CORe Pre-Exam Practice Tests (Updated 265 Questions) [Q154-Q174]

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CORe Pre-Exam Practice Tests | (Updated 265 Questions)

Valid CORe Exam Q&A PDF – One Year Free Update

HBX CORe program is an excellent way for individuals to gain a strong foundation in business concepts and skills. The final exam is a rigorous test of participants’ knowledge and understanding of the material covered in the program. Those who pass the exam receive a HBX CORe certification, which demonstrates to employers and colleagues that they have a solid foundation in business concepts and skills.

HBX CORe (Credential of Readiness) is an online program offered by Harvard Business School that provides a comprehensive overview of business fundamentals. The program is designed to equip individuals with the foundational skills necessary for success in business, including accounting, economics, and statistics. The program is ideal for those who are looking to enhance their business knowledge, whether they are early-career professionals or established executives.

QUESTION 154
Which of the following pieces of information can be determined by looking at an income statement?

The increase or decrease in owner’s equity for the accounting period

The change in cash position during the accounting period

The amount of pretax profit or loss during the accounting period

The amount of tax paid during the accounting period

QUESTION 155
A company manager commissions a report to study the relationship between sales volume (in thousands of units) and the number of computers in each of the company’s offices. Based on the regression output, which of the following statements is correct?
Exhibit:

When the number of computers in an office increases by 1, the average sales volume increases roughly by 155,000 units.

There is a strong positive linear relationship between sales volume and number of computers in an office.

When the number of computers in an office increases by 1, the average sales volume decreases by 410 units.

Less than 3 percent of the variability of sales volume is explained by the number of computers in an office.

QUESTION 156
Many people argue that giving patents for medicines is unfair, because it prevents many people from accessing the products they need to live a healthy life. Why do governments allow patents for medicines?

Patents protect consumers from counterfeit medicines.

Governments hope to earn tax revenues on monopoly profits.

Patents help promote innovation through easier recovery of fixed costs.

Patents increase consumers’ willingness to pay for medicines.

QUESTION 157
Exhibit:

The scatterplot below shows the relationship between the number of wins for 30 Major League Baseball teams in 2013 and their respective payrolls. The best fit line is included in the scatterplot. Which option below MOST accurately describes the best fit line shown?

y = 72.08 – 0.09x

y = 72.08 + 0.09x

y = 0.09 + 72.08x

y = 0.09 – 72.08x

QUESTION 158
The only bakery in a small town has introduced a new type of cookie and is not sure what demand for the cookie looks like. How could the bakery determine the marginal revenue earned by each additional cookie produced?

Increase advertising to raise demand and sell more cookies

Conduct a focus group to determine how sensitive customers are to price changes

Ask customers to fill out a survey about how a change in price would affect their purchasing decisions

Decrease the price by small increments and observe the corresponding changes in quantity sold and revenue

QUESTION 159
Which of the following scenarios is an example of a Type I error?

A null hypothesis which is true is rejected.

A null hypothesis which is true is not rejected.

A null hypothesis which is false is rejected.

A null hypothesis which is false is not rejected.

QUESTION 160
Why are prices typically higher when a firm has monopoly power than when firms are perfectly competitive?

Competitive firms do not have enough market power to produce where marginal revenue equals marginal cost.

A competitive firm has less incentive to keep prices high on inframarginal customers.

Monopolies are profit maximizing, while perfectly competitive firms are not.

A monopolist cannot sustain profits without expanding production.

QUESTION 161
A trainer believes that a new workout regimen has helped athletes score more points per game. If the previous mean for points scored per player per game was 5.3, which alternative hypothesis below is the trainer trying to substantiate?

u5.3

u=5.3

u>5.3

u<5.3

QUESTION 162
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:

-0.7

-0.3

0.3

0.7

QUESTION 163
Which of the following formulas is used to calculate operating income on the income statement of a manufacturing company?

Net income + ending balance of cash

Sales or revenue – operating expenses

Revenue- operating expense – interest expense

Gross profit – operating expenses

QUESTION 164
In a two-sided hypothesis test for a population mean, which of the following statements provides sufficient evidence to reject the null hypothesis at the 5% significance level?

The 95% range around the historical population mean includes the sample mean.

The one-sided p-value is 0.035.

The 95% range around the historical population mean does not include the sample mean.

The sample size is large.

QUESTION 165
Which of the following options is an example of a biased question? (Select all that apply.)

Should the federal minimum wage be changed?

What should the federal minimum wage be?

Should Congress increase the federal minimum wage?

Would it be better to replace the federal minimum wage with a living wage?

