passed this examination was 40 of whom 20 were girls. Calculate the probability of a girl passing
that examination. (02 marks)

1.13 A certain amount was deposited in a bank account which is given simple interest at the rate of
8% per annum. If the total value of this deposit at the end of 3 years would be Rs.153,760/-
,Calculate the value of the initial deposit. (02 marks)

State whether each of the following statements is true or false. Write the answer (True / False)
in your answer booklet with the number assigned to the question.

1.14 An investment with a positive NPV is financially viable. (01 mark)

1.15 The value of correlation coefficient between a pair of variables is always a positive figure.
(01 mark)

(Total = 40 marks)

End of Section A

AAT Sri Lanka Business Mathematics & Statistics

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Four Compulsory questions
SECTION B
(Total = 40 marks)

Question 02

(a) Demonstrate the following inequalities and identify the area of the graph where all the
inequalities hold:

5 +

(06 marks)

(b) The following simultaneous equations are provided:

𝑥 + 5𝑦
𝑥 + 𝑦

Compute the values of and . (04 marks)

(Total = 10 marks)

Question 03

A manufacturing company has daily fixed costs of Rs.900/- and variable costs of + where is
the quantity (in units) produced per day. The demand function for this product is given by
where p is the unit price and is the quantity (in units) sold per day.

(a) Identify Total Cost function (TC) and Total Revenue function (TR) (03 marks)

(b) Calculate the number of units at which profit is maximized. (04 marks)

(c) Calculate the number of units at break – even point. (03 marks)
(Total = 10 marks)

AAT Sri Lanka Business Mathematics & Statistics

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 Question 04

A book publisher’s book printing cost (Rs. million) and the number of books printed (in ‘000 units) of
last seven months are shown in the following table.

No of books printed 1 3 4 6 8 9 15
book printing cost 4 6 5 7 8 9 11

(a) Identify the regression line given by + using the above information. (07 marks)

(b) Calculate the book printing cost if the publisher is planning to print 10, 000 books. (03 marks)

(Total = 10 marks)

Question 05

A study has been carried out on the access times to the internet service and the number of users using
that service of an Internet Service Provider called JETSTREAM.

Access time (in seconds) No of users

30 - 39 25

40 - 49 38
50 - 59 94
60 - 69 110

70 - 79 70
80 - 89 23

(a) Calculate the mean access time. (03 marks)

(b) Calculate the standard deviation of the access time. (04 marks)

(c) Calculate the coefficient of variation of the access time. (03 marks)

(Total = 10 marks)

End of Section B
AAT Sri Lanka Business Mathematics & Statistics
6|Page
One Compulsory Question
(Total = 20 marks) SECTION C

Question 06

(A) The XYZ Ltd. produces a variety of high-quality garden furniture and associated items, mostly in
wood and iron. There is a potential to expand the business. The directors have identified two
main options for a four year plan:
Option – 1 : Expand the retail outlet to include more products.
Option – 2 : Branches into on-line orders.
Option 1 & 2 would require an initial investment of Rs.7.5 million and Rs. 12 million
respectively and net cash inflows of the two options are as follows:
(Rs. million)
Year 1 Year 2 Year 3 Year 4
Option 1: 4 5 5 5
Option 2: 5 6 8 8

(a) Assess the two investment opportunities using the Net Present Value (NPV) technique
assuming the cost of capital is 10% per annum. (08 marks)

(b) Explain which option is more profitable (02 marks)

(B) (a) The following table shows the monthly demand and the probability of a company for a
particular product.

Monthly demand Probability

100 0.3
160 0.3
200 0.2
240 0.2

Calculate expected monthly demand and its standard deviation. (05 marks)

(b) The annual sales of a popular item are in a normal distribution with the mean of 480 units
and standard deviation of 40 units.
Calculate the probability of annual sales of this item:
(i) Exceeding 550 units. (02 marks)

(ii) Below 400 units. (03 marks)

(Total = 20 marks)

End of Section C

AAT Sri Lanka Business Mathematics & Statistics

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FORMULA & MATHEMATICAL TABLES

Mathematical Fundamentals: Numerical Descriptive Measures:

Quadratic equation: Mean ̅ :

The solutions of a quadratic equation, ∑
For ungrouped data:
+ + is given by
∑
For grouped data:
√ ∑

