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. The production department of Muscat Manufacturing LLC employs three
shifts of workers composed of shift A, shift B,shift C
Tracks Number of Finished Standard Coefficient of
workers items X Deviation  
Variation=  100
X
Shift A 50 300 25 8.33
Shift B 60 350 10 2.85
Shift C 40 290 17 5.86
(a) Find the combined production outputs of the three shifts of the
workers.
Now we know that, Combined Average is given by
X1 N1  X 2 N2  X 3 N3
X123 
N1  N2  N3
50(300)  60(350)  40(290) 15000  21000  11600 47600
X 123     317.33
So, 50  60  40 150 150
finished items per week.
(b) Calculate the coefficients of variations of Shift A, shift B and shift 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.
(c) Coefficient of variation is used for comparing the variations between the
two groups with different means. Here, coefficient of variation of shift C
is higher than shift A and shift B. So, based on the calculations shift C is
most productive.
2. (a) In this example we have given r=0.72, X  OMR5000 income and
Y  OMR1500 taxes and  x =7 and  y =15
 We know that, Regression line of income(x) and taxes (y) is given
by
x 7
xx r ( y  y ) I.e ( x  5000)  (0.72)   ( y  1500)
y  15 
( x  5000)  (0.336)( y  1500)
( x  5000)  0.336 y  504
………………………..(1)
x  0.336 y  4496
Same way, Regression line of taxes (y) and income (x) is given by
y
( y  y)  r (x  x )
x
 15 
( y  1500)  (0.72)   ( x  5000)
7
( y  1500)  (1.54)( x  5000)
( y  1500)  1.54 x  7700
y  1.54 x  6200
…………………………. (2)
Equations (1) and (2) are required regression equations.
(b) Estimate the expected tax to be paid for an income of OMR7500.
We’ll use regression equation (2), when income is OMR7500 it means
y  1.54 x  6200
y  (1.54)(7500)  6200
x=7500,
y  11550  6200
y  5350
So, OMR5350 will be tax.
3. The frequency distribution of production outputs of BM Machines follow:
In this example we make each class equal size.
highestvalue  lowestvalue 100  1 99
Class interval= =   9.9 it means approximately 10
no.ofclassesyouwanttohave 10 10
classes
We will make 10 equal classes.
Equal Number Cumulative Cumulative
size of frequency (less frequency
intervals workers than) (More than)
1-10 3 3 80
11-20 7 10 77
21-30 5 15 70
31-40 6 21 65
41-50 8 29 59
51-60 11 40 51
61-70 9 49 40
71-80 11 60 31
81-90 10 70 20
91-100 10 80 10
total 80
(a) Histogram is drawn as below.

Histogram
12
10
8
Frequency

6
4 Frequency
2
0
1 11 21 31 41 51 61 71 81 91
Bin
 (b)More than frequency curve is drawn below:

Cumulative frequency curve(More than)

90

80 80
77
70 70
65
60 59

50 51

40 40

30 31

20 20

10 10

0
1 11 21 31 41 51 61 71 81 91
units produced

(b) Lower Quartile Q1 (or 80/4=20) falls in the class 21-30

1
( N  C)
Therefore Q1  L  4 h
f
(20  10)
Q1  21  10
5
 21  20  41
Upper Quartile (3/4*80=60) falls in the class 71-80
60  49
Q3  71  10
Q3= 11
71  10  81
Interquartile range=1/2(Q3-Q1) =1/2(81-41) =20
Median or 80/2=40 falls in the class 51-60 and is given by
51+ [(40-29)/11]*10=51+10=61
38th percentile is found by (n+1)*0.38=(80+1)*0.38=81*0.38=30.78
Number of workers between the production outputs of 31 to
80=6+8+11+9+11=45
(c) late the Mean and standard deviation
Class Mid No. of Step fd’ fd’^2
value deliveries deviation
f d’=(x-45)/10
1-10 5 3 -4 -12 48
11-20 15 7 -3 -21 63
21-30 25 5 -2 -10 20
31-40 35 6 -1 -6 6
41-50 45 8 0 0 0
51-60 55 11 1 11 11
61-70 65 9 2 18 36
71-80 75 11 3 33 99
81-90 85 10 4 40 160
91-100 95 10 5 50 250
total  f =80  fd'  f d ' =693
2

=103
Therefore, Mean=45+10*  f d ' /  f =45+10(103/80)
=45+12.875=57.875
2

Standard deviation=10 
  fd ' 
2 2
fd ' 693  103 
  10    10 8.6625  1.6576 =
f   f  80  80 
 
10 7.0049 =10*2.6466=26.46

4. We have given that; Purchased price of nexus phone=OMR375

Selling price of nexus phone=OMR450
(a) (i) Percentage of discount in price= 450*100/375=120 discount=120-100=20%
(ii)CP of 10 nexus phone=375*10 = OMR3750 and SP of 10 nexus
phone=450*10=OMR4500
 Loss=CP-SP=4500-3750=OMR750
(b) Ace supermarket offered 30% discount on selected jogger pants.
(i) Reduced price after discount=53-53*(30/100)=53-15.9=OMR37.1
(ii) Current price of 10 jogger pants=OMR530 and reduced price of 10
jogger pants=OMR371
Since reduced price after discount is less than current price, so it is
loss=OMR530-OMR371=OMR159
5. (a) The probability of gaining in the stock market is 0.45 and that in the
mutual fund is 0.65.What is the probability that at least one of them will
get a gain?

We will use the formulae P (A) =0.45 and P (B) =0.65

If the probability of an event A is P (A), the probability that anything except A

occurs is

P (not A) = 1 – P (A)

Probability=1-(0.45/0.65)=0.20/0.65=0.3076

(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.