CPT Mock Test – 3rd
Duration : 2 Hours
Test Booklet No. – 110011
(1)
Date: - 17.05.2015
Total Marks : 100
Goods costing Rs. 80,000 are consigned by Manjari & Co. to Anjali & Co. for
Rs.1,00,000. Expenses of the consignor in this respect was Rs. 5,000. Consignee
spends Rs. 6,000 for taking the delivery. Some of the goods were returned by the
consignee costing Rs.10,000. The amount to be credited to consignment account for
goods returned will be
(a)
Rs.12,500.
(b)
Rs.11,100.
(c)
Rs.11,375.
(d)
Rs.13,875.
Ans. a
Explanation:
Cost of goods
80,000
Invoice value
100,000
Profit
20,000
Profit on Cost
20,000
 100  25%
80,000
Cost of goods return by consignee 10,000
Add profit 25%
2500
Invoice Value
12500
Because goods sent by consignor to consignee at invoice price so goods return by
consignee also show in consignment a/c invoice price
(2)
10000 liters of oil were consigned to a wholesaler the cost being Rs. 100 per litre by
incurring freight Rs.8,000. 10% of loss of oil unavoidable. 8,000 litres were sold by
the consignee. The remaining stock of 1000 litres will be valued at
(a)
Rs. 1,12,000
(b)
Rs. 1,11,111
(c)
Rs. 1,00,800
(d)
Rs. 1,00,000.
Ans. a
Explanation:
Normal Loss is a part of production so it cost is to be bear by remaining goods unit in
given question total cost of Rs.
10000 Litre @ 100 = 10,00,000
Fright
Total Cost
8000
1008000
is treated cost of 9000 litre and out of 8000 litre sold. So Value of remaining 1,000
litre calculate as under.
MITTAL COMMERCE CLASSES
1|Page
1008000
 1000  112000 Ans.
9000
(3)
Goods sent on consignment account is the nature of
(a)
Personal Account
(b)
Real Account.
(c)
Nominal Account
(d)
None.
Ans. b
Explanation:
Goods sent an consignment is just similar to purchase so nature of these a/c are
real.
(4)
Cost of goods sent on consignment Rs. 1,00,000 and consignor expenses Rs. 20,000,
if normal loss is 5% of total goods then what entry is to be passed for loss (a)
Consignment A/c Dr.
1000
To Normal Loss A/c
(b)
Abnormal Loss A/c Dr.
1000
1100
To Consignment A/c
(c)
P & L A/c Dr.
1100
1000
To Consignment A/c
(d)
1000
No Entry
Ans. d
Explanation:
No entry is to be passed for normal loss because normal loss is charged from good
units.
(5)
Ravi Sent goods to Vijay costing Rs. 3,00,000 including 25% profit on invoice price.
Total goods sold for Rs. 5,00,000. Overriding Commission 25% given to consignee.
Calculate amount of overriding commission.
(a)
75,000
(b)
50,000
(c)
1,00,000
(d)
25,000
Ans. d
Explanation:
Let be invoice price
=
100
profit 25%
=
25
then cost is
=
75
Invoice Price of total goods =
MITTAL COMMERCE CLASSES
3,00,000
100  4,00,000
75
2|Page
Overriding commission = (Sales Price – Invoice Price)  25%
(5,00,000 – 4,00,000)
(6)
 25% = 25,000
A and B enter into Joint Venture Business. A purchased goods costing 42500. B sold
goods costing Rs 40000 at Rs 50000. Balance goods were taken over by A at same
gross profit percentage as in case of sale. The value at which goods are taken over
will be:
(a)
Rs. 3125
(b)
Rs. 2500
(c)
Rs. 3000
(d)
None of the above
Ans. a
Explanation:
Total cost of goods purchase
42500
Cost of goods sold
40000
Stock at cost
2500
Gross profit Computation:
Cost Rs. 40000
Sale price Rs. 50,000
Gross Profit = 50,000 - 40,000 = Rs. 10,000
Gross Profit Percentage =
10000
 100  25%onCost
40000
Stock at selling price
2500+25% = 3125
(7)
A purchased 1000 kg of rice costing Rs 200 each. Carriage Exp. Rs. 2000, Insurance
Exp. Rs. 3000. 4/5th of the boxes were sold by B at Rs 250 per boxes. Remaining
stock were taken over by B. The amount of stock taken over will be:
(a)
Rs. 40000
(b)
Rs.41000
(c)
Rs.50000
(d)
Rs.50200
Ans. b
Explanation:
Total boxes 1000
Out of
4
4
sold i.e. 1000 
= 800 boxes sold
5
5
Stock are 200 boxes valued as under
Purchase left 200  200 = 40,000
Exp.
5000
 200  1000
1000
40000 + 1000 = 41,000Ans.
MITTAL COMMERCE CLASSES
3|Page
(8)
1,000 kg of oranges are consigned to a wholesaler, the cost being Rs.8 per kg, plus
Rs. 925 of freight. It is concluded that a loss of 15% is unavoidable. The cost per kg
of orange will be:
(a)
Rs. 9.41.
(b)
Rs. 10.00.
(c)
Rs. 10.50.
(d)
Rs. 8.93.
Ans. c
Explanation:
Total Cost of orange
 8000
1000 Kg.  8
Fright 925
T.C. 8000 + 925 = 8925
Above cost is treated cost of 850 Kg orange because 15% loss are notmal that loss is
bear by remaining quid unit.
8925
 10.50 perKg
850
(9)
A and B entered into a joint venture agreement to share the profits and losses in the
ratio of 2:1. A supplied 100 radio sets worth Rs.1,00,000 to B incurring expenses of
Rs.5,000 for freight and insurance. B sold the 95 radio sets for Rs.1,20,000. 5 radio
sets were taken over by B. The profit/loss on venture will be:
(a)
Profit of Rs.20,000
(b)
Profit of Rs.15,000.
(c)
Loss of Rs.20,000.
(d)
Profit of Rs.20,250.
Ans. d
Explanation:
Joint venture profit /loss =
Sales
120,000
Add : Value of Stock
5250
Taken
125250
Less: Cost of purchase
100000
Expenses
5000
Profit
20250
Value of stock taken = 5 radio set @ 1000 =
5000
Add: Proportional exp.
5000
 5=
100
250
Total:
MITTAL COMMERCE CLASSES
5250
4|Page
(10)
ELDER and LARGE enter into a joint venture sharing profits and losses equally.
ELDER supplied goods to the value of Rs. 2,500 and incurred expenses of Rs. 200.
LARGE supplied goods to the value of Rs. 2,000 and his expenses amounted to Rs.
150. LARGE sold the entire lot of goods on behalf of the joint venture and realized
Rs. 6,000. LARGE was entitled to a commission of 5% on sales. Profit on the venture
will be :
(a)
Rs.850
(b)
Rs.800
(c)
Rs.900
(d)
Rs.1000
Ans. a
Explanation:
Sales values of goods – 6000
Less: Cost of goods supplied by elder – 2500
Exp. Incurred by elder – 200
Cost of goods supplied by large – 2000
Exp. Incurred by large - 150
Commission to large@ 5% of 6000 = 300
Profit = 850
(11)
A and B entered into a joint venture and agreed to share profits and losses in the
ratio of 3:2. A Joint Bank A/c was opened where in A contributed Rs. 50,000 and B
contributed Rs. 20,000. Their transactions were as follows:
Material Purchased
65,000
Wages paid
6,000
Administrative expenses paid by B
3,000
Selling expenses
6,170
Expenses paid by A
1,630
Sales
1,12,000
Remaining stock was taken by A for Rs. 6200. Joint venture profit will be
(a)
36,000
(b)
36,400
(c)
35,000
(d)
36,500
Ans. b
Explanation:
Sales
Add: Closing Stock taken by A
Less: material purchased
112000
6200
65000
Wages paid
6000
Administrative exp.
3000
MITTAL COMMERCE CLASSES
5|Page
Selling Expenses
6170
Expenses paid by A
1630
Profit
(12)
36400
Capital accounts of the co-venturers are of the nature of
(a)
Nominal A/c
(b)
Personal A/c
(c)
Real A/c
(d)
None of the above.
Ans. b
Explanation:
Capital accounts of the co- ventures represents amounts due to or due from coventures therefore these are of personal in nature.
(13)
Memorandum joint venture account is a:
(a)
Personal A/c
(b)
Real A/c
(c)
Nominal A/c
(d)
None of the above
Ans. c
Explanation:
Memorandum joint venture account is nominal in nature it is prepared to find out
profit or loss on venture.
(14)
Soniya and Rahul entered into joint venture sharing profit and losses equally. Soniya
purchase 5000 Kg. rice @ Rs. 70 per kg. Rahul also purchase 10000 kg. wheat @
Rs. 15 per kg. Soniya sold 10000 kg. wheat @ Rs. 20 per kg. and Rahul sold 5000
kg. rice @ 80 per kg. when all the transaction are recorded by the co-venturers.
Calculate the amount of final remittance.
(a)
Rahul will sent Rs. 2,00,000/- to Soniya
(b)
Soniya will sent Rs. 4,00,000/- to Rahul
(c)
Soniya will sent Rs. 2,00,000/- to Rahul
(d)
Rahul will sent Rs. 6,00,000/- to Soniya
Ans. a
Explanation:
Calculation of Profit on Joint Venture
To Bank (purchase 5000 
(Books of Soniya)
350000
By Bank (Sales 10000 x 20)
2,00,000
150000
By Rahul (sales 5000 x 80)
4,00,000
70)
To Rahul (purchase 10000
x 15)
To P & L [Profit]
MITTAL COMMERCE CLASSES
50000
6|Page
To Rahul [Profit]
50000
______
600000
600000
Account of Rahul
To joint venture
400000
_______
By joint venture
150000
By joint venture
50000
By balance c/d
400000
200000
400000
Rahul account shows debit balance in the books of soniya so he will sent Rs.
2,00,000/- to Soniya.
(15)
Mohan and Sohan enter into joint venture sharing profits and losses equally. Mohan
purchased 100 kg of rice @ 20 kg. Brokerage paid Rs. 200, carriage Rs. 300 Sohan
sold 90 kg of rice @ Rs. 22 Kg. Balance rice was taken over by Sohan at cost. The
value of rice taken over to be recorded in joint venture will be
(a)
Rs. 150
(b)
Rs. 250
(c)
Rs. 220
(d)
Rs. 230
Ans. b
Explanation:
Value of 10 kg as under
Purchase price 10 kg  20 =200
Exp.
500
50
Ans.
10 
100
250
(16)
Under memorandum joint venture method, each party opens only one account which
is of the nature of _________account.
(a)
Personal.
(b)
Real
(c)
Nominal
(d)
Representative person
Ans. a
Explanation:
Under memorandum joint venture method each partly opens only are A/c that is coventure A/c Nature of A/c is personal.
(17)
If Average Stock = Rs 12,000. Closing stock is Rs 3,000 more than opening stock,
then the value of closing stock will be:
(a)
Rs 12,000
(b)
Rs 24,000
(c)
Rs 10,500
MITTAL COMMERCE CLASSES
7|Page
(d)
Rs 13,500.
Ans. d
Explanation:
Given = Average stock = Rs. 12,000
Let the opening stock be Rs. X
So closing stock would be Rs. (x +3,000)
Now,
Opening Stock  Closing Stock
2
12, 000 x  x  3, 000

