QUANTITATIVE METHODS

Suggested Answers
Foundation Examinations – Autumn 2009

Ans.1 (a)
x2y = ( x) 2 y2 +2

x 2 y = (x ) 2
1
(2 y 2
+2 )

x 2 y = (x )
y 2 +1

Since bases are same on both sides, the exponents will be equal:

2y = y2 + 1
2
y – 2y + 1 = 0
(y – 1)2 = 0
y =1

Ans.1 (b) 16 x 4 + 4 x 2 y 2 + y 4
( ) + 2(4 x )( y ) + (y ) − (2 xy )
= 4x 2
2 2 2 2 2 2

= (4 x + y ) − (2 xy )
2 2
2 2

= (4 x + y − 2 xy )(4 x + y + 2 xy )
2 2 2 2

Ans.1 (c) Let the product price on Aug 1 be x.

According to the question:

x + 25% x – 16% (x + 25% x) = 63
1.25 x – 0.16 (1.25 x ) = 63
1.25 x – 0.20 x = 63
1.05 x = 63
x = 63 / 1.05
x = 60
Hence price of product on July 31, 2009 was Rs. 60.

Ans.2 (a) Using the relation:

x y
+ =1
a b
Since the line has the same value of x and y – intercepts, hence we have
x y
+ =1
a a
x+ y
=1
a
x + y = a -------------- Eq. 1
Since the line passes through the point (3, 5), therefore, from Eq. 1 we have:
3 + 5 = a i.e. 8 = a
Thus, equation of the given line is:
x+ y =8

4-Jan-10 9:48:08 AM Page 1 of 9

 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2009

Ans.2 (b)
P = 3.0 million, r = 15% = 0.15
S = 25 million, n = ?

Using the relation:

S = P(1 + r)n
25/3 = (1 + 0.15)n
25/3 = (1 + 0.15)n
Log(1.15)n = Log8.3333
n Log(1.15) = Log8.3333
n (0.06070) = 0.9208
n = 0.9208/0.06070
n = 15.17
n = 16
Thus the shopkeeper will achieve the sales of 25 million in the 16th year i.e. in 2024.

Ans.3 (a) P = Rs. 200,000, n = 2 years, i = 8% = 0.08, t = ½ year

Discounted value = Rs. 221,797, Discounted rate = r = ?

Using the relation:

Maturity value = P(1 + ni)
we have:
Maturity value = 200,000[1 + (2)(0.08)]
= 200,000(1.16)
= 232,000
Now, Discounted value = Maturity value / (1 + rt)
232000
⇒ 221797 =
1 + 0.5r
232000
⇒ 1 + 0.5r = = 1.046
221797
1.046 − 1
⇒r= = 9.2%
0.5

Ans.3 (b) Price of car = Rs. 850,000

Down payment = Rs. 200,000
Balance amount to be paid in installments = A = 850,000 – 200,000 = 650,000
Total financing period = t = 5 years
Number of installment per year = m = 2
Total number of installments = n = mt = 10
Interest rate per annum= r = 19% = 0.19
Semi-annual interest = i = r / m = 0.19 / 2 = 0.095
Semi-annual installment = R = ?
Total interest paid = I = ?
Ai
R=
1 − (1 + i )
−n

(650000)(0.095)
R=
1 − (1 + 0.095)
−10

61750 61750
R= = = 103,523
1 − 0.403514 0.596486

Interest paid = (103,523) (10) – 650,000

= 1,035,230 – 650,000
= 385,230
4-Jan-10 9:48:08 AM Page 2 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2009

Ans.4 (a) 60
A( x) = 0.01x 2 − 30 x + 300 +
x
3
⇒ C ( x) = A( x) x x = 0.01x 3 − 30 x 2
+ 300 x + 60
1
M ( x) = C ′( x) = 0.03 x 2 − 45 x 2
+ 300
To minimize marginal cost we will take its first derivative i.e.:
45 −12
M ′( x) = C ′′( x) = 0.06 x − x
2
Putting M’(x) = 0 we have:
45 −12
0.06 x − x =0
2
45 −12
0.06 x = x
2
3 45
x 2 = = 375
0.12
x = 51.8 i.e. x = 52 units

Now taking the second derivative of marginal cost i.e.:

45 −3 2
M ′′( x) = C ′′′( x) = 0.06 + x
4
For x = 52, M ′′( x) > 0
Hence marginal cost will be minimum when 52 units are produced.

Ans.4 (b) ( x − 1)( x + 2)

y=
x
x + x−2
2
3 1 −1
⇒y= =x 2
+x 2
− 2x 2

Differentiating w.r.t. x we have:

1
dy 3 12 1 −12 −3 3x 2 1 1
= x + x +x 2 = + 1 + 3
dx 2 2 2 2x 2 x 2
dy 3 x 2 + x + 2
⇒ = 3
dx 2x 2
dy  3 x 2 + x + 2  x  3 x 2 + x + 2 
  x
⇒ =
dx  2 x 3 2  x = 2
  2 x 

4-Jan-10 9:48:08 AM Page 3 of 9

 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2009

Ans.5 (a) 4 3 −1


Here A = 1
 −2 1
a 12 −5

4 3 −1
⇒ A=1 −2 1
a 12 −5

⇒ A = 4[(−2)(−5) − (1)(12)] − 1[(3)(−5) − (−1)(12)] + a[(3)(1) − (−1)(−2)]

⇒ A = 4[10 − 12] − 1[− 15 + 12] + a[3 − 2]
⇒ A = 4[− 2] − 1[− 3] + a[1]
⇒ A = −8 + 3 + a
⇒ A = −5 + a

Since |A| = 0. Therefore:

–5 + a = 0
a = 5

Ans.5 (b) Objective function for cost minimization is:

C(x) = 6x + 4y
Constraints inequalities are:
x+y≥5
x+y≤7
2x + y ≥ 8
2x + y ≤ 10
x ≥ 0 and y ≥ 0.

For drawing the graph we will convert each of the above inequalities into equations and then find
their x and y intercepts i.e.:
(i) x+y=5
Putting x = 0 we have y = 5 => (0, 5)
Putting y = 0 we have x = 5 => (5, 0)
(ii) x + y = 7
Putting x = 0 we have y = 7 => (0, 7)
Putting y = 0 we have x = 7 => (7, 0)
(iii) 2x + y = 8
Putting x = 0 we have y = 8 => (0, 8)
Putting y = 0 we have x = 4 => (4, 0)
(iv) 2x + y = 10
Putting x = 0 we have y = 10 => (0, 10)
Putting y = 0 we have x = 5 => (5, 0)

4-Jan-10 9:48:08 AM Page 4 of 9

 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2009

(ii) The graph is shown below:

From graph, the co-ordinates of feasible region ABCD are:

A(5, 0), B(3, 4), C(1, 6) and D(3, 2)

(iii) To find the minimum cost for producing required tablets, we will put the co-ordinates of feasible
region in the objective function C(x) = 6x + 4y.
Feasible Region Points Value of Objective function: C(x) = 6x + 4y
A(5, 0) 6(5) + 4 (0) = 30 + 0 = 30
B(3, 4) 6(3) + 4 (4) = 18 + 16 = 34
C(1, 6) 6(1) + 4 (6) = 6 + 24 = 30
D(3, 2) 6(3) + 4 (2) = 18 +8 = 26

The above calculation shows that each tablet should contain 3 mg of extract from product X and
2 mg of extract from product Y to keep the tablets at lowest cost.

Ans.6 (a)
(i) Year Salary (S) Price Index (PI) Real Wages (Rs)
RW = (S/PI) 100
2005 12,350 110.1 11,217.08
2006 13,500 122.3 11,038.43
2007 14,800 137.6 10,755.81
2008 16,500 160.2 10,299.63

(ii) In order to have the same buying power in 2008 as they had in 2006, the pay in 2008 should be:
13500
= × 160.2
122.3
= Rs 17,683.57

Ans.6 (b) Salary Range Mid Number of f.x (x − x )2 f. ( x − x )

2

Rs in thousand Point (x) Employees (f)

10 up to 20 15 120 1800 1487.76 39514.01
20 up to 30 25 175 4375 816.33 11613.01
30 up to 40 35 100 3500 344.9 343.67
40 up to50 45 80 3600 73.47 11241.07
50 up to 60 55 44 2420 2.04 21013.96
60 up to 70 65 25 1625 130.61 25366.67
70 up to 80 75 17 1275 459.18 29779.64
561 18,595 3,783.59 138872.0143

4-Jan-10 9:48:08 AM Page 5 of 9

 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2009

Mean = x =
∑ fx
∑f
18595
 Mean = x = = 33.1462
561
 Mean salary = 33.1462 X 1000
 = Rs. 33,146.2

∑ f (x − x )
2

Standard Deviation =
∑f
138872.0143
 Standard Deviation =
561
 Standard Deviation = 247.5437 = 15.7335
 Standard Deviation = SD = 15.7335 X 1000 = Rs. 15,733.5
SD
Co-efficient of variation = × 100
Mean
15.7335
 Co-efficient of variation = C1 = × 100 = 47.47%
33.1462
It is given that the mean and standard deviation of another company’s employees salary are Rs.
36,544 and Rs. 8982. Hence other company’s co-efficient of variation will be:
8982
Co-efficient of variation of 2nd company = C2 = × 100 = 24.58%
36544
Since C2 < C1, hence the 2nd company’s’ salaries are more evenly distributed.

Ans.7 (a) Math Physics Math’s Physics d = MR–PR d2

marks marks rank (MR) Rank (PR)
27 67 10 4 6 36
73 62 2 6 -4 16
34 41 9 10 -1 1
25 21 11 11 0 0
64 74 4 2 2 4
91 85 1 1 0 0
70 66 3 5 -2 4
62 49 5 8 -3 9
55 55 7 7 0 0
48 44 8 9 -1 1
59 68 6 3 3 9
∑ d 2 = 80
4-Jan-10 9:48:08 AM Page 6 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2009

6∑ d 2
rs = 1 −
n(n 2 − 1)
6 × 80
⇒ rs = 1 −
11(121 − 1)
480
⇒ rs = 1 − = 1 − 0.3636 = 0.6364
1320
The value of rs shows that there is a moderate positive relationship between marks obtained in
mathematics and marks obtained in physics.

(b) x y xy x2
2 30 60 4
4 35 140 16
6 44 264 36
8 43 344 64
10 46 460 100
12 50 600 144
14 45 630 196
16 48 768 256
18 39 702 324
20 34 680 400
110 414 4648 1540

xy − ∑ ∑
x y n∑ xy − ∑ x ∑ y
∑ b=
n∑ x 2 −(∑ x )
b= n 2

( x)
∑x − ∑
2
2
n
4648 − (110)(414) 10(4648) − (110)(414)
⇒b=
⇒b= 10 10(1540 ) − (110 )
2
2
1540 − (110)
10
4648 − 4554 46480 − 45540 940
⇒b= = 0.2848 ⇒b= = = 0.2848
1540 − 1210 15400 − 12100 3300

a = y − bx

a=
∑ y − b∑ x
n n
414 110
⇒a= − (0.2848) = 41.4 − (0.2848)11 = 38.2667
10 10
Since y = a + bx
Therefore the regression equation in this case will be:
⇒ y = 38.2667 + 0.2848 x

(ii) The apparent relationship is that output of employees tends to increase as their experience
increases but starts declining after an employee crossed 12 years of experience.

