Quantitative Methods Examination

L1AF105 201902

• The maximum mark for this paper is 100. Use blue or black ink or ballpoint pen.
• You should complete ten of the twelve questions only.
• All necessary working should be shown, otherwise marks for method may be lost.
• The duration of this exam is two hours.
• You may not leave the examination room in the first or last 30 minutes of the exam.
• If you require attention at any point during the exam, please raise your hand.

ILSC Study Skills Incorporated and Tested

Skills Yes/No Comments

Presentation Skills yes Students should present their written work neatly and in
an organized manner.

Self - Directed Study yes Students will have needed to study independently to be
prepared for the examination.

Writing Skills yes Students are tutored to present solutions laid out clearly
(Accuracy, Coherence) and accurately.

Analysis and Problem yes Students are required to determine the correct statistical
Solving methods to solve the given problems.

Planning Aspects yes Students need to present solutions in a structured, logical

(Structure, Content manner.
Development)
1.

a) Solve the following pairs of simultaneous equations:

i) 6𝑦 − 5𝑥 = −32, 2𝑦 + 3𝑥 = 8

ii) 𝑦 + 3𝑥 + 4 = 17, 7𝑦 − 2𝑥 = 33

b) Simplify the following:

−0.5
9𝑥 −2
i) ( )
144𝑦4 𝑥 6

3 1 8
ii) (𝑥 −4 )2 × (𝑥 4 ) × 3𝑥 0

c) Simplify the following:

i) 2𝑙𝑜𝑔2 + 3𝑙𝑜𝑔3 − 3𝑙𝑜𝑔6

5 1 1
ii) 𝑙𝑜𝑔16 − 3 𝑙𝑜𝑔216 − 2 𝑙𝑜𝑔64
4

[10]

2.

The weights, in kg, of a large group of goalkeepers are normally distributed with a mean of 83 kg and
standard deviation of 6.8 kg.

a) A goalkeeper is selected at random. Find the probability that he:

i) weighs less than 90kg.

ii) weighs more than 80kg.

ii) weights between 78 kg and 88 kg.

b) Between what weights could you expect approximately 68%, 95% and 99.7% of goalkeepers to fall?

[10]
3.

a) In a large restaurant an average of three out of every five customers ask for water with their meal.

A random sample of 10 customers is selected.

i) What is the expected number of these customers who ask for water with their meal?

ii) What is the probability that exactly six of these customers ask for water with their meal?

iii) What is the probability that less than nine ask for water with their meal?

b) For:
𝑥 5 7.5 10 12.5 15
𝑃(𝑋 = 𝑥) 0.1 a 0.3 0.3 0.2

i) Find 𝜇 and 𝜎 to two decimal places.

ii) Find 𝑃(𝑋 ≥ 𝜇)

[10]

4.

a) A random sample of 50 professional male goalkeepers are measured and found to have a mean height of 1.91
metres, with a standard deviation of 0.1 metres. The heights of professional male goalkeepers in general can be
assumed to be normally distributed.

Find the 95% and 98% confidence intervals for the actual population mean.

b) A sample of monthly rental prices for student accommodation in a city are shown below. Assuming that rental
prices are normally distributed, find 95% and 99% confidence intervals for the mean monthly rental cost in the city.

£540, £555, £495, £550, £560, £600, £570, £560, £525, £540, £580.

[10]
5.
A factory produces two types of toys: Trucks and bicycles. In the manufacturing process of these toys
three machines are used. These are a moulder, a lathe and an assembler. The table below shows the
length of time needed for each toy.

Moulder Lathe Assembler

Bicycle 1 hour 3 hours 1 hour
Truck 0 hours 1 hour 1 hour

The moulder can be operated for three hours per day, the lathe for 12 hours per day and the assembler for
seven hours per day. Each bicycle made gives a profit of £15 and each truck made gives a profit of £11.

Formulate a linear programming model and solve using the graphical method to find how many of each of
bicycles and trucks that the factory should produce to maximise profit.

