UNIT CODE: BAF2103 UNIT TITLE: QUANTITATIVE TECHNIQUES

DATE: FEB 2023 CAT

INSTRUCTIONS: Attempt ALL questions

QUESTION ONE (8 marks)

A prospective business student desires to specialize in Marketing. He is told that he would

also have to study business mathematics and quantitative techniques. He does not like
mathematics and figures and wonders why he has to study these subjects yet his career
aspiration is to be a marketing manager. Advise him.
QUESTION TWO (14 marks)

a) Khadija and associates produces two products X and Y. each unit of product X
requires 2 kg of raw material and 4 labor hours for processing, whereas each
unit of product Y requires 3 kg of raw material and 3 hours of labor, of the same
type. Every week, the firm has an availability of 72 kg of raw material and 108
labor hours. One unit of product A sold yields Sh. 50 and one unit of product
sold gives Sh. 40 as profit. Formulate this problem as a linear programming
problem to determine as how many units of each of the products should be
produced per week so that the firm can earn the maximum profit. Assume that
there is no marketing constraint so that all that is produced can be sold ( 8
marks)
b) What are the assumptions of linear programming( 6 marks)

QUESTION THREE (8 marks)

Measures of dispersion are often used in finance as a proxy for risk. Explain.