1
2
Average stock =
24000 = 2x+3000
24000-3000 = 2x
x= 10500
closing Stock = Rs.
(18)
10,500  3, 000  13,500
O Ltd. maintains the inventory records under perpetual system of inventory.
Consider the following data pertaining to inventory of
O Ltd. held for the month of
March 2005:
Date
Particulars
Quantity
Cost Per unit (Rs.)
Mar. 1
Opening Inventory
15
400
Mar. 4
Purchases
20
450
Mar. 6
Purchases
10
460
If the company sold 32 units on March 24, 2005, closing inventory under FIFO
method is:
(a)
Rs.5,200
(b)
Rs.5,681
(c)
Rs.5,800
(d)
Rs.5,950.
Ans. d
Explanation:
Date
Particulars
Quantity
Cost P.U.
Amt.
Bal.
Bal. Amt
Q
t
y
.
March. 1
To Balance B/D
15
400
6000
15
6000
March. 4
Purchases
20
450
9000
35
15000
March. 6
Purchases
10
460
4600
45
19600
MITTAL COMMERCE CLASSES
8|Page
March. 24
Sales
32
15  400 
17  450  (13, 650)


13
5950
So closing inventory under FIFO method Rs. 5950.
(19)
Consider the following for Alpha Co. for the year 2005-06:
Cost of goods available for sale
Rs. 1,00,000
Total sales
Rs. 80,000
Opening stock of goods
Rs. 20,000
Gross profit margin
Rs. 25%
Closing stock of goods for the year 2005-06 was
(a)
Rs.80,000
(b)
Rs.60,000
(c)
Rs.40,000
(d)
Rs.36,000.
Ans. c
Explanation:
Given: Gross Profit = 25% on sales
Gross profit =
80, 000  25%  Rs.20, 000
Cost of goods available for sale = 100000
O.P Stock + purchase + direct expenses = 100000
20000+ purchases = 100000
Purchases = 80000
Cost of goods sold = sales – gross profit = 80000-20000 = 60000
Or, O.P. Stock + purchase + Direct Expenses – Cl. Stock = 60000
20000+80000+0- Cl. stock = 60000
Cl. Stock = 40000
(20)
If cost of physical stock on 31.3.2006 is Rs.2,80,000 and out of which stock of Rs.
1,20,000 is held as consignee. Goods costing Rs. 25000 were damaged beyond
repair and were expected to realize Rs.5,000 only. The value of own stock on
31.3.2006 will be:
(a)
Rs.2,60,000
(b)
Rs.1,60,000
(c)
Rs.1,35,000
(d)
Rs.1,40,000
Ans. d
Explanation:
Cost of Physical stock =
Rs. 2,80,000
(-) Stock at consignee =
Rs. (1,20,000)
(-) Damaged stock =
Rs. (,25,000)
(+) Realizable value of stock =
MITTAL COMMERCE CLASSES
Rs. 5,000
9|Page
Stock on 31.3.2006
(21)
Rs. 1,40,000
The following data has been provided by Omega Ltd.:
Item No.
Units
Cost per unit
Realization value per unit
1
2
10
11
2
10
5
4
3
2
2
2
The value of inventory on item by item basis will be
(a)
Rs. 40.
(b)
Rs.64.
(c)
Rs.66.
(d)
Rs.60.
Ans. b
Explanation:
We know that stock is valued at cost or net realizable value, whichever is less (as per
As-2) So,
Item No.
Units
Cost P.U.
Realizable value
Valuation (Whichever is
P.U.
Amt.
less)
1
2
10
11
Cost
20
2
10
5
4
NRV
40
3
2
2
2
cost = NRV
4
Rs. 64
(22)
Amit of Delhi sent 200 chairs @ Rs. 300 per chair to Sumit of Chandigarh. Amit paid
freight of Rs. 500 and Rs. 200 as insurance in transit. Sumit paid Rs. 100 as Cartage
and Rs. 300 as godown rent. At the end of the year, 150 chairs were sold. The
selling price of each chair in Chandigarh was Rs. 350. Value of stock unsold will be
(a)
Rs.15000
(b)
Rs.15200
(c)
Rs.16000
(d)
None of the three
Ans. b
Explanation:
Determination of cost of chair
Actual Cost
=
Rs. 300
(+)
=
Rs. 2.5
=
Rs. 1.00
(+)
 500 