Use the graph paper at the end of this exam. Detach and hand in with your examination answer
booklet. Ensure that your student number is at the top of the graph paper.

[10]

6.
In a call centre, the duration of a sample of phone calls is recorded. The results are shown below:

Length of call, 𝒕, (mins) Frequency

0.5 < 𝑡 ≤ 4.5 3
4.5 < 𝑡 ≤ 8.5 32
8.5 < 𝑡 ≤ 12.5 30
12.5 < 𝑡 ≤ 16.5 45
16.5 < 𝑡 ≤ 20.5 17

a) Calculate estimates, to two decimal places, for:

i) the mean length of call times.

ii) the standard deviation in the length of call times.

iii) the median length of call times.

b) Using your answers to a) calculate Pearson’s Coefficient of Skewness. Given your answer, would you say
that the mean or the median would be the best measure to represent the length of call times?

[10]
7.

A small company has two sales offices. The management wants to know if the mean number of sales per
month for these sales offices are different. It is known that the monthly variance in sales for the first office
is 2000 and for the second office is 12000.

A sample of 12 months for the first office gives the following monthly sales numbers:

300 312 400 454 389 298 355 387 368 419 384 388

A sample of 15 months for the second office gives the following monthly sales numbers:

499 380 375 490 399 354 427 471 354 280 416 466 327 389 425

Test at the 5% significance level whether the mean daily sales for these two sales offices are different.

You may assume that the sales are normally distributed.

[10]

8.

The total revenue received by ChipCo Integrated Circuits from the sale of 𝑥 units of a product is given by

𝑅 (𝑥 ) = 35𝑥 + 5𝑥 2 − 42

Find a) the average revenue

b) the marginal revenue

c) the marginal revenue at 𝑥 = 30

d) the actual revenue from selling the 31st item.

[10]
9.

ChipCo Integrated Circuits manufacture a product with £102,000 in fixed costs. The variable cost is
estimated to be 15% of the total revenue when the product is sold at a rate of £24 per unit.

a) Find the total revenue if 30,000 of the product are sold.

b) Find the total cost if 30,000 of the product are sold.

c) Find the break-even point.

d) Were ChipCo Integrated Circuits to increase the selling price to £28 per unit, what would the new break-
even point be?

[10]

10.

ChipCo Integrated Circuits wishes to open a new facillity. The timings for the project are shown in the
table below:

Activity Immediate predecessors Duration (weeks)

A - 10
B - 6
C A, B 4
D A, B 8
E B 9
F C 7
G C, D, E 4
H E 6
I F 12
J G, H, I 3
K I, J 2

a) Complete an activity network for the project.

b) Find the earliest start time and latest finish time for each activity.

c) Write down the critical activities.

d) ChipCo Integrated Circuits can pay extra so that activities F, G H and I can each be finished two
weeks quicker than the times shown in the table. Is it worth paying for any of these activities to be
speeded up? Give your reasoning.

[10]
11.

A small supplier has only one assistant serving customers. Sometimes, during busy periods there are
customers waiting, so the owner decides to investigate to see whether it is worth employing a second staff
member to serve customers. They carry out a survey of the time between customer arrivals (inter-arrival
time) and how long it takes each customer to be served (to the nearest minute). The results are below:

Inter-arrival time (nearest minute) 1 2 3 4 5 6

Probability (%) 4 12 26 35 15 8

Service time (nearest minute) 3 4 5 6 7 8

Probability (%) 9 24 32 17 13 5

a) Perform a simulation for 10 customers, with the assumption that the first customer arrives at time zero.

Use the table at the of this exam paper. Detach and hand in with your examination answer booklet.

Ensure that your student number is at the top of the graph paper.

b) In your simulation, what is the maximum number of customers waiting and the maximum time spent
queuing? Do you think a second staff member to serve customers is justified? Why/why not?

