HBRI HBRI - Hogan Business Reasoning Inventory Numerical Estimation and Approximation 2 — Questions and Answers
Question 1: A logistics company's cost per shipment is $47.50 and they ship roughly 860 packages per week. What is the closest estimate of their weekly shipping cost?
- About $30,000
- About $40,800 (Correct answer)
- About $35,500
- About $48,000
Correct answer: About $40,800
$47.50 × 860 ≈ $40,850, closest to $40,800.
Question 2: If a business currently earns a 12% profit margin on $5.2 million in sales, and sales grow 10% next year while margins stay constant, what is the best estimate of next year's profit?
- About $624,000
- About $686,000 (Correct answer)
- About $572,000
- About $750,000
Correct answer: About $686,000
New sales ≈ $5.72M; 12% of $5.72M ≈ $686,400.
Question 3: An analyst reviews 5 supplier bids: $142,000, $138,500, $151,200, $145,700, and $139,100. What is the closest estimate of the average bid?
- About $143,000 (Correct answer)
- About $148,000
- About $136,000
- About $152,000
Correct answer: About $143,000
Sum ≈ $716,500 ÷ 5 = $143,300, closest to $143,000.
Question 4: A company reduces its workforce by 8% from 2,375 employees. Approximately how many employees remain?
- About 2,100
- About 2,185 (Correct answer)
- About 2,250
- About 1,975
Correct answer: About 2,185
8% of 2,375 ≈ 190; 2,375 − 190 = 2,185 remaining employees.
Question 5: Office space costs $28 per square foot annually, and a firm is considering leasing 3,750 square feet. What is the closest estimate of the monthly lease cost?
- About $8,750 (Correct answer)
- About $8,000
- About $9,500
- About $7,200
Correct answer: About $8,750
Annual cost = $28 × 3,750 = $105,000; monthly = $105,000 ÷ 12 = $8,750.
Question 6: A call center handles 480 calls per agent per month. If the team has 23 agents and productivity improves by 5%, approximately how many total calls will be handled next month?
- About 11,050
- About 11,592 (Correct answer)
- About 10,500
- About 12,100
Correct answer: About 11,592
Base: 480 × 23 = 11,040; with 5% increase: 11,040 × 1.05 ≈ 11,592.
HBRI HBRI - Hogan Business Reasoning Inventory Numerical Estimation and Approximation 2
A logistics company's cost per shipment is $47.50 and they ship roughly 860 packages per week.
What is the closest estimate of their weekly shipping cost?