 200 
Freight per chair 
 200 

 200 
Insurance in transit 
MITTAL COMMERCE CLASSES
10 | P a g e
(+)
=
 100 

 200 
Cartage 
0.50
Rs. 304 per chair
And net realizable value per chair is Rs. 350 so valuation would be made at cost or
NRV whichever is less, i.e. cost. So value of unsold stock, i.e. 200 – 150 = 50 chairs.
= 50  304
= Rs. 15,200
Note: - Godown rent is recurring exp. So not included in the value of unsold stock.
(23)
Chetan Ltd. recorded the following information as on March 31, 2004
Stock (1-4-03)
Rs. 40000
Purchases
Rs. 80000
Sales
Rs. 100000
It is noticed that goods worth Rs. 30000 were destroy due to fire against this, the
insurance company accepted a claim of Rs. 14000.
The company sells goods at cost plus 33.33%. The value of closing inventory, after
taking into account the above transaction is
(a)
Rs. 75000
(b)
Rs. 15000
(c)
Rs. 25000
(d)
Rs. NIL
Ans. b
Explanation:
Given that company sells good at cost 33.33% so gross profit on sales would be 25%
TRADING ACCOUNT
To opening stock
40,000
By Sales
1,00,000
(-) Lost by fire (30,000)
50,000
By closing stock (B/F)
To gross profit C/d
25,000
_______
1,15,000
1,15,000
To purchases 80,000
15,000
(100000  25%)
(24)
If sales are Rs. 2,000 and the rate of gross profit on cost of goods sold is 25% then
the cost of goods sold will be:
(a)
Rs. 1,600
(b)
Rs. 1,700
(c)
Rs. 1,500
(d)
Rs. 1,800
Ans. a
Explanation:
Let cost of goods sold = 100
Profit = 25
MITTAL COMMERCE CLASSES
11 | P a g e
Then sales = 100+25 = 125
COGS =
(25)
2000
100  1600
125
Receipts and payments to the third party on behalf of account holder are recorded in
pass book _______
(a)
When they are posted in pass book
(b)
At the time of making and receiving payments by the bank
(c)
After every quarter
(d)
None of the above
Ans. b
Explanation:
Transfer is entered in passbook only when transaction is known to bank.
(26)
When balance as per cash book (debit balance) as on 31st March is the starting
point, what will be the effect while preparing bank reconciliation statement as on
31st March, Cheques amounting to Rs. 5000 deposited, cheques aggregating Rs.
1500 were credited in March and cheques aggregation Rs. 2000 credited in April and
the rest have not been collected ?
(a)
Subtract Rs. 2000
(b)
Add Rs. 2000
(c)
Subtract Rs. 3500
(d)
Add Rs. 3500
Ans. c
Explanation:
Cash book balance is increased by Rs. 3500 (5000–1500), and should be subtracted
at the time of preparing BRS.
(27)
S draws 2 bills of exchange on 01.01.2015 for Rs. 3000 and Rs. 5000 respectively.
The bill of exchange for Rs. 3000 is for 2 months, while the bill of exchange for Rs.
5000 is for 3 months. These bills are accepted by K on 4.3.2015. K requests S to
renew the first bill with interest at 18% p.a. for a period of 2 months. S agrees to
this proposal. On 20.03.2015 K retires the acceptance for Rs. 5000 rebate i.e.,
discount being Rs. 50. Before the due date of the renewed bill K becomes insolvent
and only 60 paise in a rupee can be recovered from his estate. How much bad debt
will be recorded in the books of S :
(a)
1236
(b)
1854
(c)
3090
(d)
3000
Ans. a
Explanation:
MITTAL COMMERCE CLASSES
12 | P a g e
Second bill retires before maturity.
Interest on renewed bill = 3000 × 18% ×
2
= 90
12
Total Due Amount = 3000 + 90 = 3090
Bad Debt = 3090 × 40% = Rs. 1236
(28)
A draws a bill on B for Rs. 4500 for mutual accommodation in the ratio 2 : 1. A got it
discounted at 4230 and remitted 1/3rd of the proceeds to B. At the time of maturity,
how much amount, A should remit to B such that B can pay off the bill ?
(a)
3000
(b)
2880
(c)
2920
(d)
3010
Ans. a
Explanation:
Amount payable by A to B at maturity :
4500 ×
2
= 3000
3
1
2
3
3
Because : A's Share = 1 − =
(29)
On 1st January 2011 Bharat Ltd. purchases a machine for Rs. 80000 and provided
deprecation @ 10% p.a. At the end of 2015, the company decided to change the
method of depreciation from straight line method to written down value method
retrospectively. Due to the change, corresponding Adjustment in the amount of
depreciation is :
(a)
Short depreciation to be provided Rs. 2320
(b)
Excess Depreciation to be removed Rs. 580
(c)
Excess Depreciation to be removed Rs. 2320
(d)
Excess Depreciation to be removed Rs. 7240
Ans. d
Explanation:
Depreciation for 5 years from SLM
80000 × 10% = Rs. 8000
Total Deprecation of 5 years = 8000 × 5 = = Rs. 40000
Value at the end of 5 years = 80000 – 40000 = 40000
Value at the end of 5th year from WDV method:
(80000– 10% – 10% – 10% – 10% – 10%)
= Rs. 47240
Excess Depreciation already charged
= 47240 – 40000 = Rs. 7240
Depreciation of Rs. 7240 is now to be removed.
MITTAL COMMERCE CLASSES
13 | P a g e
(30)
Mr. Healthy has purchased a refrigerator for Rs. 55000 and depreciation is provided
according to annuity method. Life of the refrigerator is 6 year and a reference to the
annuity method over 6 years charging 35% interest, one must write off a sum of Rs.
0.678452. The amount of depreciation shall be :
(a)
Rs. 7050
(b)
Rs. 37315
(c)
Rs. 76210
(d)
None of the above
Ans. b
Explanation:
Depreciation = 55000 × 0.678452
= Rs. 37315
(31)
Amar makes a proposal to Bheem to sell his car for Rs. 50,000. Bheem posts a letter
of acceptance. The communication of acceptance shall be completed against Bheem
when _____________.
(a)
Letter of acceptance is posted.
(b)
Proposal was received by Bheem.
(c)
Amar receives the letter of acceptance.
(d)
Letter of acceptance is written by Bheem
Ans. c
Explanation: Communication of an acceptance is complete as against the acceptor,
when it comes to the knowledge of the proposer.
Therefore, communication of acceptance shall be complete against Bheem when
Amar receives the letter of acceptance.
(32)
A promise to pay time barred debt must be :
(a)
An oral promise
(b)
Implied promise
(c)
In writing and signed by the debtor or his authorised agent.
(d)
None of the above
Ans. c
Explanation: According to Section 25 (3)., where a promise in writing is signed by
the person making it i.e. debtor or his authorized agent, is made to pay a debt
barred by limitation it is valid without consideration.
(33)
Under section 17 of the Indian Contract Act, 1872 the term "fraud" does not include
_______________.
(a)
Concealment of a fact in good faith.
(b)
A promise made without intention of performing.
MITTAL COMMERCE CLASSES
14 | P a g e
(c)
Any act declared by law to be fraudulent.
(d)
Any act done with intention to deceive.
Ans. a
Explanation: Fraud includes any of the following acts committed by a party with
intent to deceive another party:
(i)
Suggestion as to a fact which is not true
(ii)
Active concealment of a fact
(iii)
Promise made without any intention of performing it
(iv)
Any other act fitted to deceive
(v)
Any act specially declared as fraudulent by law.
Hence, Concealment of a fact in good faith is not fraud but misrepresentation.
(34)
X sold rice to Y by sample and Y thinking that they were old rice purchased them,
but the rise was new. In this case :
(a)
Y is bound by the contract
(b)
Y is not bound by the contract
(c)
Y can recover damages from X
(d)
Y can sue for replacement of new rice with old rice.
Ans. a
Explanation: X. sold rice to Y by sample and Y thinking that they were old rice
purchased them, but the rice was new. In this case Y is bound by the contract and
he cannot rescind the contract as he was given the opportunity to examine whether
the goods corresponds with the sample or not since he thought that the rice was old
and accepted it as a result he cannot terminate the contract after wards.
(35)