[10]

12.

a) ChipCo Integrated Circuits manufactures a product with a total cost function given by:

𝐶 (𝑥 ) = 𝑥 3 − 375𝑥 2 + 25200𝑥 + 15500 where 𝑥 is the number of units produced.

Determine the number of units that must be produced to minimize the total cost.

b) ChipCo Integrated Circuits charges £700 for a different product on orders of 60 or less. The charge is
reduced by £10 for each unit ordered in excess of 60. Find the largest size order ChipCo Integrated Circuits
should allow to receive a maximum revenue.

[10]

END OF QUESTIONS
USEFUL FORMULAE AND TABLES

∑𝑥 ∑ 𝑓𝑥 𝑥−𝜇
𝑥̅ = 𝑥̅ = ∑𝑓
𝑡=𝑠
𝑛 ⁄
√𝑛

𝑚𝑒𝑑𝑖𝑎𝑛−𝐿𝐶𝐵 𝑚𝑒𝑑𝑖𝑎𝑛 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛−𝐿𝐶𝐵 𝐶𝑢𝑚 𝑓𝑟𝑒𝑞

Grouped data: =
𝑈𝐶𝐵−𝐿𝐶𝐵 𝑈𝐶𝐵 𝐶𝑢𝑚 𝑓𝑟𝑒𝑞 −𝐿𝐶𝐵 𝐶𝑢𝑚 𝑓𝑟𝑒𝑞

𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑖𝑙𝑒−𝐿𝐶𝐵 𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑖𝑙𝑒 𝑝𝑜𝑠𝑖𝑡𝑖𝑜𝑛−𝐿𝐶𝐵 𝐶𝑢𝑚 𝑓𝑟𝑒𝑞

=
𝑈𝐶𝐵−𝐿𝐶𝐵 𝑈𝐶𝐵 𝐶𝑢𝑚 𝑓𝑟𝑒𝑞 −𝐿𝐶𝐵 𝐶𝑢𝑚 𝑓𝑟𝑒𝑞

∑(𝑥−𝑥̅ )2 ∑ 𝑥2 (∑ 𝑥)2
Ungrouped data: 𝑆𝑎𝑚𝑝𝑙𝑒 𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒: 𝑠 2 = , OR 𝑠 2 = − 𝑛(𝑛−1)
𝑛−1 𝑛−1

∑(𝑥−𝜇)2 ∑ 𝑥2
𝑃𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛 𝑉𝑎𝑟𝑖𝑎𝑛𝑐𝑒: 𝜎 2 = , OR 𝜎 2 = − 𝜇2
𝑁 𝑁

∑ 𝑓(𝑚𝑖𝑑𝑝𝑜𝑖𝑛𝑡−𝑥̅ )2 ∑ 𝑓(𝑚𝑖𝑑𝑝𝑜𝑖𝑛𝑡)2 (∑ 𝑓𝑥)2

Grouped data: 𝑆𝑎𝑚𝑝𝑙𝑒 𝑣𝑎𝑟𝑖𝑎𝑛𝑐𝑒: 𝑠 2 = , OR 𝑠 2 = − 𝑛(𝑛−1)
𝑛−1 𝑛−1

∑ 𝑓(𝑚𝑖𝑑𝑝𝑜𝑖𝑛𝑡−𝜇)2 ∑ 𝑓(𝑚𝑖𝑑𝑝𝑜𝑛𝑡)2
𝑃𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛 𝑉𝑎𝑟𝑖𝑎𝑛𝑐𝑒: 𝜎 2 = , OR 𝜎 2 = − 𝜇2
𝑁 𝑁

3(𝑚𝑒𝑎𝑛 − 𝑚𝑒𝑑𝑖𝑎𝑛)
𝑃𝑒𝑎𝑟𝑠𝑜𝑛′ 𝑠 𝑐𝑜𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑡 𝑜𝑓 𝑠𝑘𝑒𝑤𝑛𝑒𝑠𝑠 =
𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛

(𝑄3 − 𝑄2 ) − (𝑄2 − 𝑄1 )
𝑄𝑢𝑎𝑟𝑡𝑖𝑙𝑒 𝑐𝑜𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑡 𝑜𝑓 𝑠𝑘𝑒𝑤𝑛𝑒𝑠𝑠 =
(𝑄3 − 𝑄1 )

𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
𝐶𝑜𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑡 𝑜𝑓 𝑣𝑎𝑟𝑖𝑎𝑡𝑖𝑜𝑛 = × 100
𝑀𝑒𝑎𝑛

Discrete random variables: 𝐸 (𝑋) = ∑ 𝑥 𝑃(𝑋 = 𝑥) 𝑉𝐴𝑅(𝑋) = 𝐸 (𝑋 2 ) − [𝐸 (𝑋)]2

𝑋~𝐵𝑖𝑛(𝑛, 𝑝): 𝑃(𝑋 = 𝑟) = 𝑛𝐶𝑟 𝑝𝑟 𝑞 𝑛−𝑟

𝑥−𝜇
𝑋~𝑁(𝜇, 𝜎 2 ): 𝑧 = 𝜎

𝜎 𝑠 𝑠
Confidence intervals: 𝜇 = 𝑥̅ ± 𝑧 , 𝜇 = 𝑥̅ ± 𝑧 , 𝜇 = 𝑥̅ ± 𝑡
√𝑛 √𝑛 √𝑛
 𝑠2 𝑠2 (𝑋̅1 −𝑋̅2 )−0
For 𝑋̅1 − 𝑋̅2 ~𝑁 (0, 𝑛1 + 𝑛2 ): 𝑧=
1 2 2 2
𝑠 𝑠
√ 1+ 2
𝑛1 𝑛2

(∑ 𝑥 ∑ 𝑦)
∑(𝑥−𝑥̅ )(𝑦−𝑦̅) ∑ 𝑥𝑦−
𝑛
Product moment correlation coefficient: 𝑟= OR 𝑟= 2 (∑ 𝑦) 2
√[∑(𝑥−𝑥̅ )2 (𝑦−𝑦̅)2] √(∑ 𝑥 2 −
(∑ 𝑥)
𝑛
)(∑ 𝑦 2 − 𝑛 )

∑(𝑥−𝑥̅ )(𝑦−𝑦̅)
Least squares regression line: 𝑦 = 𝑎 + 𝑏𝑥 where 𝑏 = ∑(𝑥−𝑥̅ )2
and 𝑎 = 𝑦̅ − 𝑏𝑥̅
Q5. Student ID:
Q11. Student ID:

Inter-arrival time (nearest minute) 1 2 3 4 5 6

Probability (%) 4 12 26 35 15 8
Random numbers

Service time (nearest minute) 3 4 5 6 7 8

Probability (%) 9 24 32 17 13 5
Random numbers

Cust RN Inter- Customer Start RN Service Service Wait in Queue

arrival Arrives service time end queue length
time (max)

1 - 0 59

2 86 53

3 3 81

4 99 10

5 63 96

6 46 13

7 8 26

8 63 17

9 93 72

10 5 89
ANSWERS

1.

a) Solve the following pairs of simultaneous equations:

i) 6𝑦 − 5𝑥 = −32, 2𝑦 + 3𝑥 = 8 x = 4, y = -2 [2]

ii) 2𝑦 + 3𝑥 + 4 = 17, 7𝑦 − 2𝑥 = 33 x=1,y=5 [2]

b) Simplify the following:

−0.5
9𝑥 −2
i) (
144𝑦 4 𝑥 6
) 4𝑦 2 𝑥 4 [1.5]

3 1 8
ii) (𝑥 −4 )2 × (𝑥 4 ) × 3𝑥 0 3𝑥 −4 [1.5]

c) Simplify the following:

i) 2𝑙𝑜𝑔2 + 3𝑙𝑜𝑔3 − 3𝑙𝑜𝑔6 −𝑙𝑜𝑔2 [1.5]

5 1 1 2
ii) 𝑙𝑜𝑔16 − 𝑙𝑜𝑔216 − 𝑙𝑜𝑔64 𝑙𝑜𝑔 [1.5]
4 3 2 3

[10]

2.

