BUSINESS SKILLS-2

Business Maths Assignment

2015-2016(Second Semester)
ANSWER THE FOLLOWING QUESTIONS IN PEN SHOWING ALL APPROPRIATE
WORKINGS AND FORMULAS WHEREVER REQUIRED IN THE SPACES PROVIDED
AND MAKING INDICATIONS ON GRAPHS READINGS HAVE BEEN TAKEN.
1. In a battle for the post of the fastest chef, three contenders were
considered for the post.
Contenders Batches of Average of Standard Coefficient of
guests dishes X Deviation  
Variation=  100
X
Chef A 8 10 3 30
Chef B 5 7 5 71.42
Chef C 5 5 9 180
(a) What is the combined average speed of all chefs?
Now we know that, Combined Average is given by
X1 N1  X 2 N2  X 3 N3
X123 
N1  N2  N3
10(8)  7(5)  5(5) 80  35  25 140
X 123     7.77 average speed of all
So, 855 18 18
chefs.
(b) Calculate the coefficients of variations of Chef A, Chef B and Chef C.

For this we will use the formulae of Coefficient of Variation=  100
X
And hence it is shown in column 5 of the above table.
Coefficient of variation is used for comparing the variations between the
two groups with different means. Here, coefficient of variation of chef C
is higher than chef A and chef B. So, based on the calculations chef C has
greater consistency in all batches.
(c) From the above table, it shows that Chef C has greater consistency than chef
B and Chef C. Chef B is more consistent than Chef A. Chef A less consistent among
3 of them.
2. (a) In this example we have given r=0.37, X  OMR305 food and Y 
OMR102 on utilities and  x =3 and  y =5
We know that, Regression line of food (x) and utilities (y) is given by
x 3
xx r ( y  y ) I.e. ( x  305)  (0.37)   ( y  102)
y 5
( x  305)  (0.222)( y  102)
( x  305)  0.222 y  22.644
x  0.222 y  282.356 ……………….. (1)
x  0.222 y  282.356

Same way, Regression line of utilities (y) and food (x) is given by
y
( y  y)  r (x  x )
x
5
( y  102)  (0.37)   ( x  305)
3
( y  102)  (0.616)( x  305)
( y  102)  0.616 x  187.88
y  0.616 x  102  187.88
y  0.616 x  85.88
…………………………. (2)
Equations (1) and (2) are required regression equations.
(b) Calculate the expenditure on food if OMR 435 was spent for utilities.
We’ll use regression equation (1), when OMR 435 was spent for utilities
x  0.222 y  282.356
x  0.222(435)  282.356
y=435,
x  96.57  282.356
x  378.926
So, OMR378.926 will be spent for foods.

3. The frequency distribution of the marks of students in financial

management module is presented below:
highestvalue  lowestvalue 85  36 49
Class interval=    4.9 it means approximately
no.ofclassesyouwanttohave 10 10
10 classes with interval size 5.
We will make 10 equal classes.

Equal size Number Cumulative Cumulative

intervals(Marks) of frequency (less frequency
students than) (More than)
36-40 20 20 130
41-45 24 44 110
46-50 20 64 86
51-55 16 80 66
56-60 8 88 50
61-65 5 93 42
66-70 20 113 37
71-75 9 122 17
75-80 5 127 8
81-85 3 130 3
total 130
 (a) Histogram is drawn as below

Histogram
30

25
NUMBER OF STUDENTS

20

15
Frequency
10

0
36 41 46 51 56 61 66 71 75 81 More
MARKS

(b)More than frequency curve is drawn below:

140

120

100

80

60

40

20

0
36 41 46 51 56 61 66 71 75 81
Series1
 Lower Quartile Q1 (or 130/4=32.5) falls in the class 41-45
1
( N  C)
Q1  L  4 h
f
130
(  20)
 41  4 5
24
(32.5  20)
 41  5
24
12.5
 41  5
24
 41  2.604  43.604
Upper Quartile (or ¾*130=97.5) falls in the class 66-70
3
( N  C)
Q3  L  4 h
f
390
(  93)
 66  4 5
20
(97.5  93)
 66  5
20
4.5
 66  5
20
 66  1.125  67.125
Median (or 130/2=65) falls in the class 51-55 and is given by
1
( N  C)
Median  L  2 h
f
(65  64)
 51  5
16
5
 51   51  0.3125  51.3125
16
Interquartile Range=(Q3-Q1)=67.125-43.604=23.521
10th Percentile First we will find P= (k/100) (n) = (10/100) (130) =13 it means 13th
 P  Cf h  13  8 
k th percentile  L   (U  L)   70.5   (75.5  70.5)
position.  f   9 
 70.5  (0.55)(5)  70.5  2.75  73.25
(c)The Mean and standard deviation
Class(marks) Mid No. of Step fd’ fd’^2
value students deviation
f d’=(x-58)/5
36-40 38 20 -4 -80 320
41-45 43 24 -3 -72 216
46-50 48 20 -2 -40 80
51-55 53 16 -1 -16 16
56-60 58 8 0 0 0
61-65 63 5 1 5 5
66-70 68 20 2 40 80
71-75 73 9 3 27 81
75-80 78 5 4 20 80
81-85 83 3 5 15 75
total  f =130  f d '=  f d ' =953
2

-101
Therefore, Mean=53+5*  f d ' /  f
=53+5*(-101/130) =53-3.88=49.12
Standard deviation=
2

   fd ' 
2
fd '2 953  101 
5   5    5 7.330  0.3643  5 6.9657  5  2.639  13.196
f  f 
  130  130 
EX.4 we have given that; Cost price of 600 bottles of herbal
medicines=OMR12500 CP=OMR 7500000
(a) Original selling price = cost price + 50% of profit on CP=Selling price of
herbal medicines=12500+6250=OMR18750
(b) Reduced selling price=18750-(30/100)*18750=18750-5625=OMR13125
(c) Determine the aggregate sales on both prices=1/2(120*18750+360*13125)
=OMR 3487500
(d) Net profit=Cost price-Selling price=7500000-6975000=OMR525000
When total cost=OMR7500000 then profit =100
When net profit=OMR525000 then profit= (525000*100)/7500000=7%
Example 5. The probability that at least two of them can complete the assigned
tasks is P( A B C )

P( A B C )  P( A)  P( B)  P(C )  P( A B C )
Thus,  P( A)  P( B)  P(C )  P( A) P( B) P(C )
 0.10  0.35  0.28  (0.10)(0.35)(0.28)  0.73  0.0098  0.7202

(b) (I) Event A: Today is Saturday.

Event B: Today is Tuesday
Events A and B are mutually exclusive, because they cannot occur at the
same time.
(ii) What is the probability of tossing two coins simultaneously and getting
exactly one tail? The possible outcomes for each of the coins are head and
tail. Starting with the outcomes of one of the coins, this is example of
compound event.
(iii) Example of independent event that you flip a coin and get a heads and
you flip a second coin and get a tails.
The two coins don't influence each other. So, this is an independent event.