Suppose the time fixed for performance of the contract has expired but the time is
not essential. What is the remedy of the promise in this case:
(a)
Can rescind the contract
(b)
To claim compensation
(c)
No remedy available
(d)
Can't be determined
Ans. b
Explanation: When time is not an assence of a contract and time within which the
contract was to be performed has expired, in such a case the contract does not
become voidable at the option of the promise and he is entitled to claim
compensation for any loss occasioned to him for the non performance of the
promisee at the agreed time.
(36)
Contingent contracts are ___________.
(a)
Valid
(b)
Void
MITTAL COMMERCE CLASSES
15 | P a g e
(c)
Voidable
(d)
None of the above
Ans. a
(37)
Shyam and Sunil made a joint promise. The promisee discharged Sunil. In this case
______________.
(a)
The contact shall come to an end.
(b)
Shyam shall also be discharged from his liability.
(c)
The liability of Sunil to Shyam will not come to an end.
(d)
The discharge by the promise is not effective.
Ans. c
Explanation: Where two or more person have made a joint promise, a release of one
of such joint promisors by the promisee does not discharge the other joint promisor
or joint promisor, neither does it free the joint promisor so released form
responsibility to the other joint promisors.
Hence, in this case the liability of Sunil to Shyam will not be discharged.
(38)
Breach of contract on the due date is known as :(a)
Anticipatory Breach
(b)
Actual Breach
(c)
Both "A" and "B"
(d)
None of the above.
Ans. b
Explanation: Just contrary to anticipatory breach is actual breach which means
refusal to perform the promise on the scheduled date.
(39)
The damages awarded by way of punishment are :
(a)
Vindictive damages
(b)
Special damages
(c)
Nominal damages
(d)
Ordinary damages.
Ans. a
(40)
_______ Contract are enforceable by future events.
(a)
Contingent Contract
(b)
Quasi Contract
(c)
Conditional Contract
(d)
Wagering Contract
Ans. a
MITTAL COMMERCE CLASSES
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Explanation: As per Section 31 of the act, contingent contract is a contract to do or
not to do something it some event collateral to such contract does or does not
happens.
(41)
Ashok Kumar is a famous hockey coach. He agrees to give training in hockey to
Sachin, who is a minor at a remuneration of Rs. 10,000 per month. This is a
(a)
Void Agreement
(b)
Voidable Contract
(c)
Quasi Contract
(d)
Contingent Contract
Ans. c
Explanation: In case of certain contracts, an obligation is imposed by law upon a
person for the benefit of another even in the absence of a contract. Such contract
are known as Quasi contracts. Eg.- If necessaries are supplied to a person who is
incapable of contracting like minor or a person of unsound mind, the supplier is
entitled to claim their price from the property of such a person. Thus, in the given
case, the contract is a Quasi contract.
(42)
A broker (residing in Maharashtra) can recover his brokerage in case of wagering
agreement. This statement is________.
(a)
True
(b)
Untrue
(c)
Partly True
(d)
Partly Untrue
Ans. b
Explanation: Untrue because in Maharashtra collateral agreements of wagering
agreements are Void.
(43)
Goods means every kind of movable property including :
(a)
Actionable claims and currency money
(b)
Old currency notes
(c)
Goodwill and copyright
(d)
Both (b) and (c)
Ans. d
Explanation: According to Section 2 of the Sale of Goods Act, 1930, Goods means
every kind of movable property other than actionable clams and money; and
includes stock and shares, growing crops, grass, and things attached to or forming
part of the land, which are agreed to be severed before sale or under the contract of
sale. Trademark, copy right, patent rights, goodwill, water, gas are all gods
Moreover, old currency notes can be the subject matter of the contract of sale but
money which means current money is excluded from the same.
MITTAL COMMERCE CLASSES
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(44)
Which of the following statements is correct in relation to ascertainment of price of
goods ?
(a)
Price of goods must be fixed in the contract of sale
(b)
Parties to contract of sale of goods cannot fix the manner of ascertainment of
price
(c)
Where parties agree that price of goods has to be fixed by a third person and
he does not fix, the agreement is void
(d)
Where the price is not fixed in any manner, the seller is not entitled to any
price.
Ans. c
Explanation: Price means the monetary consideration for sale of goods.
(i)
Fixed by the contract, or
(ii)
Agreed to be fixed in a manner provided by the contract, or
(iii)
Determined in course of dealings between the parties.
However, as per Section 10, where there is an agreement to sell goods on the terms
that price has to be fixed by the third party and he either does not or cannot make
such valuation, the agreement is void.
(45)
Which of the following is not an essential element of a contract to sale ?
(a)
Existence of essential elements of a valid contract
(b)
Payment of price at the time of contract
(c)
Subject matter of contract must be goods
(d)
Two parties i.e. seller and buyer.
Ans. b
Explanation: The following elements must co-exist so as to constitute a contact of
sale of goods under the sale of Goods Act, 1930.
(i)
There must be at least two parties.
(ii)
The subject matter of the contract must necessarily be goods.
(iii)
A price in money (not in kind) should be paid or promised.
(iv)
A transfer of property in goods from seller to the buyer must take place.
(v)
A contract of sale must be absolute or conditional.
(vi)
All other essential elements of a valid contract must be present in the
contract of sale. Thus, payment of price at the time of contract is not an
essential element of a contact to sale.
(46)
Which one of the following statements is not correct ?
(a)
In agreement to sell, property in goods passes to the buyer.
(b)
Sale is an executed contract.
(c)
In agreement to sell, loss of goods is the liability of seller.
(d)
In sale the seller can sue the buyer for price.
MITTAL COMMERCE CLASSES
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Ans. a
Explanation : In an agreement to sell the ownership of the goods is not transferred
immediately. It is intending to transfer at a future date upon the completion of
certain condition thereon.
Thus, the statement, the in agreement to sell property passes to the buyer is not
correct.
(47)
A hire-purchaser of the goods:
(a)
Can resale the goods.
(b)
Cannot use the goods.
(c)
Option to return the goods or buy it.
(d)
None of the above.
Ans. c
Explanation: The property in goods passes to the hirer upon payment of the last
installment. His position is that of a bailee till he pays the last installment. The hire
purchase gets an option to return the goods or buy it at the end of the contract.
(48)
Contract of sale includes :
(a)
Sale
(b)
Agreement of sale
(c)
Both
(d)
None
Ans. c
(49)
May or may not transfer in case of Bailment :
(a)
Ownership
(b)
Consideration
(c)
Both
(d)
None of the above
Ans. b
Explanation: Because ownership is never transferred in case of bailment.
(50)
A agrees to sale a TV set for 10000 old coins. It is
(a)
Sales
(b)
Agreement to sale
(c)
Both
(d)
Barter
Ans. d
Explanation: Barter because old coins are treated goods and not money
MITTAL COMMERCE CLASSES
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(51)
When a Consumer wants a product by seeing another person use that product, it is
called:
(a)
Disturbance Effect
(b)
Comparison Effect
