GABORONE UNIVERSITY COLLEGE OF LAW AND PROFESSIONAL STUDIES

DIPLOMA IN PURCHASING AND SUPPLY CHAIN MANAGEMENT

MODULE:QM201: QUANTITATIVE METHODS

FINAL EXAMINATION

JUNE 2022

TIME: 3HRS

INSTRUCTIONS TO CANDIDATES

 Answer any 4 questions

 Take note of marks allocated to subsections of each question
 This is a closed book examination; no reference material should be brought into the
examination room
 All queries should be directed to the invigilator
 Proofread your work before submitting to the invigilator
Question 1

1.1. Solve the following equations finding the value of x in each case
(a) 18 + x = 5x – 2 (4)
(b) 5x − 3 = 27 + 2x (4)

1.2. Solve this quadratic equation by means of Factorisation x2 − 7x + 6 = 0 (5)

1.3. Calculate the distribution of profits for the following partnerships:

X, Y and Z share profits in the ratio of 3: 4: 5. Total profit is P60 000 (3)
F, G and H share profits in the ratio of 2: 3: 3. Total profit is P7 200 (3)

1.4. Solve the following simultaneous equations by any means,

3x − y = 8
x + 5y = 4 (6)

Question 2
A new Huawei P30 is selling at $1 200, cash price. Under credit terms, the initial deposit is
$300 and monthly instalments of $60 for 2 years. FNB Bank offers a 3-month cash loan for
buying cell phones at 15% compounded monthly.

2.1.Calculate the total cost for the someone who wants to purchase Huawei P30 on 2-year
credit terms direct from the shop (4)
2.2. Calculate the total cost of the Samsung Galaxy S10, if someone uses FNB Bank cash
loan (7)
2.3. Calculate the cost difference between these two, and which option would you
recommend (2)
2.4. Calculate the total value of $5000 if invested in a bank that pays;
4.5% simple interest over 10 years (5)
4.5% semi-annually compounded interest over 5 years (7)
QUESTION 3

The table below gives information about the weights of students in a year group of 200.

Weight ( Kg) Frequency

40 ≤ 50 5
50 ≤ 60 21
60 ≤ 70 89
70 ≤ 80 68
80 ≤ 90 10
90 ≤ 100 7
(a) Plot an ogive (cumulative frequency curve) to represent this data . (15)
(b) Hence, work out an estimate for the value of the interquartile range. (10)
Question 4
(a) A lifetime test on a large sample of long-life electric light bulbs was carried out. The
lifetimes were found to be distributed normally with a mean of 1,900 hours and a standard
deviation of 50 hours.
(i) What percentage of these bulbs could be expected to have a lifetime of:
(A) less than 1,850 hours?
(B) more than 1,980 hours ?
(C) between 1,800 and 1,950 hours?
(ii) Between what upper and lower limits would the central 80% of the lifetimes for the bulbs
lie? (15)
(b) Three men and four women are available to tackle a specific task which requires two
people. If two people are chosen at random for the task, find the probability that there will be:
(i) no men,
(ii) one man,
(iii) two men. (10)

Question 5
The following data represent the sales from two beach shops (Hawaii and Parasol).
Hawaii Parasol
Swimwear P1520 P1100
Footwear P640 P100
Food P1000 P750

5.1. Plot a percentage component bar chart to compare the sales of each product by shop
(Hawaii and Parasol). The bars should represent the two shops. The percentages must be
whole numbers.
(10)
5.2. Frances opened a savings account at her bank and deposited £8,525 into the account at the
beginning of 2005. The bank pays interest into her account at the end of each calendar year.
The interest rate for her account is as follows:
2005-2009 0.818%
2010-2012 0.925
2013 Onwards 1.015%
Calculate how much Frances will have in her account at the beginning of 2014 provided she
does not withdraw or deposit any further money, if the bank pays:
(i) Simple interest (7)
(ii) Compound interest (8)

Question 6
(a) A full-page advertisement in a magazine costs P18,650 for one issue. The estimated
circulation for the magazine is 1 million copies per issue. The estimated number of enquiries
generated by the advertisement is P 11,250.
(i) What is the cost in THEBES per copy for the advertisement?
Note: P1 = 100 THEBE. (2)
(ii) What is the advertising cost in P per enquiry? (2)
(iii) How many enquiries will be generated for each P100 spent on advertising? Give the answer
to the nearest P. (2)
(b) An investor wishes to invest P10,000 in one of two possible savings plans. Both plans pay
compound interest on the sum accrued at the end of the previous year.
Plan A
Year Rate of interest (%)
1 5.00
2 5.25
3 5.50
4 5.75
5 8.00
Plan B Rate is fixed at 6.4% each year for 5 years.
(i) Calculate the value of each plan after 5 years. (15)
(ii) What is the extra amount received by choosing the best plan? (4)
 Statistics Formulas

FREQUENTLY USED FORMULAS n = sample size; N = population size

Sample mean

Population mean

Sample standard deviation

Population standard deviation

Sample mean for a frequency distribution

Sample standard deviation for a frequency distribution

Sample coefficient of variation

Range = Largest data value - smallest data value

Standard z value

Original x value

Central limit theorem

PROBABILITY FORMULAS
Probability of an event A

where f = frequency of occurrence of event

n = sample size
Probability of the complement of event A

P(not A) = 1 - P(A)
Multiplication rule for independent events

General multiplication rules

Addition rule for mutually exclusive events

P(A or B) = P(A) + P(B)

General addition rule

P(A or B) = P(A) + P(B) - P(A and B)

Permutation rule
 Combination rule

Mean of a discrete probability distribution

Standard deviation of a discrete probability distribution

where r = number of
BINOMIAL DISTRIBUTION FORMULAS successes;
p = probability of success; q
=1–p
Formula for a binomial probability distribution

Mean for a binomial distribution

Standard deviation for a binomial distribution

CONFIDENCE INTERVALS
Confidence interval for a mean (large samples)

Confidence interval for a mean (Small samples)

Confidence interval for a proportion (where np > 5 and nq > 5)

 SAMPLE SIZE

Sample size for estimating means

Sample size for estimating proportions

REGRESSION AND CORRELATION

In all these formulas

Least squares line

Standard error of estimate

 Pearson product-moment correlation coefficient

Coefficient of determination

r2
Confidence interval for y

yp - E < y < yp + E where yp is the predicted y value for x

Spearman Rank correlation coefficient