Should the federal minimum wage be increased even though it would cost private businesses billions of dollars?

QUESTION 166
A group of season ticket holders wants to forecast attendance at National Football League (NFL) games for the upcoming season. One ticket holder argues that using the population of the United States as the only independent variable would explain as much as using both the United States population and the percent change in disposable income (per capita) as independent variables. Another ticket holder argues that using the percent change in disposable income (per capita) asthe only independent variable would provide the most accurate forecast. Listed below are the Adjusted R2 values for three regression models. Based on these values, and keeping in mind that the ticket holders are only concerned about forecasting, what is the correct conclusion?
– NFL Attendance vs. US Population and Percent Change in Disposable Income.
Adjusted R2= 0.8964 – NFL Attendance vs. US Population: Adjusted R2= 0.8609 – NFL Attendance vs. Percent Change in Disposable Income. Adjusted R2= -0.0244

The Adjusted R2 of NFL Attendance vs. Percent Change in Disposable Income is negative, so Percent Change in Disposable Income should be excluded from any regression model.

The Adjusted R2 of NFL Attendance vs. US Population is higher than that of NFL Attendance vs. Percent Change in Disposable Income, so US Population should be the only independent variable in the regression model.

The Adjusted R2 of NFL Attendance vs. US Population and Percent Change in Disposable Income is higher than that of either single variable regression model, so both US Population and Percent Change in Disposable Income should be included in the regression model.

There is not any information regarding the p-values of the independent variables, so it is impossible to determine the explanatory power of the regression models.

QUESTION 167
For a standard normal distribution (=0, =1), the area under the curve to the left of 0.37 is 0.6443. What is the probability of getting a value less than -0.37 or greater than 0.37?

28.86%

35.57%

64.43%

71.14%

QUESTION 168
What is the set of accounting standards most commonly used by companies outside the US?

International Financial Reporting Standards (IFRS)

US Generally Accepted Accounting Principles (US GAAP)

Global Financial Accounting Standards (GFAS)

Convergence of International Financial Reporting Standards (IFRS) and US Global Financial Accounting Standards (US GFAS)

QUESTION 169
A serious drought has created a shortage of food across the country. In an attempt to maximize profits, one grocery store decided to auction off its limited supply of food. Which of the following scenarios is the MOST likely to occur in this situation?

The willingness to pay for food would rise.

The magnitude of the food shortage would increase.

The consumers with the lowest opportunity cost of time would receive food.

The consumers with the highest willingness to pay would receive food.

QUESTION 170
In Dec. of 2013, a company signed a promissory note and recorded a note payable of $150,000. This note is payable in three equal annual installments beginning from Dec. of 2014. How should the company report the note payable on its Dec. 31, 2013 balance sheet?

$150,000 in current liability

$150,000 in noncurrent liability

$50,000 in current liability and $100,000 in noncurrent liability

$50,000 in noncurrent liability and $100,000 in current liability

QUESTION 171
A company that does business in two neighboring countries is considering setting different prices for its product in each market. Which of the following factors should it NOT consider when trying to predict whether this pricing structure will be effective?

Whether the product can be ordered online

Whether the product is available in digital form

Whether there are tax holidays in the two countries

Whether customers’ willingness to pay is correlated with geography

QUESTION 172
—
A manager at a large gold mining company is trying to determine how a series of recent events will affect the future of his industry.
The following events occur simultaneously:
Flooding damages several gold mines in a region.
The price of platinum, a substitute for gold, increases.
A new government policy mandates an increased wage rate for mine workers.
What should the manager expect regarding the new equilibrium price and quantity for gold?

The equilibrium price increases and equilibrium quantity decreases.

The equilibrium price increases and equilibrium quantity increases.

The equilibrium price increases and the effect on quantity is unknown.

The effect on price is unknown, and the equilibrium quantity increases.

QUESTION 173
A restaurant that sells hamburgers is considering lowering prices to gain market share. The restaurant pays $3,000 a month for the building it occupies, and ingredients and labor cost $2.50 per hamburger. If the restaurant expects to sell 2,000 hamburgers a month, what is the minimum price it could charge?

$2.50

$3.00

$3.50

$4.00

QUESTION 174
A technology and design company has created a new type of keyboard with different letter placement to make typing easier and more efficient. This new design is also cheaper to manufacture, and the company is able to price the keyboard lower than its competitors. However, sales have been extremely low. What is the MOST likely explanation?

Consumers find it difficult to switch keyboards once they have learned to type.

Consumers’ demand for keyboards is relatively inelastic.

Consumers have strong loyalty to existing keyboard manufacturers.

Consumers do not understand the company’s differentiation strategy.

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