(c)
Demonstration Effect
(d)
Marshallian Effect
Ans. c
Explanation: Since by demonstration of the product the demand of it increases
irrespective of the price.
(52)
Expansion and Contraction of demand for a good occurs as a result of:
(a)
Change in Price of the Commodity
(b)
Change in Quality of the Commodity
(c)
Availability of Cheaper Substitutes
(d)
Increase in Consumers Income
Ans. a
Explanation : Since whenever the price rises there is contraction in Q.D. and
whenever the price falls there is expansion in Q.D.
(53)
Sir Robert Giffen was surprised to find out relationship of price with two goods, which
were:
(a)
Bread and Rice
(b)
Meat and Rice
(c)
Bread and Meat
(d)
Cheese and Meat
Ans. c
Explanation : Since the two commodities on which the survey was done by Robert
Giffen was Bread and meat.
(54)
Other things being equal, if the price of the commodity is higher _____ quantities
thereof will be supplied to the market.
(a)
Equal
(b)
Lower
(c)
Greater
(d)
Zero
Ans. c
Explanation : Since this is due to law of supply. It has a positive relationship
between price and quantity supplied.
(55)
"Cost of Production" is not a determinant of supply of a particular commodity. This
statement is:
(a)
True
(b)
False
(c)
Partly True
(d)
None of the above
Ans. b
Explanation: Since whenever the cost increases it results in less of supply since the
profit reduces in supplying of that product.
MITTAL COMMERCE CLASSES
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(56)
In case of drought, floods, etc. the supply of agriculture commodity will:
(a)
Increase
(b)
Decrease
(c)
Remain constant
(d)
Become Zero
Ans. b
Explanation: Since due to adverse climatical conditions supply decreases.
(57)
Utility is applicable only for ______.
(a)
Socially desirable goods (food, etc.)
(b)
Harmful goods like Liquor, Cigarettes, etc.
(c)
Both (a) and (b)
(d)
Neither (a) nor (b)
Ans. c
Explanation: Since utility depend upon use and it varies from person to person and
use to use.
(58)
Under marginal utility analysis, Utility is assumed to be a:
(a)
Cardinal concept
(b)
Ordinal Utility Approach
(c)
Indeterminate concept
(d)
Both (a) and (b)
Ans. a
Explanation: Since according to this concept utility can be measured.
(59)
Marginal Utility:
(a)
Will always be positive
(b)
will always be negative
(c)
Can be positive or negative but not zero
(d)
Can be positive or negative or zero
Ans. d
Explanation: Since when TU increases at a increasing rate MU also increases, when
MU is 0 TU is maximum and when TU decreases MU is negative.
(60)
Making Furniture From raw wood in an example of creation of:
(a)
Time Utility
(b)
Form Utility
(c)
Place Utility
(d)
Personal Utility
Ans. b
Explanation: Since due to change of form the raw wood becomes more useful as it is
converted into furniture.
(61)
The Incentive/Reward in respect of Land is called:
(a)
Rent
(b)
Wages
(c)
Interest
MITTAL COMMERCE CLASSES
21 | P a g e
(d)
Profit
Ans. a
Explanation: Since rent is the reward for use of land.
(62)
Capital Formation is required for:
(a)
increasing the efficiency of production efforts
(b)
Ensuring growth of the economy
(c)
Expansion of output of consumer goods in the future.
(d)
All of the above
Ans. d
Explanation: Since capital formation is required in all the above cases.
(63)
The function of an Entrepreneurship include:
(a)
Initiating a business Entrepreneurship
(b)
Risk - bearing or uncertainty - bearing
(c)
Introducing innovations on a continuous basis
(d)
All of the above
Ans. d
Explanation: Since (a), (b) and (c) all are the functions of an Entrepreneur.
(64)
In a Production Function, Input means :
(a)
Factors of Production required
(b)
Goods and Services produced
(c)
Both (a) and (b)
(d)
Neither (a) nor (b)
Ans. a
Explanation : Since land, labour, capital and entrepreneur all are factors of
production.
(65)
If TP decreases, MP will be :
(a)
Positive
(b)
Negative
(c)
Zero
(d)
Infinity
Ans. b
Explanation : Since if TP decreases MP will be negative due to the relationship
between TP and MP.
(66)
The point where MP is maximum is called :
(a)
Point of Increase
(b)
Point of Indifference
(c)
Point of inflexion
(d)
Point of Shut-down
Ans. c
Explanation : Since at this point the rate of increase in TP is maximum, after this
point the TP increases at a diminishing rate.
MITTAL COMMERCE CLASSES
22 | P a g e
(67)
If Stage I is Increasing Returns, Stage II is Diminishing Returns, and Stage
III is Negative Marginal Returns, answer questions 67:
A Rational Producer will operate in:
(a)
Stage I
(b)
Stage II
(c)
Stage I and III
(d)
All of the above
Ans. b
Explanation: Since in stage II the TP is maximum every rational producer will
operate in this stage.
(68)
Accounting cost is also known as:
(a)
Explicit Cost
(b)
Implicit Cost
(c)
Both (a) and (b)
(d)
Neither (a) nor (b)
Ans. a
Explanation: Since Accounting cost is the cost which is incurred during accounting
year.
(69)
Economic Profits are :
(a)
Difference between Total Revenue, and Total Implicit and Explicit Costs
(b)
Difference between Total Revenue and Total Economic Costs
(c)
Zero in a perfectly competitive industry in the long-run
(d)
All the above
Ans. d
Explanation : Economic profit can be expressed in all the above mentioned ways.
(70)
Opportunity Costs are a result of:
(a)
Cost of opportunity foregone
(b)
Costs relating to sacrificed alternatives
(c)
Both (a) and (b)
(d)
Neither (a) nor (b)
Ans. c
Explanation : Since Opportunity cost is the cost of last best alternative sacrificed.
(71)
Marginal Cost are closely associated with :
(a)
Average cost
(b)
Variable Cost
(c)
Total fixed cost
(d)
Total cost
Ans. b
Explanation : Since marginal cost is is the change in total cost when an additional
change in quantity is done of a variable input.
(72)
In the short run, when the output of a Firm increases, its Average Fixed Cost
______.
(a)
Increases
MITTAL COMMERCE CLASSES
23 | P a g e
(b)
Decreases
(c)
Remains constant
(d)
First declines and then rises
Ans. b
Explanation: Since as the input increases the total fixed cost is fixed hence when we
divide the total fixed cost by the number of units, AFC decreases continuously.
(73)
If the LAC Curve falls as output expands, this falls is due to:
(a)
Economies of Scale
(b)
Law of Diminishing Returns
(c)
Diseconomies of Scale
(d)
None of the above
Ans. a
Explanation: Since due to economies of scale there is always a fall in LAC.
(74)
A firm producing 7 units of output has an Average total Cost of Rs. 150 and has to
pay Rs. 350 to its Fixed Factors of Production whether it produces or not. How much
of the Average Total Cost is made up of Variable Costs ?
(a)
Rs. 200
(b)
Rs. 149
(c)
Rs. 300
(d)
Rs. 100
Ans. d
Explanation:
TFC = 350
ATC = 150
Qty.= 7
AVC = ATC - AFC
AFC can be calculated by TFC / Q.
350 / 7 = 50, Hence by the given formula
AVC = ATC - AFC
AVC = 150 - 50
AVC = 100
(75)
What is the Average Total Cost in producing 20 units, if Fixed Cost is Rs. 5000 and
Variable Cost is Rs. 2 ?
(a)
Rs. 280
(b)
Rs. 290
(c)
Rs. 258
(d)
Rs. 252
Ans. d
Explanation:
Since TC = TFC + TVC, TFC is 5000 and TVC is 20x2 = Rs. 40
Hence TC = 5000+40
TC = 5,040
Now ATC = TC / Q.
ATC = 5,040/20
Hence ATC is 252.
MITTAL COMMERCE CLASSES
24 | P a g e
(76)
Rs. 2189 are divided into three parts such that their amounts after 1, 2 and 3 years
respectively may be equal. The rate of Interest being 4% p.a. Find the ratio between
these parts.
(a)
1 1 1
: :
24 25 26
(b)
1 1 1
: :
25 26 27
(c)
1 1 1
: :
26 27 28
(d)
None
Ans. c
Explanation:
P1 
P  43
P1  4 1
P  4 2
 P2  2
 P3  3
100
100
100
1 
2 
3 