(iii) Using the above regression equation, output of an employee with 13 years experience will be:
y = 38.2667 + 0.2848(13)
y = 38.2667 + 3.7030 = 41.9697 %

4-Jan-10 9:48:08 AM Page 7 of 9

 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2009

Ans.8 (a) 5 4 5
(i) Probability that the batsman hit four on both shots = P(four, four) = × =
12 11 33
4 3 1
Probability that he hit six on both the shots = P(six, six) = × =
12 11 11
3 2 1
Probability that he scored single on both the shots = P(1, 1) = × =
12 11 22

Probability that he scored different runs on both the shots:

P(different runs) = 1 – [P(four, four) + P(six, six) + P(1, 1)]

5 1 1
= 1−  + + 
 33 11 22 
19 47
= 1− =
66 66

Ans.8 (a)
4
C1 .8 C1
P(exactly on one shot he scored six runs) = 12
(ii) C2
 4!   8! 
 (4 − 1)!.1!  (8 − 1)!.1!
=
12!
(12 − 2)!.2!
4.8.2 16
= =
12.11 33

Ans.8 (b) It is given that, on average 2 calls are received in every 3 minutes.
If we take ‘minutes’ as unit of time, then it means 2/3 calls are received per unit time.
Thus, for 9 minute period mean µ = λt = (2/3) (9) = 6

P(x ≥ 5) = 1 – P(x ≤ 4)
= 1 – [P(x = 0) + P(x = 1) + P(x = 2) + P(x = 3) + P(x = 4)]

e − λt ( λ t ) x
Using the Poisson Process formula i.e. P ( x; λt ) = , we have:
x!
 6 0 e −6 61 e −6 6 2 e −6 6 3 e −6 6 4 e −6 
P( x ≥ 5) = 1 −  + + + + 
 0! 1! 2! 3! 4! 
P( x ≥ 5) = 1 − [0.0025 + 6(0.0025) + 18(0.0025) + 36(0.0025) + 54(0.0025)]
P( x ≥ 5) = 1 − [0.0025 + 0.0149 + 0.0446 + 0.0892 + 0.1339]
P( x ≥ 5) = 1 − 0.2851 = 0.7149

Ans.9 (a) H0: µ = 7.5

H1: µ >7.5
Sample mean = X = 7.67
Standard Deviation = s = 0.6
Sample size = n = 40
X −µ
Z calc =
s
n

4-Jan-10 9:48:08 AM Page 8 of 9

 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2009

7.67 − 7.5
Z calc =
0.6
40
0.17
⇒ Z calc =
0.0949
⇒ Z calc = 1.7920
From table, z – value at 5% level of significance for one sided test is:
Z 0.05 = 1.645

Since Zcalc > Ztab, we reject H0 and accept H1. We reject the manufacturer’s claim that average
nicotine content is 7.5 mg.

Ans.9 (b) Sample size = n = 20

98% confidence interval = 45.5 kg < µ < 51.3 kg.
Sample mean = X = ?
Sample variance = s2 = ?
Since n < 30 and population standard deviation is not given, we will make use of the t–
distribution.
s s
X − tα < µ < X + tα
2 n 2 n
For 98% C.I. α = 2% = 0.02. Thus α/2 = 0.01.
At (n–1) i.e. (20 – 1) = 19 degrees of freedom t0.01 = 2.539, hence:

s s s s
X − tα < µ < X + tα = X − t 0.01 < µ < X + t 0.01
2 n 2 n n n
s s
= X − (2.539) < µ < X + (2.539)
20 20

Comparing the above interval with the given interval we have:

2.539 s
X− = 45.5 --------------------------------------- Eq. 1
20
2.539 s
X+ = 51.3 --------------------------------------- Eq. 2
20
Adding Eq. 1 and Eq. 2, we have:
2 X = 96.8 i.e. X = 48.4
Hence sample mean is 48.4 kg.

Now, subtracting Eq. 1 from Eq. 2, we have:

 2.539 s   2.539 s 
2  = 5.8 or   = 2.9
 20   20 
2.9 20
⇒s= = 5.1080
2.539
Hence the sample variance = s2 = 26.0916

(THE END)

4-Jan-10 9:48:08 AM Page 9 of 9

 QUANTITATIVE METHODS
Suggested Answer
Foundation Examinations – Spring 2010

A.1(a) We know that:

Sn =
(
a r n −1 )
r −1
Here r = 3 and S n = 364a

⇒ 364a =
(
a 3n − 1 )
3 −1
⇒ 364 =
(
3 −1
n
)
2
⇒ 729 = 3 n

⇒ 36 = 3 n

Since bases are same, exponents will be equal:

⇒n=6

A.1(b) 2xy (xy – 11) = 420

xy(xy – 11) = 210
(xy)2 – 11(xy) – 210 = 0

Factorizing, we have:
(xy)2 – 21xy + 10xy – 210 = 0
xy (xy – 21) + 10 (xy – 21) = 0
(xy – 21) (xy + 10) = 0
 xy = 21 or xy = –10
Since x and y both are positive, ∴ xy can’t be negative.
Hence xy = –10 is not possible
∴ xy = 21
The possible sets of values are:
{x,y} = {1,21}
{3,7}
{7,3}
{21,1}

A.2(a) We know that future value of annuity due is given by:

 i 
mn

 1 +  − 1
S = R
m 1 +
i 

 i  m
 m 
 

Future value of Rs 3,000 per month deposited for four years =

 0.06 
48

 1 +  − 1
S1 = 3000  
12  1 + 0.06 
 0.06  12 
 12 
 
 (1.005)48 − 1 1.27 − 1
S1 = 3000  (1.005) = 3000   (1.005) = 163,104.96
 0 . 005   0 . 005 
 QUANTITATIVE METHODS
Suggested Answer
Foundation Examinations – Spring 2010

Future value of Rs 2,000 (5,000 – 3,000) per month deposited for three years =
 0.06 
36

 1 +  − 1
12 
S 2 = 2000    (1.005)
 0.06 
 12 
 
 (1.005)36 − 1 1.197 − 1
S 2 = 2000   (1.005) = 2000  (1.005) = 79,065.57
 0.005   0.005 

Future value of Rs 3,000 (8,000 – 5,000) per month deposited for two years =
 0.06 
24

 1 +  − 1
S 3 = 3000  
12   (1.005)
 0.06 
 12 
 
 (1.005)24 − 1 1.127 − 1
S 3 = 3000   (1.005) = 3000   (1.005) = 76,677.35
 0.005   0.005 
Future value of Rs 2,000 (10,000 – 8,000) per month deposited for one year =
 0.06 
12

 1 +  − 1
S 4 = 2000  
12   (1.005)
 0.06 
 12 
 
 (1.005)12 − 1 1.062 − 1
S 4 = 2000   (1.005) = 2000  (1.005) = 24,794.48
 0.005   0.005 

Total savings = S 1 + S 2 + S 3 + S 4 = 163,104.96 + 79,065.57 + 76,677.35 + 24,794.48

 Total savings = 343,642.36
Hence after four years, Imran would have saved Rs. 343,642.36

A.2(b) P = 1,428,000 – 628,000 = 800,000

R = 34,000; m = 12; n = 3.5 and i = ?

The question requires calculation of IRR and accordingly:

The simple interest rate in the above case is

As an initial estimate of the IRR we take it at 1.5 times simple interest i.e.,
i = 1.5 X 22.43 = 33.64

Substituting the value of i we have:

 QUANTITATIVE METHODS
Suggested Answer
Foundation Examinations – Spring 2010

Since the calculated value of P at i > 800,000 we will shall try a larger i say i = 0.40

By Interpolation:

e 2x
A.3(a) y=
( x 2 + 1) 2

Let u = e2x and v = (x2 + 1)2

du d
=> = u ' = e 2 x = 2e 2 x
dx dx
⇒
dv
dx
d
dx
( )
2 −1
= v ′ = ( x 2 + 1) 2 = 2 x 2 + 1 •
d 2
dx
x +1 ( )

=> v ′ = 4 x( x 2 + 1)

We know that:
dy vu '−uv'
=
dx v2
dy ( x 2 + 1) 2 2e 2 x − e 2 x (4 x)( x 2 + 1)
⇒ =
dx ( x 2 + 1) 4
dy e 2 x ( x 2 + 1)  2( x 2 + 1) − (4 x) 
= 2  
dx ( x + 1)( x 2 + 1) 2  ( x 2 + 1) 
dy  2x 2 + 2 − 4x 
= y 
 ( x + 1) 
2
dx
 x 2 − 2x + 1  2 y ( x − 1)
2
dy
= 2 y  =
dx  ( x + 1) 
2
x2 +1

A.3(b) D( x) = 1680 − 3 x
=> Revenue = R ( x) = 1680 x − 3 x 2
Since Profit Function = Revenue Function – Cost Function
⇒ P( x) = 1680 x − 3x 2 − 6 x − 95000
⇒ P ( x) = 1674 x − 3 x 2 − 95000
⇒ P′( x) = 1674 − 6 x
 QUANTITATIVE METHODS
Suggested Answer
Foundation Examinations – Spring 2010

To determine the most feasible production quantity we will put P ′( x) = 0

⇒ 1674 − 6 x = 0
⇒ x = 279
Now, P ′′( x) = −6
i.e., P ′′( x) < 0
∴ Profit will be maximum when 279 units are produced.

Substituting the value of x in demand function we get:

⇒ D ( x = 279) = 1680 − 3(279) = 1680 − 837 = 843
i.e., Price to be charged = Rs. 843.

⇒ P( x) = 1674(279) − 3(279) 2 − 95000

⇒ P( x) = 467,046 − 233,523 − 950000 = 138,523
i.e., Profit of Rs. 138,523 will be earned if 279 units are produced and sold at Rs. 843 per unit.

A.4(a) Given inequalities are:

2 x + 3 y ≥ 12
3x + 2 y ≤ 6
x, y ≥ 0
To draw the graph we will convert the first two given inequalities into equations and find their x and y
intercepts.
2 x + 3 y ≥ 12 ⇒ 2 x + 3 y = 12 => At x = 0, y = 4 and at y = 0, x = 6
3 x + 2 y ≤ 6 ⇒ 3 x + 2 y = 6 => At x = 0, y = 3 and at y = 0, x = 2

On sketching the graph and observing the given inequalities we found that there is no point which
satisfies all constraints. Hence there is no feasible region.

A.4(b) The equation can be written in matrix form as AX = B

4 2 1   x 6

Where A = 3
 5 − 2 ; X =  y  and B =  4 
− 1 − 2 1   z  − 1

A = 4[5 × 1 − (− 2 ) × (− 2 )] − 2[3 × 1 − (− 2 ) × (− 1)] + 1[3 × (− 2 ) − 5 × (− 1)]

= 4(5 – 4 ) – 2(3 – 2) + (–6 + 5) = 4(1) – 2(1) – 1 = 4 – 2 –1 = 1
 QUANTITATIVE METHODS
Suggested Answer
Foundation Examinations – Spring 2010

6 2 1 

Ax =  4 5 − 2
− 1 − 2 1 

Ax = 6[5 ×1 − (− 2)(− 2)] − 2[4 ×1 − (− 2)(− 1)] + 1[4 × (− 2) − 5 × (− 1)]

= 6(5 – 4) – 2(4 – 2) + (–8 + 5) = 6(1) – 2(2) +(– 3) = 6 – 4 – 3 = – 1

4 6 1 
Ay =  3 4 − 2
− 1 −1 1 

Ay = 4[4 × 1 − (− 2 )(− 1)] − 6[3 × 1 − (− 2 )(− 1)] + 1[3 × (− 1) − 4 × (− 1)]

= 4(4 – 2) – 6(3 – 2) + (–3 + 4) = 4(2) – 6(1) +(1) = 8 – 6 + 1 = 3

4 2 6
Az = 
3 5 4 

− 1 −2 − 1


Az = 4[5 × (− 1) − 4 × (− 2 )] − 2[3 × (− 1) − 4 × (− 1)] + 6[3 × (− 2 ) − 5 × (− 1)]

= 4(–5 + 8) – 2(–3 + 4) + 6(–6 + 5) = 4(3) – 2(1) + 6(–1) = 12 – 2 – 6 = 4

Ax −1 Ay Az
x= = = −1 ; y = = 3 and z = =4
A 1 A A

A.5(a) Probability that at least one screen will detect the missile = P(detect)
P(detect) = 1 – P(not detect)
= 1 – (0.05) (0.05)
= 1 – 0.0025 = 0.9975

A.5(b) Probability Distribution for the given frequency distribution will be:
(i) P(x) = 380/10000, 1120/10000, 1680/10000, 1780/10000, 1960/10000, 1550/10000, 1200/10000,
330/10000
Or P(x) = 0.038, 0.112, 0.168, 0.178, 0.196, 0.155, 0.12, 0.033

A.5(b) The histogram of the given frequency distribution is shown below:

(ii)
 QUANTITATIVE METHODS
Suggested Answer
Foundation Examinations – Spring 2010

A.5(b)
(iii) We know that µ = x1 p1 + x2 p2 + x3 p3 + ..... + xn p n
µ = 0(0.038) + 1(0.112) + 2(0.168) + 3(0.178) + 4(0.196) + 5(0.155) + 6(0.12) + 7(0.033)
µ = 0 + 0.112 + 0.336 + 0.534 + 0.784 + 0.775 + 0.72 + 0.231 = 3.492

(iv) Probability that a customer must wait before being facilitated = P(x) = 1 – P(x=0)
 P(x=0) = 1 – 0.038 = 0.962
A.5(b)
(v) Probability that a customer has to wait for less than 2 minutes = P(x < 2) = P(x=0) + P(x=1)
 P(x < 2) = 0.038 + 0.112 = 0.15

A.6 x y xy x2 y2
(a) 33 91 3003 1089 8281
55 60 3300 3025 3600
50 59 2950 2500 3481
42 65 2730 1764 4225
48 61 2928 2304 3721
61 49 2989 3721 2401
53 42 2226 2809 1764
33 91 3003 1089 8281
375 518 23129 18301 35754

375 518
x= = 46.875 and y = = 64.75
8 8

nΣxy − ΣxΣy
b=
nΣx 2 − (Σx) 2
8(23129 ) − (375)(518)
b=
8(18301) − (375)
2

185032 − 194250
b=
146408 − 140625
− 9218
b= = −1.594
5783
a = y − bx
a = 64.75 − (46.875)(−1.594) = 139.468

y = a + bx
y = 139.468 – 1.594x

nΣxy − ΣxΣy
r=
(b & c)
[nΣx 2
][
− (Σx ) nΣy 2 − (Σy )
2 2
]
8(23129 ) − (375)(518)
r=
[8(18301) − (375) ][8(35754) − (518) ]
2 2

185032 − 194250
r=
[146408 − 140625][286032 − 268324]
− 9218 − 9218 − 9218
r= = = − 0.91091
(5783)(17708) 102405364 10119.554
 QUANTITATIVE METHODS
Suggested Answer
Foundation Examinations – Spring 2010

The value of r shows strong negative correlation between the two variables.

