Revised 202101 Tutorial STUDENTS VERSION UBEQ1013 Quantitative Techniques I

UKEQ1013 / UBEQ1013 QUANTITATIVE TECHNIQUES I
Tutorial 202101
Note: Tutor are required to give a short note of ‘What is a “significant figure”’.
- In the process of calculation, don’t round up or round down too early.

- The final answers are to be written as 2 decimal places. But, in the case of the answer is
less than 0.00, the answer must be written in 4 significant figures.
What is a "significant figure"?

The number of significant figures in a result is simply the number of figures that are
known with some degree of reliability. The number 13.2 is said to have 3 significant
figures. The number 13.20 is said to have 4 significant figures.
Rules for deciding the number of significant figures in a measured quantity:
(1) All nonzero digits are significant:

1.234 g has 4 significant figures,
1.2 g has 2 significant figures.
With zeroes, the situation is more complicated:

(2) Zeroes between nonzero digits are significant:
1002 kg has 4 significant figures,
3.07 mL has 3 significant figures.
(3) Leading zeros to the left of the first nonzero digits are not significant; such zeroes
merely indicate the position of the decimal point:
0.001 oC has only 1 significant figure,
(4) Trailing zeroes that are also to the right of a decimal point in a number are significant:
0.0230 mL has 3 significant figures,
(5) When a number ends in zeroes that are not to the right of a decimal point, the zeroes
are not necessarily significant:
190 miles may be 2 or 3 significant figures,
50,600 calories may be 3, 4, or 5 significant figures.
The potential ambiguity in the last rule can be avoided by the use of standard exponential,
or "scientific," notation. For example, depending on whether the number of significant
figures is 3, 4, or 5, we would write 50,600 calories as:
5.06 × 104 calories (3 significant figures)
5.060 × 104 calories (4 significant figures), or
5.0600 × 104 calories (5 significant figures).
By writing a number in scientific notation, the number of significant figures is clearly
indicated by the number of numerical figures in the 'digit' term as shown by these
examples. This approach is a reasonable convention to follow.
Tutorial 202101
Tutorial 1
Topic 1: Mathematical Techniques
1. Write 3.6456525 to:

(a) 2 decimal places
(b) 3 decimal places
2. Express 365.288 to:

(a) 4 significant figures
(b) 3 significant figures
(c) 2 significant figures
(d) 1 significant figure
3. Express 0.0505 to:

(a) 3 significant figures
(b) 2 significant figures
(c) 1 significant figure
4. Factorize the following expressions.

(a) 4x2 – 16z2
(b) p2q2 – 225
5. Simplify:
(a) 2a x3  4a x1
9 x  2  3 2 x 1
(b)
27 x
1 1

x y x
(c)
y
3 3
(d) 
2x 1 2x 1
6 Solve the following equation:

1
(a)
1
2
1
2
2
(b) (x- 4)2 = 4(5 - 2x)
7. PB books shop sells books at 20% discount from the retail price. If it sells a book for
RM32. Find
(a) The retail price.
(b) The customer only pays for RM25.00 for the second book. What was the further
reduction in percentage?
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(c) The overall percentage discount obtained by buying the two books form the
shop in the sale compared with the manufacturer’s retail price.
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Tutorial 2
1. A team of financial advisers guiding the launch of a national newspaper has modeled the future
circulation of the newspaper by the equation N = c(1 – e-kt), where N is the daily circulation
after t days of publication, and ‘c’ and ‘k’ are positive constants. When the paper is launched
1
audits show that c = 800,000 and k  In3.
20
1  c 
(a) Transpose this formula to show that t  In .
k c N 
(b) Calculate the daily circulation after 25 days of publication.
(c) After how many days will the daily circulation first reach 685,000?
2. In 2017, a company had a profit of RM 2.4 million. In 2019, the profit became RM 2.2 million.
Write a linear equation for profit (P, in RM million) in terms of year (t). Let t = 0 represent
2017.
t
7
3. The temperature of mercury in C , t minutes later is given by 100  . Find the minimum
0
8
number of minutes required for the temperature of the liquid to drop below
60 0C . Round up to the nearest whole number.
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Tutorial 3
1. Sketch the graph and find its maximum or minimum value of the following quadratic:
(a) f ( x)  x 2  4 x  3
(b) f ( x)  2  8 x  x 2
2. Solve the following systems of equations:

y  21  2 x
(a)
y  x 2  3x  1
y  3x  5
(b)
2 y  3x  28
3. The supply and demand equations of a pair of safety shoes are given by QS = P – 8 &
80  P
QD  where P, QS and QD denote price, quantity supplied and quantity demanded
3
respectively.
a) Find the equilibrium price and quantity.
b) If the government imposes a fixed tax of RM36.00 on each pair of shoes, find the
equilibrium price and quantity.
4. Differentiate:
(a) y  x3 ( x 2  5)3
2x2
(b) y
x 1
(c) y  (100 x 2  2 x3 )1/ 2
dy
5. Given that  6 x  4 when x = 0 and y = 5. Find the function of y.
dx
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Tutorial 4
1. A computer firm launches a new monitor on 1st June 2018. During the following period a rough
estimate of the number of orders, N received t days after the launch is given by N  3t 2  0.08t 3 .
What is the maximum number of orders received on any one day of the year?
2. The XYZ firm’s total cost function is TC= 5Q2 +20Q + 100.If the firm’s product could sell in
a competitive market at a price of RM 120 per unit, how many units would you sell in order to
maximize total profits? What is the maximum profits?
3. Given that fixed cost for a product is RM100 and price per unit is RM120, the cost profile
shows that the additional cost to produce another unit of output is10𝑄 + 20, where Q is the
number of units produced. Formulate the expressions for total revenue (TR), total cost (TC)
and total profit (π) functions in terms of quantity (Q).
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Tutorial 5
Topic 2: Index Number
1. The average oil price (in US dollar) per barrel is given as follow.
Year 2015 2016 2017 2018
Oil price 102.29 127.36 135.1 148.43
Construct index number series for the oil price with the year 2015 as base year.
2. The table below shows the consumer price index (CPI) from year 2013 to 2018 of a country:
Year Consumer Price Index Consumer Price Index

(Base year = 2013) (Base year = 2015)
2013 100
2014 105.4
2015 107.3 100
2016 113.4
2017 109.6
2018 105.5
(i) Construct a chain index to link the series together with a base year of 2013.
(ii) Based on your finding in (i), interpret the index of 2018.
(iii) Construct another index number series (2013–2018) using year 2014 as base
year.
3. The table below shows the prices and relative prices of the fuel sold over the past four years,
find the value a,b,c,d,e and f.
Year Price (RM) Price Relative Price Relative

(2015=100) (2016=100)
2015 150 100 A
2016 b 80 100
2017 180 c d
2018 e f 250
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3. KPK Company produces and sells three types of kitchen appliances. The following table
contains information on prices and production of items sold for 2017 and 2018:
2017 2018
Price Production Price Production
Type (RM) (in '000 unit) (RM) (in '000 unit)
Coffee Maker 10.5 500 11.8 650
Blender 5.5 800 5.8 900
Rice cookers 8 400 9 510
i. Find the average price relative index for the year 2018 using 2017 as the base year.
ii. Calculate the Laspeyres quantity index for the year 2018 using 2017 as the base year.
Interpret your result.
iii. Calculate the Paasche quantity index for the year 2018 using 2017 as the base year.
Interpret your result.
5. The table below shows the average salary together with the consumer price index (CPI) from
2011 to 2019.
Year Average salary (RM in thousand) CPI (2005 = 100)

2011 2.4 105.1
2012 2.6 116.2
2013 3.12 119.8
2014 3.5 121.5
2015 3.8 125.9
2016 4.5 123.5
2017 4.6 131.21
2018 5.23 132
2019 5.5 135.8
(i) Construct the CPI with the base year of 2011 from 2011 to 2019.
(ii) Compute the average salary at 2011 prices from 2011 to 2019.
(iii) Based on (i) and (ii), tabulate inflation rate and percentage change for average salary
from 2012 to 2019.
(iv) Based on (iii), comment on whether the average salary could afford the cost of living
from 2012 to 2018. Provide your reasoning to support your answer.
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Tutorial 6
Topic 3: Financial Mathematics
Note: Students are required to write out the value for S=FV, PV, i and n for each of the
question.
1. Calculate the future value of RM 20,000 invested for 6 years at 18% per annum in the condition
of,
a) Simple interest
b) Compound interest
2. A total of RM 50,000 is invested in a building society account, which pays 8% per annum
compounded annually. After 3 years, the building society changes the growth rate to 0.5%
compounded monthly. How much is in the account after 5 years?
3. A lump sum amount of RM 4,000 is invested at 8% per annum compounded quarterly. How
long will it take for the investment to amount to RM 12,000?
4. What is the effective annual rate if a bank charges you 7.64% compounded quarterly?
5. Your parents are planning to retire in 15 years. They currently have RM 250,000 and they
would like to have RM 1,200,000 when they retire. What annual rate of interest would they
have to earn on their RM 250,000 in order to reach their goal.
6. You just started your first job and you want to buy a house within 3 years. You are currently
saving for the down payment. You plan to save RM 5,000 the first year. You also anticipate
that the amount you save each year will rise by 10 percent a year as your salary increases over
time. Interest rates are assumed to be 5 percent and all savings occur at year end. Sketch the
time line. How much money will you have for a down payment in 3 years?
7. John wants to further his study at overseas university for his master degree in 5 years. In order
to accumulate the money for his further study, he has the following sources of funds: (i) He has
fixed deposit of RM5,000 now that paying 8% interest rate compounded quarterly. (ii) Year 1,
his grandfather will give him RM5,000 and he will deposit the money into his fixed deposit.
Determine the total accumulated amount at the end of fifth year.
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Tutorial 7
Note: Students are required to write out the value for S, P, i, R and n for each of the question.
1. David has RM 150,000 in his retirement account at his present company. Because he is
assuming a position with another company, David is planning to transfer his assets to a new
account. David also plans to put RM3000 at the end of each quarter into new account until
his retirement 20 years from now. If the account earns interest at the rate of 8% per year
compounded quarterly, how much will David have in his account at the time of his retirement?
2. John secured a bank loan of RM 250,000 to help the purchase of a house. The mortgage is to
be amortized through monthly payments for a term of 25 years, with an interest rate of 7.2 %
per year compounded monthly on the unpaid balance. What are the monthly payments? If he
plans to sell his house in 10 years. How much will John still owe on his house?
3. A debt of RM5 000 with interest at 10% compounded 6 monthly is amortized by equal semi-
annual payments over the next 2 years.
(a) Find the value of each payment
(b) Construct an amortization schedule
(c) How much interest will you be paying?
4. It is estimated that an investment in a new process will cause the following cash flow:
End year 0 1 2 3 4
Cash Inflow (RM) 10,000 20,000 20,000
Cash Outflow (RM) 20,000 15,000
The firm wishes to earn at least 10 percent per annum on project of this type.
a) Calculate the Net Present Value (NPV) of the project and comment on the course of
action to be taken.
b) Using interest rate of 10% and 20 % to estimate the Internal Rate of Return (IRR) for the
project.
Tutorial 202101
Tutorial 8
Topic 4: Linear Programming
1. Find the graphical solution of the inequality:

