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Important Formulas: Quantitative Reasoning

Arithmetic and quantitative reasoning problems frequently rely on a compact set of standard formulas and clear definitions. The following document collects those formulas, explains their meaning, gives short examples where useful, and offers practical tips for applying them in logical-reasoning and data-interpretation tasks. Retain this page as a quick reference while practising problem solving.

Basic Arithmetic Operations

  • Addition: a + b = c
  • Subtraction: a - b = c
  • Multiplication: a × b = c
  • Division: a ÷ b = c

Averages (Arithmetic Mean)

Definition: The arithmetic mean of n numbers x1, x2, ..., xn is the sum of the numbers divided by n.

Formula: (x1 + x2 + ... + xn) ÷ n

Example with worked solution:

Find the average of 4, 7 and 11.
Sum of the numbers = 4 + 7 + 11 = 22
Number of observations = 3
Average = 22 ÷ 3 = 22/3 = 7.333...

Weighted Average

Formula: (w1·x1 + w2·x2 + ... + wn·xn) ÷ (w1 + w2 + ... + wn)

Use weighted average when different observations contribute unequally to the overall mean (for example, averages of batches of different sizes).

Percentages and Conversions

  • Percentage (part of whole): (part ÷ whole) × 100
  • Percent increase / decrease: ((New - Old) ÷ Old) × 100
  • Conversions:
    • Percentage to decimal = Percentage ÷ 100
    • Decimal to percentage = Decimal × 100
    • Percentage to fraction = Percentage ÷ 100, then simplify
    • Fraction to percentage = (Numerator ÷ Denominator) × 100

Ratio and Proportion

Ratio: a : b expresses the relative sizes of two quantities.

Proportion: a ÷ b = c ÷ d or a : b = c : d

When solving proportion problems, cross-multiply: a·d = b·c.

Speed, Distance and Time

  • Distance: Speed × Time
  • Speed: Distance ÷ Time
  • Time: Distance ÷ Speed

When speeds are given for different segments, use total distance ÷ total time to compute overall average speed. For harmonic averages of equal distances, use the harmonic mean formula for speeds.

Simple and Compound Interest (Growth)

Simple Interest

Formula: I = P × R × T ÷ 100

Here I is the interest, P the principal, R the annual rate (percentage), and T the time in years.

Example with worked solution:

Find simple interest on ₹5,000 at 6% per annum for 2 years.

I = 5000 × 6 × 2 ÷ 100
I = 5000 × 12 ÷ 100
I = 600

Compound Interest

Formula (amount): A = P(1 + r/n)(n·t)

Here A is the amount after time t years, P the principal, r the annual decimal rate, and n the number of compounding periods per year. For annual compounding (n = 1) use A = P(1 + r)t.

Notes: For interest rates given in percentages, convert r% to decimal by dividing by 100.

Example with worked solution:

Find the amount for P = ₹10,000 at 5% compounded annually for 2 years.
Convert rate to decimal: r = 5 ÷ 100 = 0.05

A = 10000 × (1 + 0.05)2

A = 10000 × 1.1025 = 11025

Profit, Loss and Discounts

  • Profit: Selling Price - Cost Price
  • Loss: Cost Price - Selling Price
  • Profit %: (Profit ÷ Cost Price) × 100
  • Loss %: (Loss ÷ Cost Price) × 100
  • Marked price, discount and net price relations: Net Price = Marked Price - Discount

Fractions: Operations and Conversions

  • Addition: a/b + c/d = (ad + bc) ÷ bd
  • Subtraction: a/b - c/d = (ad - bc) ÷ bd
  • Multiplication: (a/b) × (c/d) = (a·c) ÷ (b·d)
  • Division: (a/b) ÷ (c/d) = (a·d) ÷ (b·c)
  • Decimal to fraction: Write decimal as numerator and denominator as power of 10, then simplify
  • Fraction to decimal: Divide numerator by denominator
  • Fraction to percentage: (Fraction) × 100
  • Percentage to fraction / decimal: Percentage ÷ 100

Number Theory: LCM, GCD, Primes, Factors

  • Least Common Multiple (LCM): Smallest positive integer divisible by each of the numbers
  • Greatest Common Divisor (GCD) / HCF: Largest positive integer that divides each of the numbers exactly
  • Prime numbers: Integers greater than 1 with exactly two positive divisors: 1 and itself
  • Factors / Divisors: Numbers that multiply to give the original number

Use prime factorisation to compute LCM and GCD quickly: LCM uses the highest powers of primes; GCD uses the lowest powers common to all numbers.

