Assessment 1
\nAnalysis of financial data
\n30% 1,000
\nAssessment 2
\nManual: Financial statistics and tools
\n70% 4,000-5,000
\nInstructions
\nOnce you feel confident that you have covered the learning materials for this unit, you are ready
\nto attempt this assessment.
\nTo complete the assessment, please create a new Microsoft Word document and type your answers
\nto each question or task in this document, noting the question number from the assessment.
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\nnumber].doc for example 12345678_21850a_01.docx.
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\n2
\nAnalysis of financial data
\nFor this assessment you should assume you are employed in a financial services role. Your
\nmanager, Abby, sends you this memo
\nTo: You
\nFrom: Abby
\nI need you to analyse some financial data for me.
\nFirst, here is the information you will need:
\nConsumer Price Index data (source ABS):
\nNO NAME INDEX NO (I) WEIGHTING (W) I X W
\n1 Food 120 20
\n2 Clothes 103 7
\n3 Housing 98 15
\n4 Household equipment and operation 103 16
\n5 Transportation 115 12
\n6 Tobacco and alcohol 128 7
\n7 Health and personal care 110 9
\n8 Recreation and education 106 14
\nTOTAL 100
\nFormula to obtain the CPI:
\nCPI =
\n\u03a3 (Index No. x weighting)
\n100
\nTo determine what would happen to the CPI if there was a price increase in a particular
\ncategory of items:
\nAssume there was a 10% price increase in the cost of food:
\nStep 1: Multiply the current food Index No by the Weighting
\n120 x 20 = 2,400
\nStep2: Increase the food Index No by 10%
\n120 x 1.1 = 132
\nStep 3: Multiply the new Index No by the Weighting
\n132 x 20 = 2,640
\nStep 4: Subtract the results from Step 1 from the results from Step 3
\n2,640 \u2013 2,400 = 240.
\nThis means that a 10% increase in the cost of food would have a 2.4% (ie 240 \/100) increase on
\nthe CPI calculation.
\n3
\nI require you to:
\n1. Calculate the CPI for the given period.
\n2. Determine what would happen to the CPI if there was:
\na. a 20% increase in the cost of clothing
\nb. a 10% increase in the cost of housing
\nc. a 5% increase in the cost of food
\n3. Determine which of the increases referred to in the preceding paragraph would have the
\ngreatest impact on the CPI.
\n4. Describe your results in a brief written report. Use a table and graph as part of the report.
\nShow the steps by which you calculate this.
\nThis assessment task will assess your ability to interpret and make use of financial data. It
\nwill require you to identify the most appropriate method to obtain the information sought by
\nAbby. It will evaluate your capabilities in undertaking numerical calculations and analysing the
\nresults. It will assess your ability to describe your findings in an appropriate format.<\/p>\n
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