a) 4x – 8 > 0 b) 3y + 12 ≤ 0 c) 2x + 3y < 6 d) 3x – 4y  12
2. Formulate, but do not solve, a linear program describing the following scenario. Double A
produces two models of machines:A and B. To produce one unit of model A, it requires 3 kg
of iron and 3 minutes of labor. To produce one unit of model B, it requires 1 kg of iron and 3
minutes of labor. The revenue is RM 3 for one unit of model A and RM 2 for one unit model
B. There are 600 kg iron and 20 labor hours are available for the production per day. How
many machines of each model should make in order to maximize its revenues?
3. ART Furniture Sdn Bhd produces six products from six inputs. Each product requires different
combinations and amounts of inputs. The following table shows the profit and raw materials
requirements for each product. The last column shows the total amounts of raw materials
available.
Products 1 2 3 4 5 6 Total
Amounts
of inputs
Profits (RM) 60 70 48 52 48 60
Inputs required:
Aluminum 0.5 2 - 2 1 - 400
Steel 2 2.5 1.5 - 0.5 - 580
Plastic - 1.5 4 - 0.5 - 890
Rubber 1.5 - 0.5 1 0.5 2.5 525
Glass 1.5 2 1.5 1 1 2 650
Chrome 0.5 2 0.5 2 1.5 2 620
The company plans to maximize profit. Formulate, but do not solve, a linear program
describing the above scenario.
4. The U Technology Company makes and exports two models of stereo systems, the basic model,
CD20 and the advanced model, CD90. CD20 makes a contribution of RM10 per unit while
CD90 makes a contribution of RM40 each. The output of both models is limited by both
production and assembly time. Currently, U Technology Company takes 150 minutes of
production time and 30 minutes of assembly time for each unit of CD20. As for CD90, it
requires 100 minutes of production time and 60 minutes of assembly time. At this moment, the
production department has a maximum capacity of 240 hours per week. For the assembly
department, it has a maximum capacity of 60 hours per week. The company can export all that
it can produce but international quotas restrict the sales of CD20 to 80 units per week and the
sales of CD90 to 40 per week. The company plans to maximize contribution. Formulate, but
do not solve, a linear program describing the above scenario.
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5. An oil company has two refineries, which are used to produce at least 8,000, 24,000 and 5,000
barrels of low, medium and high grade oil respectively. Each day, Refinery I produces 2,000
barrels of low, 4,000 barrels of medium and 1,000 barrels of high grade oil, whereas Refinery
II produces 1,000 barrels of low and high grade oil, and 4,000 barrels of medium grade oil. If
it costs RM 20,000 per day to operate Refinery I and RM 12,500 per day to operate Refinery II,
how many days should each refinery needs to operate to satisfy the production requirement at
minimum cost? Formulate, but do not solve, a linear program describing the above scenario.
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Tutorial 9
1. Recall Question 3 from Tutorial 8.
ART Furniture Sdn Bhd produces six products from six inputs. Each product requires different
combinations and amounts of inputs. The following table shows the profit and raw materials
requirements for each product. The last column shows the total amounts of raw materials
available.
Products X1 X2 X3 X4 X5 X6 Total
Amounts
of inputs
Profits 60 70 48 52 48 60
(RM)
Inputs required:
Aluminum 0.5 2 - 2 1 - 400
Steel 2 2.5 1.5 - 0.5 - 580
Plastic - 1.5 4 - 0.5 - 890
Rubber 1.5 - 0.5 1 0.5 2.5 525
Glass 1.5 2 1.5 1 1 2 650
Chrome 0.5 2 0.5 2 1.5 2 620
Answer the following questions:
(a) How many units of each product should the firm produce in order to maximize the profit?
What is the profit of the company?
(b) Which constraints are binding?
(c) Suppose the product 1 profit has increase from RM60 to RM 70. What would be the
optimal allocation of product and what would be the profit?
(d) What is the shadow price for the aluminum constraint? What interpretation does this
have?
(e) If supply of glass is now available for 10 extra units, give your advice to ART Furniture
Sdn Bhd.
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2. Recall Question 5 from Tutorial 8.
An oil company has two refineries, which are used to produce at least 8,000, 24,000 and
5,000 barrels of low, medium and high grade oil respectively. Each day, Refinery I
produces 2,000 barrels of low, 4,000 barrels of medium and 1,000 barrels of high grade oil,
whereas Refinery II produces 1,000 barrels of low and high grade oil, and 4,000 barrels of
medium grade oil. If it costs RM 20,000 per day to operate Refinery I and RM 12,500 per
day to operate Refinery II, how many days should each refinery needs to operate to satisfy
the production requirement at minimum cost?
a) Use the Microsoft Excel LP technique to determine the optimal number of days should
each refinery operates. What is the minimum cost of production?
b) Identify and list down the binding and non-binding constraints.
c) If the oil company able to increase the low-grade oil by 100 barrels, using Microsoft Excel
LP sensitivity analysis to find the shadow cost for this extra 100 barrels of low grade oil,
and give your comment to the manufacturer?
d) If the oil company wishes to decrease the medium grade oil by 100 barrels, using Microsoft
Excel sensitivity analysis to find the shadow cost for the reduction 100 barrels of medium
grade oil, and give your comment to the manufacturer?
e) If the oil company able to increase the high-grade oil by 100 barrels, using Microsoft Excel
sensitivity analysis to find the shadow cost for this extra 100 barrels of high grade oil, and
give your comment to the manufacturer?
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Tutorial 10
Topic 5: Descriptive Statistics
1. For each of the following, determine whether the group is a sample or a population.
(i) The 15 stocks reported as a part of the Kuala Lumpur Composite Index (KLCI).
(ii) All the drivers who received a speeding ticket in North-South Highway, last month.
2. A survey company asked a sample of 2000 consumers to try a newly developed chicken burger
by “Ramla burger”. Of the 2000 sampled, 1375 said they would purchase the burger if it is
marketed.
(i) What could the survey company report to “Ramla Burger” regarding acceptance of the
chicken burger in the population?
(ii) Is this an example of descriptive statistics or inferential statistics? Explain
3. State whether the data from the following statement is nominal, ordinal, interval or ratio.
(i) Average temperatures in a shopping mall.
(ii) The nationalities of the respondents in a survey.
(iii) A summary of the number of magazine sold by country.
(iv) The satisfaction of the services provided by a Fitness Centre.
4. A professor wants to estimate the study hours of UBEQ1013 QT1 students. Identify and justify
which of these types of sampling is used: cluster, simple random, systematic, or stratified if:
(i) She teaches two sections, and plans on randomly selecting 10 students from the first section
and 15 students from the second section.
(ii) She assigns each student a number and generates random numbers. She then interviews
each student whose number is being selected randomly.
(iii) Three UBEQ1013 QT1 sections were randomly selected and all students from these three
sections were asked to fill out the questionnaire.
5. A national survey has revealed that 40% of unskilled worker travel to work by public
transports and 50% use their own transport. For all workers, 47.5% use public transport and
one in every ten use methods other than their own or public transport. A statistical worker in
a large factory which is known to have about three time as many skill workers as unskilled
workers has been asked to sample 200 employees for their views on factory-provided transport.
He decides to take a quota sample at factory gate B at five’ o’clock one evening.
(i) How many skill workers will there be in the sample?
(ii) How many workers who travel to work by public transport will be interviews?
(iii) Calculate the quota to be interviewed in each of the six sub-groups defined.
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Tutorial 11
Discussion Questions (Note: Use Graph Paper or Microsoft Excel)
1. Table 1: Monthly Rental Rate for Selected Areas 2018

Area Rental rate Area Rental rate
Ampang 534 Rembau 479
Bandar Sunway 551 Salak Selatan 496
Bangi 539 Serdang 535
Bangsar 568 Seremban 501
Damansara 552 Setapak 503
Dang Wangi 534 Sri Petaling 529
Kajang 548 Subang 534
Kelana Jaya 533 SungaiLong 523
Kepong 539 Tasik Selatan 553
Klang 491 Usi 527
Petaling Jaya 537 Wangsa Maju 552
Refer to the data on table above. Suppose that we wish to organize the rental rate into a
frequency distribution with about five classes.
a) Determine a convenient class interval, given that all class intervals are to be uniform
in size.
b) Setting the lower limit of the first class at 470, construct the frequency distribution for the
data in table I using a class interval in (i).
2. The radio music listener market is diverse. Lister formats might include adult contemporary,
album rock, top 40, oldies, rap, country and western, classical, and jazz. In targeting audiences,
market researchers need to be concerned about the ages of the listeners attracted to particular
formats. Suppose a market researcher surveyed a sample of 129 listeners of oldies stations and
obtained the following age distribution.
Age Frequency
20 and less than 25 16
(a) Calculate the sample mean.

