Skip to content

CMA Intermediate · Financial Management and Business Data Analytics · Data Presentation: Visualisation and Graphical Presentation

A two-way table shows 200 loan accounts: 120 are secured and 80 unsecured. Of the secured loans, 6 are non-performing; of the unsecured loans, 8 are non-performing. What percentage of all non-performing accounts are secured, and which statement is correct?

Secured loans make up about 42.9 percent of non-performing accounts, since 6 of 14 are secured. The unsecured NPA rate of 10 percent exceeds the secured rate of 5 percent, so unsecured loans perform worse relative to their numbers.

  1. AAbout 42.9%; the NPA rate is higher for unsecured loansCorrect
  2. BAbout 42.9%; the NPA rate is higher for secured loans
  3. CAbout 57.1%; the NPA rate is higher for unsecured loans
  4. DAbout 57.1%; the NPA rate is higher for secured loans

Explanation

Total NPAs = 6 + 8 = 14. Secured share = 6/14 = 42.9%. NPA rates: secured 6/120 = 5%; unsecured 8/80 = 10%, so unsecured is higher. The 57.1% options use the unsecured share.

Did you get it right without looking?

One question tells you little. A timed set on Data Presentation: Visualisation and Graphical Presentation shows your real accuracy, how long you take and where you lose marks.

Practise Data Presentation: Visualisation and Graphical PresentationFree diagnostic mock

More Data Presentation: Visualisation and Graphical Presentation questions