numerical test tutorial shl style - sample.pdf

Numerical Test Tutorial – SHL type format

One of only two ‘numerical test’ tutorials you

need for Graduate & Internship jobs

Graduate test solutions by

Numerical Test Structure and Use

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SHL is one of the biggest recruitment test providers supplying blue chip companies globally



Many banks, audit, marketing and consulting firms use SHL (test system) as part of their

graduate recruitment and industrial placement/internship programmes:



3 categories of timed tests used: numerical, verbal and abstract reasoning



Cannot go back to change the answer once you have clicked “Next”



Non-interactive but somewhat challenging at the higher end (e.g. Investment Banks)

Numerical

Reasoning Test

Standard Non-Banking Numeracy Test *

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18 questions



25 minutes

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Can’t go back to change answers

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Usually non-interactive

Corporate / Investment Banking Test **

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21 questions



21 minutes



Can’t go back to change answers



Tailor made for some top banks

than investment banking or Big4 accounting firm tests

Data Context 2:

Numerical Test: Data Context 2

Comparing several indices

Question 4

If the inflation indices were rebased at 100 again

at the 3

_{quarter, what would be the 4}

_quarter

inflation index for Producer Prices?

(101/102)*100

(102/101)*100

(100/102)*100

(102*100)/101

Line charts: inflation indices

Inflation indices are used to measure change in the prices of a group of goods and services monthly,

quarterly or annually. Retailer Price Index and Consumer Price Index are the most common indices.

Cannot say

Retail Price Index (RPI) Consumer Price Index (CPI) Producer Price Index (PPI) Wholesale Price Index (WPI)

Numerical Test: Data Context 2

Question 4

If the inflation indices were rebased at 100 again at the 3rd _{quarter, what would be the 4}th _{quarter inflation index for} Producer Prices?

Solution to Question 4

Task: Figure out how rebasing would affect the 4th _{quarter figure for Producer Price Index (PPI).}

Solution: Rebasing an index from a certain quarter (month or year) simply means dividing all the index figures by the value

given for that month, then multiplying all of them by 100. E.g. 3rd _{quarter PPI 102 – so all the index figures will be divided by} 102.Therefore, rebasing 4th _{quarter PPI would be: (4}th _{quarter PPI / 3}rd _{quarter PPI) x 100 = (100/102)x100 = 98.04}

Line charts: inflation indices

Inflation indices are used to measure change in the prices of a group of goods and services monthly,

quarterly or annually. Retailer Price Index and Consumer Price Index are the most common indices.

94 96 98 100 102 104 106 Q1 Q2 Q3 Q4

Retail Price Index (RPI) Consumer Price Index (CPI) Producer Price Index (PPI) Wholesale Price Index (WPI)

Tip:

Rebasing an index for period A means

dividing all the index values by the value of A,

then multiplying them by 100 – this is always

the same.

Data Context 3:

Numerical Test: Data Context 3

Company sales by brand

Question 5

What was the highest proportional increase in

sales value, in comparison with the previous year,

for any of the three brands?

9%

25%

14.3%

10%

Line charts: comparing company sales by brands

Compares how the sales values of several brands have changed over time

Cannot say

Numerical Test: Data Context 3

Question 5

What was the highest proportional increase in sales value, in comparison with the previous year, for any of the three brands?

Solution to Question 5

Task: This problem has a simple two step solution. First, look at the lines on the graph and identify the one with the

steepest rise. Then, calculate the percentage change by dividing the two figures between which the increase had occurred.

Solution: If you look closely at the lines on the graph, the steepest rise occurred in the Finest brand from 2007 to 2008

period.

Line charts: comparing company sales by brands

Compares how the sales values of several brands have changed over time

300 350 400 450 500 550 600 650 700 750 2005 2006 2007 2008 2009 2010 £ m ill io n B ri tish P o u n d s

Everyday Value Premium Finest

Tip:

When you a graph and the question asks you

to determine the biggest change in values,

whether it is a rise or drop, then first identify

the steepest line or part of the line. It will save

you time and you could answer the test within

15 seconds.

Data Context 4:

Stacked column charts:

comparing data across time

Numerical Test: Data Context 4

Stacked column charts: comparing data across time

Stacked columns typically show how several categories contributed from one period to another, in total

and across divisions.

Annual Road Travellers (100 million drivers)

Question 9

Over the last decade by how many drivers did the

increase in in Asia Pacific region exceed the increase

in European region?

24,000,000

240,000,000

300,000,000

340,000,000

Cannot say

10 years ago Now

Rest of World South America Asia Pacific Europe US

Solution to Question 9

Task: Calculate the differences between now and 10 years ago separately for Asia Pacific and European regions . Then

deduct the Europe figure from the Asia Pacific one.

Calculations:

Asia Pacific: 6.2 – 3.1 = 3.1 Europe: 2.5 – 1.8 = 0.7

Asia Pacific minus Europe: 3.1 – 0.7 = 2.4

The answer must be in 100’s of millions, therefore: 2.4 x 100,00,000 = 240,000,000

Shortcut:

Look at the red arrows. You just need to sum up those numbers that are positioned diagonally – then take their difference. I.e. (6.2 + 1.8) – (3.1 + 2.5) = 2.4

Numerical Test: Data Context 4

Question 9

Over the last decade by how many drivers did the increase in in Asia Pacific region exceed the increase in European region?

