Numerical Test Tutorial SHL type format

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 Numerical Test Structure and Use

SHL is one of the biggest recruitment test providers supplying blue chip companies globally
Many banks, audit, marketing and consulting firms use SHL (test system) as part of their
graduate recruitment and industrial placement/internship programmes:
3 categories of timed tests used: numerical, verbal and abstract reasoning
Cannot go back to change the answer once you have clicked Next
Non-interactive but somewhat challenging at the higher end (e.g. Investment Banks)

Numerical
Reasoning Test

Standard Non-Banking Numeracy Test * Corporate / Investment Banking Test **

18 questions 21 questions
25 minutes 21 minutes
Cant go back to change answers Cant go back to change answers
Usually non-interactive Tailor made for some top banks
* Incl. retail banking numeracy tests that tend to be simpler ** Incl. some Big4 accounting firm tests
than investment banking or Big4 accounting firm tests
 Data Context 2:
Line charts: inflation indices
 Numerical Test: Data Context 2
Line charts: inflation indices
Inflation indices are used to measure change in the prices of a group of goods and services monthly,
quarterly or annually. Retailer Price Index and Consumer Price Index are the most common indices.

Comparing several indices Question 4

106 If the inflation indices were rebased at 100 again
104
at the 3rd quarter, what would be the 4th quarter
inflation index for Producer Prices?
102

100

98

96
(101/102)*100
94
Q1 Q2 Q3 Q4
(102/101)*100
Retail Price Index (RPI) Consumer Price Index (CPI)
Producer Price Index (PPI) Wholesale Price Index (WPI)
(100/102)*100

(102*100)/101

Cannot say
 Numerical Test: Data Context 2
Line charts: inflation indices
Inflation indices are used to measure change in the prices of a group of goods and services monthly,
quarterly or annually. Retailer Price Index and Consumer Price Index are the most common indices.
Question 4
If the inflation indices were rebased at 100 again at the 3rd quarter, what would be the 4th quarter inflation index for
Producer Prices?

Solution to Question 4
Task: Figure out how rebasing would affect the 4th quarter figure for Producer Price Index (PPI).
Solution: Rebasing an index from a certain quarter (month or year) simply means dividing all the index figures by the value
given for that month, then multiplying all of them by 100. E.g. 3 rd quarter PPI 102 so all the index figures will be divided by
102.Therefore, rebasing 4th quarter PPI would be: (4th quarter PPI / 3rd quarter PPI) x 100 = (100/102)x100 = 98.04

Tip: 106
104
Rebasing an index for period A means 102
dividing all the index values by the value of A, 100
then multiplying them by 100 this is always 98
the same. 96
94
Q1 Q2 Q3 Q4
Retail Price Index (RPI) Consumer Price Index (CPI)
Producer Price Index (PPI) Wholesale Price Index (WPI)
 Data Context 3:
Line charts: comparing company sales by brands
 Numerical Test: Data Context 3
Line charts: comparing company sales by brands
Compares how the sales values of several brands have changed over time

Company sales by brand Question 5

What was the highest proportional increase in
750
sales value, in comparison with the previous year,
700
for any of the three brands?
650
million British Pounds

600
550
500
450
400
350
9%
300
2005 2006 2007 2008 2009 2010 25%

Everyday Value Premium Finest 14.3%

10%

Cannot say
 Numerical Test: Data Context 3
Line charts: comparing company sales by brands
Compares how the sales values of several brands have changed over time

Question 5
What was the highest proportional increase in sales value, in comparison with the previous year, for any of the three
brands?

Solution to Question 5
Task: This problem has a simple two step solution. First, look at the lines on the graph and identify the one with the
steepest rise. Then, calculate the percentage change by dividing the two figures between which the increase had occurred.
Solution: If you look closely at the lines on the graph, the steepest rise occurred in the Finest brand from 2007 to 2008
period.

Tip:
750
700

million British Pounds

When you a graph and the question asks you 650
to determine the biggest change in values, 600
550
whether it is a rise or drop, then first identify 500
the steepest line or part of the line. It will save 450
400
you time and you could answer the test within 350
15 seconds. 300
2005 2006 2007 2008 2009 2010
Everyday Value Premium Finest
 Data Context 4:
Stacked column charts:
comparing data across time
 Numerical Test: Data Context 4
Stacked column charts: comparing data across time
Stacked columns typically show how several categories contributed from one period to another, in total
and across divisions.

Question 9
Annual Road Travellers (100 million drivers)
Over the last decade by how many drivers did the
14 increase in in Asia Pacific region exceed the increase
1.4 in European region?
12
1.6
10
Rest of World
8 0.8 South America
6.2
0.9 Asia Pacific 24,000,000
6
3.1 Europe
4
240,000,000
US
2.5
1.8
2 300,000,000
1.5 1.9
0
340,000,000
10 years ago Now
Cannot say
 Numerical Test: Data Context 4
Stacked column charts: comparing data across time
Stacked columns typically show how several categories contributed from one period to another, in total
and across divisions.
Question 9
Over the last decade by how many drivers did the increase in in Asia Pacific region exceed the increase in European region?

