UGANDA MARTYRS UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION

END OF SEMESTER FINAL ASSESSMENT

SEMESTER II, 2023/24

NAME OF THE PROGRAM: BAM 1

COURSE TITLE: Quantitative Methods 1 (QM 1201) (LUBAGA DAY AND EVENING)

DATE: 22ND MAY 2024 TIME: 9: 30 AM – 12: 30 PM DURATION: 3HRS

Instructions:

1. Carefully read through ALL the questions before attempting

2. Attempt question ONE and any other THREE questions

3. Answers for each of the questions attempted should start on a new page.

4. No names should be written anywhere in your report and presentation.

5. Ensure that your Registration Number is indicated on all page of the examination
answer booklet.

6. Ensure your work is clear and readable with examples. Untidy work shall be
penalized.

7. Any type of examination Malpractice will lead to automatic disqualification.

8. Do not write anything on the question paper.

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 PART 1( HAS ONE QUESTION WHICH IS COMPULSORY)
QUESTION 1
a) For maximum profit, marginal cost is equal to marginal revenue. True or false [1 Marks]
b) A null set is a subset of every set. True or false [1 Marks]
c) A column vector is also known as a column matrix. True or false? [1 Marks]
d) Set P= {1 , 3 , 6 }∧Q= { 6 ,1 , 3 } are equal sets. True or false? [1 Marks]
e) The inter-quartile range equals the 75th percentile minus the 25th percentile. True or False
[1 Marks]
f) If your sales went up by 28% for the quarter, this could be expressed as………in decimal
form [1 Marks]
A. 2.80
B. 0.028
C. 28.00
D. 0.280
g) During production, costs incurred before production physically begins are known as
[1 Marks]
A. Fixed costs
B. Variable costs
C. Special costs
D. All the above
h) A matrix is called a singular matrix if [1 Marks]
A. Its determinant is zero
B. Its inverse is unknown
C. Both A and B
i) What is meant by size of a matrix?

( )
3 0 0
j) Given matrix A= 0 2 0 . Which type of matrix is matrix A? [1 Marks]
0 0 5
k) What are the conditions for addition and subtraction of matrices? [2 Marks]
l) What is compound interest? [2 Marks]
m) Give two applications of sets [2 Marks]
n) State two uses of time series analysis [2 Marks]
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o) What is the first and second derivative of y=5 x −2 x+ 4 [2 Marks]

p) What is the difference between primary data and secondary data? [2 Marks]

q) Consider the progression 6, 11, 16, 21, 26, 31, …… What is the 10th term [3 Marks]
r) Define depreciation [1 Marks]

2
 PART 2 (ANSWER ONLY THREE QUESTIONS FROM THIS PART)
QUESTION 2
a) With the help of an illustration explain an identity matrix [2 Marks]
b) Solve the following simultaneous equations using cramers method [7 Marks]
p+q=1
q−7=2 p
c) if A= ( )
2 1
1 2
∧B= (
3 2
4 −1 ) . Find ( AB)−1 [6 Marks]

d) Hardware World Ltd., located in the heart of Mbarara operates two other branches in Isingiro
and Kabwohe. The company’s operations in terms of purchases and prices are centralized.
Transportation costs from the Mbarara branch to other two branches are negligible. The
company deals in three products, computers, Television sets and radios and their weekly sales,
unit prices and costs are as follows.
BRANCHES WEEKLY SALES
COMPUTERS TELEVISION RADIOS
MBARARA 43 63 27
ISINGIRO 30 40 16
KABWOHE 25 52 15

The cost price The selling price

COMPUTERS 550,000 750,000
TELEVISIONS 400,000 650,000
RADIOS 250,000 350,000
Using matrix computations
i) Determine the company’s weekly profit [10 Marks]
ii) The company’s monthly profit [2 Marks]

QUESTION 3
a) With the help of an example in each, explain the meaning of the following terms as applied to
set theory
i) Intersection of sets [2 Marks]
ii) Equal sets [2 Marks]
iii) Equivalent sets [2 Marks]
iv) Compliment of a set [2 Marks]
b) A quick survey of 1,000 children in a refugee camp produced the following results: 320
children were fed on beans 200 children were fed on rice. 450 children were fed on potatoes.
150 children were fed on beans and potatoes. 70 children were fed on beans and rice. 100
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 children were fed on rice and potatoes. 300 children were fed on none of the three types of
food.

Required:
(i) Present the above information in the form of a Venn diagram. [10
Marks]
(ii) Find the number of children who were fed on all the three types of food. [2 Marks]
(iii) Find the number of children who were fed on exactly one of the three types of food. [2
Marks]
(iv) The probability that a child is fed on at least two types of food. [3 Marks]

QUESTION 4
a) A firm produces and sells mobile phones for Ush 150,000 per unit. The fixed costs related
to this mobile phone are Ugs 30,000,000 per month, while the variable costs are Ush 90,000
per unit.
(i) Write down the revenue and cost functions. [3 Marks]
(ii) How many phones must be sold to break even? [4 Marks]
b) REMIX company manufactures CDs and sells them for $ 1000 each. Given that the cost
incurred in the production and sale of the CDs are fixed at $ 400 plus a variable cost of
2+0.001 y in dollars for each y number of CDs produced and sold.
(i) Write the equations for the total cost, total Revenue and the profit function. [3 Marks]
(ii) Find the marginal cost function. [3 Marks]
(iii) Find the marginal cost of producing y=10 CDs [3
Marks]
c) A manufacturer knows that if x (hundred) products are demanded in a particular week.

The total cost function (Ugs 0000 ¿ is 7+1.5 x

The total revenue (Ugs 0000) is 9.5 x−x 2
i. Derive the total profit function [3 Marks]
ii. Calculate the level of demand that maximizes profit and the amount of profit
obtained [6 Marks]

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QUESTION 5
a) Explain the following (8 marks)
i) the trend variation
ii) seasonal variations
iii) cyclic variations
iv) irregular variations
b) Explain the THREE advantages of time series analysis (3 marks)
d) The table below shows the number of properties let by an Estate Agency over the past three
years.
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
2009 328 317 335 151
2010 355 343 361 379
2011 381 371 388 406

Determine
i) four- point moving Totals and four- point moving averages (10 marks)
ii) draw a time series graph and by using the semi average method draw the trend line
(3 marks)
iii) Use your graph to estimate how many properties are likely to be let in the 1st
quarter of 2012. (2
marks)
QUESTION 6
a) Define a feasible region as applied to linear programing (01 mark)
b) The owner of a certain sugar factory in Busoga region wants to buy two types of
motorcycles namely Bajaj and Honda for his sugarcane plantations’ supervisors to ease the
process of supervising the different sugarcane plantations. A Bajaj costs $ 2000 and requires
$16 per month to maintain it. A Honda costs $2400 and requires $10 per month to maintain it.
The factory owner has $18000 to spend on the purchase of the motorcycle and $120 per
month for maintenance. He must buy at least 4 Bajaj motorcycles and at least 2 Honda
motorcycles.
a) By taking x to be the number of Bajaj motorcycles and y be the number of Honda
motorcycles that the factory owner buys, write down all the inequalities representing the
above information. And on the same axes draw the inequalities and shade the unwanted
regions to remain with the feasible region

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b) Find the possible number of motorcycles of each type that the factory owner should buy in
order to keep the maintenance costs as low as possible.

END