Powers and Roots

  • Square: a² = a × a
  • Cube: a³ = a × a × a
  • Square root: √a is a number b such that b² = a
  • Cube root: ∛a is a number b such that b³ = a

Permutations, Combinations and Probability

Permutations (ordered selections): nP r = n! ÷ (n - r)!

Combinations (unordered selections): nC r = n! ÷ [r! (n - r)!]

Basic probability: For equally likely outcomes, Probability(Event) = (Number of favourable outcomes) ÷ (Total number of outcomes)

Permutations and combinations are widely used in counting arguments for logical-reasoning questions.

Data Interpretation: Measures of Central Tendency and Dispersion

  • Mean (arithmetic mean): Sum of observations ÷ Number of observations
  • Median: Middle value when observations are arranged in order; for even n, median is average of the two middle values
  • Mode: Most frequently occurring value(s) in the dataset
  • Range: Maximum - Minimum
  • Variance (population): σ² = (1/N) Σ(xi - μ)²
  • Standard deviation (population): σ = √σ²

For grouped data, use class mid-points to approximate mean and variance. Quick estimations and table reading are frequently required in data-interpretation questions.

Practical Tips and Strategies

  • Unit checks: Always confirm that units of distance, time, rate and percentages are consistent before applying formulas.
  • Simplify percentages: Convert percentages to fractions or decimals when convenient (for repeated multiplications use decimal form).
  • Compound interest tricks: For small rates and short periods, use linear approximations (A ≈ P(1 + rt)) only if error tolerance allows.
  • Use factorisation: Prime factorisation helps compute LCM/GCD and simplifies fraction arithmetic quickly.
  • Estimate before exact computation: For multiple-choice questions, narrow options by approximation first.
  • When to use permutations vs combinations: Ask whether order matters. If yes, use permutations; if not, use combinations.
  • Speed problems with multiple segments: Work with total distance and total time rather than averaging speeds directly unless distances are equal.
  • Keep formulas memorised but understand their derivations: Understanding reduces errors under exam time pressure.

Short Worked Example: Percentage Change vs Absolute Change

A price rises from ₹200 to ₹260. Compute the percentage increase.
Absolute increase = 260 - 200
Absolute increase = 60
Percentage increase = (60 ÷ 200) × 100
Percentage increase = 0.3 × 100 = 30%

Short Worked Example: Combination and Probability

From a set of 5 distinct objects, two are chosen at random. What is the probability that a particular object A is chosen?

Total number of ways to choose 2 from 5 = 5C2 = 10

Number of choices that include A: choose the other object from the remaining 4, so 4 ways

Probability = 4 ÷ 10 = 2 ÷ 5 = 0.4

Use this page as a checklist when solving quantitative reasoning and data-interpretation problems. Memorise the core formulas, practise their application in varied contexts and always check units and reasonableness of answers for faster, more accurate problem solving.

The document Important Formulas: Quantitative Reasoning is a part of the CAT Course Logical Reasoning (LR) & Data Interpretation (DI).
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FAQs on Important Formulas: Quantitative Reasoning

1. What are some important formulas for solving arithmetic reasoning problems?
Ans. Some important formulas for solving arithmetic reasoning problems include the formulas for finding the average, percentage, profit and loss, simple interest, compound interest, and ratio. These formulas help in solving various mathematical problems and are essential for arithmetic reasoning exams.
2. How can I improve my arithmetic reasoning skills for the CAT exam?
Ans. To improve your arithmetic reasoning skills for the CAT exam, you can practice solving various arithmetic problems regularly. Focus on understanding the concepts behind the formulas and try to solve different types of problems. Additionally, studying from reliable CAT preparation materials and taking mock tests can also help in improving your skills.
3. What is the level of difficulty for arithmetic reasoning questions in the CAT exam?
Ans. The level of difficulty for arithmetic reasoning questions in the CAT exam can vary from moderate to difficult. The questions can test your understanding of various concepts and may require logical reasoning and critical thinking skills. It is important to practice solving different types of arithmetic reasoning problems to familiarize yourself with the exam's difficulty level.
4. Are there any specific strategies to solve arithmetic reasoning questions quickly in the CAT exam?
Ans. Yes, there are some strategies to solve arithmetic reasoning questions quickly in the CAT exam. One strategy is to identify the key information given in the question and break it down into smaller parts to understand the problem better. Another strategy is to use approximation techniques to estimate the answer before solving it in detail. Additionally, practicing time management during mock tests can help you solve questions efficiently in the actual exam.
5. Can I use a calculator to solve arithmetic reasoning questions in the CAT exam?
Ans. No, the use of calculators is not allowed in the CAT exam. You are expected to perform calculations mentally or use rough work provided during the exam. It is essential to practice mental calculations and improve your numerical abilities to solve arithmetic reasoning questions accurately and quickly in the exam.
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