CHINHOYI UNIVERSITY OF TECHNOLOGY aT SCHOOL OF BUSINESS SCIENCE AND MANAGEMENT DEPARTMENT OF BUSINESS MANAGEMENT & ENTREPRENEURSHIP COURSE: — QUANTITATIVE METHODS (MAIN) CODE: CBSD 201 DATE: NOVEMBER 2005 DURATION: 3 HOURS INSTRUCTIONS TO CANDIDATES 1. Answer any 5 of the 8 questions. 2. Silent non-programmable calculators may be used. 3. Each question must be answered on a fresh page. 4. Show all workings. Requirements Statistical tables and formulae list (provided) Graph paper (provided)Question 1 ‘The following frequency distribution was compiled from records on the ages of patients treated for HIV/AIDS related ailments at a Provincial Hospital outpatients department on a selected day. Age of Patient (in years) Frequency 0-5 6 61 10 12-17 25 18-23 35 24-29 20 30-35 13 36-41 uw 42-47 5 Calculate : a) the coefficient of variation (12 marks) b) the coefficient of skewness and comment on the prevalence of HIV/AIDS among, the various age groups. (8 marks)Question 2 a) b) ‘A random sample of cash book errors is taken for six accounts clerks having years of experience ranging from 1-6 years and is given below. Calculate Pearson’s coefficient of correlation and interpret your results. a 1 2 3 a 5 6 ~ 5 4 3 2 1 ‘The mean amount spent by a family of four on food per day is $50 000 with a standard deviation of $7500. Assuming that the food expenditure is normally distributed, what is the probability that a family spends less than $41 000 per day? (8 marks) How long does it take an investment to double itself at 10% p.a, simple interest? (4 marks)Question 3 ‘The following were the prices and total amounts spent at a leading supermarket during, the festive season of 2003 and 2004. 2003 2004 ITEM Price Total Price Total Expenditure Expenditure $000 $°000 | $°000 $7000 Beer 12/per pint 1800 | 18 per pint 2880. Braai 16rkg, 1600 | 17/kg 1683 ‘Soft Drinks Bibottle 96 | 12/boitle 96. Cigarettes ‘S/box 40 | 6/box. 36 a) Compute Laspeyres and Paasche’s price indexes with 2003 = 100. (16 marks) b) What are the advantages of Fisher’s index over Laspeyres and Passche’s indices? (4 marks)Question 4 A company’s sales for the years 1996 to 2004 were as follows :~ Year 1996 [1997 [1998 [1999 [2000 [2001 | 2002 [2003 [2004 Sale{f [324 [296 [310 | 305 [295 347 [348 [364 [370 (Sm) a) Compute the least squares equation for the data. (16 marks) b) Qu Estimate using your results in (a) the sales for 2005 and 2006. (4 marks) ion 5 a) It is known that 20% of the items produced by a certain company are defective. If5 items are taken at random, find the probability that :~ (i) 2will be defective. (5 marks) Gi) atleast one will be defective. (7 marks) b) A company is preparing future production plans for a new product. It is project that next year the company could make and sell 10 000 units * 20% at a price o $5000 + 10% depending on a number of factors. The variable costs of production for next year are estimated as follows :~ Materials. $15 000 000 + 2% Wages $10 000 000 + 5% Marketing, $5 000 000 + 10% Miscellaneous $5 000 000 + 10% Estimate the profit or loss showing the limits of error. (8 marks) esti a) 6 From a sample of 400 Chinhoyi commuters the sample mean time taken to commute to work daily was found to be 35.8 minutes. It is known that the population standard deviation is 20 minutes. Set the 95% confidence limits for the actual mean time taken by all ‘Commuters in Chinhoyi to travel to work daily (10 marks) ‘The following data shows the quarterly sales (in Smillions) of a tuckshop from 2001 to 2004.Qi @ 3 i 2001 54 58 94 70 2002 55 61 87 66 2003 49 55 95 74 2004 60 64 99 80 Calculate the seasonal indices for the data. (10 marks) Question 7 A man borrows $100m at 30% per annum compounded semi-annually for 2 years. To enable himself to pay off the debt after the two ~ year period, he decides to make regular payments at the end of every six months into a separate fund earning interest at a rate of 10% per annum compounded semi annually for the two years. (i) Calculate his periodic deposit into the fund. (6 marks) (ii) Construct a sinking fund schedule. (12 marks) (iii) What is the accumulated fund after the third deposit? (2 marks)