Annual Road Travellers (100 million drivers)

1.5 1.9 1.8 2.5 3.1 6.2 0.9 1.6 0.8 1.4 0 2 4 6 8 10 12 14

10 years ago Now

Rest of World South America Asia Pacific Europe US

Stacked column charts: comparing data across time

Stacked columns typically show how several categories contributed from one period to another, in total

and across divisions.

Data Context 5:

Stacked 100% column charts:

comparing sales of 2 companies

Numerical Test: Data Context 5

Global Toiletry Sales: Unilever and L'Oreal

Question 13

If production costs for L’Oreal are 2 times those for

Unilever, what is the gross margin (sales minus

production costs) of Unilever?

$2 billion

$2.5 billion

$3 billion

$3.5 billion

Cannot say

Stacked 100% columns: comparing sales of 2 companies

Bar charts typically compare sales or other financial data of two or more companies. 100% stacked column

typically includes sales (or other data) breakdown by divisions or products.

Numerical Test: Data Context 5

Question 13

If production costs for L’Oreal are 2 times those for Unilever, what is the gross margin (sales minus production costs) of Unilever?

Solution to Question 13

Task: First, we need to determine if we have sufficient

data to calculate the required figure.

The chart does not contain data on production costs or gross margin for either brand.

L’Oreal S1 (sales) – P1 (production costs) = GM1 (gross margin) Unilever S2 – P2 = GM2

P1 = 2P2 therefore S1 – 2P2 = GM1 although S1 and S2 (sales figures) are known, we still have 3 unknowns in the two equations above – which cannot be solved. Therefore, the answer must be “Cannot Say”.

Tip: When you have 2 or more unknowns, then try to build

equations to determine whether you can solve the problem. If the

number of unknowns exceed the number of equations, the problem cannot be solved.

Global Toiletry Sales: Unilever and L'Oreal

25% 44% 35% 14% 15% 6% 18% 26% 7% _10% 0% 20% 40% 60% 80% 100% Unilever ($8,000) L'Oreal ($24,000) Africa Asia Pacific South America North America Europe

Stacked 100% columns: comparing sales of 2 companies

Bar charts typically compare sales or other financial data of two or more companies. 100% stacked column

typically includes sales (or other data) breakdown by divisions or products.

Data Context 9:

Numerical Test: Data Context 9

Currency exchange rates: Tenge per currency

Question 24

A company changes €150,000 euros to Kazakh

Tenge at the "Day's High" rate to pay a debt of 30

million Tenges. Approximately what amount of

Tenges is left over, or still owing, following this

transaction?

534,000 Tenge still owing

534,000 Tenge left over

1,534,000 Tenge still owing

1,534,000 Tenge left over

Data tables: currency exchange rates

Currency exchange data table typically shows trading highs and lows as well change on day and the closing

rate. Typically, opening rate equals to the closing point rate minus change on day.

None of the above

Today's Exchange Rates* for the Kazakh Tenge

Currencies Closing Point Today's High Today's Low Change on Day Benchmark Index Euro 194.32 196.44 192.15 0.65 190.78 US Dollar 150.81 152.65 149.13 -0.24 148.59 Russian Rouble 0.21 0.23 0.19 0.01 0.21 Chinese Renminbi 24.28 26.85 23.11 -0.31 24.18 * Rates represent number of Tenge per stated currency

Numerical Test: Data Context 9

Question 24

A company changes €150,000 euros to Kazakh Tenge at the "Day's High" rate to pay a debt of 30 million Tenges. Approximately what amount of Tenges is left over, or still owing, following this transaction?

Solution to Question 24

Task: First, we need to work out how much Tenge one would get for EUR 150,000 at “Today’s High” rate. Then we need to

subtract 30 million Tenge from this amount to arrive at the correct answer.

Calculations:

1. Eur 150,000 x 196.44 (today’s high rate) = 29,466,000 Tenge 2. 29,466,000 – 30,000,000 = - 534,000 Tenge

The answer: 534,00 Tenge would still be owed.

Tip. When you are asked to convert a currency amount

that corresponds to row headings (e.g. Eur corresponds to the row heading – Euro), then you always multiply this

amount by the corresponding rate in this row.

On the other hand, if you are asked to convert the main currency (which is in the title of the table such as Tenge), Into a currency that is in the row heading, then you always

divide the given amount by the corresponding rate in

this row.

Data tables: currency exchange rates

Currency exchange data table typically shows trading highs and lows as well change on day and the closing

rate. Typically, opening rate equals to the closing point rate minus change on day.

Today's Exchange Rates* for the Kazakh Tenge

Currencies Closing Point Today's High Today's Low Change on Day Benchmark Index Euro 194.32 196.44 192.15 0.65 190.78 US Dollar 150.81 152.65 149.13 -0.24 148.59 Russian Rouble 0.21 0.23 0.19 0.01 0.21 Chinese Renminbi 24.28 26.85 23.11 -0.31 24.18 * Rates represent number of Tenge per stated currency

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All the data presented in tables and graphs is not real world data but it was specifically created for

illustration purposes only.