Co-efficient of determination = r2
r 2 = (−0.91091) 2 = 0.82976
The value of r2 shows that 82.98% variation in y is due to x and the rest is due to other factors.

A.7(a) H 0 : µ = 6500 hours

H 1 : µ < 6500 hours
α = 0.05

Since the sample size is small i.e., n < 30, population standard deviation is unknown and life of energy
saver is approximately normally distributed, hence we will use t–distribution i.e.,:

x−µ
t=
s
n
6300 − 6500
⇒t = = − 15 = −3.873
200
15

From table we have t (0.05, d.f. =14) = –1.761

Since the value of test statistic, t = –3.873 is less than the critical value of t = –1.761 and it falls in the
rejection region, therefore, we reject H 0 . Hence we conclude that the sample data does not support the
claim of the company at 0.05 level of significance.

A.7(b) Standard deviation = σ = 0.05

Confidence level = 95% = 0.95
Error = E = 0.01
α = 1 – 0.95 = 0.05
α /2 = 0.025

Z α = Z 0.025 = 1.96 (from table)

2

We know that:
 Zα σ
2

n= 2 
 E 
 
2
 (1.96)(0.05) 
n=  = [(1.96)5] = (9.8) = 96.04
2 2

 0.01 
 Minimum sample size should be 97.

A.8(a)
(i) We know that:
n
P (k , n) =   p k q n−k
k 

Here p = 0.7, q = 0.3 and n = 6

 QUANTITATIVE METHODS
Suggested Answer
Foundation Examinations – Spring 2010

Probability(At least 5 viewers will support) = P(k > 5) = P(5,6) + P(6,6)

6
 P(5,6) =  (0.7) 5 (0.3) 6−1
5
6! 6.5!
= (0.7) 5 (0.3) = (0.16807)(0.3) = 0.302526
5!(6 − 5)! 5!(1)!

And
6
P(6,6) =  (0.7) 6 (0.3) 6−6
6
6! 1
= (0.7) 6 (0.3) 0 = (0.117649)(1) = 0.117649
6!(6 − 5)! (0)!
 Probability(At least 5 viewers will support) = 0.302526 + 0.117649 = 0.420175

A.8(a)
(ii) In this case, p = 0.15, q = 0.85 and n = 6

Now, Probability(Less than 2 viewers will not support) = P(k < 2) = P(0,6) + P(1,6)
6
 P(0,6) =  (0.15) 0 (0.85) 6−0
0
6!
= (1)(0.37715) = 0.37715
0!(6 − 0)!

And
6
P (1,6) =  (0.15)1 (0.85) 6−1
1 
6! 6.5!
= (0.15)(0.85) 5 = (0.15)(0.443705) = 0.399335
1!(6 − 1)! 5!

 Probability(Less than 2 viewers will not support) = 0.37715 + 0.399335 = 0.776484

A.8(b) H 0 : The choice of car is independent of gender.

H 1 : The choice of car is dependent on gender.

Observed frequency table

Civic Corolla Liana Total
Male 27 37 11 75
Female 26 14 5 45
53 51 16 120
 QUANTITATIVE METHODS
Suggested Answer
Foundation Examinations – Spring 2010

Calculation of expected values

Cell No. O ExpectedValue =

∑ O for the Rows × ∑ O for the Columns (O − E) 2
∑ O for the Table E
75 × 53
C 11 27 = 33.13 1.13
120
45 × 53
C 21 26 = 19.88 1.89
120
75 × 51
C 12 37 = 31.88 0.82
120
45 × 51
C 22 14 = 19.13 1.37
120
75 × 16
C 13 11 = 10 0.1
120
45 × 16
C 23 5 =6 0.17
120
(O − E ) 2
χ calc
2
=∑ = 5.48
E

At 2 degrees of freedom, with α = 0.05

n = (3-1)(2-1) = 2
χ 02.05( 2) = 5.99
Since χ calc
2
< χ table
2

∴ We reject H 1 in favour of H 0 and conclude that the favourite car is independent of one’s gender.

(THE END)
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2010

A.1 (a) We know that:

S = P(1 + r)n
Where:
n = number of years; r = rate of profit increase per annum
P = current profit (principal) and S = sum of profit after ‘n’ years
Hence for company A, we have:
S = S A = 600,000(1 + 0.08)n
Similarly, for company B, we have:
S = S B = 1,320,000(1 + 0.05)n
According to the given condition: S A = S B
600,000(1 + 0.08)n = 1,320,000(1 + 0.05)n
∴ Log(600,000) + n Log(1.08) = Log(1,320,000) + n Log(1.05)
 nLog(1.08) – nLog(1.05) = Log(1,320,000) – Log(600,000)
 n (0.0334) – n(0.0212) = 6.1206 – 5.7782
 n(0.0122) = 0.3424
 n = 0.3424 / 0.0122 = 27.99 i.e. n = 28 years
 The profit of the two companies will be equal in the year 2037.

(b) 8 x 2 − 2 xy − 3 y 2 = 0
8 x 2 − 6 xy + 4 xy − 3 y 2 = 0
2 x(4 x − 3 y ) + y (4 x − 3 y ) = 0
(2 x + y )(4 x − 3 y ) = 0
or
=> Either 2x + y = 0 or 4x − 3 y = 0
4
y = – 2x or y= x
3

A.2 First, we calculate the Present Value (PV) of all amounts required by Mr. Hamid on 1/1/2016:

End of Multiplying Factor = Equivalent Present Value

year
Date Cash Outflow
(1 + i )− n on 1/1/2016
2 1/1/2018 1,000,000 0.8264 826,446.28
3 1/1/2019 240,000 0.7513 180,315.55
4 1/1/2020 240,000 0.6830 163,923.23
5 1/1/2021 240,000 0.6209 149,021.12
6 1/1/2022 240,000 0.5645 135,473.74
 PV of amount required on 1/1/2016 1,455,179.92

Now, using the relation:

 (1 + i )n − 1
A= R   (1 + i ) ,
 i 
the annuity required to be invested annually for five years is calculated below:
 (1 + 0.1)5 − 1
1,455,179.92 = R   (1 + 0.1)
 0.1 
1,455,179.92 = R (6.7156)
1,455,179.92
R= = 216,686.19
6.7156
Hence Mr. Hamid should deposit Rs. 216,686.19 at the start of each year to get the desired amounts on time.
Page 1 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2010

A.3 (a) e2x

y=
2x +1
du dv
v −u
d u dx dx
Since  =
dx  v  v2

dy
2 x + 1 (e 2 x ) − e 2 x
d
dx
d
dx
( 2x + 1 )
∴ =
dx (
2x + 1
2
)
2e 2 x
2e 2x
2x + 1 −
dy 2 2x + 1
⇒ =
dx 2x + 1
dy 2e (2 x + 1) − e 2 x
2x
e 2 x (4 x + 1)
⇒ = =
(
dx (2 x + 1) 2 x + 1 ) (2 x + 1) 2
3

dy e 2 x (4 x + 1)  e 4 x 
⇒ =  
dx (2 x + 1) 3 2  e 4 x 
 (4 x + 1)  e 2 x
3
dy (4 x + 1)  e 6 x = 


⇒ =
dx e 4 x  (2 x + 1) 3 2  e 4x  (2 x + 1) 12 
  
dy y 3 (4 x + 1)
⇒ = Hence proved.
dx e4x

(b) 1 3
y= x − 2 x 2 + 3x − 9
3
dy
= x 2 − 4x + 3
dx
dy
Put = 0 to find out the values of x
dx
x 2 − 4x + 3 = 0
 x = 1; x = 3
d2y
Now = 2x − 4
dx 2
d2y
at x = 1; = −2 < 0 i.e. maxima
dx
1 23
at x = 1; y = (1) 3 − 2(1) 2 + 3(1) − 9 = −
3 3
23
∴ co - ordinate of relative maxima = (1,- )
3
d2y
Similarly = 2x − 4
dx 2
d2y
at x=3; = 2x − 4
dx 2
Page 2 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2010

d2y
at x = 3; = 2 > 0; i.e. minima
dx 2
1
at x = 3; y = (3) 3 − 2(3) 2 + 3(3) − 9 = −9
3
∴ coordinate of relative minima = (3,-9)

d2y
For point of inflexion put =0
dx 2
∴ 2 x − 4 = 0; x = 2

Now we will check whether x = 2 is a point of inflexion or not.

For this purpose let us put x = 1.9 (i.e. a point below 2) in d2y/ dx2:
d2y
⇒ 2 = 2(1.9) − 4 = 3.8 − 4 = −0.2 < 0
dx
Now put x = 2.1 (i.e. a point above 2) in dy/ dx:
d2y
⇒ = 2(2.1) − 4 = 4.2 − 4 = 0.2 > 0
dx 2
Hence x = 2 is a point of inflexion for the given function.

Now at x = 2
1 25
y= (2) 3 − 2(2) 2 + 3(2) − 9 = −
3 3
25
∴Coordinate of inflexion = (2, - )
3

A.4 (a) Objective function for profit maximization is:

P(x, y) = 5000x + 4000y
Subject to the constraints:
14 x + 7 y ≤ 70
40 x + 30 y ≤ 280
x ≥ 0, y ≥ 0
For drawing the graph, we will convert each of the above inequalities into equations and find their x
and y intercepts i.e.:
(i) 14 x + 7 y = 70
Putting x = 0 we have y = 10 => (0,10)
Putting y = 0 we have x = 5 => (5,0)

(ii) 40 x + 30 y = 280
Putting x = 0 we have y = 28/3 => (0,9.33)
Putting y = 0 we have x = 7 => (7,0)

(b) The graph is shown below:

Page 3 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2010

From graph, the co-ordinates of feasible region OABC are:

O(0, 0), A(5,0), B(1,8), C(0,9.33)

(c) To find the maximum profit, we will put the co-ordinates of feasible region in the objective function
P(x, y) = 5000x + 4000y:

Feasible Region Points Value of Objective Function: P(x, y) = 5000x + 4000y

A(5,0) 5000(5) + 4000(0) = 25,000 + 0 = 25,000
B(1,8) 5000(1)+4000(8)=5,000 +32,000 = 37,000
C(0, 9.33) 5000(0) + 4000(9.33) = 0 + 37,332 = 37,332

The above calculation shows that the company should produce 0 units of Deluxe and 9.33 units of
Standard model per day, in order to get maximum profit.