(b) Construct a histogram to display the data.
(c) Estimate the mode using the histogram.
(d) By constructing an ogive with cumulative percentage, find the lower quartile and upper
quartile.
3. 56, 32, 54, 32, 23, 67, 23, 45, 12, 32, 34, 24, 36, 47, 19, 43
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a) Find the minimum value, maximum value, first quartile, median and third quartile for
the data above.
b) Construct a box–and–whisker plot for the given data above.
4. The following table shows the sample of 150 participants of a dance competition with following
distribution in participants’ age:
Age (Years old) Frequency

15 - 20 30
20 - 25 45
25 - 30 28
30 - 35 24
35 - 40 10
40 – 45 7
45 - 50 4
50 - 55 2
(a) Calculate the sample mean, median and mode for above distribution.
(b) What kind of skewness can we expect from your answer in (a)?
(c) Based on your answer in (b), why participants’ age has such a distribution?
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Tutorial 12
1. The stock price for ABC Capital Bhd rose 7.88% in January 2005 and declined by 10.37%
in February 2005.
(a). Compute the arithmetic mean rate of return.
(b). Compute the geometric mean rate of return.
(c). Explain the difference in the results of b(i)) and b(ii).
2. Two workers on the same job show the following results over a long period of time.
Worker A Worker B
Mean time of completing the job (minutes) 30 25
Standard deviation (minutes) 60 4
a) Which worker appears to be more consistent in the time he requires to complete the
job? Explain.
b) Which worker appears to be faster in completing the job? Explain.
3. Given the following sample data sets: Set A and Set B;

Set A: 9,9,10,10,10,10,11,11
Set B: 3,5,9,10,10,11,15,17
(a) Determine the mean and standard deviation for the data sets above
(b) Determine the coefficient of variation for the data sets above and comments on your
results with reference to the measures that you have calculated.
4. The following table gives the earned run averages (ERAs) for the 2017 season for the pitching
staffs of the 16 baseball teams in the national league.
ERAs Frequency, f
3.00 – 3.50 1
3.50 – 4.00 6
4.00 – 4.50 6
4.50 – 5.00 2
5.00 – 5.50 1
(a) Calculate the grouped mean, variance and standard deviation.
(b) Calculate the grouped median.
(c) Discuss the skewness of the above frequency distribution from results obtained from (a)
and (b).
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Tutorial 13
Topic 6: Probability
1. A survey of new intake of undergraduate students in the UTAR-FBF revealed the following
regarding the gender and majors of the students:
Major
Gender Accounting (A) Economics (E) Other Courses (O) Total
Male (M) 250 175 150 575
Female (F) 240 50 135 425
Total 490 225 285 1000
Note: Other courses referring to Management, Finance, Marketing and Entrepreneurship.
a) What is the probability of selecting a female student?
b) What is the probability of selecting an Economics or Other Courses major?
c) What is the probability of selecting a female or an accounting major?
d) What is the probability of selecting a male student, given that the person selecting an
Accounting major?
e) What is the probability of selecting an Accounting major, given that the person selected
is male?
2. 0.2 C
0.3 A
C’
0.8
0.4 C
0.7 B
0.6 C’
The tree diagram above represents a two-stage experiment, use the diagram to find:
a) P(A  C)
b) P(B  C )
c) P(B C’)
d) P(C)
e) P(A|C)
3. 65% of UTAR students have an ATM card; 75% of those with an ATM card also have a fix
deposit account, whereas only 35% without an ATM card have a fix deposit. Find the
probability that:
a) A UTAR student has a fix deposit account;
b) A UTAR student without a fix deposit account that has an ATM card; and
c) A UTAR student has an ATM card or a fix deposit account.
4. (a) How many ways are there of arranging 3 different jobs between 5 men, where any man
can do only one job?
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(b) In how many ways can a member of a hiring committee select 3 out of 12 job
applications?
5. A 5-person committee is to be formed from a group of 10 female and 7 male executives.

a) How many 5-person committees are possible?
b) How many of those committees contain 3 females and 2 males?
c) How many of those committees contain at most 1 male?
d) What is the probability that those committees contain at most 1 male?
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Tutorial 14
Topic 7: Discrete Probability
1. A survey reveals the following frequencies for the number of coloured TV per household.
Number of TVs Number of Households
0 300
1 470
2 850
3 500
Total 2120
(a) Form the probability distribution for the number of coloured TV per household.
(b) Compute the mean or expected number of coloured TV per household.
(c) Compute the variance and standard deviation.
Calculate the probability of the following events:

(d) The number of coloured TVs is 2?
(e) The number of coloured TVs is two or more?
2. A small cake house at Bandar Sg Long is selling its special banana cheese cake every morning.
The probability that a customer buys the special banana cheese cake is 0.72. If a sample of 10
customers who have bought cakes in a certain day, find the probability that:
(a) exactly 4 of them bought the special banana cheese cake.
(b) more than 7 of them bought the special banana cheese cake.
3. A UTAR student travels to university by KTM train. The probability that the train is late is 0.2.
Over the next three weeks, out of a total of 15 journeys.
(a) Find the mean and standard deviation of the number of times in three weeks that the student
finds the train is late.
(b) Find the probability that the train is late three or fewer times.
(c) Find the probability that the train is late between 6 and 8 (inclusive) times.
4. The probability of successful sales on a single contract is approximately 0.01. If the salesperson
contacts 100 people, what is the approximate probability of making at least one sale?
5. ABC Bank has an average of 9 customers every two hours.

a) Find the probability that exactly 40 customers come to the bank in a day (assume the bank
operates for 8 hours a day).
b) Find the probability at least 3 customers come to the bank during an hour.
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Self-Practice Questions
1. Solve the following inequalities:

(a) 8x  6 > 7 x  13
2 x  3 8x  3
(b) 
8 2
(c) 7 x  2  15 x  32
Answer: (a) x > 19 (b) x  -0.5 (c) x ≤ 4.25
2. Multiply out the brackets:

(a) 5(3x + 2y) – 6(12y – 35x)
(b) 6x2 + y – z2 – 4(3x3 + 7y – z)
(c) (6x – 5)(9 + 2x)
Answer: (a) 225x - 62y (b) -12 x 3 +6x2 – 27y – z2+4z (c) 12 x 2 +44x – 45
3. Evaluate the following without using a calculator.

4 30
(a) 
5 38
3 1 80
(b)  
5 24 100
3 8
(c) 8 
5 7
5 2
(d) 1  1
6 15
9 1 3
(e) 4  2  2
10 2 5
12 1 26 29
Answer: (a) (b) (c) 9 (d) 2 (e) 5
19 32 35 30
4. Find expressions for the following algebraic functions, simplify the answers as far as possible.
2 x 3  6 x 2 2( x  2) 2
(a) 
x2 x2
1 x2  2
(b) 
x x
2
(c) 2( x  1) 
x 1
5 2 3
(d) 2  2 
x ( x  1) x x 1
Tutorial 202101
1 2 x ( x  2) 3x 2  2 x  3
Answer: (a) 4(x + 3)(x - 2) (b) 2 (c) (d)
x 2 x 1 x 2 ( x  1)
5. Solve the following equations:

(a) 5 x  125 (b) 5 x2  25
(c) 4(x + 2) + (x + 2)2
Answer: (a) x = 3 (b) x = 4 (c) (x + 2)(x + 6)
6. Express the following exponential functions as logs:

1
t
(a) y  e t 4 (b) ye 3
(c) y  e 3.61092 (d) 112  e 4.71850
1
Answer: (a) ln y  t  4 (b) ln y  t (c) ln y  3.61092 (d) ln 112  4.71850
3
7. Use the rules of logs to simplify

(a) log a ( xy )  log a 3 x  2 log a x
(b) 9 log b x  4 log b y
.
8
x9
Answer: (a) log a ( x 3 y) (b) log b ( )
y4
8. Simplify each of the following:

(a) ln Pe 2  
(b) ln ce 2t
 e3 
(c) ln  4 
a
(d) ln  6 
e  e 
 ce 2 
(e) ln  
 d 
Answer: (a) ln P  2 (b) ln c  2t (c) ln a  4 (d)  3 (e) ln c  ln d  2
9. A firm’s annual sales fall from RM50,000 to RM45,000 from one year to the next. Express
the fall as a percentage of the original.
Answer: -10%
Tutorial 202101
10. The government imposes a 5% service tax on the prices of goods. How much does the
consumer pay for “Nasi Lemak” priced by a shop at RM5.50 ?
Answer: RM5.78
11. The GDP of a country has increased by 6.2% in year 2003 with the value RM135 billion. What
was the GDP for year 2002?
Answer: RM127.12 billion
12. The price of a monitor is RM 297.50 after a 20% reduction is taken. What was the price of the
monitor before the reduction?
Answer: RM371.88
13. Find the slope of the straight line passing through

(a) (2,6) and (3,9)
(b) (2,-1) and (6,-5)
Answer: (a) 3 (b) -1
14. Find the equilibrium price and quantity for the following markets:
QS  20  3P
(a)
Q D  220  5P
QS  45  8P
(b)
QD  125  2 P
QS  32  7 P  0
(c)
QD  128  9 P  0
13P  QS  27
(d)
QD  4 P  24  0
Answer: (a) P = 30, Q = 70 (b) P = 17, Q = 91 (c) P = 10, Q = 38 (d) P = 3, Q = 12