The weights, in kg, of a large group of goalkeepers are normally distributed with a mean of 83 kg and standard
deviation of 6.8 kg. 𝑋~𝑁(83, 6.82 ) [1]

a) A goalkeeper is selected at random. Find the probability that he:

90−83
i) weighs less than 90kg. 𝑃 (𝑥 < 90) = 𝑃 (𝑧 < 6.8
) = 𝑃(𝑧 < 1.03) = 0.8485 [1]

80−83
ii) weighs more than 80kg. 𝑃 (𝑥 > 80) = 𝑃 (𝑧 > 6.8
) = 𝑃(𝑧 > −0.44) = 𝑃(𝑧 < 0.44) = 0.6700 [2]

ii) weights between 78 kg and 88 kg. 𝑃(78 < 𝑋 < 88) = 𝑃(−0.74 < 𝑧 < 0.74) = 0.7704 − 0.2296 = 0.5408 [3]

b) Between what weights could you expect approximately 68%, 95% and 99.7% of goalkeepers to fall?

83 ± 6.8 → 𝟕𝟔. 𝟐 𝒕𝒐 𝟖𝟗. 𝟖, 𝟖𝟑 ± 2 × 6.8 → 𝟔𝟗. 𝟒 𝒕𝒐 𝟗𝟔. 𝟔, 83 ± 3 × 6.8 → 𝟔𝟐. 𝟔 𝒕𝒐 𝟏𝟎𝟑. 𝟒 [3]

[10]
3.

a) In a large restaurant an average of three out of every five customers ask for water with their meal.

A random sample of 10 customers is selected. 𝑋~𝐵𝑖𝑛(10,0.6)

i) What is the expected number of these customers who ask for water with their meal?

𝐸(𝑋) = 10 × 0.6 = 6 [2]

ii) What is the probability that exactly six of these customers ask for water with their meal?

10
𝐶6 0.66 0.44 = 0.2508 … [2]

iii) What is the probability that less than nine ask for water with their meal?

= 1 − 𝑃(𝑥 ≥ 9) = 1 − 𝑃(𝑥 = 9) − 𝑃 (𝑥 = 10) = 1 − 0.040310784 − 0.003046617 = 0.95364 … [3]

b) For:
𝑥 5 7.5 10 12.5 15
𝑃(𝑋 = 𝑥) 0.1 a = 0.1 0.3 0.3 0.2

i) Find 𝜇 and 𝜎 to two decimal places. 𝑢 = 11, 𝜎=3 [2]

ii) Find 𝑃(𝑋 ≥ 𝜇) 0.3 + 0.2 = 0.5 [1]

[10]

4.

a) A random sample of 50 professional male goalkeepers are measured and found to have a mean height of 1.91
metres, with a standard deviation of 0.1 metres. The heights of professional male goalkeepers in general can be
𝑠
assumed to be normally distributed. 𝑥̅ ± 𝑧
√𝑛

Find the 95% and 98% confidence intervals for the actual population mean.

0.1 0.1
95% : 1.91 ± 1.96 → 𝟏. 𝟖𝟖𝟐 … 𝒕𝒐 𝟏. 𝟗𝟑𝟕 … 98% : 1.91 ± 2.326 → 𝟏. 𝟖𝟕𝟕 … 𝒕𝒐 𝟏. 𝟗𝟒𝟐 … [4]
√50 √50

b) A sample of monthly rental prices for student accommodation in a city are shown below. Assuming that rental
prices are normally distributed, find 95% and 99% confidence intervals for the mean monthly rental cost in the city.

