FACULTY OF COMMERCE DEPARTMENT OF RISK MANAGEMENT, INSURANCE AND ACTUARIAL SCIENCE BUSINESS MATHEMATICS (BRM 1106) FINAL EXAMINATION DURATION: 2 HOURS START: 1200 HOURS DATE: 13 NOVEMBER 2015 MARKS: 100 Instructions to candidates This paper consists of Section A and Section B. . Answer ALL questions in Section A. Choose any three (3) questions in Section B. Only non-programmatle calculators may be used. Read the questions carefully and note the marks allocated to each question. Do not turn this page until you are instructed to do so by the invigiator. . Write legibly using blue/ black ink. Graph paper is provided.SECTION A [TOTAL: 40 MARKS] ANSWER ALL QUESTIONS IN THIS SECTION. QUESTION 1 [20 marks] fa) 0 il) il) (0) (©) @) Evaluate the following: 32x7-VOx8+22+4x3. (2 marks) 4x3+245x6-20+4x2, (2 marks) (44) Xs - 5) #1 V+ 2g (4 marks) Determine the equation of a straight line passing through the point (1, 4) and parallel tothe line 3y = —3x+12. (5 marks) Solve the following for x log, 64 =x. (3 marks) Ramothonyana invested P2 500 for 7 years in a fixed deposit account at 11.5% per annum and compounded biannually. Calculate the future value of the investment. (4 marks) QUESTION 2 [20 marks] (a) (b) © @) (e) { Are the equations 20x = 3y + 8and 40y + 6x=5 parallel or perpendicular? Give a reason for your answer. (8 marks) In 2010, a luxury car was valued at P634 000. This was 25% higher than the price paid for the car in 2007. What was the price paid in 20077 (3 marks) ‘Suppose the cost of manufacturing 10 units of a product is P40 and the cost of 20 units is P70. if the cost is linearly related to the output (units produced). Find the cost of producing 35 items. (5 marks) ax+y=16 Solve for x and y in: 3r-2y=23 (4 marks) Simplify the folowing (252) (3 marks) [TOATAL: 40 MARKS] Page 2 0f7SECTION B [TOTAL: 60 MARKS] ANSWER ANY THREE (3) QUESTIONS IN THIS SECTION. QUESTION 4 [20 marks] ‘A macro market basket price can be indexed by including several food items together. Consider the basic food items in the following table, with their price and per capita annual consumption, quantities prices Fooditen [1980 [1990 [4980 | 1990 Mik 38 64 97 128) Bread 54 7A 45 48 Hamburger | 65 18/27 a2 | Maize Meal | 76 9 8 2 Calculate the following, using 1980 as base year: i. Laspeyere’s price index (4 marks) ii, Laspeyere’s quantity index (4 marks) ii, Paasche’s price index (4 marks) iv. Paasche’s quantity index (4 marks) v. Fisher's price index and Fishers Quantity index. (4 marks) QUESTION 2 [20 marks] (a) In a study of animal behavior, investigators collected information on the average hours that various animal species spend in dreaming and non- dreaming sleep. The data for a selected group of 14 of these animals is shown in the following table: Page 3 of 7SPECIES DREAMING(HRS) | NON-DREAMING (HRS) ‘Africanjgiant 2 63 jached rat Asian elephant Baboon om Big brown bat 15.8 Brazilian tapir 52 Cat 70.9 ‘Chimpanzee Chinchilla Cow. Desert hedgehog Find the correlation coefficient for these two variables and interpret the value, (10 marks) (b) Consider the quadratic function below and answer the questions that follow. y= f(@) = 4x? — 8x +3 Find the value of x at the vertex. Find the value of y at the vertex. Find the x intercepts if any. QUESTION 3 [20 marks] a) (3 marks) (2 marks) (5 marks) Pebana Leather Tannery a CEDA funded business is producing leather products. It is planning to make two products, leather hand bags and leather jackets. The following resources are available to the company, 400 square metre (m?) of leather and 450 labour hours. To make a handbag it requires 5m? of leather and 10 labour hours. Each handbag yields a profit of P50. Each jacket uses 20m? of leather and 15 labour hours and yields a profit of P80. With the aid of a clearly labelled graphical representation, determine how many handbags and jackets should be produced to maximize profit. (Clue: outline the profit function and all the constraints) (10 marks) Page 40f7b) Gretel is swimmer training for a competition. The number of 50-metre laps she swam each day for 30 days are as follows: 24-36 6 F242 18S 2H a 1918 2B 80 6H 22 35 188 Calculate the following using the above data i. Mean Median Mode Range. QUESTION 4 [20 marks] 2 «19 18 23 {3 marks) (3 marks) (2 marks) (2 marks) a) Draw up an amortization schedule for a loan of P12 000 with interest at 10% per annum compounded annually for a term of five years. (10 marks) b) A class of students completed three tests. The scores for the three tests are presented as follows: TEST i [2 [3 Lowest value 5 7 2 (at 9 [9 16 Median [12 [42 a3 4s 46‘ 47 Highest Value [19 [20 | 20 Display this data using a box and whisker diagram. (10 marks) [TOTAL: 60 MARKS] Page 5 of 7FORMULAE Ungrouped Data Grouped Data Variance = = nt Index Numbers 10 - B Be a100 101-848 100 r= BEE 09 ror Beeson FPI=EPIXPPI FOI = {LQ1™POT Regression Analysis. p-t- LaDy nye -(Dx Other —b+ Jo? —4ac 5 nabtvb! ~4ac ah Log A’ = x eae og A’ =x Log A Log(MxN)= Log M + Log N tog( t= Log M~ Log N Page 6 of 7e Financial Mathematics T=Prt S=P(l+rt) P=S(1-dt) = iY s=At in) 44-10 (144) -') S= Pe" J, =100(e* -1) com o(142) sen(e-1 “(AF ef Az ne so( Med ») r= 1-dt send W221 P=dan|z+100(1+z)" i(l+il" Page 7 of 7