A.5 (a) In matrix form, the given system of equations can be written as AX = B where:
 2 5 −1 x  20
A = − 3 −2 7  ; X =  y  and B = 40
  
− 1 3 6   z  30 

2 5 −1
 Determinant of A = A = − 3 −2 7
−1 3 6
⇒ A = 2(−2 × 6 − 7 × 3) + 3(5 × 6 + 1 × 3) − 1(5 × 7 + 2 × −1)
⇒ A = 2(−12 − 21) + 3(30 + 3) − (35 − 2)
⇒ A = 2(−33) + 3(33) − (33) = −66 + 99 − 33 = 0
Since determinant of A = 0, hence solution to given system of equations does not exist.
(b) According to the question:
Page 4 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2010

2 −3 − 9 4 61 −44

a  + b  =
6 5  − 3 5  63 15 
 2a −3a  − 9b 4b  61 −44
⇒  +  =
6 a 5a  − 3b 5b  63 15 
2a − 9b −3a + 4b  61 −44
⇒  =
6a − 3b 5a + 5b  63 15 

Using properties of matrices we have:

2a − 9b = 61 Eq.(1)
6a − 3b = 63 Eq.(2)
− 3a + 4b = −44 Eq.(3)
5a + 5b = 15 Eq.(4)

Multiplying equation (1) by 3 we have:

6a − 27b = 183 Eq.(5)

On subtracting Eq.(2) from Eq.(5) we have:

− 24b = 120
⇒ b = −5 Eq.(6)

Substituting the value of b, from Eq.(6) to Eq.(1), we have:

2a − 9(−5) = 61
⇒ 2a = 61 − 45
⇒ 2a = 16
⇒a =8

A.6 (a) (i) By arranging the data in ascending order we have:

60, 70, 75, 80, 85, 90, 90, 95, 105, 110, 115, 120, 130, 140
Minimum value = 60
Maximum value = 140

Since the number of observations are even, therefore Median (Q 2 ) will be average of two middle
numbers i.e.:
90 + 95
Median = Q 2 = average of two middle values= = 92.5
2

Since Q 1 is the median of numbers below median and here the numbers below the median are: 60,
70, 75, 80, 85, 90 and 90
 Q 1 = 80

Since Q 3 is the median of numbers above median and here the numbers above the median are: 95,
105, 110, 115, 120, 130, 140
 Q 3 = 115
∴ The five numbers summary is:
Minimum Q1 Q2 Q3 Maximum
60 80 92.5 115 140

Page 5 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2010

(ii) Box and Whisker Plot

Whisker Whisker

Minimum Value Maximum Value

Q1 Q2 Q3 __

50 60 70 80 90 100 110 120 130 140 150

Since Q 1 – Q 2 is smaller than Q 2 – Q 3 and the Box is closer to the minimum, the data is positively
skewed i.e. it has longer right tail.

(b) Σx1 4910

X1 = = = 98.2
n1 50
Σx 5676
X2 = 2 = = 94.6
n2 60
We know that:
∑x ∑x
2 2

σ 2
= −  

n  n 
2
483515  4910 
∴σ 1 = −  = 9670.30 − 9643.24 = 27.06
2

50  50 

Similarly,
2
537481  5676 
σ2 2
= −  = 8958.017 − 8949.160 = 8.857
60  60 
Using Z – table, we have:
z 0.05 = ±1.645
Now, using the relation:
σ 12 σ 22 σ 12 σ 22
(X 1 − X 2 ) − z 0.05 + < (µ1 − µ 2 ) < (X 1 − X 2 ) + z 0.05 +
n1 n2 n1 n2

(98.2 − 94.6) − 1.645 27.06 8.857

+ < (µ1 − µ 2 ) < (98.2 − 94.6) + 1.645
27.06 8.857
+
50 60 50 60
(3.6) − 1.645(0.830) < (µ1 − µ 2 ) < (3.6) + 1.645(0.830)
(3.6) − 1.365 < (µ1 − µ 2 ) < (3.6) + 1.365
Hence 90% Confidence Interval for the difference between the IQ of boys and girls is:
2.235 < (µ1 − µ 2 ) < 4.965

A.7 (a) Let the base year weighted index (Laspeyre’s Price Index) = x
Then current year weighted index (Paasche’s Price Index) = 1.05x
Fisher’s Ideal Index = FII = 250

Since FII = LPI × PPI

 LPI × PPI = 250
 x × 1.05 x = 250
Page 6 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2010

 1.025x = 250
 x = 243.9
i.e. Laspeyre’s Price Index = 243.9
And Paasche’s Price Index = 1.05 x 243.9 = 256.1

(b) x Y xy x2 y2
11 15 165 121 225
20 2 40 400 4
4 32 128 16 1,024
0 35 0 0 1,225
18 5 90 324 25
7 28 196 49 784
16 10 160 256 100
76 127 779 1,166 3,387

n∑ xy − ∑ x ∑ y
b=
n∑ x 2 − (∑ x )
2

7(779) − (76)(127)
b=
7(1166) − (76) 2
5453 − 9652 − 4199
b= = = −1.7598
8162 − 5776 2386
Since a = y − bx
127 76
Therefore a = − (−1.7598)
7 7
a = 18.1429 + 1.7598(10.8571) = 18.1429 + 19.1069 = 37.2498
We know that regression equation for y on x is determined by the relation:
y = a + bx
 y = 37.2498 – 1.7598x

(ii) nΣxy − ΣxΣy

r=
[nΣx 2
][
− (Σx ) nΣy 2 − (Σy )
2 2
]
7(779 ) − 76 × 127
=
[7(1,166) − (76) ][7(3,387) − (127) ]
2 2

5,453 − 9,652
=
(8,162 − 5,776)(23,709 − 16,129)
− 4,199 − 4,199
= = = −0.9874
(2,386)(7,580) 4,252.7497
Co-efficient of determination = r2 = (–0.9874)2 = 0.9749

Results Interpretation
The value of r shows high negative correlation between the quantities sold of the two products.
r2 = 0.9749 signifies that 97.5% variation in sale of Product y is due to variation in sale of Product x.
The other 2.5% variation is due to other factors.

Page 7 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2010

A.8 (a) Let the mean time taken by Arshad in reaching from home to office = x1 = 21 min
Let the mean time taken by Arshad in going back from office to home = x 2 = 28 min
 Mean time taken for Arshad’s two way journey = x1 + x 2 = 21 + 28 = 49 min

Standard Deviation during first half of journey (home to office) = σ x1 = 2.5 min
Standard Deviation during second half of journey (office to home) = σ x2 = 5.5 min

Variance for the two way journey will be:

σ (2x + x ) = σ x2 + σ 22 x = (2.5)2 + (5.5)2 = 6.25 + 30.25 = 36.5 min
1 2 1 2

 Standard Deviation for the two way journey = σ ( x1 +x2 ) = 36.5 = 6.04 min
The mean time for his two-way journey is 49 minutes with a standard deviation of 6.04 minutes.

(b) e −λ λx
P( X = x) =
x!
Where λ = mean = variance

22
Now λ = × 300 = 1.65
4000
e −1.651.65 0
P( X = 0) = = 0.19205
0!
e −1.651.651
P( X = 1) = = 0.316882
1!
e −1.651.65 2
P( X = 2) = = 0.261428
2!
e −1.651.653
P( X = 3) = = 0.143785
3!
 P(x >3) = 1 – {P(x =0) + P(x =1) + P(x =2) + P(x =3)}

 P(x >3) = 1 – {0.19205 + 0.316882 + 0.261428 + 0.143785}

 P(x >3) = 1 – 0.914145562 = 0.08585444

Now P(x < 2) = P(x =0) + P(x =1)

 P(x < 2) = 0.19205 + 0.316882 = 0.508932

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 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2010

A.9 X x2
3 9
5 25
1 1
7 49
3 9
6 36
2 4
4 16
5 25
2 4
38 178

Σx 38
Mean = µ = = = 3.8
n 10

∑x ∑x ∑x
2 2 2

Standard deviation σ = −   =
 − µ2
n  n  n

− (3.8) = 1.833
178
=
2

10

Since n > 30, the sampling distribution of x may be approximated by the normal distribution with mean
σ
µ = µ x and σ = . Therefore, we have:
n
σ 1.833 1.833
µ x = µ = 3.8 and σ x = = = = 0.3055
n 36 6

x − µx
We know that Z =
σx
Now using the above relation, Z – values corresponding to x 1 = 3.2 and x 2 = 4.5 are:

x1 − µ x 3.2 − 3.8 − 0.6

Z1 = = = = −1.964
σx 0.3055 0.3055
x2 − µ x 4.5 − 3.8 0.7
Z2 = = = = 2.29
σx 0.3055 0.3055
Area corresponding to Z1 = −1.964 = 1.964 is 0.4753
Area corresponding to Z 2 = 2.29 is 0.4890
Pr (− 1.964 ≤ x ≤ 2.29 ) = 0.4753 + 0.4890 = 0.9643
Hence the required probability is 0.9643

(The End)

Page 9 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2011

Ans.1 (a) 4 x +1 = 2 − 7(2 x )

⇒ 4(4 x ) = 2 − 7(2 x )
⇒ 4(22 x ) = 2 − 7(2 x )
⇒ 4(2 2 x ) + 7(2 x ) − 2 = 0
⇒ 4(2 x + x ) + 7(2 x ) − 2 = 0
⇒ 4(2 x )(2 x ) + 8(2 x ) − 2 x − 2 = 0
⇒ 4(2 x )(2 x + 2) − 1(2 x + 2) = 0
⇒ (2 x + 2)(4(2 x ) − 1) = 0
⇒ Either (4(2 x ) − 1) = 0 ---------Eq(i)
Or (2 x + 2) = 0 ⇒ 2 x = −2 -----Eq(ii)

From Eq (i), we have:

1
4(2 x ) = 1 ⇒ 2 x = = 2 −2 ⇒ x = −2
4

Whereas for 2x=–2 no solution exists

(b) Since the required line cuts the given curve at x = 3, hence the point of intersection
would be obtained by substituting x = 3 in the equation of the given curve i.e.:
y = x 3 − 2 x 2 − 3x − 8
⇒ y = (3) − 2(3) − 3(3) − 8
3 2

⇒ y = 27 − 18 − 9 − 8
⇒ y = −8

∴The line passes through (3, –8)

Since y–intercept of the line has the same value as its gradient, therefore, m = c
Substituting the values in the equation y=mx + c, we get
y=mx + m

Substituting (3, – 8) in the above equation, we have:

− 8 = m(3) + m
− 8 = 4m
⇒ m = −2 = c

Hence required equation is:

y = −2 x − 2 OR 2 x + y + 2 = 0

(c) (i) Using the relation for compound interest i.e.:

A = P( 1 + i ) n
According to the question the amount will be doubled in eight years, therefore
we have:
⇒ 2 P = P(1 + i ) 8
1
⇒ 2 = (1 + i ) 8 ⇒ (1 + i ) 8 = 2 ⇒ 1 + i = 2 8
⇒ i = 0.0905 = 9.05%

Page 1 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2011

(ii) Again using the relation for compound interest we have:

3P = P( 1 + i ) n
⇒ 3 = (1.0905) n
Taking log on both sides:
log 3 = n log(1.0905)
log 3 0.4771
n= = = 12.67
log(1.0905) 0.0376

Ans.2 (a) We know that for an arithmetic progression:

Sn =
n
[2a + (n − 1)d ]
2

According to the question, we have:

⇒ 360,000 =
40
[2a + (40 − 1)d ]
2
⇒ 18,000 = 2a + 39d -------------------------------Eq(i)

Also,

(360,000) = [2a + (30 − 1)d ]

2 30
3 2
⇒ 16,000 = 2a + 29d ------------------------------Eq(ii)

Subtracting Eq(ii) from Eq(i) we have:

d = 200 -------------------------------------------------Eq(iii)

Substituting the value of d from Eq(iii) in Eq(i) we have:

a = 5100 -----------------------------------------------Eq(iv)

Now we will find the value of 35th installment using the relation:
an = a + (n − 1)d
⇒ a35 = 5100 + (35 − 1)200 = 5100 + 6800 = 11900

(b) Meena’s investment = Rs. 700,000

Semi-annual return = R = Rs. 74,587
Total Periods = n = (6) (2) = 12
700,000
Taking the ratio of investment and return we have = = 9.385
74,587
By following along the row n = 12 in the table for “Cumulative Present Value” we find
a value exactly equal to 9.385 in the column of 4%.