𝑠
£540, £555, £495, £550, £560, £600, £570, £560, £525, £540, £580. 𝑥̅ ± 𝑡
√𝑛

𝑥̅ = 552.2727273, 𝑠 = 27.96101182 , 𝑛 = 11, 𝑑𝑓 = 10,

27.96 27.96
95%: 552.27 ± 2.228 → 533.489 … 𝑡𝑜 571.056 … , 99% ∶ 552.27 ± 3.169 →
√11 √11

525.556 … 𝑡𝑜 578.989 [6]

[10]
5.

A factory produces two types of toys: Trucks and bicycles. In the manufacturing process of these toys three
machines are used. These are a moulder, a lathe and an assembler. The table below shows the length of time
needed for each toy. Moulder Lathe Assembler
Bicycle 1 hour 3 hours 1 hour
Truck 0 hours 1 hour 1 hour

The moulder can be operated for three hours per day, the lathe for 12 hours per day and the assembler for seven
hours per day. Each bicycle made gives a profit of £15 and each truck made gives a profit of £11.

Formulate a linear programming model and solve using the graphical method to find how many of each of bicycles
and trucks that the factory should produce to maximise profit.

𝐿𝑒𝑡 𝑥 = 𝑛𝑜. 𝑜𝑓 𝑏𝑖𝑐𝑦𝑐𝑙𝑒𝑠, 𝑙𝑒𝑡 𝑦 = 𝑛𝑜. 𝑜𝑓 𝑡𝑟𝑢𝑐𝑘𝑠, 𝑂𝑏𝑗: 𝑚𝑎𝑥 𝑝𝑟𝑜𝑓𝑖𝑡 = 15𝑥 + 11𝑦, [2]

𝐶𝑜𝑛𝑠𝑡𝑟𝑎𝑖𝑛𝑡𝑠: 𝑀𝑜𝑢𝑙𝑑𝑒𝑟 𝑥 ≤ 3, 𝐿𝑎𝑡ℎ𝑒 3𝑥 + 𝑦 ≤ 12,

𝐴𝑠𝑠𝑒𝑚𝑏𝑙𝑒𝑟 𝑥 + 𝑦 ≤ 7, 𝑆𝑖𝑔𝑛𝑠 𝑥 ≥ 0, 𝑦 ≥ 0 [3]

𝑃𝑜𝑠𝑠 𝑣𝑒𝑟𝑡𝑖𝑐𝑒𝑠: (3,0) 𝑝 = £45, (3,3) 𝑝 = £78, (0,7) 𝑝 = £77

(2,4) 𝑝 = £74, (𝟐, 𝟓) 𝒑 = £𝟖𝟓, [2] Graph [3]

[10]

6.

In a call centre, the duration of a sample of phone calls is recorded. The results are shown below:

Length of call, 𝒕, (mins) mid Frequency cf

0.5 < 𝑡 ≤ 4.5 2.5 34 3
4.5 < 𝑡 ≤ 8.5 6.5 32 35
8.5 < 𝑡 ≤ 12.5 10.5 30 65
12.5 < 𝑡 ≤ 16.5 14.5 45 110
16.5 < 𝑡 ≤ 20.5 18.5 17 127
a) Calculate estimates, to two decimal places, for:

i) the mean length of call times. 𝑥̅ = 11.79 … [2]

ii) the standard deviation in the length of call times. 𝑠 = 4.27 … (𝜎 = 4.26) [2]

𝑚𝑒𝑑𝑖𝑎𝑛−8.5 63.5−35
iii) the median length of call times. 12.5−8.5
= 65−35
→ 𝑚𝑒𝑑𝑖𝑎𝑛 = 12.3 [3]

b) Using your answers to a) calculate Pearson’s Coefficient of Skewness. Given your answer, would you say that the
mean or the median would be the best measure to represent the length of call times?