Standard deviation :
Arithmetic sequence:
The sum of first n terms of an AP: For ungrouped data:
+
∑ ̅ ∑
Geometric sequence: √ or √ ̅
The sum of first n terms of a GP:

For grouped data:

∑ ̅ ∑
√ ∑
or √ ∑
̅
Quantitative Finance:

Simple interest: Coefficient of variation (CV):

+
= ̅
Compound Interest:
+
Co efficient of skewness =
Discounting:

Present Value = Future Value

Comparing Two Quantitative Variables:

Repayment of mortgage: Correlation coefficient (r):

∑ ∑ ∑

√ ∑ ∑ ∑ ∑

Regression coefficients (a and b):

∑ ∑ ∑
b=
∑ – ∑

a= ̅ ̅

AAT Sri Lanka Business Mathematics & Statistics

8|Page
Index numbers and forecasting

∑
Index Numbers: Quantity index =
∑
Price Relative = 100
Time Series:
Quantity Relative = 100
Multiplicative Model
Value Relative = 100

∑
Simple aggregate price index = ∑
100 Sets and Probability

∑
Simple aggregate quantity index = ∑
100 - Union; A B defines all elements in A plus
all elements in B, no element being counted
Average price relative = ∑ 100
twice.

Average quantity relative = ∑ 100 - Intersection; A B defines all elements

included in both A and B.
Weighted aggregate indices
1) Base-weighted / Laspeyre’s: P (A) – Probability of event A
∑
Price index = 100 P (A/B) – Probability of event A, given B
∑

∑ General rules:
Quantity index =∑ 100
P (A B) = P (A) + P (B) – P (A B)

2) Current-weighted / Paasche’s: P (A/B) =

∑
Price index = ∑
100

∑
Quantity index =∑ 100 Expectation & standard deviation of a discrete
random variable:
3) Using standard weights
∑ ∑ ) ∑
Price index =∑ 100

∑ = √∑ ∑
Quantity index =∑ 100

Weighted average of relatives Normal Distribution:

∑
Price index =
∑

AAT Sri Lanka Business Mathematics & Statistics

9|Page
 PRESENT VALUE OF Re. 1
1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
Period

1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909

2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826

3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751

4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683

5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621

6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564

7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513

8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467

9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424

10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386

11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350

12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319

13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290

14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263

15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239

16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218

17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.198

18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180

19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164

20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149

21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0.164 0.135

22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 0.184 0.150 0.123

23 0.795 0.634 0.507 0.406 0.326 0.262 0.211 0.170 0.138 0.112

24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.102

25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092

26 0.772 0.598 0.464 0.361 0.281 0.220 0.172 0.135 0.106 0.084

27 0.764 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076

28 0.757 0.574 0.437 0.333 0.255 0.196 0.150 0.116 0.090 0.069

29 0.749 0.563 0.424 0.321 0.243 0.185 0.141 0.107 0.082 0.063

30 0.742 0.552 0.412 0.308 0.231 0.174 0.131 0.099 0.075 0.057
AAT Sri Lanka Business Mathematics & Statistics
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 PRESENT VALUE OF Re. 1 (Continued)

Period 11% 12% 13% 14% 15% 16% 17% 18% 19% 20%
1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833

2 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694

3 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579

4 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482

5 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402

6 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335

7 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279

8 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233

9 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194

10 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162

11 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135

12 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112

13 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093

14 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078

15 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065

16 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054

17 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045

18 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038

19 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031

20 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026

21 0.112 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0.026 0.022

22 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018

23 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015

24 0.082 0.066 0.053 0.043 0.035 0.028 0.023 0.019 0.015 0.013

25 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0.016 0.013 0.010

26 0.066 0.053 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.009

27 0.060 0.047 0.037 0.029 0.023 0.018 0.014 0.011 0.009 0.007

28 0.054 0.042 0.033 0.026 0.020 0.016 0.012 0.010 0.008 0.006

29 0.048 0.037 0.029 0.022 0.017 0.014 0.011 0.008 0.006 0.005

30 0.044 0.033 0.026 0.020 0.015 0.012 0.009 0.007 0.005 0.004

AAT Sri Lanka Business Mathematics & Statistics

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 CUMULATIVE PRESENT VALUE OF Re. 1
This table shows the present value of Re. 1 per annum, receivable or payable at the end of each year
for n years
Period 1% 2% 3% 4% 5% 6% 7% 8% 9% 10%
1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909