Hence, the nominal interest rate is (4%) (2) = 8%.

Now, effective rate of interest = (1 + 0.04) 2 − 1 = 1.0816 − 1 = 0.0816 = 8.16%

Page 2 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2011

Ans.3 (a) (
y = 1 + e 2x )
2

y = 1 + 2e 2 x + e 4 x ---------------------------------------------(I)
dy
= 4e 2 x + 4e 4 x --------------------------------------------(II)
dx
d2y
2
= 8e 2 x + 16e 4 x -----------------------------------------(III)
dx

Now, using (I) and (II) we have:

dy
6 − 8 y + 8 = 6(4e 2 x + 4e 4 x ) − 8(1 + 2e 2 x + e 4 x ) + 8
dx
= 24e 2 x + 24e 4 x − 8 − 16e 2 x − 8e 4 x + 8
= 8e 2 x + 16e 4 x -------------------------------------------------(IV)
d2y dy
Hence 2
=6 − 8 y + 8 proved
dx dx

(b) We are required to maximize:

Z = 2x + 5 y
Subject to the constraints:
x − 3y ≤ 0
x + 3 y ≥ 150
y ≤ 50
x, y ≥ 0

For drawing the graph we will convert each of the above inequalities into equations
and find the points through which they are passing i.e.:

(i) x − 3 y = 0
Putting x = 0, we have y = 0 => (0, 0)
Putting y = 50, we have x = 150 => (150, 50)

(ii) x + 3 y = 150
Putting x = 0, we have y = 50 => (0, 50)
Putting y = 0, we have x = 150 => (150, 0)

(ii) y = 50
This will give a line parallel to x axis passing through y = 50.
The graph is shown below:

Page 3 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2011

The feasible region ABC has the following co-ordinates:

A(75, 25), B(0, 50) and C(150, 50)

Now we will put the co-ordinates of the feasible region in the given function for
finding the point of optimal solution i.e.:

Feasible Region Points Value of the given function: z = 2x + 5y

A(75,25) 2(75) + 5(25) = 150 + 125 = 275
B(0, 50) 2(0) + 5(50) = 0 + 250 = 250
C(150, 50) 2(150) + 5(50) = 300 + 250 = 550

The above calculations show that the optimal solution occurs at point C (150, 50).

Ans.4 (a) In Matrix form “AX = B” the given system of equations can be written as:
 2 −1 1   x  − 1
3 2 2  y =  8 
     
− 1 2 − 1  z   1 
Where
 2 −1 1  x  − 1
A =  3 2 2  X =  y  B =  8 
− 1 2 − 1  z   1 
Now,
2 −1 1
A= 3 2 2
−1 2 −1

= 2(− 2 − 4) − 3(1 − 2 ) + (− 1)(− 2 − 2 ) = −12 + 3 + 4 = −5

Now finding the adjoint of A, calculating the co-factors:

C11 = −2 − 4 = −6 C 21 = −(1 − 2 ) = 1 C 31 = −2 − 2 − 4
C12 = −(− 3 + 2 ) = 1 C 22 = −2 + 1 = −1 C 32 = −(4 − 3) = −1
C13 = (6 + 2) = 8 C 23 = −(4 − 1) = −3 C 33 = 4 + 3 = 7

T
− 6 1 8  − 6 1 − 4

Adj(A) =  1 − 1 − 3 =  1 − 1 − 1
 
− 4 − 1 7   8 − 3 7 
− 6 1 − 4
1 − 1 − 1 
−1Adj ( A) 1 
A = = 
A −5
 8 − 3 7 
 6 −1 4 
 5 5 5 
 −1 1 1 
= 
 5 5 5 
− 8 3 − 7
 5 5 5 

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 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2011

 6 −1 4 
 5 5 5  − 1  − 2
 −1 1 1  8 =  2 
X = A −1 B =  
   
 5 5 5 
− 8 3 − 7  1   5 
 5 5 5 
∴ x = − 2, y = 2, z = 5

(b) y = e 2 x + 2e x − 4 x
dy
= 2e 2 x + 2e x − 4
dx
dy
Put =0
dx
⇒ 2e 2 x + 2e x − 4 = 0
⇒ e2x + e x − 2 = 0
⇒ e x ( e x ) + 2e x − e x − 2 = 0
⇒ e x (e x + 2) − 1(e x + 2) = 0
⇒ (e x + 2)(e x − 1) = 0

⇒ e x = −2 or ex =1
i.e. x ln e = ln(−2) or x ln e = ln1 = 0

Since ln (– 2) is not defined,

x=0

Taking second derivative, we have:

d2y
2
= 4e 2 x + 2e x
dx

At x = 0,we have:
d2y
2
= 4e  + 2e  = 6 > 0
dx
∴ we have a local / relative minima at x = 0

In order to get the co-ordinates of relative minima, substitute the value of x in y i.e.:
y = e 2 x + 2e x − 4x = 1 + 2 – 0 = 3
Hence, the co-ordinates of the minima are (0, 3)

Ans.5 (a) From the given data, n = 35

th
 n + 1
∴ median =   value = 18th value
 2 
Identifying from data:
median = 184 gm
Σx
mean =
n
6590
mean = = 188.29 gm
35

Page 5 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2011

(b) Corrected Range/

Range Frequency
Class Boundaries
150 – 159 149.5 – 159.5 1
160 – 169 159.5 – 169.5 4
170 – 179 169.5 – 179.5 9
180 – 189 179.5 – 189.5 7
190 – 199 189.5 – 199.5 5
200 – 209 199.5 – 209.5 4
210 – 219 209.5 – 219.5 3
220 – 229 219.5 – 229.5 1
230 – 239 229.5 – 239.5 0
240 - 249 239.5 – 249.5 1

Modal class is the interval with the highest frequency which is the range 170 -179
(corrected range 169.5 – 179.5)

(c)

(d) Mid-point of modal class = 174.5

Since 174.5 < median and median < mean
∴ This is a positively-skewed distribution

(e) Stem Leaves

15 5
16 1 4 6 8
17 0 2 2 3 5 7 8 8 9
18 1 2 2 4 6 8 9
19 2 5 6 7 8
20 3 6 8 9
21 0 4 8
22 1
23
24 3

Page 6 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2011

4 2 4
Ans.6 (a) 5x − 4 y + 2 = 0 ⇒x= y− ⇒ bxy =
5 5 5
1 3 1
x − 5y + 3 = 0 ⇒ y = x+ ⇒ b yx =
5 5 5
Now we will calculate the correlation coefficient using the relation:
r = ± bxy b yx

 4  1  2
⇒ r = ±    = ± = ±0.4
 5  5  5
Since both bxy byx are positive, therefore r will also be positive. Hence r = 0.4

(b) x y Rank(x) Rank(y) di di2

46 66 6 1 5 25
73 31 3 6 –3 9
68 45 4 4 0 0
79 26 2 7 –5 25
49 58 5 3 2 4
43 63 7 2 5 25
81 35 1 5 –4 16
104

6Σd i2
r =1−
n( n 2 − 1 )
6(104) 624
= 1− = 1− = 1 − 1.857 = −0.857
7(7 − 1)
2
336
The value of r shows high negative correlation between the ranks.

Ans.7 (a) According to the question the success possibilities and their respective probabilities
are given below:
 1  1  1   1  1  3  1
A and B will solve and C will not solve =   1 −  =     = = 0.125
 2  3  4   2  3  4  8
 1  1  1   1  1  2  1
A and C will solve and B will not solve =   1 −  =     = = 0.0833
 2  4  3   2  4  3  12
 1  1  1   1  1  1  1
B and C will solve and A will not solve =   1 −  =     = = 0.04167
 3  4  2   3  4  2  24
 1  1  1  1
All will solve =     = = 0.04167
 2  3  4  24

Hence the probability that at least two of them will solve the problem is:

1 1 1 1 7
= + + + = = 0.29167 = 29.167%
8 12 24 24 24

Page 7 of 9
 QUANTITATIVE METHODS
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Foundation Examinations – Spring 2011

(b) The product will be positive for the following combinations:

4 positive and 0 negative

2 positive and 2 negative
0 positive and 4 negative

Hence the probability that the product would be a positive number is:

P=
( 6
C4 )( C ) + (
8
0
6
C2 )( C ) + (
8
2
6
C0 )( C )
8
4
14
C4
(15)(1) + (15)(28) + (1)(70) 15 + 420 + 70
P= =
1001 1001
505
P= = 0.5045 = 50.45%
1001

Ans.8 (a) x 2 1 3 2 0 1 2 4 0 1 1 0 1 3 2 0 1 2 2 1 0 1
x2 4 1 9 4 0 1 4 16 0 1 1 0 1 9 4 0 1 4 4 1 0 1

Σx=30
Σx2=66
Σx 30
mean = =x= = 1.364
n 22
n  Σx 2 2
s2 =  − (x ) 
n −1  n 
22  66 2
s2 =  − (1.364 )  = 1.048[3.000 − 1.860] = 1.048(1.140) = 1.195
21  22 
s = 1.093

Since n < 30, we will use t-distribution

s s
x− tα 2,n−1 < µ < x + tα 2,n−1
n n
t0.05, 21 = 1.721 (from table)

1.364 −
1.093
(1.721) < µ < 1.364 + 1.093 (1.721)
22 22
1.364 − 0.401 < µ < 1.364 + 0.401
0.963 < µ < 1.765

Hence 90% confidence interval for the mean number of siblings of the college
students is: (0.963, 1.765).

(b) Population mean µ = 1.364

Population standard deviation = σ = 1.093

Now the sample size is > 30, we would use normal distribution with:
1.093
µ = 1.364 and σ x = = 0.155
50

Page 8 of 9
 QUANTITATIVE METHODS
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Foundation Examinations – Spring 2011

Now using the relation:

x−µ
z=
σx

We have:
1.500 − 1.364 0.136
z= = = 0.877 = 0.88
0.155 0.155

Now,
P( z > 0.88) = 1 − P( z < 0.88)
= 1 − (0.3106 + 0.5) (from table)
= 0.1894

Hence the probability that the average number of siblings of students selected as
sample, would be more than 1.5, is 0.1894 or 18.94%.

Ans.9 Null hypothesis H 0 : Dice is fair

alternative hypothesis H 1 : Dice is not fair
144
If dice is fair then, e = = 24
6
(o - e) 2
Faces o e (o-e)2
e
1 22 24 4 0.167
2 23 24 1 0.042
3 27 24 9 0.375
4 25 24 1 0.042
5 26 24 4 0.167
6 21 24 9 0.375

χ 2
=Σ
(o − e)
2
= 1.167
cal
e
At 5% significance level with 5 degrees of freedom χ 2tab = 11.07

Since χ cal < χ tab , H 0 is accepted i.e. dice is fair.

