FINAL ASSIGNMENT

Lecturer’s Signature
Program: IB, AC

Course Code: MAT1005

Course Title: Mathematics for Economics
Date: Jun 03 2021
Time allowed: 24 hours
Department’s Signature
Date: 13/6/2021 - 14/6/2021
Starting at 15:00, 13/6/2021
Ending at 15:00, 14/6/2021

Date:

Instructions to students:

1. Students submit one Excel file; write down your full name and student ID on sheet 1; then
your ID on all 3 remaining sheets.
2. If you fail to modify the data correctly per instruction on a given problem, you will
receive a score of 0 for that problem. The modified data must be shown on each sheet.
3. Even the results are different, any papers showing almost identical writing will get a
penalty with at least 50% of points removed.

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Each problem is worth 2.5 points.

Problem 1: Air pollution control specialists monitor the amount of PM2.5 Particulates (ug/m3)
in the air on an hourly basis. The hourly time series data exhibit seasonality, with the levels of
pollutants showing similar patterns over the hours in the day. On Jan 1, 2, 3, and 4 (2020), the
observed levels of PM2.5 Particulates in an area of London for 24 hours are given in the Excel
file (sheet 1).
Modify the data as following: replace the first 4 entries of PM2.5 with 4 numbers from your
ID, each number contains 2 digits of your ID, from left to right.
Eg: if your ID is 16071235, then the first 4 entries are: 16 07 12 35.
a) Calculate the 24-hour moving averages and centered moving averages for this time series.
Note: make sure to have correct position for these time series.
Plot all 3 series on the same graph.

b) Calculate the adjusted seasonal indexes for the 24 hourly daily readings.
c) Based on the adjusted seasonal indexes, calculate the deseasonalized data. Plot this time series
and find (and display) the trend (regression) equation.
d) Using the trend equation in part (c), develop forecasts for the 24 hours of Jan 5.
e) Use the adjusted seasonal indexes in part (b) to adjust the forecasts developed in part (d) in
order to account for the seasonal effect.
(0.5 points for each sub-question).

Problem 2: Robotix manufactures three robots: Mavis, Charles and Koala; each with different
capabilities. All three require special circuits, of which up to 800 can be obtained each
week. Mavis takes 6 of them, Charles 4 of them and Koala 5 of them.
Work is limited to 350 hours per week. The construction of each Mavis consumes 2
working hours, Charles 2 hours and Koala 4 hours. Profits are $350, $250 and $450 respectively
for each Mavis, Charles and Koala that is sold. The Robotix has signed a contract with a major
customer to make and supply at least AB Mavis, at least CD Charles, and at least EF Koala each
week. Here ABCDEF are the last 6 digits of your student ID. Eg: if your ID is 16071235,
then AB = 07; CD = 12; EF = 35.
a) Set up the linear programming problem (variables, objective function, constraints, etc).
(1 point)
Use Excel Solver to answer the following questions:
b) How many of each robot should Robotix make per week to maximize total profit? What is the
maximum profit? (1 point)
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Note: to make sure that the optimal solution contains integers only, you need to add this
constraint to Solver.
c) What is the actual quantity of circuits used and the number of working hours per week that
correspond to the optimal solution? (0.5 points)
Note: If your file (sheet 2) contains one of the following errors, then your score for part (b)
and (c) is 0: there is no Solver form; there is a Solver form but when rerunning, it displays a
different optimal profit; your answer in writing does not match with the result produced by
Solver.

Problem 3: A bank has 4 sites at which checks are processed. Site 1 can process 5000 checks per
day, site 2 can process 6000 checks per day, site 3 can process 7000 checks per day, and site 4
can process 8000 checks per day. The bank processes 4 types of checks: vendor, salary,
household, and personal. The processing cost per check (in cents) depends on the site and is
given on the table below. Each day, 9000 vendor checks, 8000 salary checks, 6000 household
checks, and 7000 personal checks need to be processed. The objective is to minimize the total
daily cost of processing checks.
Site (cents)
Check 1 2 3 4
Vendor 7 6 7 5
Salary 5 6 8 6
Household 6 5 4 7
Personal 4 4 5 5

Modify the data as following: replace the data for “Vendor” by the first 4 digits of your
student ID, then replace the data for “Salary” by the last 4 digits of your ID.
Eg: if your ID is 16071235, then the data for “Vendor” is 1 6 0 7; the data for “Salary” is 1 2
3 5.
a) Set up a form to run Solver. (1 point)
b) Write down a table for the optimal solution, which includes the number of each type of checks
processed at each site, the corresponding unit costs and the minimum total cost. (1 point)
c) Write down the quantity of each type of checks that cannot be processed at any site. (0.5 point)
Note: If your file (sheet 3) contains one the following errors, then your score for this
problem is 0: there is no Solver form; there is a Solver form but when rerunning, it displays
a different optimal total cost; your answer in part (b) does not match with the result
produced by Solver.

Problem 4: A project consists of seven activities with the time estimates are given on sheet 4.

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Modify the data as following: divide your student ID into 4 numbers, each number contains
2 digits, from left to right. Then rearrange these 4 numbers from small to large; replace the
data for activity A by the first 3 numbers.
Eg: if your ID is 16071235, then the data for activity A is 07 12 16 (16071235  16 07 12 35
-> 07 < 12 < 16 < 35).
a) Construct the PERT/CPM network for this problem. You should draw the network on
paper, take a picture and paste it into sheet 4. All calculation must be done on Excel for
verification. (1 point)
b) What is the expected project completion time? What is the critical path? (0.5 point)
c) What is the probability that the project can be completed within 30 days? (0.5 point)
d) By what time are you 9A% sure the project will be completed? Here A is the last digit of
your ID. Eg: if your ID is 16071235, then the given probability is 95%. (0.5 point)