2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736

3 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487

4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170

5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791

6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355

7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868

8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335

9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759

10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145

11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495

12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814

13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103

14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367

15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606

16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824

17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022

18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201

19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365

20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514

21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649

22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772

23 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.580 8.883

24 21.243 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985

25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077

26 22.795 20.121 17.877 15.983 14.375 13.003 11.826 10.810 9.929 9.161

27 23.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237

28 24.316 21.281 18.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307

29 25.066 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370

30 25.808 22.396 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.427

AAT Sri Lanka Business Mathematics & Statistics

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 CUMULATIVE PRESENT VALUE OF Re. 1
(Continued)
11% 12% 13% 14% 15% 16% 17% 18% 19% 20%
1 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833

2 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528

3 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106

4 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589

5 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991

6 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326

7 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605

8 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837

9 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031

10 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192

11 6.207 5.938 5.687 5.453 5.234 5.029 4.836 4.656 4.486 4.327

12 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439

13 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533

14 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611

15 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675

16 7.379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730

17 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775

18 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812

19 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843

20 7.963 7.469 7.025 6.623 6.259 5.929 5.628 5.353 5.101 4.870

21 8.075 7.562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 4.891

22 8.176 7.645 7.170 6.743 6.359 6.011 5.696 5.410 5.149 4.909

23 8.266 7.718 7.230 6.792 6.399 6.044 5.723 5.432 5.167 4.925

24 8.348 7.784 7.283 6.835 6.434 6.073 5.746 5.451 5.182 4.937

25 8.422 7.843 7.330 6.873 6.464 6.097 5.766 5.467 5.195 4.948

26 8.488 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.206 4.956

27 8.548 7.943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4.964

28 8.602 7.984 7.441 6.961 6.534 6.152 5.810 5.502 5.223 4.970

29 8.650 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5.229 4.975

30 8.694 8.055 7.496 7.003 6.566 6.177 5.829 5.517 5.235 4.979

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 AREA UNDER THE STANDARD NORMAL CURVE
This table gives the area under the normal curve between the mean and a point of Z score above
the mean. The corresponding area for deviations below the mean can be found by symmetry