Tutorial 202101
15. Supply and demand conditions can also be expressed in quadratic form. Find the equilibrium
price and quantity, given the demand function P  Q 2  3Q  20  0 and the supply function
P  3Q 2  10Q  5 .
Answer: P = 2, Q = 3
16. Differentiate:
(a) y  4 x3  12 x 2  3x  12
(b) y  ( x 4  3x 2  5) 3
2 7
(c) y  4 x 3  2
 3
x x
1
4 21
Answer: (a) 12 x 2  24 x  3 (b) 3( x 4  3x 2  5) 2 (4 x 3  6 x) (c) 6 x 2  
x3 x 4
17. Evaluate f ’(x) for each of the following functions at the given point.
2
(a) f ( x)  8 x  4  at x = 1
x
2
(b) f ( x)  x  at x = 2
x2
Answer: (a) 6 (b) 0.8536
d2y
18. Find the expressions for in the case when
dx 2
(a) y  12  10 x  6 x 2  2 x 3
(b) xy  3x 4  4 x 2
Answer: (a) 12 – 12x (b) 18x
19. Integrate:
(a) f ’(x) = 5x3
(b) f ’(x) = 4x2 – 6x + 5
3
(c) f ’(x) = 2
x
(d) f ’(x) = 12x2 + 5, when x = 1 and f (x) = 10.
5 4 4 3 3
Answer: (a) x C (b) x  3x 2  5 x  C (c)  C (d) 4 x3  5 x  1
4 3 x
Tutorial 202101
100  P
20. Demand function is Q 
20
Fixed Cost = RM150
Q
Variable Costs are 4  per unit
50
Find expressions for
(i) TR and MR in terms of Q
(ii) TC and MC in terms of Q
Answer: (i) TR = 100Q – 20Q2 MR = 100 – 40Q

2
Q 1
(ii) TC = 150 + 4Q + MC = 4 + Q
50 25
21. A manufacturer knows that if x (hundred) products are demanded in a particular week:
(i) the total cost (TC) function (RM’000) is 14  3x

(ii) the total revenue (TR) function (RM’000) is 19 x  2 x 2
Find: (a) Derive the (total) profit function.
(b) The profit break-even points (BEP).
(c) Calculate the level of demand that maximizes profit,  (the maximum profit point)
and the amount of profit obtained.
Answer: (a) 16x – 2x2 – 14 (b) x = 1 or 7 (c) x = 4, maximum profit = RM18,000
40  P
22. The product of a firm’s demand function is Q  (hundreds). The fixed costs (RM) of
8
production are 12, and the variable costs (RM) are (9 – Q) per units.
(i) Write down the expressions for total revenue (TR) and total costs (TC). Hence obtain
the expression for the profit function,  .
(ii) Find the price and quantity at which  is maximum.
(iii) Find the price and quantity when the product is break even.
Answer:
(i)TR = 40Q – 8Q2 TC = 12 + 9Q – Q2  = -7Q2 + 31Q – 12
(ii) P = 22.29, Q = 31/14
(iii) P = RM8 or RM 36.57, Q = 4 or 3/7
Tutorial 202101
25  P
23. If the demand equation of a goods is Q  , find the level of output which maximizes
5
total revenue (TR). Answer: Q = 2.5
24. Determine the following integrals

a)  x 5 dx
1
b) x 5
dx
 4 x dx
3
c)
d)  x dx =  x 1 / 2 dx
dx 1
e) x 4
= 4
dx =  x 4 dx
x
 2 x 
 3 x 4 dx
6
f)
 5x 
 2 x 2  3x dx
3
g)
4 3
1 6 5 5 2 2
[Answer: (a) x c (b) x c (c) x 4  c (d) x c
6 4 3
 1 3 2 3 5 4 2 3 3 2
(e) x c (f) x 7  x 5  c (g) x  x  x c
3 7 5 4 3 2
 12 1

25. Find the integral for y    x  3 x 2 dx , given the initial condition y = 0 when x = 0.

 
3 1
2
Answer: y  x 2  6 x 2
3
 1

26. Find the integral for y    2 x 5  3 x 4 dx , given the initial condition y = 6 when x =0.
 
3
1
Answer: y  x 6  4 x 4  6
3
Tutorial 202101
27. Find expressions for
dQ
(a) for the supply function, Q  P 3  2 P 2  P  1
dP
d ( AC ) 30
(b) for the average cost function, AC  2  10
dQ Q
dQ
(c) for the production function Q  10 L3
dL
60
Answer: (a) 3P 2  4P  1 (b)  3 (c) 15 L
Q
28. Solve for x :

(a) 4(3 x )  8
(b) e 2 x  4
(c) 5 2 x 6 x  811
(d) 5  10
3x 10
(e) log3 (25−x2) = 2

(f) ln(x −1)=1+ln(3x +2)
Answer: (a) 0.6309) (b) 0.693147 (c) 1.34 (d) 2.4219 (e) ±4 (f) - 0.89961
Tutorial 202101
Topic 2: Index Number
1. (a) What is an index number
(b) Explain what I1985/1983 = 98 means.
2. Suppose the following data represent butter stocks (thousand tones) in the United Kingdom in
a particular year. Find the simple index numbers for the data.
(a) Let 1991 be the base year

(b) Let 1996 be the base year
Year Butter Stocks

1991 350
1992 340
1993 366
1994 400
1995 380
1996 390
3. Given the following two series of indexes, construct a chain index with a base year of 1991.
Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Series 1 100 102 105 109 113 117.5
Series 2 100 104 108 111 118 125
4. Given the following two series of indexes, construct a chain index with a base year of 2008.
Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Series 1 100 107 112 118 124 127.7
Series 2 100 103 110 116 122 128
Tutorial 202101
5. Below are the prices of A, B, C and D for January 2003 and January 2004. Also included are
the quantity purchased (January 2003 as the base index).
January 2003 January 2004
Item Price (RM) Quantity Price (RM) Quantity
A 2.49 6 2.69 6
B 3.29 4 3.59 5
C 1.59 2 1.79 3
D 1.79 3 2.29 4
i. Determine Laspeyres’s Price Index

ii. Determine Paasche Price Index
iii. Determine Fisher’s Ideal Index
6. The following table shows the prices and quantities of 3 types of products in 2002 and 2003.
2002 2003
Product Price (RM) Quantity Price (RM) Quantity
X 55 80 75 75
Y 70 40 95 30
Z 40 10 40 9
Calculate Laspeyres and Paasche price indices for 2003 using 2002 as the base year.
.
7. 3 commodities are selected to calculate the CPI of a country: Calculate the CPI.
Commodity Base Period Current Period
Price Quantity Price Quantity
A 32 15 48 12
B 60 3 68 3
C 88 1 92 3
8. The following data gives the consumer price index from year 1999 to 2004.
Year Consumer Price Index Consumer Price Index

(Base year = 1995) (Base year = 2001)
1999 103.5 Y
2000 108.0 96
2001 112.5 100.0
2002 X 108.0
2003 110.2
2004 101.4
(i). What is the CPI for year 2002 calculated using year 1995 as the base year [i.e. the value
of X (Answer: 121.5)
Tutorial 202101
(ii) What is the CPI for year 1999 calculated using year 2001 as the base year [i.e. the value
of Y (Answer: 92.0)
(iii) Construct another index using year 2000 as the base year.
9. The following data relate to a survey of household expenditure.
Commodity 2001 2002 2003

Price Quantity Price Quantity Price Quantity
(RM) (units) (RM) (units) (RM) (units)
A 32 201 34 199 35 197
B 48 278 50 270 51 281
C 65 45 66 47 47 46
D 55 66 55 70 56 32
(i) Calculate price index number for the year 2002 using the Laspeyres method with
2001=100.
(ii) Calculate price index number for the year 2003 using the Passche method with 2002 =
100.
Answer: (i) 103.81 (ii) 98.58
10. The following data show the hypothetical energy prices and consumption from 1984 – 1987
in a country.
1984 1985 1986 1987

Energy prices
Coal (RM/tonne) 50 52 49 48
Petroleum (RM/tonne) 150 150 72 78
Electricity (RM/MWh) 30 32 30 28
Gas (RM/therm) 0.25 0.30 0.23 0.21
Energy consumption
Coal (tonne) 10 14 14 12
Petroleum (tonne) 15 14 9 10
Electricity (MWh) 12 15 18 20
Gas (therm) 48 60 58 55
(i) Using 1984 as the base year, calculate the Laspeyres price index for year 1986. Leave
your final answer in 2 decimal points.
(ii) Calculate the Laspeyres quantity index for the various types of energy consumed in year
1985 (with 1984 as the base year).
.
Tutorial 202101
1. Find the 15th term and the sum of the first 15 terms of the progression:
4, 7, 10, 13, ……. (Answer: 46, 375)
2. Find the 8th term and the sum of the first 8 terms of the progression:
1, 3, 5, 7, 9, 11, ……. (Answer: 15, 64)
3. Find the 8th term and the sum of the first 8 terms of the geometric progression:
1, 1.05, (1.05)2, (1.05)3, …….. (Answer: 1.4071, 9.5491)
4. RM 1,250 is invested at 8 percent simple interest. How much will have accrued after 4 years?
(Answer: RM 1,650)
5. Find the amount of:

a) RM 500 compounded at 12 percent over 5 years. (Answer: RM 881.17)
b) RM 800 compounded at 9 percent over 6 years. (Answer: RM 1,341.68)
6. A sum of RM 800 has been invested at an interest rate of 12 percent per annum for 5 years.
What is the value of this investment, if the interest rate is paid as simple interest and
compounded each year? (Answer: RM 1,280.00 and RM 1,409.87)
7. Find the effective interest rate corresponding to the given nominal rate.
(a) 20 percent compounded semiannually (Answer: 21%)
(b) 20 percent compounded quarterly (Answer: 21.55%)
(c) 20 percent compounded monthly (Answer: 21.94%)
(d) 20 percent compounded daily (Answer: 22.13%)
8. Find the accumulated amount after 3 years if RM 2,500 is invested at 10 percent per year
compounded.
P = RM 2,500, r = 10 percent, t = 3
(a) annually
(b) semi-annually
(c) quarterly
(d) monthly
(e) daily
Answer:(a)RM3,327.50(b)RM3,350.24(c)RM3,362.22(d)RM3,370.45(e)RM3,374.51
9. Over a five-year period, an original principal of RM3,000 accumulated to RM3,572.83 in an