2 2

(THE END)

Page 9 of 9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2011

Ans.1 (a) Let normal price = p

Therefore price during clearance sale = p - 0.2p = 0.8p

Profit during clearance sale = 0.8p * 25/125 = 0.16p

Cost = 0.8p – 0.16 p = 0.64p
Profit under normal price = 0.16p + 0.2p = 0.36p

Profit % during normal sale = 0.36p / 0.64p * 100 = 56.25%

Profit % during the whole year = (56.25 * 60%) + (25 * 40%)

= 33.75% + 10% = 43.75%

(b) Let the required sales quantity be x

∴ The revenue (R) = 30x
At the point where there would be no profit or loss, we would have:
Revenue = Cost
Hence for existing cost function we have:
30x = 15x + 9750
x(30-15) = 9750
i.e. x = 650

(c) ln3+2lnx = ln (x+2)

⇒ ln3 + lnx2 = ln (x + 2)
⇒ ln(3x2) = ln (x + 2)
⇒ 3x2 = x + 2
⇒ 3x2 – x – 2 = 0
⇒ 3x2 – 3x + 3x –2 = 0
⇒ (3x +2) (x-1) = 0
2
i.e. x = − and x = 1
3
2 2
x = − is not possible since ln − does not exist, hence x = 1.
3 3

Ans.2 (a) Since it is a Geometric Progression, we would use the relation:

S=
( )
a r n −1
r −1

Here:

s = Summation of payments
a = Re. 1
n=7
3
r= =3
1
S=
( =
)
1 37 − 1 (2187 − 1)
= 1,093
3 −1 2

Since the amount obtained through alternative is less than Rs. 1,200, hence Bashir
has taken a wise decision by accepting the pocket money of Rs. 1,200.
Page 1 of 8
 QUANTITATIVE METHODS
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Foundation Examinations – Autumn 2011

(b) Simple Interest for eight months = 120,000 x 15% x 8/12 = 12,000
1 
Interest rate compounded monthly = i= antilog  (log S − log P ) − 1
 n 
1 
= antilog  (log 132 ,000 − log 120 ,000 ) − 1
 8 
= (antilog 0.005174 ) − 1 = 0.011985
= 1.1985%
Annualized rate = 1.1985% x 12 = 14.382%

u
Ans.3 (a) y= and u = 5 x − 1
2

u +1
5x 2 −1 5x 2 −1
∴y = 2 =
5x −1 + 1 5x 2
d d
5 x 2 (5 x 2 − 1) − (5 x 2 − 1) (5 x 2 )
dy dx dx
⇒ = 2 2
dx (5 x )
dy 5 x 2 (10 x) − (5 x 2 − 1)(10 x)
⇒ =
dx 25 x 4
dy 50 x 3 − 50 x 3 − 10 x 10
⇒ = 4
=
dx 25 x 25 x 3
dy 10 1
Now ( x = 2) = 3
=
dx 25(2) 20

(b) Demand function = D(x) = 500 – 0.04x

(i) Cost function = C(x) = 0.03x2 + 220x + 50,000

Revenue Function = R(x) = 500x – 0.04x2
dR(x )
Marginal Revenue Function = = 500 − 0.08 x
dx

(ii) Profit function = R(x) – C(x) = Pr(x)

= 500x – 0.04x2 – 0.03x2 – 220x – 50,000
= – 0.07x2 + 280x – 50,000

Profit maximization
P(x) = – 0.07x2 + 280x – 50,000
d Pr (x )
= −0.14 x + 280 = 0
dx
⇒ x = 2,000
d 2 Pr ( x )
= −0.14
dx
d 2 Pr (x )
Since < 0 at x = 2,000, hence the profit would be maximised at 2,000 units.
dx

(iii) Price = D(x) = 500 – 0.04(x)

= 500 – 0.04(2,000) = 420
∴ Unit price at maximum profit is Rs. 420

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 QUANTITATIVE METHODS
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Foundation Examinations – Autumn 2011

Ans.4 (a) x y
50 30 P1
P= 
20 15  P2

Operational Technical Manegerial

 40 10 5 x
S=
 50 12 7  y

(b) Since R = PS
50 30 40 10 5
∴R =    
20 15  50 12 7 
50(40) + 30(50) 50(10) + 30(12) 50(5) + 30(7)
= 
 20(40) + 15(50) 20(10) + 15(12) 20(5) + 15(7) 
2000 + 1500 500 + 360 250 + 210
= 
 800 + 750 200 + 180 100 + 105 
3500 860 460
R= 
1550 380 205

The entries in the matrix R represents the numbers of hours required by each
category of staff on each plant.

Thus, 3,500 hours are required by operational, 860 hours by technical and 460
hours by managerial on plant P 1 , to provide both types of product.

Similarly 1,550 hours are required by operational, 380 hours by technical and 205
hours by managerial on plant P 2 to produce both kinds of products.

Page 3 of 8
 QUANTITATIVE METHODS
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Foundation Examinations – Autumn 2011

Ans.5 To draw the graph based on the given inequalities, we convert these into equations
and find their x and y intercepts, as follows:

x + y ≥ 8 ⇒ x + y = 8 => At x = 0, y = 8 and at y = 0, x = 8
2 x + y ≥ 12 ⇒ 2 x + y = 12 => At x =0, y = 12 and at y = 0, x = 6
x + y ≤ 10 ⇒ x + y = 10 => At x = 0, y = 10 and at y = 0, x = 10
x, y ≥ 0 ⇒ x = 0 and y = 0

The area bounded by the points ABCD, as highlighted above is the feasible region.
The co-ordinates of feasible region are A(8, 0), B(10, 0), C(2, 8) and D(4, 4).

Ans.6 (a) (i) Mid point

x f fx m x2 m fx2 m
(x m )
1–3 2 6 12 4 24
4–6 5 12 60 25 300
7–9 8 110 880 64 7,040
10 – 12 11 103 1,133 121 12,463
13 – 15 14 42 588 196 8,232
16 – 18 17 25 425 289 7,225
19 – 21 20 13 260 400 5,200
22 – 24 23 4 92 529 2,116
25 – 27 26 1 26 676 676
Σf = 316 Σfx m = 3,476 Σfx m2 = 43,276

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 QUANTITATIVE METHODS
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Foundation Examinations – Autumn 2011

Σfxm 3,476
Mean = = = 11.00 days
Σf 316
Σfxm2 − (Σfxm ) / Σf
2
Standard Deviation =
Σf − 1

43,276 − (3,476 ) / 316

2
= = 4.00 days
315

(ii) Using Chebyshev’s theorem, the value of k for given interval would be:

19 − 11 3 − 11
k= = 2 and k = = −2 i.e. k = ±2
2(2) 2(2)

According to Chebyshev’s theorem, at least 75% of the data values will be

found within two standard deviation on either side of the mean value.

Hence, if 6,000 patients are admitted to the hospital in an year, then the
number of patients staying between 3 to 19 days would be:

75
= × 6000 = 4,500
100

(b) Using the given data we have:

Weighted Prices
Commodities PoQo P1 Qo P0 Q1 P1 Q1
Diesel 4,500 13,500 6,000 18,000
Petrol 11,000 17,000 13,200 20,400
Kerosene 600 2,200 450 1,650
CNG 2,500 5,000 6,250 12,500
18,600 37,700 25,900 52,550

∴ Laspeyre’s Price Index =

∑ PQ 1 o
× 100 =
37,700
× 100 = 202.69
∑PQ 0 0 18,600

Paasche’s Price Index =

∑ PQ 1 1
× 100 =
52,550
× 100 = 202.90
∑PQ 0 1 25,900

Fisher’s ideal Price Index = = Laspeyre' s Index × Paasche' s Index

= 202.69 × 202.90 = 202.80

Ans.7 (a) P( x ≥ 2 ) = P( x = 2 ) + P( x = 3)
3
C 2 × 7C 2 3C3 × 7C1
= 10 + 10
C4 C4
= 0.3 + 0.0333
= 0.3333

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 QUANTITATIVE METHODS
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Foundation Examinations – Autumn 2011

(b) Using the relation:

 n  x n− x
P( x) =  ( p ) (q )
 x

Here p=0.4 ; q=0.6 ; n=5

5
P( x) =  (0.4 ) (0.6 )
2 5− 2
(i)
 2
= 0.3456

(ii) P(x > 2) = 1-P(x<2)

1
5
= 1 − ∑  (0.4 ) (0.6 )
x 5− x

x =0  x 

 5   5 4
= 1 −  (0.4) (0.6) +  (0.4 ) (0.6 )  = 0.6630
0 5 1

 0  1 

(iii) P(x < 4 ) = 1 − [(x = 5) + (x = 4 )]

 5  5 1
= 1 −   (0.4 ) (0.6 ) +   (0.4 ) (0.6 ) 
5 0 4

 5   4 
= 1 − [0.01024 + 0.0768] = 0.91296

Ans.8 x (height) y (weight) xy x2

150 60 9,000 22,500
155 63 9,765 24,025
161 67 10,787 25,921
166 70 11,620 27,556
170 72 12,240 28,900
174 74 12,876 30,276
182 76 13,832 33,124
190 78 14,820 36,100
1,348 560 94,940 228,402

n∑ xy − ∑ x ∑ y
(a) Regression coefficient (y on x) = b =
n∑ x 2 − (∑ x) 2
8 × 94,940 − 1,348 × 560
b=
8 × 228,402 − (1,348) 2
4,640
= = 0.4589
10,112
a = y − bx
560  1,348 
a= − 0.4589  = −7.33
8  8 

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 QUANTITATIVE METHODS
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Foundation Examinations – Autumn 2011

Since y = a + bx

Hence equation of regression for weight over height will be:

y = −7.33 + 0.4589 x

Interpretation
For each centimeter increase in height, weight increases by 0.4589kg.

(b) Coefficient of correlation

nΣxy − (Σx )(Σy )
r=
{nΣx 2
}{
− (Σx ) nΣy 2 − (Σy )
2 2
}
∑y 2
= 39,478
759520 − 754880
r=
(1827216 − 1817104)(315824 − 313600)
4640 4640 4640
r= = = = 0.9784
(10112)(2224) 22489088 4742.27

Coefficient of determination
r 2 = (0.9784 ) = 0.9573
2

Interpretation
(i) The correlation between height and weight is highly positive.
(ii) 95.73% change in weight is on account of height while rest of the change is on
account of other factors.

Ans.9 (a) x x−x (x − x)2

5 -5 25
10 0 0
8 -2 4
11 1 1
12 2 4
6 -4 16
15 5 25
13 3 9
10 0 0
90 84

(i) ∑ x 90
x= = = 10
n 9
Point estimate of population mean = x = 10

(ii) ∑( x − x ) 2 84
s= = = 3.240
n −1 8

We will use t-distribution as n < 30 and standard deviation of only sample is

available.
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 QUANTITATIVE METHODS
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Foundation Examinations – Autumn 2011

s
Confidence Interval (CI) for population mean µ = x ± tα / 2
n
Here tα / 2 = t 0.025 = 2.306
3.24
∴ 95% CI for population mean µ = 10 ± 2.306 ×
9
= 10 ± (2.306)(1.08) = 10 ± (2.49)
= 7.51 to 12.49

Interpretation
We can say with 95% confidence that population mean lies between 7.51 and 12.49

(b) It is a two sided test

∴ H o = µ = 250
H 1 = µ ≠ 250
s = 18 liters; n=25; x = 242 liters

We will use t-distribution as n < 30 and standard deviation of only sample is

available.

For 24 degrees of freedom, t 0.025 = + 2.064

x−µ
t cal =
s
n
242 − 250
⇒ t cal = = −2.222
18 25
Since t cal < −2.064, we reject the Hypothesis i.e. manufacturer claim is not correct.

(THE END)

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 QUANTITATIVE METHODS
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Foundation Examinations – Spring 2012

A.1 (a) f (x ) = x 4 − 2 x 2 y 2 − 8 y 4
= x4 − 2x2 y 2 − 8 y 4 − y 4 + y 4
( ) − (2)(x )(y ) + (y ) − 9 y
= x2
2 2 2 2 2 4

= (x − y ) − 9 y
2 2 2 4

= (x − y ) − (3y )
2 2 2 2 2

= (x − y − 3 y ) (x − y + 3 y )
2 2 2 2 2 2

= (x − 4 y )(x + 2 y )
2 2 2 2

= (x − 2 y ) (x + 2 y )(x + 2 y ) 2 2

Substituting y = 5 and f(x) = 0 we get:

(
= (x − 10 ) (x + 10 ) x 2 + 50 = 0 )
x 2 + 50 = 0 is not possible

∴ x = 10 or x = – 10

Since x 2 = −50 is not possible, ∴ x = 10 or x = – 10

A.1 (b) 1st number after 170 divisible by 8 = 176

Last number before 1,000 divisible by 8 = 992
Thus, the A.P. =176, 184, . . . . . 992
S n = 176 +184 + . . . . . . . . +992

Where,

first term: a = 176; common difference: d = 184 – 176 = 8

and last term: L = 992
We know that a = L – (n-1)d
 L−a
∴n =   +1
 d 

 992 − 176  816

⇒n=  +1 = + 1 = 102 + 1 = 103
 8  8
Since S n = (a + l )
n
2
∴ Sn =
103
(176 + 992) = 103 (1168) = 103(584) = 60,152
2 2

A.1 (c) (2e 5x

)(
+ 5e x 2e 2 x − 11 = −55e x )
4e 7x
+ 10e 3x
− 22e 5x
− 55e x = −55e x
4e 7 x − 22e 5 x + 10e 3 x = 0
2e 7 x − 11e 5 x + 5e 3x = 0
[
e 3 x 2e 4 x − 11e 2 x + 5 = 0 ]
e 3 x = 0 is not possible

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 QUANTITATIVE METHODS
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Foundation Examinations – Spring 2012

∴ 2e − 11e + 5 = 0
4x 2x

Substituting e2x = y we get:

2 y 2 − 11 y + 5 = 0
2 y 2 − 10 y − y + 5 = 0
2 y(y − 5) − 1(y − 5) = 0
(2 y − 1) ( y − 5) = 0
y = 0.5, or y=5
e 2x
= 0.5 or e 2 x = 5
If e
2x
= 0.5,
1
x= ln( 0.5) = – 0.3466
2
If e = 5
2x

1
x = ln(5) = 0.8047
2

A.2 (a) The future value of Rs. 300,000 on completion of five years would be:
S = P(1 + i)n = 300,000(1 + 0.03)8
= 300,000(1.03)8 = 300,000(1.27) = 380,031.02

It means if Rs. 300,000 had not been drawn after three years then at the end of
investment period, Ali would had a sum of:

380,031.02 + 500,000 = 880,031.02

 (1 + i )n − 1
Since A = R   (1 + i )
 i 
A  i 
∴R =
(1 + i )  (1 + i ) − 1
 n

880,031.02  0.03 
⇒R=
(1 + .03)  (1 + .03) − 1
 20

880,031.02  0.03 
⇒R= = 854,339.05(0.04) = 31,797.07
(1.03)  0.81 
Hence Ali would be required to deposit Rs. 31,797.07 to get the required amounts on
time.