Z-Score

z 0.00 0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.09
0.0 0.0000 0.0040 0.0080 0.0120 0.0160 0.0199 0.0239 0.0279 0.0319 0.0359
0.1 0.0398 0.0438 0.0478 0.0517 0.0557 0.0596 0.0636 0.0675 0.0714 0.0753
0.2 0.0793 0.0832 0.0871 0.0910 0.0948 0.0987 0.1026 0.1064 0.1103 0.1141
0.3 0.1179 0.1217 0.1255 0.1293 0.1331 0.1368 0.1406 0.1443 0.1480 0.1517
0.4 0.1554 0.1591 0.1628 0.1664 0.1700 0.1736 0.1772 0.1808 0.1844 0.1879
0.5 0.1915 0.1950 0.1985 0.2019 0.2054 0.2088 0.2123 0.2157 0.2190 0.2224
0.6 0.2257 0.2291 0.2324 0.2357 0.2389 0.2422 0.2454 0.2486 0.2517 0.2549
0.7 0.2580 0.2611 0.2642 0.2673 0.2704 0.2734 0.2764 0.2794 0.2823 0.2852
0.8 0.2881 0.2910 0.2939 0.2967 0.2995 0.3023 0.3051 0.3078 0.3106 0.3133
0.9 0.3159 0.3186 0.3212 0.3238 0.3264 0.3289 0.3315 0.3340 0.3365 0.3389
1.0 0.3413 0.3438 0.3461 0.3485 0.3508 0.3531 0.3554 0.3577 0.3599 0.3621
1.1 0.3643 0.3665 0.3686 0.3708 0.3729 0.3749 0.3770 0.3790 0.3810 0.3830
1.2 0.3849 0.3869 0.3888 0.3907 0.3925 0.3944 0.3962 0.3980 0.3997 0.4015
1.3 0.4032 0.4049 0.4066 0.4082 0.4099 0.4115 0.4131 0.4147 0.4162 0.4177
1.4 0.4192 0.4207 0.4222 0.4236 0.4251 0.4265 0.4279 0.4292 0.4306 0.4319
1.5 0.4332 0.4345 0.4357 0.4370 0.4382 0.4394 0.4406 0.4418 0.4429 0.4441
1.6 0.4452 0.4463 0.4474 0.4484 0.4495 0.4505 0.4515 0.4525 0.4535 0.4545
1.7 0.4554 0.4564 0.4573 0.4582 0.4591 0.4599 0.4608 0.4616 0.4625 0.4633
1.8 0.4641 0.4649 0.4656 0.4664 0.4671 0.4678 0.4686 0.4693 0.4699 0.4706
1.9 0.4713 0.4719 0.4726 0.4732 0.4738 0.4744 0.4750 0.4756 0.4761 0.4767
2.0 0.4772 0.4778 0.4783 0.4788 0.4793 0.4798 0.4803 0.4808 0.4812 0.4817
2.1 0.4821 0.4826 0.4830 0.4834 0.4838 0.4842 0.4846 0.4850 0.4854 0.4857
2.2 0.4861 0.4864 0.4868 0.4871 0.4875 0.4878 0.4881 0.4884 0.4887 0.4890
2.3 0.4893 0.4896 0.4898 0.4901 0.4904 0.4906 0.4909 0.4911 0.4913 0.4916
2.4 0.4918 0.4920 0.4922 0.4925 0.4927 0.4929 0.4931 0.4932 0.4934 0.4936
2.5 0.4938 0.4940 0.4941 0.4943 0.4945 0.4946 0.4948 0.4949 0.4951 0.4952
2.6 0.4953 0.4955 0.4956 0.4957 0.4959 0.4960 0.4961 0.4962 0.4963 0.4964
2.7 0.4965 0.4966 0.4967 0.4968 0.4969 0.4970 0.4971 0.4972 0.4973 0.4974
2.8 0.4974 0.4975 0.4976 0.4977 0.4977 0.4978 0.4979 0.4979 0.4980 0.4981
2.9 0.4981 0.4982 0.4982 0.4983 0.4984 0.4984 0.4985 0.4985 0.4986 0.4986
3.0 0.4987 0.4987 0.4987 0.4988 0.4988 0.4989 0.4989 0.4989 0.4990 0.4990
3.1 0.4990 0.4991 0.4991 0.4991 0.4992 0.4992 0.4992 0.4992 0.4993 0.4993
3.2 0.4993 0.4993 0.4994 0.4994 0.4994 0.4994 0.4994 0.4995 0.4995 0.4995
3.3 0.4995 0.4995 0.4995 0.4996 0.4996 0.4996 0.4996 0.4996 0.4996 0.4997
3.4 0.4997 0.4997 0.4997 0.4997 0.4997 0.4997 0.4997 0.4997 0.4997 0.4998
3.5 0.49977 0.49978 0.49978 0.49979 0.49980 0.49981 0.49981 0.49982 0.49983 0.49983

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 Action Verbs Check List
Analyze Examine in details to find the solution or
outcome
Differentiate Constitute a difference that distinguishes
Draws something
Analysis (4) Connections Discuss Examine in detail by arguments
Among Ideas
Compare Examine to discover similarities
and Solve
Contrast Examine to show differences
Problems
Outline Make a summary of significant features
Communicate Share or exchange information
Apply Put to practical use
Calculate Ascertain or reckon with mathematical
computation
Uses and Demonstrate Prove or exhibit with examples
Application (3) Adapts Prepare Make or get ready for particular purpose
Knowledge in Solve Find solutions through calculations and/or
New Situations explanation
Assess Determine the value, nature, ability or quality
Graph Represent by graphs
Reconcile Make consistent/compatible with another
Define Give the exact nature, scope or meaning
Explain Make a clear description in detail using relevant
Comprehension (2) facts
Explains Ideas Describe Write and communicate the key features
and Interpret Translate in to understandable or familiar terms
Information
Recognize Show validity or otherwise using knowledge or
contextual experience
List Write the connected items
Recalls Facts Identify Recognize, establish or select after
Knowledge (1) and Basic consideration
Concepts State Express details definitely or clearly
Relate Establish logical or causal connections
Draw Produce a picture or diagram
Level of
Description Action Verbs Verb Definitions
competency

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 ASSOCIATION OF ACCOUNTING TECHNICIANS
OF SRI LANKA

CURRICULUM 2020

SUGGESTED ANSWERS

Level I

102 - BUSINESS MATHEMATICS AND

STATISTICS (BMS)

A publication of the Education and Training Division

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Objective Test Questions (OTQs)
(Total 40 marks) SECTION A

1.1 Telephone cost last month = Rs.20,000

Central Admin division Remainder (40%)

(60%) Rs.8,000
Rs.12,000

Others (65%)
Finance division
(35%) Rs.5,200
Rs.2,800

Hence the amount allocated to finance = Rs.2,800/-.

