Lecture 3

Business Mathematics and

Statistics

Dr. Muhammad Arif Hussain

Today’s Topics

• Application of linear equations

Ex. 2.1 (P. 40)
Q. 28
(Personnel Hiring) A software consulting firm has received a large contract to develop a
new airline reservation system for major airline. In order to fulfill the contract, new
hiring of programmer analysts, senior programmer analysts, and software engineers will
be required. Each programmer analyst position will cost $40,000 in salary and benefits.
Each senior programmer analyst position will cost $50,000 and each software engineer
position $60,000. The airline has budgeted $1.2 million per year for the new hirings. If
xj equals the number of persons hired for job category j:
(a) Determine the equation which ensures that total new hires will exactly consume the
budget.
(b) If it were desired to spend the entire budget on one type of position, how many
persons of each type could be hired?
Q Suppose that a company has determined that the cost of producing x items is
500 + 140x and that the price it should charge for one item is P = 200 – x
a. Find the cost function.
b. Find the revenue function.
c. Find the profit function.
d. Find the break-even point
Q26.(Emergency Airlift) The Red Cross wants to airlift supplies
into a South American country which has experienced an earthquake.
Four types of supplies each of which would be shipped in containers
are being considered. One container of a particular item weighs 120,
300, 250, and 500 pounds, respectively, for the four items. If the
airplane to be used has a weight capacity of 60,000 pounds and xj
equals the number of container shipped of item j:
(a) Determine the equation which ensures that the plane will be
loaded to its weight capacity.
(b) If it is decided to devote this plane to one supply item only, how
many containers could be shipped of each item?
27.(Airlift Revisited) In above exercise, each container of a
supply item requires a specific volume of space. Suppose
containers of the four items require 30, 60, 50, and 80 cubic
feet respectively. If the volume capacity of the plane is 15,000
cubic feet:
(a) Determine the equation which ensures that the volume
capacity of the plane is filled exactly.
(b) If it is decided to devote this plane to one supply item
only, how many containers could be shipped of each item if
volume capacity is the only consideration?
(c) Using the information from above exercise, what is the
maximum number of containers which could be shipped of
each item if both weight and volume are considered? Indicate
in each case whether weight or volume capacity is the
constraining factor.
Graphical Representation of Part (d)
Slope
• Slope represents the inclination of a line or
equivalently it shows the rate at which the line
raises and fall or how steep the line is.
Find the slope of a line through
points (3, 4) and (-1, 6).

64 2 1
m  
1 3 4 2
Example

• Graph the linear equation 4x + 8y = 16

Determining the equation of a straight line

Given a non-vertical straight line with slope m

and containing the point (x1, y1), the slope of
the line connecting (x1, y1) with any other
point (x, y) is given by

Rearranging gives: y-y1 = m(x-x1)

Example
Find the equation of line having slope m = −2 and
passing through the point (2, 8).
Ex 2.2
Ex 2.3
Ex 2.3
Practice problems:

• Solve problems given in

Section 2.1, Section 2.2, and Section 2.3.