Three industries, packaging P, Bakery B, and Flour F are related | Complete Solution
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FULLY EXPLANATION
QUESTION ONE
Write down short notes on:
Final demand. (2marks)
Technical coefficients. (2marks)
Closed model versus open model. (3marks)
Three industries, packaging P, Bakery B, and Flour F are related with the intermediate demand matrix below.
Output industry
Input Industry
The final demand for P, B and F are:
D =
Required:
Determine the total output for products of industries P, B and F. (10 marks)
Comment on the total output for industries. (3 marks)
QUESTION TWO
Define the following terms as used in measures of dispersion:
Platykurtic versus leptokurtic and mesokurtic. (6marks)
Coefficient of skewness. (2marks)
Quartile deviation. (2marks)
b) A survey by Marketing Society here in Kenya found out the following buying habits of household air conditioners considered a luxury.
Gross income per month
Number of consumers who buy Air conditioner
Up to 5,000
2
5,001 - 10,000
15
10,001 - 15,000
25
15,001 - 20,000
28
20,001 - 25,000
33
25,001 - 30,000
35
30,001 - 35,000
38
35,001 and above.
40
Required:
Calculate the arithmetic mean, median and mode. (5 marks)
Does the survey show that the luxury item is consumed by high-income earners? Show your answer by calculating appropriate measure of skewness. (5 marks)
QUESTION THREE
In connection with probability, define the following terms
Compound event (2 marks)
Mutually exclusive events (2 marks)
Collective exhaustive events (2 marks)
Equally likely events (2 marks)
Conditional probability (2 marks)
Given the following distribution of wages for 500 technicians in motor companies in industrial area.
Wages in KSh
3000-4000
4000-5000
5000-6000
6000-7000
7000-8000
8000-9000
No. of technicians
30
40
250
100
60
20
A technician is chosen from the above group. What is the probability that his wages are?
Under KSh 5,000 (4 marks)
Above KSh 6,000 (4 marks)
Between KSh 5,000 and KSh 6,000 (2 marks)
QUESTION FOUR
Define the goodness of fit test. How is it applied in accounting? (5 marks)
A research studying the role of stress and its implication on personal life in respect of job change over by low cadre staff, came up with the following data. It relates to 30 firms over 3-year period
No. of people changing jobs in a year
0
1
2
3
4
5
6
7
8
9
Observed frequency
8
18
19
20
16
12
8
4
3
2
By fitting a Poisson distribution to get expected frequency, test its goodness of fit. (15 marks)
QUESTION FIVE
With reference to linear regression define the following terms:
Scatter diagram.
Bivariate distribution.
Positive correlation.
Confidence interval.
Auto correlation. (10 marks)
The following data relates business turnover and staff of fast moving consumer goods company EAI Ltd:
Year
1993
1994
1995
1996
1997
1998
1999
2000
Business turnover in Millions of shillings
45
50
60
75
80
110
150
170
Staff
2,600
3,000
3,100
3,530
3,850
4,300
5,870
7,150
Required:
Fit an appropriate regression equation. (8 marks)
Estimate the staff requirement when business turnover reaches Sh.200 Million. (2 marks)
SECTION II
QUESTION SIX
What are the underlying assumptions in linear programming? (5 marks)
Zadock ltd. manufactures various kinds of furniture namely ordinary chairs, baby cots, and executive chairs. All the products use raw material (wood), machine time (lathe) and manual labour (technicians).
The requirements for the furniture are summarised as below.
wood in Cubic meters
Lathe time in hours
Technician time in hours
Ordinary chair
10
3
2
Baby cots
12
5
3
Executive chairs
20
6
5
The estimated profits for each kind of furniture are Sh. 26, Sh. 35 and Sh. 50 respectively. There is a limitation of capacity, in that only 300 cubic meters of wood, 118 hours of lathe time and 90 hours of technician time are available.
This problem was solved using a spreadsheet and the following was obtained.
Target Cell (Max)
Name
Final Value
Z
856
X1
6
X2
20
X3
0
Constraints
Name
Cell Value
Status
Slack
wood
300
Binding
0
lathe
118
Binding
0
technician
72
Not Binding
18
X1
6
Not Binding
6
X2
20
Not Binding
20
X3
0
Binding
0
Variables
Final
Reduced
Name
Value
Gradient
X1
6
0
X2
20
0
X3
0
-2
Constraints
Final
Dual
Name
Value
Price
wood
300
1.78571428
lathe
118
2.71428571
technician
72
0
Coefficients
Adjustable
Lower
Target
Upper
Target
Name
Value
Limit
Result
Limit
Result
X1
6
-3.5972E-14
700
6
856
X2
20
0
156
20
856
X3
0
0
856
0
856
Required:
Formulate the linear programming problem into standard form for input to the computer spreadsheet (5 marks)
What are the units of each kind of furniture to be produced to maximise profits. What is the maximum profit? (5 marks)
Is there any resource that is not used up? For the used up resource if any, how much would you pay for one additional unit. (5 marks)
[Solved] Three industries, packaging P, Bakery B, and Flour F are related | Complete Solution
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- Submitted On 03 Jul, 2016 02:11:24
- AceTutor
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Three Indicators of Health
Three industries, packaging P, Bakery B, and Flour F are related | Complete Solution
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