3(11.79−12.366)
4.381
≈ −0.36 … → 𝑚𝑖𝑛𝑖𝑚𝑎𝑙 𝑠𝑘𝑒𝑤 𝑠𝑜 𝑞𝑢𝑖𝑡𝑒 𝑠𝑦𝑚𝑚𝑒𝑡𝑟𝑖𝑐𝑎𝑙 ∴ 𝑢𝑠𝑒 𝑚𝑒𝑎𝑛 [3]

[10]
7.

A small company has two sales offices. The management wants to know if the mean number of sales per month for
these sales offices are different. It is known that the monthly variance in sales for the first office is 2000 and for the
second office is 12000

A sample of 12 months for the first office gives the following monthly sales numbers:

300 312 400 454 389 298 355 387 368 419 384 388

A sample of 15 months for the second office gives the following monthly sales numbers:

499 380 375 490 399 354 427 471 354 280 416 466 327 389 425

Test at the 5% significance level whether the mean daily sales for these two sales offices are different.

You may assume that the sales are normally distributed.

office 1: n = 12, mean = 371.167 3dp, sd2 = 2000, office 2: n = 15, mean = 403.467 3dp, sd2 = 12000 [2]

𝐻0 : 𝜇1 − 𝜇2 = 0 (there is no difference between the means), 𝐻1 : 𝜇1 − 𝜇2 ≠ 0 (there is a diff between means) [2]

2000 12000 (403.667−371.167)−(0)

𝑋̅1 − 𝑋̅2 ~𝑁 (0, 12 + 15 ) → 𝑋̅1 − 𝑋̅2 ~𝑁(0,2966.667) 𝑧= ≈ 1.03/5 [2]
√966.667

At 5% the critical values are ±1.96, → z not in critical region. [2]

Do not reject 𝐻0 and conclude that there is no evidence, at the 5% level, of a difference in population means, i.e.
there is no evidence of a difference between the mean monthly sales performance of the two salespeople. [2]

[10]

8.

The total revenue received by ChipCo Integrated Circuits from the sale of 𝑥 units of a product is given by

𝑅 (𝑥) = 35𝑥 + 5𝑥 2 − 42

35𝑥+5𝑥 2 −42 42
Find a) the average revenue 𝐴𝑅 = 𝑥
= 35 + 5𝑥 − 𝑥
[2]

𝑑𝑅
b) the marginal revenue 𝑀𝑅 = 𝑑𝑥 = 35 + 10𝑥 [3]

c) the marginal revenue at 𝑥 = 30 𝑀𝑅(30) = 35 + 10 × 30 = 335 [2]

d) the actual revenue from selling the 31st item.

𝑅 (31) − 𝑅 (30) = (35(31) + 5(31)2 − 42) − (35(30) + 5(30)2 − 42) = 5508 − 5848 = 340 [3]

[10]
9.

ChipCo Integrated Circuits manufacture a product with £102,000 in fixed costs. The variable cost is estimated to be
15% of the total revenue when the product is sold at a rate of £24 per unit.

a) Find the total revenue if 30,000 of the product are sold. 𝑅(𝑥) = 24𝑥 = 24 × 30,000 = £720,000 [2]

b) Find the total cost if 30,000... 𝐶 (𝑥) = 102,000 + 0.15 × 24𝑥 = 102,000 + 0.15 × 720,000 = £210,000 [3]

c) Find the break-even point. 24𝑥 = 102,000 + 0.15 × 24𝑥 → 𝑥 = 5000 [3]

d) Were ChipCo Integrated Circuits to increase the selling price to £28 per unit, what would the new break-even
point be? 28𝑥 = 102,000 + 0.15 × 28𝑥 → 𝑥 = 4285 / 4286 [2]

[10]

10.

