Employment Application Skills Test 2024

Match the pictures below with the correct name for the curve they display. 

Suppose you’re trying to determine what percentage of employees at a large corporation take public transportation to get to work. From a random sample of 33 employees, 14 say they do take public transportation. Estimate a 90 percent confidence interval for the proportion of all employees who take public transportation to work. In your spreadsheet, please show your work and explain the formula or method you use.

Select the answer below that best matches the 90% confidence interval you estimated.

Consider the following facts about the detection of a certain disease in human patients:

• –The test produces a positive result 92 percent of the time when the person has the disease.
• –The test produces a positive result 1.5 percent of the time when the patient does not have the disease.
• –The overall prevalence of the disease in the population is one in 100,000 people.

Compute the probability a person has the disease, given a positive test result. Select the correct answer below and show your work in your spreadsheet.

Assume a quantity has a lognormal distribution with a 90% confidence interval where the lower bound is 50, and the upper bound is 200.  Select the answer that matches the formula you would use to create this distribution in Excel.

Then, in your spreadsheet, make a cumulative distribution chart for the lognormal distribution described above.. Make x the horizontal axis and make the vertical axis equal to the probability that the quantity is less than x. 

Use the estimates in Table 1 to build a cash flow and compute the NPV for this food cart investment over three years. Use the following assumptions:

• –The food cart will be purchased exactly one year from now. Call that Year 0 (Y0).
• –Revenue starts in Y1 and ends in Y3.
• –Every customer buys food and a drink.
• –The opportunity cost of labor applies in years Y1 through Y3.
• –The license cost applies in years Y0 through Y3.
• –The discount rate for the NPV calculation is 10%.

Table 1: Estimates for Cash Flow

Build a probabilistic cash flow with the 90% confidence interval estimates and the stated distributions in Table 2. You can make a copy of your cash flow model from the previous question to use as a starting point. Then, run a Monte Carlo simulation to generate 1,000 random trials for the NPV of this uncertain food cart investment over four years. Choose the answer below that most closely matches your results to the following questions. Since there is an element of randomness in this question, you will not get the exact same answer.

1. 1. What is the average NPV over all 1,000 trials?
2. 2. What is the probability of a negative NPV?

Table 2: Estimates for Probabilistic Cash Flow

Turn your spreadsheet into a client deliverable. Make sure everything is formatted well, pay attention to labels, and include documentation/notes wherever you think it may be helpful. We are not concerned with your specific style, necessarily, as long as everything is neat and structured.

Please save your spreadsheet with the name “HDRtest-first-last-date” where “first”, “last”, and “date” are replaced with your first name, last name, and date, respectively.

Submit your deliverable in a .xls or .xlsx format. At this time, we cannot accept macro-enabled worksheets, but you should not need macros for this problem.