P1  1    P2  1    P3 1  
 25 
 25 
 25 
26
27
28
P1 
P2 
P3
25
25
25
1 1 1
P1 : P3 : P3 
: :
26 27 28
(77)
1
2
The difference between the C.I and S.I on a Sum of money for 2 years at 12 % p.a.
is Rs. 150 then sum
(a)
9000
(b)
9600
(c)
9200
(d)
None
Ans. b
Explanation:
C.I.–S.I. = 150
n

 PTR
r 
P  1 
 1 
 150

100

 100 
2

 P  2  25
25 
P  1 
 1 
 150

 200 
 2 100
P = Rs. 9600
MITTAL COMMERCE CLASSES
25 | P a g e
(78)
If you want to accumulate Rs. 50,000 by making equal payments at the end of each
quarter for the next five years, what will be the size of these investments, if money
is worth 6% converted quarterly?
(a)
2100
(b)
2180
(c)
2170
(d)
2167.63
Ans. d
Explanation:
A
P
(1  r)n  1

r
6
 0.015
100  4
n  5  4  20
Here r 
Now 50,000 
=
P 
1.01520 1

0.015
P
1.346  1
0.015
50,000  0.15
0.346
P  Rs.2167.63
P
(79)
If a sum triple itself in 6 years at C.I. In how many years it will be 27 times itself at
the same rate?
(a)
18
(b)
54
(c)
12
(d)
27
Ans. a
Explanation:
First Time
Second Time
A = 3x
A  27x
P=x
Px
n=6
n=?
r 

 3x  x 1 

100


r 

3  1 

 100 
6
6
r 

27x  x 1 

 100 
r 

(3)3  1 

 100 
n
n
3
6
n
 
r   
r 
1


1



  
  100    100 
MITTAL COMMERCE CLASSES
26 | P a g e
18
n
r 
r 


1  100   1  100   n  18




(80)
If the roots of the quadratic equation x2-px + q = 0 is differ by unity then (a)
p 2  4q  1
(b)
p 2  4q  1
(c)
q2  4 p 1
(d)
q 2  4 p  1.
Ans. a
Explanation:
𝛼+𝛽 =𝑃
.  q
Given     1
=)
(   ) 2  4  1
p 2  4q  1
p 2  4q  1
p 2  4q  1
(81)
The points (−2, 2), (8, −2) and (−4, −3) are the vertices of a triangle which is
(a)
Equilateral
(b)
Right angled
(c)
Isosceles
(d)
None of these
Ans. b
Explanation:
Let the vertices of the  are A, B and C.
AB  (8  2)2  (2  2)2  116
BC  (4  8)2  (3  2) 2  145
and AC =
(4  2)2  (3  2)2  29
Since, (AB)2  (AC)2  (BC)2  is right angled.
(82)
A line passes through the point of intersection of 2x + y = 5 and x + 3y + 8 = 0;
and parallel to the line 3x + 4y = 7. The equation of the line is :
(a)
3x + 4y = −3
(b)
3x + 4y = 0
(c)
4x  3y  0
MITTAL COMMERCE CLASSES
27 | P a g e
(d)
4x  3y  3
Ans. a
Explanation:
2x + y = 5
…(i)
x + 3y = –8
…(ii)
Multiply (i) by 3 gives, 6x  3y  15
…(iii)
Subtract (ii) from (iii), 5x = 23  x 
23
5
46
21
 23 

 y  5  y 5
5
5
 5 
Putting the value of x in (i), 2 
 23 21 
,

 5 5 
 Point of intersection is 
Since required line is parallel to the line 3x  4y  7
Its slope will be –
3
.
4
 Required equation is y 
21
3
23 
  x  
5
4
5 
 4(5y  21)  3(5x  23)
 20y  84  15x  69
 15x  20y  15
 3x  4y  3
If the lines 4x  3y  1 , y = x + 5 and 5y + bx = 3 are concurrent, then b equals :
(83)
(a)
1
(b)
3
(c)
6
(d)
0
Ans. c
Explanation:
4x  3y  1
…(i)
y  x 5
…(ii)
Putting the value of y in (i),
4x  3(x  5)  1
 7x  14  x  2
Substituting x  2 in (ii) gives, y  2  5  3
 Point of intersection is (–2, 3)
Since lines are concurrent, point of intersection will satisfy 5y  bx  3

5(3)  b(2)  3
  2b  3  15
MITTAL COMMERCE CLASSES
28 | P a g e
 b6
(84)
If a + b : b + c : c + a = 6 : 7 : 8 and a + b + c = 14, then the value of c is
(a)
6
(b)
7
(c)
8
(d)
14
Ans. a
Explanation:
a  b  6x
b  c  7x
c  a  8x
2(a + b + c) = 21x
2(14)
=
21x
4
x
3
 a  b  6
4
3
ab 8
Given a + b + c = 14
8 + c = 14
c = 14 – 8
c=6
(85)
b
 
x b y  2x  3y 2 , find the value of   .
3
2
1
(a)
0
(b)
–1
(b)
1
(d)
None
1
Ans. a
Explanation:
Let
1
1
x , y
2
3
x b y  2x  3y 2
b
1  1 
1  1 
2 
  2  2   3

   3
   3
2
=1–1
=0
MITTAL COMMERCE CLASSES
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(86)
log x
b is equal to
log x
2b
(a)
1+ logb 2
(b)
1+ log2 b
(c)
1
2
(d)
log 2
Ans. a
Explanation:
logb x
log2b x

log x 2b
log x b

log x 2  log x b
log x b
 1
log x 2
log x b
 1  logb 2
(87)
log 9 11 log 3 11
=
log 5 13 log 5 13
(a)
1
(b)
–1
(c)
2
(d)
None of these.
Ans. d
Explanation:
log9 11 log311

log5 13 log 13
5
log 2 11
log3 11
(3)


log
13 log 13
5
( 5)2
1
.log3 11
log3 11
 2

1
.log 13 log 5 13
5
2
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log3 11
log3 11