account in which interest was compounded monthly. Determine the interest rate. (Answer:
3.5%)
Tutorial 202101
10. You are offered RM1,000 today or RM25,000 in 25 years. Assuming that you can earn 11
percent on your money, which should you choose? (Answer: RM25,000)
11. If a short-term loan of RM10,000 is to be amortized through equal payments at the end of
each quarter for three years, and the interest rate is 8% compounded quarterly, how much is
each payment? (Answer: RM945.60
12. A sum of RM 5,000 was invested 5 years ago. At the end of each year a further RM 1,000 was
added. If the rate of interest paid was 12 percent per annum, how much is the investment worth
now? (Answer: RM 15,164.56)
13. You require RM 4,000 in 5 years’ time. How much will you have to invest at the end of each
year if the interest charged is 15 percent per annum? (Answer: RM 593.26)
14. A sum of RM 99,000 is to be repaid over a 25-year period through equal installments made at
the end of each year. If an interest rate of 6 percent per year is charged on the unpaid balance
and interest calculations are made at the end of each year, determine the size of each installment
so the loan is amortized at the end of 25-year. (Answer: RM 7,744.45)
15. What monthly payment is required to amortize a loan of RM 20,000 over 5 year if interest at
the rate of 12 percent per year is charged on the unpaid balance and interest calculations are
made at the end of each month? (Answer: RM 444.89)
16. The proprietor of XYZ Sdn Bhd has decided to set up a sinking fund for the purpose of
purchasing a truck in 3 years’ time. It is expected that the truck will cost RM 80,000. If the
fund earns 12 percent interest per year compounded quarterly, determine the size of each (equal)
quarterly installment the proprietor should pay into the fund. (Answer: RM 5,636.97)
17. Your uncle’s newborn baby receives a RM5,000 gift toward a college education from your
grandparents. How much will the RM5,000 be worth in 17 years if it is invested at 7%
compounded quarterly? (Answer: RM16,267.11)
18. An EPF account has RM20, 000 in it and the owner decides not to add any more money to the
account other that interest earned at 6% compounded daily. How much will be in the account
35 years from now when the owner reaches retirement age? (Answer: RM163,295.21)
19. It is estimated that an investment in a new process will cause the following cash flow:
End year 0 1 2 3 4 5 6
Cash Inflow (RM) 10,000 10,000 15,000 20,000 10,000
Cash Outflow (RM) 40,000 8,000
The firm wishes to earn at least 5% per annum on project of this type. In addition, the
investment have to undergo a regular expenses every three years time, with the cost RM3,000.
Calculate the Net Present Value (NPV) of the project and comment on the course of action to
be taken. (Answer: +RM 732.68)
Tutorial 202101
20. Darla purchased a new car cost RM 16,000 during a special sales promotion. She can secure a
loan from the manufacturer at a rate of 7.9% per year compounded monthly. OR, she can
borrow from her bank that charges 11.5% per year compounded monthly. Assuming each loan
will be amortized by 36 equal monthly installments.
(i) Determine the monthly installment for the loan from the manufacturer. (Answer: RM
500.64)
(ii) Determine the monthly installment if she borrows from her bank.(Answer: RM 527.62)
(iii) How much less will she have paid in interest payment over the life of the loan by
borrowing from the manufacturer instead of her bank? (Answer: RM971.28)
21. (a) Calculate the future sum of RM5,000, given that it will be held in the bank for 5 years at
an annual interest rate of 6% compounded quarterly. (Answer: RM6,734.28)
(b) Siti wished to have RM50,000 in the future date. She makes a deposit of RM2,897.23 at
the end of every quarter into her savings account that pay and interest of 4% compounded
quarterly in order to accumulate the RM50,000. How many years will it takes for Siti to
accumulate the RM50,000? (Answer: 4 years)
(c) The management is considering a project of buying a new machine in a new production
line, which will cause the following cash flow:
End year 0 1 2 3 4 5 6 7
Cash Inflow (RM) 1,000 2,000 2,500 3,000 3,500 4,000 4,000
Cash Outflow (RM) 15,000
If the management wishes to earn at least 5 percent per annum on project of this type,
calculate the Net Present Value (NPV) of the project and comment on the course of
action to be taken. (Answer: RM 963.73)
22. Stella wishes to provide her newborn child with higher education in a private college when
the child turns 18 years old.
a) The college fees are RM 20,000 per year today and these fees are expected to rise by
5% per year from now and through the following 18 years of the child’s age. How much
is the first year’s college fees when the child is 18 years old? (Answer:RM48132.3847)
b) Stella estimated that her child would need 4 years to complete his college studies. She
will have to make payments for her child when he is 18, 19, 20 and 21 years old.
Assuming the college fees are fixed during his years of study, how much is the total 4
years college fees if the interest rate is 8%. (Answer: RM216,889.9163)
23. You are considering buying a business for RM100,000. It needs an immediate cost of
RM10,000 to revive the whole business process. An accountant gives advice that it will give
return of RM30,000 at the end of the first three years of operation. Finally, it could be sold
for RM70,000 at the end of third year. Should you buy this business (justify your answer) if
interest is compounding at 10% per annum. (Answer: RM17197.60)
Tutorial 202101
24. Suppose you put RM200 into a savings account today, the account pays 8% compounded
semiannually, and you withdraw RM50 one year after your initial deposit. What would your
ending balance be 20 years after the initial RM200 deposit was made, assuming that you make
no additional deposits? (Answer: RM738.26)
25. How much would an investment of RM 1,500 accumulate to in three years if interest were paid
at 6 percent per annum for the first year, 8 percent per annum for the second year and 10 percent
per annum for the third year? (Answer: RM1,888.92)
26. A principal, RM 15,000 is invested at 6 percent annual interest rate for 8 years. Determine its
future value if it is compounded semi-annually. (Answer: RM24,070.60)
Tutorial 202101
1. Write the system of inequalities that describes the shaded region.

(a) 2x + y  6, x + 6y  6, x  0, y  0 (b) 3  x, x  4
(c) y  2x, x  y (d) x  2, y  x – 2
2. Determine the solution set for this system of inequalities graphically:

(a) 3x  y  3, 2 x  y  4 (b) x  y  1, 4 x  3 y  12, x  0, y  0
(c) 2 x  y  6, x  3 y  6, x  0, y  0
(d) y  x  1, y  x  1, y  0, x  0
(e) y  x  1, 2y  x  2, y  x  3, y  0, x  0
Tutorial 202101
3. Formulate, but do not solve, a linear program describing the following scenario. Patricia
has at most $30,000 to invest in securities in the form of corporate stocks. She has narrowed
her choices to two groups of stocks: growth stocks that she assumes will yield a 15% return
(dividends and capital appreciation) within a year and speculative stocks that she assumes
will yield a 25% return (mainly in capital appreciation) within a year. Determine how much
she should invest in each group of stocks in order to maximize the return on her investments
within a year if she has decided to invest at least 3 times as much in growth stocks as in
speculative stocks.
Let x denote Patricia's investment in growth stocks and y denote the value of her
investment in speculative stocks, where both x and y are measured in thousands of dollars.
Then the return on her investments is given by P = 0.15x + 0.25y. Since her investment
may not exceed $30,000, we have the constraint x + y < 30. The condition that her
investment in growth stocks be at least 3 times as much as her investment in speculative
stocks translates into the inequality x > 3y. Thus, we have the following linear
programming problem:
Maximize Return = 0.15x + 0.25y

subject to x + y ≤ 30000
x – 3y  0
x  0, y  0
4. Formulate, but do not solve, a linear program for the following scenario. A boat
manufacturer makes fishing boats, which are sold for a profit of RM 500 each, and canoes,
which are sold for a profit of RM 400 each. Each fishing boat requires 100 assembly hours
and 25 finishing hours, while each canoe requires 75 assembly hours and 50 finishing hours.
The manufacturer has a total of 8000 assembly hours and 3000 finishing hours available.
How many fishing boats and how many canoes should be made to maximize the
manufacturer’s profit? (Let x = the number of fishing boats and y = the number of canoes.)
Fishing Canoes Time

boat (x) (y) (hours)
Assembly 100 75 8000
Finishing 25 50 3000
Profit
500 400
(RM/unit)
Maximize: Profit = 500x + 400y

subject to: 100x + 75y ≤ 8000
25x + 50y ≤ 3000
x  0, y  0
5. Formulate, but do not solve, a linear program for the following scenario. A supplier has on
hand 200, 300 and 120 units of raw materials A, B and C, respectively. The company
produces two products requiring the number of units of each raw material listed in the table
below. Product I sells for RM 200 and product II for RM 350. If the company wishes to
maximize the gross income, how many of each product should be produced?
(Let x = the number of items of Product I and y = the number of items of Product II.)
Tutorial 202101
Product I Product II
Raw Material A (units) 3 2
Raw Material B (units) 4 5
Raw Material C (units) 2 1
Answer:
. Product I Product II Total

Material
(x) (y) (unit)
A 3 2 200
B 4 5 300
C 2 1 120
Income
200 350
(RM/unit)
Maximize Income = 200x + 350y

subject to: 3x + 2y ≤ 200
4x + 5y ≤ 300
2x + y ≤ 120
x  0, y  0
6. (a) A fruit seller sells only cikus and starfruits. All the fruits are sold in packets. Cikus
are sold in packets that consist of 6 cikus per packet with the price of RM5. Starfruits
are sold in packets that consist of 4 starfruits per packet with the price of RM6. If he
sells x packets of cikus and y packets of starfruits a day, write an inequality in terms
of x and y that satisfies each of the following constraints:
(i). He sells at least 15 packets of cikus. x ≥ 15
(ii). He sells at least 20 packets of starfruits. y ≥ 20
(iii). He sells at least 40 packets of fruits altogether. x + y ≥ 40
(iv). The total number of fruits sold by him is not more than 340.
6x + 4y ≤ 340 or 3x + 2y ≤ 170
(v). The value of sales of fruits is not less than RM150.
5x + 6y ≥ 150
(b) A factory has x skilled workers and y less-skilled workers. Write an inequality in
terms of x and y that satisfies each of the following constraints.
(i). The total number of workers is not more than 60. x + y ≤ 60
(ii). The total number of less0skilled workers is at least three times the number of
skilled workers. y ≥ 3x
(iii). The number of less-skilled workers exceeds the number of skilled workers by
12 or less. y – x ≤ 12
(iv). The total monthly salary of the workers is not more than RM30,000 if the
monthly salaries of a skilled worker and a less-skilled worker are RM3,000 and
RM900. 3,000x + 900y ≤ 30,000 or 10x + 3y ≤ 100
7. A hawker sells two types of crackers, i.e. the shrimp crackers and the fish crackers. The
profits from the sales of a packet of shrimp crackers and a packet of fish crackers are 30-
sen and 20-sen respectively. Assuming that the hawker sells x packets of shrimp crackers
and y packets of fish crackers in a week, state the inequalities in terms of x and y that satisfy
the following constraints.
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(i). He sells at least 190 packets of fish crackers in a week.