Correct answer = 4

1.2 𝟏𝟓𝟎
Price relative = % 5%
𝟏𝟐𝟎
Correct answer = 2

1.3 r=
√

= - 0.992
Correct answer = 3
1.4

=52

5+

Correct answer = 1

1.5
= 20,000 (1+ 0.03)12
= 28,515
Correct answer = 1

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 1.6 Q1 trend = = Rs.8, 000,000

Quarter Trend Seasonal factor Forecast

Q2 Rs.8,000,000 0.80 Rs.6,400,000
Q3 Rs.8,000,000 0.90 Rs.7,200,000
Q4 Rs.8,000,000 1.35 Rs.10,800,000
Correct answer = 4

1.7

P(X) = 0.8 P ( ) = 0.2

.P ( ) = 0.3 P (Y) = 0.7
P( ) = 0.4
P (X Y) = 1 - P )
= 1 – 0.4
= 0.6

Hence, P(X Y) = P(X) + P(Y) - P(X Y)

= 0.8 + 0.7 – 0.6
= 0.9

Correct answer = 3 …………………

1.8 700/100 *130% = 910

Correct answer = 1 …………………………………

1.9 Mean monthly wages = Rs. 32,600
Median monthly wages = Rs. 27,800
Std. deviation = Rs. 16,000

o eff c en of ewne

= = 0.9

Correct answer = 4 …………………………………

1.10 Amount borrowed = Rs.500,000
Quarterly rate = 3%
Period taken to settle = 20 quarters
Quarterly repayment =
Amoun borrowed

= Rs.33,609/- (approx.)
Correct answer = 3 ………………………… (3………

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 1.11

A. 3

B. 4

C. 2

D. 1

1.12
=
…………2……………………… (2 2maF

1.13 153,760 = +
5
124,000 = …………………………………

1.14 True

1.15 False

(Total 40 marks)

End of Section A

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 Four Compulsory Questions SECTION B
Total = 40 marks.

Answer to Question 02

Unit 1 – Basic Mathematics for Business.

Learning outcomes – Identify and solve the quantitative variables involved in business scenario.
– Explain inequalities and identify inequalities using a graph.

(a) Draw the lines 5 x+3 y = 30 , x = y and y = 0 (the Y - axis)

No e: If and obv ou ha and he l ne no nece ary

To draw the lines you put values in the equation and plot them.
5 x + 3 y = 30
When x = 0, y =10 and similarly when y = 0, x = 6

Plot x = 6 and y = 10 on the graph and connect them by a line

x=y

When x = 0, y = 0 and similarly when y = 6 x=6

Plot the two sets of points on the graph and connect them by a line

y = 0 (the Y - axis) x = 0

10

8--

5x + 3y = 0
6--

4--

2--

𝟎 𝟏 𝟐 𝟑 𝟒 𝟓 𝟔 𝟕 x
(06 marks)

(b)
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①
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 + 5

+ ②

② + ③

③① –

γ=4

𝑥+5

5 (04 marks)
(Total = 10 marks)

Answer to Question 03

Unit 3 – Financial operative measures for business

Learning outcomes – Calculate the break-even point.

– Calculate the profit maximizing or cost minimizing output level.

(a) TC = 10x +x2 + 900

TR = 120x – x2
(3 marks)

(b) Profit function = TR - TC

= 120x – x2 – 10x – x2 – 900
= 110x – 2x2 – 900
At maximum point =0
110 – 4x = 0
4x = 110
X = 27.5
(04 marks)

(b) The total daily cost 𝙲 = 900 + 10x + x2

The daily revenue R = 120x – x2
Since the daily cost and daily revenue, both are quadratic functions and therefore the daily
profit function is also a quadratic function. Hence there would be two break- even points.

