# DSST Business Mathematics Study Guide

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## DSST Business Mathematics Study Guide

Those who have obtained life experience in various subject areas may consider taking one or more of the Defense Subject Standardized Test (DSST). Some institutions award college credit for reaching the DSST test pass rates. Candidates who have a background in business may consider taking the exam for DSST Business Mathematics. On test day they will have to answer 100 questions in 2 hours. They will be allowed to use a non-programmable calculator on the test and will be provided with a table that includes the future value of a dollar, the present value of a dollar, the future value of an annuity of one dollar for N years, and the present value of an annuity of one dollar. The questions on the DSST test will be divided into 5 different content areas that cover topics such as number sense, statistics, and financial mathematics. Find out more about each content area with this DSST Business Mathematics study guide.

Content Areas % of Questions
Number Sense 5% (≈ 5 questions)
Algebraic Concepts 16% (≈ 16 questions)
Statistics 14% (≈ 14 questions)
Business Applications 49% (≈ 49 questions)
Financial Mathematics 16% (≈ 16 questions)
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## Number Sense

Questions on the DSST Business Mathematics exam will evaluate examinees' understanding of numbers. They must be able to use numbers and values in various forms, such as decimals or fractions, to solve problems. They should also know how to convert values to other forms, such as a fraction to a percentage.

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## Algebraic Concepts

Test takers will need to demonstrate their familiarity with different types of functions, including linear and quadratic equations. They may need to graph different functions and solve functions or inequalities. They must also be aware of simultaneous linear equations.

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## Statistics

Candidates need to understand the foundational concepts of statistics. This includes knowing how to identify different probability distributions and expected values. They must know methods for calculating measures of central tendency and weighted averages. They also need to be familiar with the concept of statistical dispersion.

The largest content area on the DSST Business Mathematics exam will test examinees' ability to apply math to business-related problems and scenarios. They will have to know business-related terms, such as index numbers and interest. They must also be familiar with the math involved in different business concepts, including the various kinds of taxes (sales tax, property tax, and more).

Questions in this content area may require test takers to calculate different values associated with costs, such as cost minimization and fixed or variable costs. They should be prepared to demonstrate their knowledge of discounts, currency conversions, credit terms, salvage value, and depreciation. Candidates will have to know how loans work and how to perform the math associated with installment purchases. They must be familiar with the concepts of markdowns or markups and know how to evaluate investments based on different performance measures, including rates of return. Finally, examinees will need to demonstrate their analysis skills. They need to know how to perform break-even analysis and interpret graphical data. This includes knowing how to identify data that is not being used correctly. They also need to know about extrapolation, interpolation, and financial ratio analysis.

## Financial Mathematics

The last content area on the DSST Business Mathematics exam will evaluate test takers' knowledge of the specific math and calculations used in finance. They will need to be able to calculate different financial values, including the present value associated with annuities and the future value of amortization. They must also understand and know how to calculate the effective annual rate and annual percentage rate.

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