y ≥ 190
(ii). The maximum number of packets of crackers sold in a week is 450.
x + y ≤ 450
(iii). The profits he obtains in a week is not less than RM85.
30x + 20y ≥ 8500 or 3x + 2y ≥ 850
8 Lazat Cake Shop sells two types of cakes, i.e. the ‘kukus’ cakes and the ‘lapis’ cakes. The
price of a piece of ‘kukus’ cake is RM8 while the price of a piece of ‘lapis’ cake is RM5.
Using x and y as the number of pieces of ‘kukus’ and ‘ lapis’ cakes that are sold in a day
respectively, state the inequalities in terms of x and y that satisfy the following constraints:
(i). The number of pieces of the ‘kukus’ cakes sold in a day is not more than 60.
x ≤ 60
(ii). The number of pieces of the ‘lapis’ cakes sold in a day is not less than 25.
y ≥ 25
(iii). The total value of sales of both cakes is at least RM200.
8x + 5y ≥ 200
9. Formulate, but do not solve, a linear program describing the following scenario. A meat
market sells two grades of ground beef. Grade A sells for RM 1.55 per pound and contains
24% fat by weight. Grade B sells for RM 1.05 per pound and contains 34% fat by weight.
The market’s refrigerated storage capacity limits its total daily supply of ground beef to 75
pounds. If they have a maximum of 60 pounds of “pure” beef and 35 pounds of fat
available for grinding each day, how many pounds of each grade of ground beef should
the market prepare to maximize daily revenue, R? (Let x = the number of pounds of Grade
A and y = the number of pounds of Grade B.)
Max
Grade A (x) Grade B (y)
(pounds)
“Pure” Beef 0.76 0.66 60
Fat 0.24 0.34 35
Storage Capacity 1 1 75
Revenue
1.55 1.05
(RM/pound)
Maximize Revenue = 1.55x + 1.05y
subject to: x + y ≤ 75
0.24x + 0.34y ≤ 35
0.76x + 0.66y ≤ 60
x  0, y  0
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10. A factory produces four products, A, B, C and D which earn contributions of RM20, RM25,
RM12 and RM30 per unit respectively. The factory employs 500 workers who work at a
40-hour per week. The hours required for each product and the material requirements are
set out below:
Product
A B C D
Hours per unit 6 4 2 5
Kgs Material X per unit 2 8.3 5 9
Kgs Material Y per unit 10 4 8 2
Kgs Material Z per unit 1.5 - 2 8
The total availability of materials per week is:

X 100,000 kgs,
Y 65,000 kgs
Z 220,000 kgs
The company wishes to maximise contribution:
Formulate the LP problem in the standard manner.
(Answer: Maximise Contribution=20A + 25B + 12C + 30D
Subject to 6A + 4B + 2C + 5D ≤ 20,000
2A + 8.3B + 5C + 9D ≤ 100,000
10A + 4B + 8C + 2D ≤ 65,000
1.5A + 2C + 8D ≤ 220,000
A, B, C and D  0
where A, B, C and D represent the number of units of the product A, B, C and D.
11. Patricia has at most $30,000 to invest in securities in the form of corporate stocks. She has
narrowed her choices to two groups of stocks: growth stocks that she assumes will yield a
15% return (dividends and capital appreciation) within a year and speculative stocks that
she assumes will yield a 25% return (mainly in capital appreciation) within a year.
Determine how much she should invest in each group of stocks in order to maximize the
return on her investments within a year if she has decided to invest at least 3 times as much
in growth stocks as in speculative stocks.
(Answer: Investing $22,500 in growth stocks and $7,500 in speculative stocks)
Let x denote Patricia's investment in growth stocks and y denote the value of her
investment in speculative stocks, where both x and y are measured in thousands of dollars.
Then the return on her investments is given by P = 0.15x + 0.25y. Since her investment
may not exceed $30,000, we have the constraint x + y < 30. The condition that her
investment in growth stocks be at least 3 times as much as her investment in speculative
stocks translates into the inequality x > 3y. Thus, we have the following linear
programming problem:
Maximize Return = 0.15x + 0.25y

subject to
x + y ≤ 30
x – 3y  0
x  0, y  0
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The graph of the feasible set S is shown in the figure and the value of P at each of the
vertices of S is shown in the accompanying table.
Vertex Return = 0.15x + 0.25y

A (0,0) 0
B (30,0) 4.5
45 15
C( 2 , )
2 5.25
The maximum value of Return occurs when x = 22.5 and y = 7.5. Thus, by investing
$22,500 in growth stocks and $7,500 in speculative stocks, Patricia will realize a return of
$5250 on her investments.
12. Maximize,
Z = 2x - 3y
subject to,
2x + y ≥ 1
x-y≤1
x, y ≥ 0.
Also find the corner point where the value of z is attained.
(Answer: Z=2 when x=1, y=0)
Z = 2 when x = 1, y = 0
13. Use the corner-point technique to maximize
Z = x + 2y
subject to
y≥x+3
x + 2y ≤ 24
x, y ≥ 0.
Also determine the values of x and y at which the maximum value occurs.
(Answer:24)
14. A chair company produces two models of chairs, the Sequoia and the Saratoga. The
Sequoia model takes 3 hours to assemble and 1 hour to paint. The Saratoga model takes
2
2 hours to assemble and 1 hour to paint. The maximum number of hours available to
assemble is 24 per day and the maximum number of hours available to paint is 8 per day.
(a) If the company earns a profit of $20 per Sequoia model and $30 per Saratoga
model, find the number of models produced per day in order to maximize profit.
(Answer: 4 Sequoia models and 6 Saratoga models)
(b) If the company earns a profit of $30 per Sequoia model and $15 per Saratoga
model, find the number of models produced per day in order to maximize profit.
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(c) Suppose the company decides to upgrade the two models so it takes an additional
2 hours to detail the Sequoia and 2 hours to detail the Saratoga. The maximum
number of hours available to detail is 18 per day. If the company earns a profit
of $45 per Sequoia model and $35 per Saratoga model, find the number of
models produced per day in order to maximize profit. (Answer: 6 Sequoia
models and 3 Saratoga models)
(d) Suppose the company decides to upgrade the two models so it takes an additional
2 hours to detail the Sequoia and 2 hours to detail the Saratoga. The maximum
number of hours available to detail is 18 per day. If the company earns a profit
of $30 per Sequoia model and $40 per Saratoga model, find the number of
models produced per day in order to maximize profit.
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1. A national survey is carried out to identify the current issues of concern in Malaysia. The
people of Malaysia consist of 50% youths below the age of 20 years, 40% adults between
the ages of 20-50 years and 10% senior citizens of age more than 50 years. The respondents
would be asked to comment national problems that they consider worrying. These include
issues such as poverty, drug abuse, unemployment, illegal immigrants and high crime rates.
(i) What kind of information needs to be collected in this survey?
(ii) State the population in this study.
(iii) State one probability and one non-probability sampling techniques that is suitable
for this study.
Probability
Non-probability sampling
(iv) Which data collection method is most suitable for this study?
2. The owner of a bakery has decided to open a store and asked for your help in predicting
the demand for baked goods in a particular location. You have decided to design a survey
to gather this data.
i. If the bakery owner is only planning to sell to local residents, what is a possible
target population?
ii. Would you perform a complete census of the population or use statistical
sampling procedures? Why?
iii. Assuming you could acquire an accurate population frame, what method of
sampling would you use and how you select your sample?
3. A researcher conducted a study to investigate the job satisfaction among workers in a

certain international company. He assigned 5 staffs to collect information from a group
of selected workers through interviews. At the end of period, he received 200 completed
survey forms. Identify the population and the sample size.
4. A data set on money spent on cigarette by 200 smokers has a lowest value of RM 3 and a
highest value of RM 147. Suppose we want to group these data into six classes of equal
widths.
a. Assuming we take the lower limit of the first class as RM 1 and the upper limit of the
sixth class as RM 150, write the class limits for all six classes.
b. Determine the upper and lower class boundaries and class widths.
c. Find the class mid points.
5. Table below is a frequency distribution for the gasoline consumption obtained for 25
sampled trips for company-owned vehicles per day.
Miles per gallon Numbers of trips
14.0-15.9 3
16.0-17.9 5
18.0-19.9 10
20.0-21.9 4
22.0-23.9 2
24.0-25.9 1
Total 25
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Construct the lower and upper boundaries of the data.
6. A sample of 30 employees from a large company was selected, and these employees were
asked how stressful their jobs were. The responses of these employees are recorded on the
Table 1 where very represent very stressful, somewhat means somewhat stressful, and none
stand for not stressful at all.
Somewhat None Somewhat Very Very None
Very Somewhat Somewhat Very Somewhat Somewhat
Very Somewhat None Very None Somewhat
Somewhat Very Somewhat Somewhat Very None
Somewhat Very Very Somewhat None Somewhat
(a) Construct a frequency distribution table and cumulative frequency distribution table
for these data
(b) Determine the relative frequency and percentage distribution for the data
7. Table below show the quiz marks for 21 students.

