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CIMA BA2 Practice Test Chapter 12- Risk 2 - Probability
CIMA BA2 Practice Test Chapter 12- Risk 2 - Probability
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BA 2 - Fundamentals of Management AccountingPractice questions
Risk 2 – Probability
Chapter twelve
, 1
01. Four people are asked to select a card at random from a standard pack of playing
cards*. The card is replaced before the following selection so each selection is from the
full pack. You are told that
(a) A picked a king
(b) B picked a red card
(c) C picked a club
(d) D picked the Ace of Spades
Determine the probability for each selection.
(a) The probability that A picked a king is _________.
(b) The probability that B picked a red card is _________.
(c) The probability that C picked a club is _________.
(d) The probability that D picked the Ace of spades is _________.
* A standard pack of playing cards has 52 cards.
02. A tennis club organises the draw for its annual men's singles tournament by picking
names from a hat. There are 32 men in the draw this year.
In the last two years J has had to play S, his brother in the first round.
What is the probability that J will have to play S in the first round this year?
03. A quality controller wishes to estimate the probability of a component failing within 1 year
of installation. In this case, the quality controller has choosen a sample of 1,000
components which she then finds that 16 fail within 1 year:
Calculate the probability.
04. In a group of 100 CIMA students, thirty are male, fifty-five are studying Certificate level,
and six of the male students are not studying Certificate level. A student chosen at
random is female.
What is the probability that she is NOT studying Certificate level?
A. 0.80
B. B.0.56
C. C.0.44
D. D.0.20
BA 2 - Risk 2 - Probability. Quantia Learning
, 2
05. An entity must make a decision between three options, A, B and C. The possible profits and
losses are:
● Option A: a profit of $2,000 with probability 0.5 or otherwise a loss of $500
● Option B: a profit of $800 with probability 0.3 or otherwise a profit of $500
● Option C: a profit of $1,000 with probability 0.7, or $500 with probability 0.1 or otherwise
a loss of $400
Using EV, which option should be chosen?
06. A decision-maker is faced with the following options, which can result in the profits shown:
High sales Medium sales Low sales
P = 0.5 P = 0.4 P = 0.1
Option 1 $50,000 $10,000 ($60,000)
Option 2 $40,000 $10,000 ($20,000)
Option 3 $30,000 $15,000 $0
Required:
(a) If the intention is to maximise expected profit, which option should be taken?
07. A shopkeeper buys an item at $10 and sells it at $50 but if it is not sold by the end of the day
it will be thrown away. The probability of each level of demand is shown below.
Demand Probability
(units)
0 0.3
1 0.4
2 0.3
Use EV to advise the shopkeeper on how many units he should order per day.
BA 2 - Risk 2 - Probability. Quantia Learning
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