MATH1050 SP 23 Exam 2 V1

MATH 1050 - Quantitative reasoning Spring 23 Exam 2 March 21, 2023 Name Student ID Instructor Class time INSTRUCTIONS 1. Do not open this exam until you are told to do so. 2. Do not ask questions during the exam. 3. Carefully mark your student ID number on your scantron. 4. This exam has 7 pages, including the cover sheet. There are 16 multiple-choice questions, each worth 5 points, and 2 workout questions, worth a total of 20 points. No partial credit will be given on the multiple choice questions. 5. All multiple choice answers must be carefully marked in the scantron using a pencil. 6. You will have 60 minutes to complete the exam. Only a TI-30XS calculator is allowed. 7. When you are finished, check your work carefully. Then return the exam to YOUR instructor. USEFUL INFORMATION A = P + ( P · APR · y ) A = P (1 + APR ) y A = P 1 + APR n n · y Price in $ y = (Price in $ x ) · CPI y CPI x Total return = A - P P · 100% Annual return = " A P 1 /Y - 1 # · 100% PMT = P · APR n " 1 - 1 + APR n ( - n · Y ) # A = PMT · " 1 + APR n ( n · Y ) - 1 # APR n PMT = A · APR n " 1 + APR n ( n · Y ) - 1 # Absolute change = New value - Reference value Relative change = New value - Reference value Reference value · 100% Absolute difference = Compared value - Reference value Relative difference = Compared value - Reference value Reference value · 100% Reference value = Compared value (100 + P )% Absolute error = Measured value - True value Relative error = Measured value - True value True value · 100% Index number = Value Reference value · 100

MULTIPLE CHOICE. Mark your answers here and on the scantron. Partial credit will not be given. 1. In order to answer the question, which of the following types of study would be the most appropriate? How do lawyers’ salaries compare to doctors’ salaries? (a) Experiment without blinding (b) Experiment with single blinding (c) Observational Study (d) Case-control Study 2. Suppose you are 25 years old and would like to retire at age 65, having accumulated a retirement fund from which you could draw $150 , 000 per year - forever! How much would you need to deposit each month to do this? Assume a constant APR of 5%. (a) $98 . 29 (b) $1965 . 90 (c) $14 , 465 . 90 (d) $723 . 29 3. Suppose that you have an insurance policy with a monthly premium of $800 and an annual deductible of $1500. Your only medical bill for the year cost $1000. What were your total health-care expenses for the year? (a) $9 , 600 (b) $10 , 600 (c) $11 , 100 (d) $12 , 100 4. Decide whether a person should itemize his deductions or take the standard deduction in the following case. Matthew’s deductible expenditures are $5000 for interest on a home mortgage, $2400 for contributions to charity, and $631 for state income taxes. His filing status entitles him to a standard deduction of $6 , 700. (a) He should claim the standard deduction as it would deduct more money from his taxable income. (b) He should itemize his deductions as it would deduct less money from his taxable income. (c) He should itemize his deductions as it would deduct more money from his taxable income. (d) He should claim the standard deduction as it would deduct less money from his taxable income.