Marks No of students
30 - 32 3
33 - 35 4
36 - 38 5
39 - 41 6
42 - 44 2
45 - 47 1
(a) Construct a histogram to present the data
(b) Construct a frequency polygon to present the data
8. Table below show the weights of 35 students.

weights No of students
60 - 62 4
63 - 65 6
66 - 71 10
72 - 74 3
75 - 83 12
9. A sample of 20 production workers in a small company earned the following wages for a
given week, rounded to nearest dollar in ascending order:
RM140,140,140,140,140,140,140,140,155,155,165,165,180,180,190,200,205,225,230,240.
Calculate (a) Mean, (b) median (c) mode for this group of wages. (Answer: (a) RM170.50,
(b) RM160.00, (c) RM140.00)
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10. A sample of 200 people was asked how much money they had in their pockets and
wallets. The response (in RM) are
RM Number of Respondents
150 - 179 3
180 - 209 8
210 - 239 10
240 - 269 13
270 - 299 33
300 – 329 40
330 - 359 35
360 - 389 30
390 - 419 16
420 - 449 12
Total 200
Determine the average money that the sample has in terms of the (a) mean, (b) median,
and (c) mode. (Answer: (a) RM322.75, (b) RM324.25, (c) RM317.00)
11. Table 1: Time required preparing a meal orders

Time (in minutes) Number of Orders
5 and under 8 10
8 and under 11 17
11 and under 14 12
14 and under 17 6
17 and under 20 2
Total 47
(i) Determine the (a) mean, (b) median, and (c) mode, (d) sample variance (e) sample
standard deviation of the data in table 1. (Answer: (a) 10.8 min, (b) 10.4 min, (c) 9.8
min, (d) 10.9 min, (c) 3.3 min)
(ii) Comment on the form of the distribution for the order processing times analyzed in
table 1.
12. A machine shop uses two lathes to make shifts for electric motors. Samples of seven shafts
from each lathe are checked for quality control purposes. The diameter of each shaft (in
millimeter) is given as follows:
Lathe I Lathe 2
(in millimeter) (in millimeter)
60.25 60.55
60.15 60.35
59.95 60.05
59.90 59.98
61.00 59.95
60.55 60.05
59.90 60.10
Find the calculation of the following descriptive statistics for lathe 1 and lathe 2.
(i) Mean (Answer: 60.24, 60.15)
(ii) Median (Answer: 60.15, 60.05)
(iii) Variance and standard deviation (Answer: 0.1662, 0.0486 and 0.4077, 0.2204)
(iv) Coefficient of variation and coefficient of skewness (Answer: 0.6767%, 0.3664%
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and 0.6623, 1.3217)

(v) Which lathe will have a better quality control? Justify your answer with the results
obtained from parts (i) to (iv).
13. Malaysian Airlines (MAS) is studying the weight of luggage for passenger. For a group of
domestic passengers, the mean is 17 kilograms with a standard deviation of 6 kilograms.
For a group of overseas passengers, the mean is 27 kilograms and the standard deviation is
10 kilograms. Compute the relative variation of each group. Comment on the difference in
relative variation. (Answer: CVDP < CVOP)
14. Suppose the retail price of the selected items have changed as indicated as table below.
Item Percent Increase Average expenditure per month
(%) (before increase) in RM
Milk 10.0 10
Ground beef -6.0 15
Apparel -8.0 15
Gasoline 20.0 25
(a) Determine the mean percentage change in retail price without reference to the average
expenditures including in the table. (Answer: 4%)
(b) Determine the mean percentage by weighting the percent increase for each
item by average amount. (Answer: 6%)
(c) Is the mean percentage price change calculated in (a) or (b) more appropriate as a
measure of the impact of the price changes on this particular consumer? Why?
15. A frequency distribution of weekly wages for 56 skilled workers is as follows:

Annual income Number of person
0 and less than 5 4
(i) Calculated the sample mean. (Answer: 36.875)
(ii) Find the sample variance and standard deviation. (Answer: s2 =553.01136; s = 23.5162)
16. The company is considering awarding the best performance of the year to one of their three
sales representatives. In order to evaluate the performance of each person, a sample which
contains 6 months of sales records taken from each sales representative is tabulated as
below:
Sales Records Average Sales

Sales
(RM’000 per month) per month
Representative
1 2 3 4 5 6 (RM’000)
A 26.5 14.1 6.7 3.3 10.2 20.2 13.5
B 15.3 12.7 5.5 12.0 18.6 16.9 13.5
C 12.3 10.8 12.5 19.1 17.5 8.8 13.5
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i) Calculate the standard deviation of sales for each person. (Answer: s A = 8.6651, sB =
4.6411, sC = 3.9794)
ii) Calculate the coefficient of variation of sales for each person. (Answer= CVA =
64.19%, CV B = 34.38%, CVC = 29.48%)
iii) Based on the above, advises the company who should be awarded with the best
performance of the year, and this person must have achieved the highest and reliable
sales records.
17. The following data are the market values (in RM million) of a sample of 16 companies in
the retail business in Malaysia on 31 Dec 2018.
31 52 43 49 36 35 33 29
54 43 44 46 42 39 55 48
a) Draw an ordered stem and leaf diagram to show the market values.
b) Determine the mean, median and mode of the market values.

(Answer: Sample mean= RM42.44 million, Sample median = RM43 million, Sample
mode = RM43 million)
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Topic 6: Probability
1. Given the following contingency table:

B B’
A 10 20
A’ 20 40
What is the probability of,
a. event A?
b. event B?
c. event A’?
d. event A and B?
e. event A and B’?
f. event A’ and B’?
g. event A or B?
h. event A or B’?
i. event A’ or B’?
j. A | B?
k. A | B’?
l. A’ | B’?
m. Are events A and B statistically dependent?
(Answer: (a) 0.33, (b) 0.33, (c) 0.67, (d) 0.11, (e) 0.22, (f) 0.44, (g) 0.556, (h) 0.778,
(i) 0.889, (j) 0.33, (k) 0.33, (l) 0.67, (m) events A and B are statistically independent)
2. A mortgage holding company has found that 2% of its mortgage holders default on their
mortgage and lose the property. Furthermore, 90% of those who default are late on at least
two monthly payments over the life of their mortgage as compared to 45% of those who do
not default.
a. What is the joint probability that a mortgagee has two or more late monthly payments
and does not default on the mortgage? (Answer: 0.441)
b. What is the joint probability that a mortgagee has one or less late monthly payments
and does not default on the mortgage? (Answer: 0.539)
c. Based on Bayes' Theorem, what is the posterior probability that a mortgagee will not
default given one or less payments over the life of the mortgage? (Answer: 0.9963)
3. (i) If P(A and B) = 0.4 and P(B) = 0.8, find P(A | B). (Answer: 0.50)
(ii) If P(A) = 0.7 and P(B) = 0.6, and if A and B are statistically independent, find P(A and
B). (Answer: 0.42 )
4. A U.S. Census American Housing Survey studied how U.S. homeowners get to work.
Suppose that the survey consisted of a sample of 1,000 homeowners and 1,000 renters.
Drives to Work Homeowner Renter Total

Yes 824 681 1,505
No 176 319 495
Total 1,000 1,000 2,000
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(i) Given that the respondent drives to work, what then is the probability that he or she is
a homeowner? (Answer: 0.5475)
(ii) Given that the respondent is a homeowner, what then is the probability that he or she
drives to work? (Answer: 0.8240)
(iii) Explain the difference in the results in a (i) and (ii).
(iv) Are the two events, driving to work and whether the respondents are a homeowner,
statistically independent?
5. An advertising executive is studying television viewing habits of married men and women
during part-time hours. On the basic of past viewing records, the executive has determined
that during prime time, husbands are watching television 60% of the time. When the
husband is watching television, 40% of the time the wife is also watching. When the
husband is not watching television, 30% of the time the wife is watching television. Find
the probability that
(i) If the wife is watching television, the husband is also watching television. (Answer:
0.667)
(ii) The wife is watching television in prime time. (Answer: 0.36)
6. A personnel manager is reviewing number of overtime hours worked by employees in her

plant. She has compiled the following data:
Number. of Overtime No. of Employees Probability
Hours Worked (Frequency) P(x)
0 12 0.128
3 18 0.191
4 10 0.106
5 13 0.138
6 15 0.160
7 12 0.128
8 14 0.149
Total 94 1.000
For a randomly selected employee let X be the number of overtime hours worked, and
define the following events:
A = employee who works no overtime.
B = employee who works at least 7 hours overtime.
C = employee who works at most 4 hours overtime.
a) Determine the probability of event A. (Answer: 0.128)
b) Determine the probability of event B. (Answer: 0.277)
c) Determine the probability of event C. (Answer: 0.425)
7. From an ordinary deck of 52 playing cards one is selected at random. Define the
following events:
A = card selected is an Ace
B = card selected is a Queen
C = card selected is a three
Are A, B, and C mutually exclusive events? Use the addition rule to find P(A or B or C).
(Answer: Yes)
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8. Event
Event C1 C2 C3 C4 Total
D1 75 125 65 35 300
D2 90 105 60 45 300
D3 135 120 75 70 400
Total 300 325 200 150 1000
a) Find P (C1 and D1). (Answer: 0.075)
b) Find P (D1) or P (C1). (Answer: 0.60)
c) Find P (C1 or D1). (Answer: 0.525)
d) Find P (D1 or D2 or D3). (Answer: 1.00)
9. Machine A produces 3% defectives, machine B produces 5% defectives, and machine C