Solution to Question 9
Task: Calculate the differences between now and 10 years ago separately for Asia Pacific and European regions . Then
deduct the Europe figure from the Asia Pacific one.
Calculations:
Asia Pacific: 6.2 3.1 = 3.1
Europe: 2.5 1.8 = 0.7 Annual Road Travellers (100 million drivers)
Asia Pacific minus Europe: 3.1 0.7 = 2.4
The answer must be in 100s of millions, therefore: 14
2.4 x 100,00,000 = 240,000,000 1.4
12
1.6
10 Rest of World
Shortcut:
Look at the red arrows. You just need to sum up those numbers 8 South America
0.8 6.2
that are positioned diagonally then take their difference. 0.9 Asia Pacific
6
I.e. (6.2 + 1.8) (3.1 + 2.5) = 2.4 3.1 Europe
4
2.5 US
2 1.8
1.5 1.9
0
10 years ago Now
 Data Context 5:
Stacked 100% column charts:
comparing sales of 2 companies
 Numerical Test: Data Context 5
Stacked 100% columns: comparing sales of 2 companies
Bar charts typically compare sales or other financial data of two or more companies. 100% stacked column
typically includes sales (or other data) breakdown by divisions or products.

Question 13
Global Toiletry Sales: Unilever and L'Oreal
If production costs for LOreal are 2 times those for
100%
7%
Unilever, what is the gross margin (sales minus
10%
production costs) of Unilever?
18% Africa
80%
26%
15%
60% 6% Asia Pacific
14%
35% South
40% $2 billion
America

44% North
20%
America $2.5 billion
25%
Europe
0% $3 billion
Unilever L'Oreal
($8,000) ($24,000)
$3.5 billion

Cannot say
 Numerical Test: Data Context 5
Stacked 100% columns: comparing sales of 2 companies
Bar charts typically compare sales or other financial data of two or more companies. 100% stacked column
typically includes sales (or other data) breakdown by divisions or products.
Question 13
If production costs for LOreal are 2 times those for Unilever, what is the gross margin (sales minus production costs) of
Unilever?

Solution to Question 13
Task: First, we need to determine if we have sufficient
data to calculate the required figure.
The chart does not contain data on production costs or gross Global Toiletry Sales: Unilever and L'Oreal
margin for either brand.
LOreal S1 (sales) P1 (production costs) = GM1 (gross margin) 100%
7% 10%
Unilever S2 P2 = GM2
18% Africa
P1 = 2P2 therefore S1 2P2 = GM1 although S1 and S2 (sales 80%
26%
figures) are known, we still have 3 unknowns in the two equations 15%
above which cannot be solved. Therefore, the answer must be 60% 6% Asia Pacific
Cannot Say. 14%
35% South
40%
America
Tip: When you have 2 or more unknowns, then try to build
equations to determine whether you can solve the problem. If the 44% North
20%
number of unknowns exceed the number of equations, the America
25%
problem cannot be solved. Europe
0%
Unilever L'Oreal
($8,000) ($24,000)
 Data Context 9:
Data tables: currency exchange rates
 Numerical Test: Data Context 9
Data tables: currency exchange rates
Currency exchange data table typically shows trading highs and lows as well change on day and the closing
rate. Typically, opening rate equals to the closing point rate minus change on day.

Currency exchange rates: Tenge per currency Question 24

A company changes 150,000 euros to Kazakh
Today's Exchange Rates* for the Kazakh Tenge
Tenge at the "Day's High" rate to pay a debt of 30
million Tenges. Approximately what amount of
Closing Today's Today's Change on Benchmark
Currencies Point High Low Day Index Tenges is left over, or still owing, following this
transaction?
Euro 194.32 196.44 192.15 0.65 190.78
US Dollar 150.81 152.65 149.13 -0.24 148.59
534,000 Tenge still owing
Russian Rouble 0.21 0.23 0.19 0.01 0.21
Chinese Renminbi 24.28 26.85 23.11 -0.31 24.18
534,000 Tenge left over
* Rates represent number of Tenge per stated currency
1,534,000 Tenge still owing

1,534,000 Tenge left over

None of the above

 Numerical Test: Data Context 9
Data tables: currency exchange rates
Currency exchange data table typically shows trading highs and lows as well change on day and the closing
rate. Typically, opening rate equals to the closing point rate minus change on day.
Question 24
A company changes 150,000 euros to Kazakh Tenge at the "Day's High" rate to pay a debt of 30 million Tenges.
Approximately what amount of Tenges is left over, or still owing, following this transaction?

Solution to Question 24
Task: First, we need to work out how much Tenge one would get for EUR 150,000 at Todays High rate. Then we need to
subtract 30 million Tenge from this amount to arrive at the correct answer.
Calculations:
1. Eur 150,000 x 196.44 (todays high rate) = 29,466,000 Tenge
2. 29,466,000 30,000,000 = - 534,000 Tenge
The answer: 534,00 Tenge would still be owed.
Today's Exchange Rates* for the Kazakh Tenge
Tip. When you are asked to convert a currency amount
that corresponds to row headings (e.g. Eur corresponds Closing Today's Today's Change on Benchmark
Currencies Point High Low Day Index
to the row heading Euro), then you always multiply this
amount by the corresponding rate in this row. Euro 194.32 196.44 192.15 0.65 190.78
On the other hand, if you are asked to convert the main
US Dollar 150.81 152.65 149.13 -0.24 148.59
currency (which is in the title of the table such as Tenge),
Into a currency that is in the row heading, then you always Russian Rouble 0.21 0.23 0.19 0.01 0.21
divide the given amount by the corresponding rate in
Chinese Renminbi 24.28 26.85 23.11 -0.31 24.18
this row.
* Rates represent number of Tenge per stated currency
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All the data presented in tables and graphs is not real world data but it was specifically created for
illustration purposes only.