Word problems & business scenarios in numerical tests

By Pratham Ranjan·8 min read·

Word problems are numerical questions disguised as business stories. The maths rarely goes beyond GCSE level — percentages, ratios, simple algebra. The challenge is extracting the numbers from the narrative before time runs out. If your core maths is shaky, read percentage shortcuts first; if the scenario includes charts, use data interpretation.

TL;DRthe 30-second version
  • Word problems test translation first and calculation second.
  • Underline units before choosing a formula.
  • Profit margin, rate, capacity and discount questions repeat constantly.
  • Distractor numbers are common, especially in business scenarios.

Business word problems get easier when you drill the scenario type directly. Start numerical practice

What to focus on first

Focus areaWhy it mattersBest drill
Profit and marginCandidates often divide by cost when margin requires revenue.Write revenue, cost, profit, then margin.
RatesWork-rate questions punish mixed units.Convert everything to per hour or per day first.
DiscountsSuccessive discounts apply to the new base.Run two-step price drills.
CapacityUtilisation questions require actual output, not maximum output.Capacity x utilisation x time.

Common traps

  • Wrong denominator. Margin is profit divided by revenue, not cost.
  • Unit drift. Per month, per week and per hour cannot be mixed.
  • Adding successive percentages. A 20% discount then 10% discount is not 30% off.

How to practise from here

For each missed word problem, rewrite the story as a three-line equation: known values, required value, formula. If you cannot write those three lines, the issue is translation, not maths.

forge trap note
The point is not to read more advice. Take one timed set, review the exact failure pattern, then repeat the smallest drill that fixes it.

The five recurring business scenarios

  1. Profit & margin — revenue minus cost, margin as a percentage of revenue.
  2. Discount & markup — original price, discount %, sale price. Watch for successive discounts.
  3. Rates & productivity — units per hour, machines per shift. Classic work-rate problems.
  4. Capacity & utilisation — a factory can produce X units; it ran at Y%. How many were made?
  5. Growth & compound change — year-on-year growth applied over multiple periods.
Profit margin
A product costs $45 to produce and sells for $72. If the company sells 1,200 units, what is the total profit and profit margin?

Profit per unit = $72 − $45 = $27. Total profit = 27 × 1,200 = $32,400.

Margin = 27 / 72 = 37.5%. Remember: margin is profit over revenue, not profit over cost.

Successive discounts
A jacket is marked at $200. It receives a 20% discount, then a further 10% off the reduced price. What is the final price?

After 20% off: $200 × 0.80 = $160. After 10% off: $160 × 0.90 = $144.

Trap: candidates add 20% + 10% = 30% and answer $140. Successive discounts compound — they do not add.

Work rate
Machine A produces 120 units/hour. Machine B produces 80 units/hour. Working together, how long to produce 1,000 units?

Combined rate = 200 units/hour. Time = 1,000 / 200 = 5 hours.

The translation habit
Read the problem once for the story. Read it a second time to underline every number and its unit. Then — and only then — set up the calculation. This two-pass approach prevents the most common error: using the wrong number in the right formula.

Speed tips for word problems

  • Round first, refine later. If exact answers are not in the options, estimation gets you there faster.
  • Work backwards from the options. If you are stuck, plug each option into the scenario and see which one fits.
  • Watch for distractor data. Word problems often include numbers you do not need. Only extract what the question asks for.

How to review misses

Separate translation errors from calculation errors. Translation errors mean you chose the wrong denominator, rate or unit. Calculation errors mean the setup was fine but the arithmetic failed. If you keep making translation errors, practise by writing the equation only, then check it before solving. For mixed practice, use the worked numerical question set.

A useful review note is: “I used the wrong story number” or “I used the right numbers with the wrong relationship.” Those two mistakes need different fixes. Keep the note short enough that you can reuse it during the next timed set.

Source notes

forge checks numerical word-problem guidance against provider examples such as SHL’s numerical reasoning example questions and SHL’s practice test pages. Employer wording and calculator rules can still vary.

Practise business scenarios on forge

Numerical packs with real business mini-cases — revenue, cost, growth, and capacity — across SHL and forge formats.

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Frequently asked questions

What makes numerical word problems hard?+

The maths is usually simple. The hard part is translating the business story into the right formula, unit and denominator before the timer forces a shortcut.

Which word problem types appear most often?+

Profit and margin, discounts, rates, productivity, capacity, utilisation and compound growth are the most common business-scenario formats.

How should I review a missed word problem?+

Rewrite it as known values, required value and formula. If that translation is wrong, drill the scenario type rather than doing more random arithmetic.

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