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DATE: TIME:
INSTRUCTIONS:
∫ ( x 2+1 )dx
h) evaluate −1 (3 marks)
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g) The marginal revenue of a product is given by MR=20-2q while the Marginal cost is given as
MC=4q-10. The fixed cost is sh 30 find:
i) The total revenue function. (2 marks)
ii) The total cost function. (2 marks)
iii) The profit function. (1 mark)
h) A rectangular card measures 5.35 cm by 2.5 cm find the relative error in the area of the
card (2 marks)
QUESTION TWO (20 MARKS)
a) Suppose that in a town, 800 people are selected by random types of sampling methods. 280 go
to work by car only, 220 go to work by bicycle only and 140 use both ways – sometimes go with
a car and sometimes with a bicycle. Use Venn diagram to find:
i. How many people go to work by car only? (2 marks)
ii. How many people go to work by bicycle only? (2 marks)
iii. How many people go by neither car nor bicycle? (2 marks)
iv. How many people use at least one of both transportation types? (3 marks)
v. How many people use only one of car or bicycle? (2 marks)
b) Mrs. Mary realized profits of shs 12,000 from the sale of 7 tables, shs 12,400 from the sale of
9 tables and shs 11,300 from 4 tables sold respectively. Mrs. Mary has approached you for
assistance in forecasting future profits. The profit function is believed to be quadratic in nature.
Required:
i. The profit function. (4 marks)
ii. The profit maximizing output and the maximum profit. (5 marks)
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i. Calculate the value of the Minibus after 5 years (4 marks)
ii. After 5 years, the Minibus was sold through a dealer at 25% more than its value to Mr
Kevin. If the dealer's sale price was to be taken as its value after depreciation, calculate
the average monthly rate of depreciation for the s years. (6 marks)
QUESTION FOUR (20 MARKS)
a) Differentiate the following functions with respect to x
2
2x
y=
i) (1−x 2 ) (5 marks)
1
2 2 2
ii) y=x (1−x ) (5 marks)
3 4
iii) y=(5−x ) (2 marks)
b) The management of XYZ ltd are faced with the decision whether to build a new plant, expand
the existing plant or subcontract some of its operations in order to meet the demand of the
company products. The payoff in each decision depends on whether the demand is high,
moderate or low. The table below shows their respective pay-off for each decision alternative.
The values are given in thousands of shilling
Outcome of demand
Payoffs Alternative High Moderate low
Expand 600 400 50
Build 700 300 -50
Sub-contract 300 200 150
Required: Assuming that the products are mutually exclusive evaluate the best decision using
i) Laplace criterion. (2 marks)
ii) Maximin criterion (2 marks)
iii) Minimax regret criterion. (2 marks)
iv) Maximax criterion. (2 marks)
QUESTION FIVE (20 MARKS)
a) Jackson and Maureen were employed at the beginning of the same year. Their annual salaries
in shillings progressed as follows
Jackson: 60,000, 64,800, 69,600,.
Maureen: 60,000, 64,800, 69,984, ...
i) Calculate Jackson's annual salary increment and hence write down an expression for
his annual salary in his nth year of employment. (2 marks)
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ii) Calculate Maureen's annual percentage rate of salary increment and hence write
down an expression for her salary in her nth year of employment. (2 marks)
iii) Calculate the difference in the annual salaries for Jackson and Maureen in their 7th
year of employment (4marks)
iv) The difference in the sum of their salaries during their 5th Year of employment. (2
marks)
b) A geometric sequence of positive terms and an Arithmetic sequence have the same first term.
The sum of their first terms is 1, the sum of their second terms is 0.5 and the sum of their third
terms is 2 find:
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