(b) Part (i):

We know that:

Hence effective rate of interest = 10.92%

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 QUANTITATIVE METHODS
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Foundation Examinations – Spring 2012

Part (ii):
mn
 i 
We know that: S = P1 + 
 m
4×3
 i
545,881 = 400,0001 + 
 4
12
 i 545,881
1 +  = = 1.3647
 4 400,000
1 + = (1.3647 ) 12 = 1.02625
i 1

4
i = 4(1.02625 − 1) = 0.105 = 10.5%

Hence, nominal rate of interest if the interest is compounded quarterly is 10.5%.

y=
(x + 3)(x − 2) = x 2 + x − 6
A.3 (a)
x x
d 
(
x ( x 2 + x − 6) −  x 2 + x − 6
d 
x )
dy
=
dx  dx 
dx ( x)2

dy
=
( )
x (2 x + 1) − x 2 + x − 6 0.5 x −0.5
dx x
dy 2 x(2 x + 1) − (x + x − 6)
2
=
dx 2x x
dy 4x + 2x − x 2 − x + 6
2
=
dx 2x x
dy 3x + x + 6
2
=
dx 2x x

(b) (i) q=150,000-75p

R=f(p)
R=p(150,000-75p)
= 150,000p-75p2
f ′( p ) = 150,000 - 150p

To maximise profit, take:

f ′( p ) = 0
150,000 – 150p = 0
p = 1,000

Taking second order derivative:

f ′′( p ) = −150 < 0

f ′′(1000) = −150 < 0
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 QUANTITATIVE METHODS
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Foundation Examinations – Spring 2012

Therefore, revenue is maximized at p = 1,000.

(ii) f(1,000) = 1,000 (150,000 – 75,000)
= 75,000,000
Maximum revenue = 75,000,000

(iii) at p =1,000
q = R/p = 75,000,000/1,000 = 75,000

A.4 (a) Consider x + y ≤ 6

 x+y=6
Putting x = 0, we have y = 6 (0 , 6)
Putting y = 0, we have x = 6, (6,0)

Now consider, 5x + 3y ≤15

 5x + 3y = 15
Putting x = 0 we have 3y=15, y=5 (0,5)
Putting y = 0, we have 5x=15, x=3 (3, 0)

x + y ≤ 6 is a redundant constraint.

3 7   5 − 7
(b) A=  B=
2 5 − 2 3 
3 7   5 − 7 
AB =   
2 5 − 2 3 
15 − 14 − 21 + 21
= 
10 − 10 − 14 + 15 
1 0
= 
0 1 

Hence it is proved that B is the inverse of A.

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 QUANTITATIVE METHODS
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Foundation Examinations – Spring 2012

A.5 Mean of company A = µ a = 50

Standard deviation of company A = σ a = 0.24
Mean of company B = µ b = 49.8
Standard deviation of company B = σ b = 0.75

From the sampling distribution of x 1 − x 2 we know that

µ x1 − x 2 = µ1 − µ 2
µ x − x = µ a − µ b = 50 − 49.8 = 0.2
a b

Again from sampling distribution of means we have:

σ 12 σ 22
σ 2
xa − xb = +
n1 n2

⇒ σ x2a − xb =
(0.24)2 + (0.75)2 =
0.0576 0.5625 0.6201
+ = = 0.02067
30 30 30 30 30
⇒ σ xa − xb = 0.143771
P( xa − xb > 0.25 kg ) = P ( xa − xb > 0.25) + P( xa − xb < −0.25)

(x1 − x2 ) − µ x − x
Since Z = 1 2

σ x −x1 2

 0.25 − 0.2 
∴ P( xa − xb > 0.25) = P Z >  = P( z > 0.348)
 0.143771 
P( xa − xb > 0.25) = 1 − P(Z < 0.348)
P( xa − xb > 0.25) = 1 − 0.6368 = 0.3632
 − 0.25 − 0.2 
P( xa − xb < −0.25) = P Z < 
 0.143771 
P( xa − xb < −0.25) = P(Z < −3.13) = P(Z > 3.13)
P( xa − xb < −0.25) = 1 − P(Z < 3.13)
P( xa − xb < −0.25) = 1 − 0.9991 = 0.0009
P( xa − xb > 0.25) = 0.3632 + 0.0009 = 0.3641

A.6 (a) Years 2006 2007 2008 2009 2010

Wages (w) 12,000 13,500 14,800 16,500 19,000
Real wages (r) 10,800 11,300 11,100 10,550 10,900
w
Price Index =
r
× baseindex 111.1 119.5 133.3 156.4 174.3

current index
(b) Wages = × real wages
base index
191.2
∴Wages in 2011 = × 13,500 = Rs. 21,600
119.5
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 QUANTITATIVE METHODS
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Foundation Examinations – Spring 2012

A.7 (a) Class

Range f CF
Boundaries
00 – 09 –0.5 – 9.5 1 1
10 – 19 9.5 – 19.5 0 1
20 – 29 19.5 – 29.5 1 2
30 – 39 29.5 – 39.5 4 6
40 – 49 39.5 – 49.5 4 10
50 – 59 49.5 – 59.5 10 20
60 – 69 59.5 – 69.5 7 27
70 – 79 69.5 – 79.5 2 29
80 – 89 79.5 – 89.5 1 30

Here Class Interval = h = 10

(b) Q1 =
∑ f = 30 =7.5 th value.
4 4
Class of Q 1 = (39.5 – 49.5)
Q 1 = L + (7.5 − C.F)
h
f
= 39.5 +
10
(7.5 − 6.0) = 39.5 + 2.5(1.5) = 39.5 + 3.75 = 43.25
4

Q3 =
3∑ f = 90 = 22.5 th value.
4 4
Class of Q 3 = (59.5 – 69.5)
Q 3 = L + (22.5 − C.F)
h
f
= 59.5 +
10
(22.5 − 20) = 59.5 + 1.43(2.5) = 59.5 + 3.57 = 63.07
7
Inter-quartile range = Q 3 – Q 1
= 63.07 – 43.25 = 19.82

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 QUANTITATIVE METHODS
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Foundation Examinations – Spring 2012

A.8 (a) x y x2 y2 xy
31 10 961 100 310
45 16 2,025 256 720
63 18 3,969 324 1,134
53 20 2,809 400 1,060
56 19 3,136 361 1,064
43 16 1,849 256 688
291 99 14,749 1,697 4,976

x=
∑ x = 291 = 48.5 and y =
∑ y = 99 = 16.5
n 6 n 6
n∑ xy − ∑ x ∑ y
d=
n∑ y 2 − (∑ y )
2

6(4976) − (291)(99)
d=
6(1697) − (99) 2
29856 − 28809 1047
d= = = 2.75
10182 − 9801 381

c = x − dy
c = 48.5 − (16.5)(2.75) = 3.125

We know that the regression equation for x on y is:

x = c + dy
Hence the required equation is:
x = 3.125 + 2.75 y

n∑ xy − ∑ x ∑ y
r=
(b)
(n∑ x 2
)(
− (∑ x ) n∑ y 2 − (∑ y )
2 2
)
6(4976) − (291)(99)
r=
(6(14749) − (291) )(6(1697) − (99) )
2 2

29856 − 28809 1047 1047 1047

r= = = = = 0.87
(88494 − 84681)(10182 − 9801) (3813)(381) 1452753 1205.3
The value of r shows strong/high positive correlation between x and y.

(c) The x on y and y on x regression lines always intersect at the means of the two series.
Therefore, for the given data, the lines will intersect each other at (48.5, 16.5).

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 QUANTITATIVE METHODS
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Foundation Examinations – Spring 2012

A.9 (a) Number of Courses Frequency Probability

20
4 20 = 0.2
100
50
5 50 = 0.5
100
30
6 30 = 0.3
100
∑ f =100
Hence the required probability distribution is: P(x) = 0.2, 0.5, 0.3

(b) Since n>30, we can use normal approximation

Number of courses Probability

px px2
(x) (p)
4 0.2 0.8 3.2
5 0.5 2.5 12.5
6 0.3 1.8 10.8
∑ p =1.0 ∑ px = 5.1 ∑ px 2 = 26.5

mean = µ =
∑ px = 5.1 = 5.1
∑p 1
Standard Deviation = σ = ∑ px 2

− µ2
∑p
26.5
σ= − (5.1) 2 = 0.49 = 0.7
1

For a sample of size 40 (with replacement):

 
 x−µ
P( X > 5.3) = P Z > 
 σ 
 n
 
 5.3 − 5.1   5.3 − 5.1 
= P Z >  = Z >  = P ( Z > 1.807)
 0. 7   0.1107 
 40 
= 1 – 0.9649 = 0.0351

For a sample of size 40 (with replacement), we have:

 
P( X > 5.3) = P Z > x − µ 
 σ 
 
 n
 
 5.3 − 5.1   5.3 − 5.1 
= P Z >  = Z >  = P ( Z > 1.807)
 0.7   0.1107 
 40 
= 0.5 – 0.4649 = 0.0351

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 QUANTITATIVE METHODS
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Foundation Examinations – Spring 2012

(c) For n=2, normal distribution cannot be used.

The possible outcomes, in this case, are:
[4,4], [4,5], [4,6],
[5,4], [5,5], [5,6],
[6,4], [6,5], [6,6]

The favourable outcomes are: [4,4], [4,5], [5,4]

P(4,4) = 0.2 x 0.2 = 0.04
P(4,5) = 0.2 x 0.5 = 0.1
P(5,4) = 0.5 x 0.2 = 0.1
P(mean<4.7) = 0.04 + 0.1 + 0.1 = 0.24

A.10 (a) Let A = Violation of sanitary standards => A’ = Compliance of sanitary standards
Let B = Violation of Security Standards => B’ = Compliance of security standards
Therefore, A  B = Violation of both standards

 P(A) = 79/190 = 0.4158

 P(A’) = 1 – 0.4158 = 0.5842
 P(B) = 86/190 = 0.4526
 P(A  B) = 58/190 = 0.3053

P(complied with sanitary standards but not with security standards)

= P(A’  B) = P(B) – P(A  B) = 0.4526 – 0.3053 = 0.1473
P(both security and sanitary standards are complied)
= P(A’  B’)= P(A’) – P(A’  B) = 0.5842 – 0.1473 = 0.4369

(b) Part (i)

Probability that both balls are of same colour = P(both are red) + P(both are green)
4 3 1
P(both are red) = × =
9 8 6
3 2 1
P(both are green) = × =
9 8 12
1 1 1
 P(both balls are of same colour) = + = = 0.25
6 12 4

Part (ii)
P(both balls are of different colour) = 1 – P(both balls are of same colour)
= 1 – 0.25 = 0.75
Part (iii)
P(at least one ball is green) = 1 – P(no ball is green)
6 5 5 7
= 1 − × = 1 − = = 0.5833
9 8 12 12

(THE END)

Page 9 of 9
 QUANTITATIVE METHODS
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Foundation Examinations – Autumn 2012

A.1 (a) The given scenario is an example of arithmetic series.

