Valid CORe Exam Q&A PDF CORe Dump is Ready (Updated 265 Questions)
Exam Questions and Answers for CORe Study Guide
NEW QUESTION # 23
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A student is interested in which factors affect the U.S. poverty rate and develops a model using the following independent variables:
The unemployment rate The percent of the adult (over 25) population with at least a bachelor's degree The percent of the population without health insurance
The student collects data from each of the 50 states in the U.S. and Washington D.C. for the year 2012 and runs the regression in Excel. The results of this regression are given below. Based on these results, what does the model predict the poverty rate would be for a state for which the unemployment rate is 6%, 20% of all adults over 25 have at least a bachelor's degree, and 5% of the population does not have health insurance?
(Note that all percent values are given as numbers between 0 and 1.)
- A. 1.14%
- B. 14.14%
- C. 1.27%
- D. 26.48%
Answer: B
NEW QUESTION # 24
Which of the following histograms, each with nine observations, has a median of five? A)
B)
C)
D)
- A. Option C
- B. Option A
- C. Option D
- D. Option B
Answer: C
NEW QUESTION # 25
Which of the following statements is characteristic of all assets?
- A. They can be converted to cash in the short term.
- B. They are owned or controlled by the organization.
- C. They are obligations to a third party.
- D. They are owned free and clear by the organization.
Answer: B
NEW QUESTION # 26
The management of Company A, a consumer products company, is forecasting revenue as part of their internal budget exercise. Which of the following factors is of the LEAST value in arriving at the forecast revenue amount?
- A. Competitive pressures and new products
- B. The market strength for the company's products
- C. Overall macroeconomic conditions
- D. The revenue level needed to exceed break-even
Answer: D
NEW QUESTION # 27
Although they may vary, cash flows from financing activities in a mature company are usually:
- A. positive, because companies may require funds to maintain research and development (R&D) activities
- B. positive, because there is no need to fund growth
- C. negative, because companies may receive enough funds fromoperations to cover investments
- D. negative, because companies maybe paying their main suppliers
Answer: C
NEW QUESTION # 28
A new smartphone is being released at a price of $100. A customer with a willingness to pay (WTP) of $105 walks to the store, sees that there is a long line, and decides to leave. Another customer with a WTP of $113 arrives at the store at the same time and decides to wait in the line. What can an observer deduce from this observation?
- A. The first customer considers the cost of waiting in line to be more than $5.
- B. The second customer has a higher opportunity cost of time than the first.
- C. The first customer has a higher opportunity cost of time than the second.
- D. The second customer considers the cost of waiting in line to be $13.
Answer: A
NEW QUESTION # 29
A company's Balance Sheet for the year ended Dec. 31, 2013 is as follows:
(In millions)
The company is MOST likely in which of the following industries?
- A. Pharmaceutical
- B. Civil aviation
- C. Commercial banking
- D. Retailing
Answer: D
NEW QUESTION # 30
A heavily populated town with many gas stations has an average price of $3.25 for a gallon of gasoline. However, one gas station charges $3.60 for a gallon of gasoline and remains very competitive in the market. Which of the following situations could NOT explain this gas station's success?
- A. The gas station entered the market earlier than any of its competitors.
- B. The gas station offers a free car wash if customers purchase 10 or more gallons of gas.
- C. The gas station offers a loyalty program through which customers can earn points toward future purchases.
- D. The gas station is in a convenient location for its customers.
Answer: A
NEW QUESTION # 31
A company buys a machine for $175,000. The machine will be depreciated on straight-line basis over a 10-year period with salvage value of $25,000. The company expects the machine to generate after-tax net cash inflows of $30,000 in each of the 10 years. At the end of the 10 years, the machine is expected to be sold for $25,000. The discount rate is eight percent.
What is the net present value?
- A. $26,300
- B. $212,875
- C. $51,300
- D. $37,875
Answer: D
NEW QUESTION # 32
A student is interested in which factors affect the U.S. poverty rate and develops a linear regression model. The student uses poverty rate in all 50
U.S. states and Washington D.C. as the dependent variable and wants to relate it to the following variables:
The unemployment rate
The percent of the adult (over 25) population with at least a bachelor's degree
The percent of the population without health insurance
The percent of the adult (over 25) population without a high school diploma or equivalent
The percent of households with children under 18 run by a single mother
The student collects data from each state and Washington D.C. for the year 2012 and runs the regression in Excel. The results of this regression are given below.
Based on these results, select the independent variables that have a coefficient that is statistically significant at the 5% level. (Select all that apply.)