log 13 log 13
5
5
 0

1
Note log n m  loga m
a
n
(88)
The shaded region represents:
(a)
(b)
(c )
3x  2 y  24, x  2 y  16, x  y  10 x, x  0, y  0,
3x  2 y  24, x  2 y  16, x  y  10, x  0, y  0
3x  2 y  24, x  2 y  16, x  y  10, x  0, y  0
(d)
None
Ans. c
Explanation:
Region represented by the line 3x + 2y = 24 meets the coordinate axes at (8,0) and
(0,12). Since the shaded region lies below the line 3x+2y=24 therefore it is
represented by less than or equal to sign i.e. 3x+2y< 24.
Similarly for th eline x+2y = 16 the shaded region lies below the line therefore it is
represented by less than or equal to sign i.e. x+2y<16
Clearly X > 0 and y > 0 represents the region lying on the right side of y axis and
above x axes.
(89)
The mean marks of 300 students were 40. Later on it was discovered that 66 marks
of A were read as 60, 14 marks of B were read as 41 and 60 marks of C were not
included. Find the corrected mean on the basis of this information.
(a)
40.13 Marks
(b)
47 Marks
(c)
38.15 Marks
(d)
None of the above
Ans. a
Explanation : Sum of marks of 300 students = 300 x 40 = 12000
after replacing wrong and missing observations sum of marks =
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12000-60+66+14-41+60 = 12039
Correct mean = 12039/300 = 40.13
(90)
Calculate from the following data the most likely value of y when x = 60
Mean : X̅ = 53.2 Y̅ = 27.9
Regression coefficient of x on y = 0.2
Regression coefficient of y on x = 1.5
(a)
38.1
(b)
21.1
(c)
35
(d)
None of the above
Ans. a
Explanation : y − y = byx (x − x)
𝑦 − 27.9 = 1.5 (60 − 53.2)
𝑦 = 38.1
10
(91)
If for 10 observations x1 , x 2 ,.........., x10 ,

(x i  4)  30 and
i 1
10
 (x
i
 4) 2 = 100, then
i 1
variance of the observation is
(a)
1
(b)
5
(c)
10
(d)
none of these
Ans. a
Explanation :
d 2  100
d  30
Where d = x i  4
2
2
d 2  d  100  30 
  

 10  9  1
Variance =
n
10  10 
 n 
(92)
Mean deviation about mean is 5.8. Coefficient of mean deviation about mean is 0.2.
Then mean is
(a)
116
(b)
290
(c)
2900
(d)
none of these
Ans. c
Explanation :
Coefficient of mean deviation about mean =
MITTAL COMMERCE CLASSES
Mean Deviation abut mean
Mean
x100
32 | P a g e
0.2
(93)
=
5.8
x100
Mean
Mean = 2900
The consumer price index for a group of workers was 250 in 1994 with 1980 as the
base. Compute the purchasing power of a rupee in 1994 Compared to 1980.
(a)
0.40
(b)
0.50
(c)
0.60
(d)
None of these
Ans. a
Explanation :
(94)
Purchasing Power of a Rupee =
100
Price Index
=
100
 0.40 .
250
Between 1990 and 2000, the price of a commodity increased by 60% while the
production decreased by 30%. By what percentage did the value index of production
of commodity change in 2000 with respect to its value of 1990.
(a)
10%
(b)
15%
(c)
12%
(d)
None of these
Ans. c
Explanation :
Year
1990
2000
Price
100%
160% = 1.60
Quantity
100%
70% = 0.70
Value = Price × Quantity
 V1990,2000  (1.60  0.70)  100
= 112%
 +12% Value will be changed.
(95)
The consumer price index over a certain period increased from 120 to 215 and the
wages of
(a)
worker increased from Rs. 1,680 to Rs. 3000. What is the loss of the worker?
5.58
(b)
6.58
(c)
7.58
(d)
None of these
Ans. d
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Explanation :
Using Formula : Real wage =
 1680 
Money wage
100
Pr ice Index
Money Wage
 100
 215

100 

 120

 Money Wage =
215
1680  3010 Rs.
120
 Loss of worker = 3010 – 3000 = 10 Rs.
(96)
If r > 0 and m = (byx + bxy)/2, then
(a) m  r
(b) r = m
(c) m  r
(d) None of these
Ans. a
Explanation :
Since
Hence


(97)
r  0, therefore b yx and b xy are also positive.
byx  bxy
2
byx  bxy
2
byx  bxy
2
 byxbxy
( AM  G.M.)
 r2
 r  m  r.
The two lines of regression are 2x – 7y + 6 = 0 and 7x – 2y + 1 = 0. What is the
correlation coefficient between x and y?
(a)
-2/7
(b)
2/7
(c)
(d)
4/49
None of these
Ans. b
Explanation :
The two lines of regression are
2x  7y  6  0
and
….(1)
7x  2y  1  0
….(2)
If we take (1) as the regression equation of Y on X, then (2) is that of X on Y.
We can write these as :
2
6
2
1
y  x  and x  y 
7
7
7
7
MITTAL COMMERCE CLASSES
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respectively.
2
2
and bxy 
7
7
2 2 4
 byxbxy   
1
7 7 49
 byx 
So, our choice is valid.
Now, r  b yxbxy 
2
(Note that
(98)
4
2
r 
49
7
byx  0 ), so r > 0
For 10 pair of observations, the number of concurrent deviations was found to be 4.
What is the value of the coefficient of concurrent deviation?
(a)
(b)
0.2
 0.2
(c)
1
3
(d)

1
3
Ans. d
Explanation :
Here C = 4, n = 10, so
m = n – 1 = 10 – 1 = 9.
rc = ±
±(2c -m)
±(8 - 9)
=±
m
9
Here 2c – m is negative, so negative sign is taken at both the places so rc
(99)
 1/3.
If byx = 1.24, bxy = 0.36, x  5.5, y  8.8, then regression equation of y on x is given
by
(a)
y = 1.24 x + 1.98
(c)
y = –1.24 x + 1.98
(b)
x = 0.3 y + 2.86
(d)
None of these
Ans. a
Explanation :
The regression line :
y  y  byx  x  x 
or y  8.8  1.24(x  5.5)
 y  1.24x  1.98
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(100) For 10 observations on price (X) and supply (Y), the following data was recorded:
x  120, y  200, x
2
 1840,
y
2
 4900 and
xy  2100 . For this data
r(X,Y) =
1
2
(a)

(b)
1
(c)
–1
(d)
1
2
Ans. a
Explanation :
r=
Σxy - (ΣxΣy)/n
1
1
Σx2 - (Σx)2 × Σy2 - (Σy)2
n
n
2100 
=
120  200
10
(120)2
(200)2
 4900 
10
10
300
300
1

 .
2
400 900 20  30
1840 
=
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