Mathematical Basics BAET Variant 1 (2 pages)

(Please provide all of your answers rounded to the second decimal)

(Please provide not only the final results but as well your calculations that lead to the results.)

Business Mathematics
Exercise 1 (10 Points)
Calculate the first derivatives of the following functions:
a) (3 Points) f(x, y) = x∙exp(x - y)
1-x
b) (3 Points) g(x) =
1+x
c) (4 Points) h(x, y) = x + ln(x2 – y2)

Solution:
exp(𝑥 − 𝑦) + 𝑥 exp(𝑥 − 𝑦)
a) ∇𝑓(𝑥, 𝑦) = ( )
−𝑥 exp (𝑥 − 𝑦)
−2
b) g‘(x) = (1+𝑥)2
1 1
1+ +
𝑥+𝑦 𝑥−𝑦
c) ∇ℎ(𝑥, 𝑦) = ( 1 1 )
−
𝑥+𝑦 𝑥−𝑦

Exercise 2 (10 Points)

Use matrices A, B and C to calculate the expressions below (If any calculation is not feasible state the
reason why.):
𝑎 1 1 1 1
A=( ); B = ( ); C = ( )
2 0 2 𝑎 2
a) (6 Points) (AT – B)2
b) (2 Points) C3
c) (2 Points) C∙CT

Solution:
2
a) (𝑎 − 2𝑎 −1 )
1 𝑎2 − 1
b) Not possible
1 2
c) ( )
2 4

Exercise 3 (10 Points)

Calculate of extrema and saddle points of the function f(x). Show whether they are extrema (minimum
or maximum) or saddle points.
f(x) = exp(12x – x3)

Solution:
Maximum at x = 2; Minimum at x = -2
Exercise 4 (10 Points)
Find all solutions of the following linear system of equations with regard to the parameter a. If the
system cannot be solved state why. If the system has an infinite number of solutions just state so but
do not determine their structure.
𝑎 0 𝑎 𝑥 0
(1 1 2) (𝑦) = (1) 𝑤𝑖𝑡ℎ 𝑎 ≠ 0
2 4 5 𝑧 3

Solution:
x = -1; y = 0; z = 1

Exercise 5 (10 Points)

Each month (by the beginning of the month) for a period of 5 years Inna saves 100€ in a savings
account. After the five years she increases the amount to 600€ per month and saves for an additional
5 years. After 10 years she buys a condo for 120,000€. The interest rate of the savings account is 0.5%
per annum and the interest rate for the credit is 1% per annum.

a) (6 Points) How much has she saved up by the end of the 10 years?
b) (4 Points) The remainder of the costs she plans to pay back over a period of 10 years. This she
wants to realize with constant rates paid on the first of each month. What is the annuity she
has to pay each month?

Solution:
a) K10 = 42691.5991
b) Remainder = 77308.4009 a = 676.6895

Statistics 1
Exercise 6 (10 Points)
Fill in the gaps:
a) (2 Points) In a leftwards skewed data set the median is larger than the mean.
b) (2 Points) The modal class is the class with the highest relative frequency density.
c) (2 Points) The correlation coefficient by Spearman requires at least ordinal variables.
d) (2 Points) In the context of linear regression the coefficient of determination / R2 measures
the share of the variance of the dependent variable explained by the regression line.
e) (2 Points) If the χ2-statistic / corrected contingency coefficient becomes 0 there is no relation
between the two variables.

Exercise 7 (10 Points)

During a survey ten selected people make the following statements about their monthly income before
taxes (in tsd. €):
4 2.7 1.8 2.3 3.1 2.8 3.3 1.9 5.2 3.4
a) (3 Points) Calculate the median and the mean income.
b) (5 Points) Calculate the corrected standard deviation of the income.
c) (2 Points) Calculate the coefficient of variation.
Solution:
a) x0,5 = 2,95 X = 3,05
b) s2 = 1.0383 s = 1.019
c) V = 0.3341

Exercise 8 (10 Points)

In the context of the survey data on monthly income before taxes (in tsd. €) has been collected for 300
people:
Income Absolut Frequency
[0; 1) 8
[1; 2) 67
[2;2.5) 121
[2.5; 3) 75
[3; 6) 29
a) (7 Points) Calculate the mean income and as well the corrected standard deviation of the
income.
b) (2 Points) Calculate the coefficient of variation.
c) (1 Points) Compared to the results from part c) of exercise 7; which of the two data sets has
the higher dispersion?

Solution:
a) X = 2.3783 s2 = 0.7452 s = 0.8632
b) V = 0.363
c) This data set reports a higher dispersion than the one in 7.

Exercise 9 (20 Points)

For five people the following data on income (in tsd. €) and age has been collected:
Person 1 2 3 4 5
Income 3.8 5.1 1.7 2.5 2.7
Age 33 48 26 25 30
a) (8 Points) Calculate Pearson’s correlation coefficient.
b) (2 Points) Interpret the result from part a).
c) (6 Points) Calculate the coefficients of the regression line that describes the relation between
age and income.
d) (4 Points) Interpret the slope of the line from part c) and argue why an interpretation of the
intercept might not generate insightful results.

Solution:
a) rxy = 0.9386
b) –
c) b = 0.1332 a = -1.1557
d) -