DIT 0205 : ELEMENTARY MATHEMATICS AND DECISION MAKING

ASSIGNMENT 2
NB: The deadline for submission is 29th June 2022 at 2pm.

1. Differentiate between absolute error and relative error. (2 Marks)

2. Briefly discuss the effects of errors on basic operations of arithmetic in numerical

analysis. (5 Marks)

3. Newton’s equation y3 - 2y - 5 = 0 has a root near y = 2. Starting with y0 = 2, compute y1,

y2, and y3, the next three Newton-Raphson estimates for the root. (4 Marks)

4. A firm sells 100 units at a price of Kes 250. However, selling 110 units, they need to cut

the price down to Ksh 240. What is the level of marginal revenue at this higher level of

sales? (3 Marks)

5. Dan wants to get Kes 2,000 in 5 years. How much does he need to invest now in an

account with 4.5% compound interest? (4 Marks)

6. How much will Ann get if she saves Kes 1,000 for 6 months in a savings account with

simple interest rate of 9% p.a (2 Marks)