Free RBC Assessment: Numerical Reasoning Question and Answers — Questions and Answers

Question 1: How much money did the company make from the oil produced in Year 2 if it were assumed that all of the oil produced in Year 2 was sold in Year 3 (at Year 3 prices)?

$2,656,500,000
$2,403,500,000
$2,075,000
$2,294,250,000 (Correct answer)

Correct answer: $2,294,250,000

To calculate the money made, multiply the total volume of oil produced in Year 2 by the selling price per unit in Year 3. For example, if 25 million barrels were produced in Year 2 and the Year 3 price was $91.77 per barrel, the total revenue would be 25,000,000 barrels * $91.77/barrel = $2,294,250,000.

Question 2: In year two, John bought 145 shares, and in year five, he sold them. How much money, including any dividends, did he make from the shares overall?

$18,125
$20,735 (Correct answer)
$24,650
$67,860

Correct answer: $20,735

To determine John's total earnings, calculate the capital gain per share by subtracting the Year 2 purchase price from the Year 5 selling price. Then, sum all dividends received per share from Year 2 through Year 5. Multiply the sum of the capital gain and total dividends per share by the 145 shares owned to find the overall profit, which in this case is $20,735.

Question 3: What was the third year's average share price to earnings per share for the company?

15:1
18.1:1
13:1
15.9:1 (Correct answer)

Correct answer: 15.9:1

The Price-to-Earnings (P/E) ratio is calculated by dividing the company's share price by its earnings per share (EPS) for a given period. For the third year, if the share price was $79.50 and the earnings per share were $5.00, the P/E ratio would be $79.50 / $5.00 = 15.9:1.

Question 4: What was the difference in oil production (to the nearest million dollars) between years 2 and 3?

$601m
$571m
$581m (Correct answer)
$591m

Correct answer: $581m

To find the difference in oil production value between Year 2 and Year 3, subtract the total value of oil produced in Year 2 from the total value of oil produced in Year 3. For example, if the value of oil produced in Year 2 was $2,800 million and in Year 3 was $2,219 million, the absolute difference would be $|2,219 - 2,800| = $581 million.

Question 5: What month had the greatest hurricane activity?

April
March
June
May (Correct answer)

Correct answer: May

Based on the provided data (which is not visible here but implied by the correct answer), May experienced the highest level of hurricane activity among the months listed. This indicates that the frequency or intensity of hurricanes peaked in May according to the dataset used for this question.

Question 6: How many hurricanes occurred between April and June collectively?

51
49 (Correct answer)
58
57

Correct answer: 49

To determine the collective number of hurricanes between April and June, sum the individual hurricane counts for each of these three months from the provided data. For instance, if April had 15, May had 20, and June had 14 hurricanes, their combined total would be 15 + 20 + 14 = 49 hurricanes.

Question 7: How many Category 1 hurricanes occurred in March and April as opposed to May and June?

1:1.1
1:1.24
1:0.81 (Correct answer)
1:1.11

Correct answer: 1:0.81

To find the ratio, first sum the Category 1 hurricanes for March and April, and separately sum those for May and June. Then, divide the sum of May and June hurricanes by the sum of March and April hurricanes. If, for example, March and April combined had 100 Category 1 hurricanes, and May and June combined had 81, the ratio would be 100:81, which simplifies to 1:0.81.

Free RBC Assessment: Numerical Reasoning Question and Answers

How much money did the company make from the oil produced in Year 2 if it were assumed that all of the oil produced in Year 2 was sold in Year 3 (at Year 3 prices)?