ChipCo Integrated Circuits wishes to open a new facillity. The timings for the project are shown in the table below:

Activity Immediate predecessors Duration (weeks)

A - 10
B - 6
C A, B 4
D A, B 8
E B 9
F C 7
G C, D, E 4
H E 6
I F 12
J G, H, I 3
K I, J 2

a) activity network [2]

b) start times/lt finish times [2] and [2]

c) critical activities. A, C, F, I, J, K [2]

d) ChipCo Integrated Circuits can pay extra so that activities F, G, H and I can each be finished two weeks
quicker than the times shown in the table. Is it worth paying for any of these activities to be speeded up?
Give your reasoning. F and I yes - critical, G and H no – not critical [2]

[10]
11.

A small supplier has only one assistant serving customers. Sometimes, during busy periods there are customers
waiting, so the owner decides to investigate to see whether it is worth employing a second staff member to serve
customers. They carry out a survey of the time between customer arrivals (inter-arrival time) and how long it takes
each customer to be served (to the nearest minute). The results are below:

a) Perform a simulation for 10 customers, with the assumption that the first customer arrives at time zero.

b) In your simulation, what is the maximum number of customers waiting and the maximum time spent queuing?
Do you think a 2nd staff member to serve customers is justified? Why/why not? [2] for f.t. values and comment

Inter-arrival time (nearest minute) 1 2 3 4 5 6

Probability (%) 4 12 26 35 15 8
Random numbers 00-03 04-15 16-41 42-76 77-91 92-99
[2] for correct random number rules

Service time (nearest minute) 3 4 5 6 7 8

Probability (%) 9 24 32 17 13 5
Random numbers 00-08 09-32 33-64 65-81 82-94 95-99

Cust RN Inter- Customer Start RN Service Service Wait in Queue

arrival Arrives service time end queue length
time (max)
1 - 0 0 0 59 5 5 0 0
2 86 5 5 5 53 5 10 0 0
3 3 1 6 10 81 6 16 4 1
4 99 6 12 16 10 4 20 4 1
5 63 4 16 20 96 8 28 4 1
6 46 4 20 28 13 4 32 8 1
7 8 2 22 32 26 4 36 10 2
8 63 4 26 36 17 4 40 10 3
9 93 6 32 40 72 6 46 8 2
10 5 2 34 46 89 7 53 12 3

IAT & ST Arrival Start End Wait In queue

[1] [1] [1] [1] [1] [1]

Allow up to two errors per column, so long as follow through (f.t.) is correct.
12.

a) ChipCo Integrated Circuits manufactures a product with a total cost function given by:

𝐶 (𝑥) = 𝑥 3 − 375𝑥 2 + 25200𝑥 + 15500 where 𝑥 is the number of units produced.

Determine the number of units that must be produced to minimize the total cost.

𝑑𝐶 𝑑2𝐶
𝑑𝑥
= 3𝑥 2 − 750𝑥 + 25200 = 0 → 𝑥 = 40,210 [2] 𝑑𝑥 2
= 6𝑥 − 750, 𝑥 = 40 → −510 𝑚𝑎𝑥, 𝒙 = 𝟐𝟏𝟎 → 𝟓𝟏𝟎 𝒎𝒊𝒏 [2]

b) ChipCo Integrated Circuits charges £700 for a different product on orders of 60 or less. The charge is reduced by
£10 for each unit ordered in excess of 60. Find the largest size order ChipCo Integrated Circuits should allow to
receive a maximum revenue.

𝐿𝑒𝑡 𝑥 = 𝑛𝑜. 𝑜𝑟𝑑𝑒𝑟𝑒𝑑 > 60. 𝑅(𝑥) = (60 + 𝑥)(700 − 10𝑥) = 42,000 + 100𝑥 − 10𝑥 2 [3]

𝑑𝑅
𝑑𝑥
= 100 − 20𝑥 = 0 → 𝑥 = 5 𝑠𝑜 𝑜𝑟𝑑𝑒𝑟 𝑠𝑖𝑧𝑒 𝑡𝑜 𝑚𝑎𝑥𝑖𝑚𝑖𝑠𝑒 𝑝𝑟𝑜𝑓𝑖𝑡 𝑖𝑠 65. [3]

[10]

END