produces 10% defectives. Of the total output from these machines, 60% of the items
are from machine A, 305 from B, and 10% from C. One item is selected at random
from a day’s production.
a) What is the prior probability that the item came from machine A? Machine B?
Machine C? (Answer: P(A) =0.60, P(B) =0.30, and P(C) =0.10)
b) What is the probability that the item is defective? (Answer: 0.043)
c) If inspection finds the item to be defective, what is the revised probability that the
item came from machine C? (Answer: 0.2326)
d) If inspection finds the item to be defective, what is the revised probability that the
item came from machine B? (Answer: 0.3488)
e) If inspection finds the item to be defective, what is the revised probability that the
item came from machine A? (Answer:0.4186)
10. An automobile company has two factories to produce its cars. 60% of the production is
done by factory X and the rest is done by factory Y. Of which, 85% of the production at
factory X and 70% of the production at factory Y is up to standard specifications.
(i) A car is selected randomly, what is the probability that it is up to standard
specifications? (Answer: 0.79)
(ii) What is the probability that it is not up to standard specification? (Answer: 0.21)
(iii) What is the probability if it was done by factory Y but it is not up to standard
(iv) What is the probability if it was done by factory X but it is not up to standard
(v) If the car is not up to standard specification, what is the probability that it was done
by factory X? (Answer: 0.4286)
11. A box contains two defective watches that have been accidentally mixed with eight non-
defective watches. If the watches are selected one at a time without replacement and tested
until both defective watches are found, what is the probability that both defective watches
will be found after three trials? (Answer: 0.0667)
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Topic 7: Discrete Probability
1. The probability distribution for the number of machine A sold daily in a small company as
per bellows:
Number of Machine A Sold Daily (X) P(X)
0 0.10
1 0.20
2 0.45
3 0.15
4 0.05
5 0.05
a. Compute the mean or expected number of machine A sold per day.
b. Compute the standard deviation.
(Answer: a. 2.00, b. 1.1832)
2. Elly's hot dog emporium is famous for its chilidogs. Elly's latest sales indicate that 30% of
the customers ordering her chilidogs order it with hot peppers. Suppose 18 customers are
selected at random.
a. What is the probability that exactly fifteen customers will ask for hot peppers?
b. What is the probability that between two and six people inclusive want hot peppers?
. (Answer: a. 0.000004016, b. 0.708)
3. A statistic professor finds she receive on average five e-mail messages per day from
students. Assume the number of messages approximates a Poisson distribution.
a. What is the probability that on a randomly selected day she will have no messages?
b. What is the probability that on a randomly selected day she will have five messages?
c. What is the probability that on a randomly selected day she will have two messages?
(Answer: a. 0.0067, b. 0.175, c. 0.084)
4. Using historical records, the personnel manager of a plant has determined the probability
distribution of X, the number of employees absent per day. It is
x 0 1 2 3 4 5 6 7
P(x) 0.005 0.025 0.310 0.340 0.220 0.080 0.019 0.001
Find the following probabilities.
(i) P( 2  X  5)
(ii) P( X  5)
(iii) P( X  4)
(Answer: (i) 0.95, (ii) 0.02, (iii) 0.68)
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5. A shopping mall estimates the probability distribution of the number of stores mall customers
actually enter, as shown in the table.
x 0 1 2 3 4 5 6
P(x) 0.04 0.19 0.22 0.28 0.12 0.09 0.06
Find the mean, variance and standard deviation of the number of stores entered.
(Answer: Mean = 2.76, Variance =2.3024, Standard deviation = 1.517)
6. In the town of Hickoryville, an adult citizen has a 1% chance of being selected for jury duty
next year. If jury members are selected at random, and the Anderson family includes 5
adults, determine the probability that
(i) None of the Andersons will be chosen. (Answer: 0.9510)
(ii) Exactly two of the Andersons will be chosen. (Answer: 0.000 9703)
(iii) More than 4 of the Andersons will be chosen. (Answer: 0.000 01)
(iv) At least 2 of the Andersons will be chosen. (Answer: 0.000 9702)
7. The U.S. divorce rate has been reported as 4.2 divorces per 1000 population. Assuming that
this rate applies to a small community of just 500 people and is Poisson distributed and that
x = the number of divorces in this community during the coming year, determine the
following:
(i) E(x) (Answer: 2.1)
(ii) P(x = 1) (Answer: 0.2572)
(iii) P(x = 4) (Answer: 0.09923)
(iv) P(x  6) (Answer: 0.9941)
(v) P( 2  X  5) (Answer: 0.5999)
8. There are 100 computers in a company. The probability of a computer will defect on a certain
day is 0.01.
(i) By using the Binomial distribution, find the probability that
(a) Exactly one computer will defect on a certain day. (Answer: 0.3697)
(b) At least two computers will defect on a certain day. (Answer: 0.2642)
(ii) By using the Poisson distribution to approximate the binomial distribution, find the
probability of part (i) (a) and (b)
(a) P( X = 1) (Answer: 0.3679)
(b) P(X  2) (Answer: 0.2642)
9. The quality control manager of ABC’s Cookies is inspecting a batch of “pandan-chip”

cookies that just been baked. If the production process is in control, the mean number of
chip parts per cookie is 6.0. What is the probability that in any particular cookie being
inspected.
(i) Fewer than five chip parts will be found? (Answer: 0.2851)
(ii) Exactly five chip parts will be found? (Answer: 0.1606)
(iii) Either four or five chip parts will be found? (Answer: 0.2945)
10. The number of industrial accidents at a particular manufacturing plant is found to have an
average of three accidents per month. Assuming that the number of accidents for each
month is independent.
(i) Find the probability at least two accidents happen for each month. (Answer: 0.8008)
(ii) Find the probability at most two accidents happen for each quarter. (Answer:0.006232)
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11. A car company has purchased tyres from a supplier and has found that 5% of the tyres need
to be returned because they are defective. If the company ordered 30 tyres, find,
(i). the probability that three tyres are defective (Answer: 0.1270)
(ii). the probability that minimum one tyre is defective. (Answer: 0.7854)
(iii). the mean and standard deviation of the defective tyres. (Answer: Mean = 1.5,
Standard deviation = 1.194)
12. You are trying to develop a strategy for investing in two different stocks. The anticipated
annual return for a RM1000 investment in each stock has the following probability
distribution.
Returns
Probability Stock X Stock Y
0.1 -RM50 -RM100
0.3 20 50
0.4 100 130
0.2 150 200
Compute the
a. expected return for Stock X. (Answer: RM71)
b. expected return for Stock Y. (Answer: RM97)
c. standard deviation for Stock X. (Answer: RM61.88)
d. standard deviation for Stock Y. (Answer: RM84.27)
e. covariance of Stock X and Stock Y. (Answer: 5113)
f. Do you think you will invest in Stock X or Stock Y? Explain.
E(P) = wE(X) + (1w)E(Y)
 P = w2 X2  (1  w) 2  Y2  2w(1  w) XY
Suppose you wanted to create a portfolio that consists of stock X and Y. Compute
the portfolio expected return and portfolio risk for each of the following proportions
invested in stock X.
g. 0.10 (Answer: 81.92)
h. 0.50 (Answer: 72.73)
i. 0.90 (Answer: 63.98)
j. On the basic of the results of (g) to (i), which portfolio would you recommend?
Explain.

Revised 202101 Tutorial STUDENTS VERSION UBEQ1013 Quantitative Techniques I

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UKEQ1013 / UBEQ1013 QUANTITATIVE TECHNIQUES I

- In the process of calculation, don’t round up or round down too early.

What is a "significant figure"?

Rules for deciding the number of significant figures in a measured quantity:

(1) All nonzero digits are significant:

With zeroes, the situation is more complicated:

1. Write 3.6456525 to:

2. Express 365.288 to:

3. Express 0.0505 to:

4. Factorize the following expressions.

6 Solve the following equation:

2. Solve the following systems of equations:

Year Consumer Price Index Consumer Price Index

Year Price (RM) Price Relative Price Relative

Year Average salary (RM in thousand) CPI (2005 = 100)

1. Find the graphical solution of the inequality:

1. Recall Question 3 from Tutorial 8.

(b) Which constraints are binding?

2. Recall Question 5 from Tutorial 8.

b) Identify and list down the binding and non-binding constraints.

Discussion Questions (Note: Use Graph Paper or Microsoft Excel)

1. Table 1: Monthly Rental Rate for Selected Areas 2018

(a) Calculate the sample mean.

Age (Years old) Frequency

3. Given the following sample data sets: Set A and Set B;

5. A 5-person committee is to be formed from a group of 10 female and 7 male executives.

Calculate the probability of the following events:

5. ABC Bank has an average of 9 customers every two hours.

Topic 1: Mathematical Techniques

1. Solve the following inequalities:

Answer: (a) x > 19 (b) x  -0.5 (c) x ≤ 4.25

2. Multiply out the brackets:

3. Evaluate the following without using a calculator.

5. Solve the following equations:

Answer: (a) x = 3 (b) x = 4 (c) (x + 2)(x + 6)

6. Express the following exponential functions as logs:

(c) y  e 3.61092 (d) 112  e 4.71850

7. Use the rules of logs to simplify

8. Simplify each of the following:

Answer: (a) ln P  2 (b) ln c  2t (c) ln a  4 (d)  3 (e) ln c  ln d  2

Answer: RM127.12 billion

13. Find the slope of the straight line passing through

Answer: (a) 3 (b) -1

Answer: (a) P = 30, Q = 70 (b) P = 17, Q = 91 (c) P = 10, Q = 38 (d) P = 3, Q = 12

Answer: (a) 12 – 12x (b) 18x

Answer: (i) TR = 100Q – 20Q2 MR = 100 – 40Q

(i) the total cost (TC) function (RM’000) is 14  3x

Find: (a) Derive the (total) profit function.

(b) The profit break-even points (BEP).

Answer: (a) 16x – 2x2 – 14 (b) x = 1 or 7 (c) x = 4, maximum profit = RM18,000

(ii) Find the price and quantity at which  is maximum.

24. Determine the following integrals

27. Find expressions for

28. Solve for x :

(e) log3 (25−x2) = 2

Topic 2: Index Number

1. (a) What is an index number

(b) Explain what I1985/1983 = 98 means.

(a) Let 1991 be the base year

Year Butter Stocks

i. Determine Laspeyres’s Price Index

Year Consumer Price Index Consumer Price Index

9. The following data relate to a survey of household expenditure.