At break – even C = R
Hence, 900 + 10x +x2 = 120x – x2
2x2 – 110x + 900 = 0
X = 10 units and x = 45 units (2 break – even points)
(03 Marks)
(Total = 10 Marks)

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Answer to Question 04

Unit 5 – Comparing two quantitative variables.

Learning outcomes – Identify the regression line using the free hand method or least square method.
– Assess predictions obtained by regression equation.

(a) Independent variable (x) = Quantity printed (in ‘000)

Dependent variable (y ) = printing costs (Rs. million)

Let the regression of printing costs on quantity printed be y = a + b x

x y x2 xy
1 4 1 4
3 6 9 18
4 5 16 20
6 7 36 42
8 8 64 64
9 9 81 81
15 11 225 165
∑ ∑ 5 ∑ ∑

∑ ∑ ∑
Then b = ∑ – ∑

= 5

= 0.504

a= ̅-b ̅

a = ( ) - 0.504 × ( )
a

=7.14 – 0.504 5

=3.83

y = 3.83 + 0.504 x (07 marks)

(b) To estimate the cost of producing 10,000 books

Put x = 10 (as producing in 000 units) in the regression equation
Y = 3.83 + 0.504 = Y = 8.87
= Rs.8.87 million (since the production cost is in Rs. Million) (03 marks)

(Total = 10 marks)

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Answer to Question 05

Unit 4 – Data Presentation and Descriptive Measures.

Learning outcomes – Calculate Central tendency measures (Mean, Median and Mode)
– Discuss the impact of skewness on central tendency.

x f fx fx2
34.5 25 862.5 29,756.25
44.5 38 1,691 75,249.5
54.5 94 5,123 279,203.5
64.5 110 7,095 457,627.5
74.5 70 5,215 388,517.5
84.5 23 1,943.5 164,225.75
360 21,930 1,394,580.00

𝛴𝑓𝑥
(a) Mean access time (x̅ ) = 𝛴𝑓

= 60.92
(03 marks)

∑
(b) Standard deviation access rime = √ ∑
̅

= √

= 12.75 seconds (04 marks)

(c) Co-efficient of variation (cv) = ̅

100 %

= %

= 20.93 %

(03 marks)
(Total = 10 marks)

End of Section B

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One Compulsory Question SECTION C
(Total = 20 marks)

Answer to Question 06

Unit 2 – Financial Mathematics for business.

Unit 6 – Probability and its application.
Learning outcomes – Calculate and interpret NPV.
– Explain normal distribution and calculate the probability of the standard normal
distribution.

(A)
(a) Expansion possibilities:
(Rs. million)

Year Option 1 Option 2 DCF at 10% PV of option 1 PV of option 2

0 (7.5) (12) 1.000 (7,5) (12)
1 4 5 0.909 3.636 4.545
2 5 6 0.826 4.130 4.956
3 5 8 0.751 3.755 6.008
4 5 8 0.683 3.415 5.464
Net Present Value (NPV) 7.436 8.973
(08 marks)

(b) Both options are viable at 10% cost of capital based on the estimates provided, however the
second option is more profitable as the NPV of it is higher. N P V would be Rs 7.436 million
and Rs 8.973 million respectively. This shows the on line order operation would provide Rs
1.537 million more profit in present value terms.
(02 marks)

(B)
(a)

Monthly demand X Probability (p) p ×x P × X2

100 0.3 30 3,000
160 0.3 48 7,680
200 0.2 40 8,000
240 0.2 48 11,520
TOTAL 166 30,200

Expected monthly demand

= E(X) = ∑ Probab l y × Pay off) = ∑ p × x = 166 units

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 Standard deviation = √∑ ∑

=√
= 51.42 (05 marks)

(b) (i)

Requirement

= 40

𝑍 𝑠𝑐𝑜𝑟𝑒 550 Annual sales volume (in units)

0 1.75

Z- Score = 5

Required probability
= P (X > 550)
= P (Z > 1.75)
= 0.5 - 0.4599 = 0.04 = 4% (approx.) (02 marks)

(ii)

= 40 Z score of 400 =

Required probability

Z – score 400 480 Annual sales volume (in units) -2.00

0.00

Required probability
= P (400 > X)
= P (-2.00 > Z) = 0.5 – 0.4772
= 0.0228
= 2.28% .. .. … (3 marks)
. . .. (Total marks - 20)

End of Section C

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