- A. Unemployment Rate
- B. Percent of High School Dropouts
- C. Bachelor's Degree or Higher
- D. Percent of Population Uninsured
- E. Percent of Single Mother Households
Answer: B,C
NEW QUESTION # 33
A coal burning power plant in upstate New York has been the only provider of power in the region for many years. Recently, a plant that uses wind to create energy was built nearby. The wind plant produces less energy than the coal plant but at a lower cost. Will the coal plant be able to remain competitive in this new market environment?
- A. Yes, if the coal plant sells energy at a price below its marginal cost.
- B. Yes, if the coal plant's decreased output is still sufficient to recover costs.
- C. No, the coal plant's customers will switch to the wind powered plant.
- D. No, the coal plant will be forced to cut prices and operate at a loss.
Answer: B
NEW QUESTION # 34
In the figure below, what do the two red lines represent?
- A. A point forecast
- B. The residual sum of squares
- C. A prediction interval
- D. The total sum of squares
Answer: C
NEW QUESTION # 35
A ski coach is interested in estimating the 68% confidence interval around the mean time (in seconds) of all the gold medal winners in Olympic downhill skiing. The coach collects the data, presented below, for all of the winners from 1948 to 2014. The mean of the sample is 122.5 seconds, with a standard deviation of 23 seconds. Which Excel function below is the BEST option for determining the 68% confidence interval?
Please note that the Excel functions for confidence intervals are =CONFIDENCE.NORM(alpha, standard_dev, size) and =CONFIDENCE.T(alpha, standard_dev, size).
- A. = 122.5 +- CONFIDENCE.T(0.68,23,18)
- B. = 122.5 +- CONFIDENCE.NORM(0.32,23,18)
- C. = 122.5 +- CONFIDENCE.NORM(0.68,23,18)
- D. = 122.5 +- CONFIDENCE.T(0.32,23,18)
Answer: D
NEW QUESTION # 36
Two years ago, the purchasing manager at a company spent $25,000 on a new machine that would improve production efficiency at the company. The manufacturers of the machine release an updated model that costs $35,000 and that promises to further improve production efficiency. Under what conditions should the purchasing manager upgrade to the new model?
- A. If the savings from the additional efficiency improvements are large enough to offset the $60,000 spent on machines
- B. If the efficiency improvements from the old machine did not result in enough savings to offset the $25,000 purchase price
- C. If the savings from the additional efficiency improvements are large enough to offset the $35,000 cost of the new machine
- D. If the savings from the additional efficiency improvements are large enough to offset the $10,000 difference in price between the machines
Answer: C
NEW QUESTION # 37
A researcher wants to predict an individual's starting monthly salary based on the number of years of education the individual has received.
Based on the Excel output below, what is the predicted starting monthly salary for a person with 17 years of education?
- A. $3,870.21
- B. $1,438.71
- C. $8,194.69
- D. $6,032.45
Answer: A
NEW QUESTION # 38
A company had sales revenue of $500,000 for 2013. During 2013, the company incurred operating expenses of $40,000 and interest expenses of $60,000. The income before taxes was $220,000. What was Cost of Goods Sold (COGS) for the year 2013?
- A. $200,000
- B. $180,000
- C. $240,000
- D. $220,000
Answer: B
NEW QUESTION # 39
A company paid $150,000 of income tax for 2013. During the year, the company recognized $80,000 of interest revenue from municipal bonds. Income from municipal bonds are tax exempt. The company's net deferred tax assets increased from $45,000 to $75,000. The income tax rate is 30 percent. What is the amount the company should report as its pretax accounting income for 2013?
- A. $680,000
- B. $480,000
- C. $520,000
- D. $320,000
Answer: B
NEW QUESTION # 40
An individual interviews 15 people under the age of 40 and asks each for their age and salary. The resulting scatter plot is shown below.
Based on this graph, the correlation between age and salary appears to be approximately:
- A. -0.7
- B. 0.3
- C. -0.3
- D. 0.7
Answer: D
NEW QUESTION # 41
Which of the following scatterplots shows the strongest positive linear relationship? A)
B)
C)
D)
- A. Option C
- B. Option B
- C. Option A
- D. Option D
Answer: B
NEW QUESTION # 42
An individual has recently inherited an antique car and decides to sell it via an auction. When the seller brings the car to an auctioning service, the auctioneer asks if it should be sold via an English (open outcry) auction, a Vickrey (sealed second-price) auction, or a sealed first-price auction. Which type of auction will result in the highest sale price?
- A. A sealed first-price auction
- B. An English auction
- C. All three auctions types result in the same sale price
- D. A Vickrey or an English auction, both of which will result in the same sale price
Answer: C
NEW QUESTION # 43
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