The sum of an arithmetic series is given by:


S  2a  n  1 d


In the given situation,   500,000; a  10,000 and d  500


500,000   2 10,000    1 500 
1,000,000  n 20,000  500  500
1,000,000  500n  19,500n
500n  19,500n  1,000,000  0

Dividing both sides by 500 we get:

n  39n  2,000  0

According to Quadratic Formula

√  !"

!
where x = n, a = 1 , b = 39 and c = 2,000
#$% #$   & ,''' #$√&(&)*,''' #$√$,(&
  
 &  
#$$+.(*
 
 29.29 or  68.29

Since n cannot be negative, hence Sadiq’s aggregate savings would exceed Rs.500,000 in 30
months.

(b) Profit percentage for 2011 = 40%

,''','''
Total fee for 2011  '.
 5,000,000
Total cost for 2011  5,000,000  2,000,000  3,000,000
Total fee in 2015  5,000,000 9 1.05 9 1.10  8,898,114
Total cost in 2015  3,000,000 9 1.05 9 1.06  4,603,646
Hence net profit for 2015 = 8,898,114 – 4,603,645.91 =4,294,468

A.2 (a) Since it is a case of simple interest, the principal P would be calculated by using the
relation:
;
:  &)<

Where:
S = Rs. 20,000; i=0.08 and n=3/12 = = 0.25 years
','''
>:  19,607.84
&) '.'* '.(

Thus if the amount is paid in 3 months, the payment would be Rs. 19,607.84

(b) For calculating the amount when Amin was 55 years old, we will use the relation:

BC &)< D &E
  A <
F 1  G

Here R = Rs. 25,000 and i= 0.03 (semi annual rate), whereas n = 14 (Semi annual period).

Page 1 of 7
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2012

(,''' H &)'.'# IJ &K (,''' '.(& &.'#

>   A '.'#
F 1  0.03  '.'#

(,''' '.(# &#,&$$.&$

   439,972.85
'.'# '.'#

Amin deposited his last amount when he became 55 years old and at the same time
invested the entire amount in another fund. Therefore, total amount deposited in the new
fund would be 439,972.85 + 25,000 = Rs. 464,972.85

To calculate the amount when he would be 60 years old, we will use the relation:

  : 1  G 
Here P = Rs. . 464,972.85 and i= 0.08, whereas n = 5

>   464,972.85 1  0.08 (

= (464,972.85)(1.47)
= 683,197.66

Hence he would have Rs. 683,197.66 in the fund when he would be 60 years old.

(c) Let P be the current population and t be the number of years the population would take to
double itself. Using the relation for continuous compound interest we have:

2P  Pe'.'#M
2  e'.'#M
ln2  0.03t lne
0.693147 =0.03t(1)
t  23.10

Hence, the population would take 23.10 years to double itself.

Note: This question can also be solved using compound interest formula i.e.   : 1  G 

1
A.3 (a) Price Function : P ( x) = (850 − x )
2
x x2
=> Revenue = x.P(x) = R( x) = (850 − x ) = 425x −
2 2
Since Profit Function = Revenue Function – Cost Function
− 11x 2
⇒ Pr ( x) = + 419 x − 200
18
− 11x
⇒ Pr' ( x) = + 419
9

To determine the most feasible production quantity we will put Pr' ( x) = 0

− 11x
⇒ + 419 = 0
9
3,771
⇒x= = 342.82 ≈ 343
11
− 11
Now, Pr'' ( x) =
9

Page 2 of 7
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2012

i.e., Pr'' ( x) < 0

∴ Profit will be maximum when 343 units are produced.

Substituting the value of x in Price Function we get:

343
⇒ P ( x = 343) = 425 − = 425 − 171.5 = 253.5 ≈ 254
2

i.e., Price to be charged = Rs. 254

Substituting the value of x in profit function we get:

− 11(343)
2
⇒ Pr ( x) = + 419(343) − 200
18
⇒ Pr ( x ) = −71,896.61 + 147 ,907 − 200 = 71,620 .39

i.e., Profit of Rs. 71,620.39 will be earned if 343 units are produced and sold at Rs. 254 per unit.

(b) N  O P

Differentiate with respect to x, we have:

QP Q Q
QR
 . QR O P  O P . QR 
QP QP
 . O P .  O P
QR QR
QP P QP
QR
 . O QR
 OP
QP
1  . O P  O P
QR
QP ST

QR &RS T
QP P⁄R
QR
 &P (since N  O P > O P  N⁄ )
QP P
QR
 R &P Hence proved.

A.4 (a) The equation can be written in matrix form as AX = B i.e.:

1 1 − 1 x  4

A = 2 0 1 X =  y  and B = 7
3 − 2 0  z  5

1 1 1
|W|  X2 0 1X
3 2 0
 1 0  2  1 0  3  1 4  0  2  3  4  9

4 1 1
|WR |  X7 0 1X
5 2 0
 4 0  2  1 0  5  1 14  0  8  5  14  27

Page 3 of 7
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2012

1 4 1

YWP Y X2 7 1 X
3 5 0
 1 0  5  4 0  3  1 10  21  5  12  11  18

1 1 4
|WZ |  X2 0 7X
3 2 5

 1 0  14  1 10  21
21  4 4  0  14  11  16  9

|[\ | + Y TY
Y[ &* |[` | $
 |[ |
 $
3 N | |
|[
 $
2 _ |[ |
$1

(b) Converting the given inequalities into equations, we get:

x = 1; y = 1; x = 4; y = 4 and x = y

With the help of above equations, the graph of given inequalities would be as follows:

A.5 (a) Age group No. of persons Mean No. Weighted

(years) in sample (f) of visits (x) Average (fx)
<5 50 2.1 105
5 – 20 115 1.6 184
21 – 60 155 2.6 403
61 and over 90 3.5 315
410 1,007
∑ bR &,''+
''+

Mean number of visit of all 410 persons in the sample = ∑b
 &'
 2.456

(b) Arranging the data in Ascending order, we have:

57,60, 62, 63, 64, 65, 66, 67, 70, 70, 72, 75, 78, 83, 86
Minimum number = 57 Maximum number = 86

Median = (n+1)/2 value = (15+1) = 8th value > c  67

)& ]^ &()&
Position of Q1 = A F defgO   4hi defgO > c&  63
)& ]^
] *
Position of Q3 = 3 A F defgO   12hi defgO > c#  75

Page 4 of 7
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2012

Box Plot

Min Q1 Q2 Q3 Max

57 60 63 67 70 73 75 77 80 83 86

The given data is positively skewed because the median is well left to the centre.

A.6 (a) x y xy x2 y2
18 30.0 540.00 324 900.00
19 30.3 575.70 361 918.09
20 30.7 614.00 400 942.49
21 30.8 646.80 441 948.64
22 31.0 682.00 484 961.00
23 31.4 722.20 529 985.96
24 31.5 756.00 576 992.25
25 31.9 797.50 625 1,017.61
26 32.0 832.00 676 1,024.00
27 32.2 869.40 729 1,036.84
28 32.6 912.80 784 1,062.76
29 32.9 954.10 841 1,082.41
282 377.30 8902.50 6,770 11,872.05

n∑ xy − ∑ x ∑ y
b=
n∑ x 2 − (∑ x )
2

12(8902.5) − (282)(377.3)
b=
12(6770) − (282) 2
106830 − 106398.6 431.4
b= = = 0.2514
81240 − 79524 1716

e  Nj  k l
= 31.4417 – (0.2514)(23.5)
= 31.4417 – 5.9079
= 25.5338

Least square regression line of y on x is

N  e  k
N  25.5338  0.2514x

n∑ xy − ∑ x∑ y
r=
(b)
(n∑ x 2
)(
− (∑ x ) n∑ y 2 − (∑ y )
2 2
)
12(8902.5) − (282)(377.3)
r=
(12(6770) − (282) )(12(11872.05) − (377.3) )
2 2

106830 − 106398.6
r=
(81240 − 79524)(142464.6 − 142355.29)
Page 5 of 7
 QUANTITATIVE METHODS
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Foundation Examinations – Autumn 2012

431.4 431.4 431.4

r= = = = 0.9961
(1716)(109.31) 187575.96 433.1

Interpretation: There is high positive correlation between the age of the children and their
mean height.

Co-efficient of Determination:
r   0.9961  n 100  99.22%

Interpretation: 99.22% variation in the mean height of children is explained by their age
and remaining 0.78% by other factors.

(c) Mean height at age 20 years (240 months) will be

Height  25.5338  0.2514 240 = 25.5338 + 60.336

= 85.8698 inch

This is more than 7 feet, an unreasonable result. Our data covers only ages from 18 to 29
months, so our fitted line is not a good model at ages far removed from data that produced
it.

A.7 (a) The daily production is analyzed below:

Items Total Defective Not Defective

Red Toys 20 5 15
Blue Toys 30 9 21
50 14 36

The given situation can arise in two ways, as follows:

(i) Red defective Toy, Any non-defective toy, Blue defective Toy
(ii) Blue defective Toy, Any non-defective toy, Blue defective Toy

( #s $
The probability in the first case  (' n $
n *  0.0138
$ #s *
The probability in the second case  (' n $
n *  0.022
Overall probability  0.0138  0.022  0.0358  3.58%

(b) According to Poisson’s Distribution:

t\ .S uv
:  
R!
Here x  y  2 2  4
> : at most 3 accidents  : 0  : 1  : 2  : 3
{ .S uJ I .S uJ
: 0  '!
 0.018 : 1  &!
 0.073
 .S uJ | .S uJ
: 2  !  0.146 : 3  #!  0.195
} : at most 3 accidents  0.018  0.073  0.146  0.195  0.432

Page 6 of 7
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Autumn 2012

A.8 (a) We know that:

~⁄ € 
 A S
F

Here   3.2, O  0.5 i‚gƒ„ e… †‡⁄  †'.''(  2.57

.(+n#. 
> A '.(
F  271.6

Hence the sample size should be 272.

(b) H' : μ Š 30%
H& : μ } 30%

x x2
31.5 992.25
30.3 918.09
31.1 967.21
30.7 942.49
29.9 894.01
29.6 876.16
31.8 1011.24
∑x = 214.9 ∑x2 = 6,601.45

∑ x 214.9
xj  30.7
n 7

1  (∑ x) 
2

(n − 1) ∑
s=  x −
2

n 


1 46182.01 4.02
s= 6601.45 −  = = 0.82
6  7 6

Using t-distribution
h'.'& s Q.b  3.143
Rl µ
h"!‹"  Œ
 
√
#'.+'#'
 '.* = 2.26
√+

Since h"Ž ‘ h]! , the null hypothesis is accepted.

We conclude that mean fat contents of the processed food do not exceed 30%.

A.9   57, l  23.2 km/h, s = 0.3 km/h

(a) Point estimate of   „  0.3km/h

Π'.#
(b) Rl    0.0397
√ √(+

(c) Confidence Interval for x  l  †‡⁄ Rl

Where †‡⁄  †'.'(  1.96
95% CI for x  23.2  1.96 0.0397
> ’‚“Oƒ ’G”Gh  23.2  0.0778  23.12 km/h
And •yyOƒ ’G”Gh  23.2  0.0778  23.278 km/h
(THE END)
Page 7 of 7
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2013

Ans.1 (a) Initial speed of the car = 135 km/hr

Final speed of the car = 43.2 km/hr

According to the question, we have:

43.2 = 135 (1 – r)5

 (1 – r)5 = 0.32
 (1 – r) = (0.32)1/5
 r = 1 – 0.7962 = 0.2038 = 20.38%

Hence speed of car declined at the rate of 20.38 % per second.

(b) (i) (x + 3) 8 (x + 2)
− =
(x − 2) 3 (x − 1)
(x + 3) (x + 2) 8
− =
(x − 2) (x − 1) 3
(x + 3)(x − 1) − (x + 2)(x − 2) 8
=
(x − 2)(x − 1) 3
(𝑥𝑥 2 + 2𝑥𝑥 − 3) − (𝑥𝑥 2 − 4) 8
=
(𝑥𝑥 2 − 3𝑥𝑥 + 2) 3
2 2
𝑥𝑥 + 2𝑥𝑥 − 3 − 𝑥𝑥 + 4 8
=
(𝑥𝑥 2 − 3𝑥𝑥 + 2) 3
(2𝑥𝑥+1) 8
(𝑥𝑥 2 −3𝑥𝑥+2)
=3
8x 2 − 24x + 16 = 6x + 3
8x 2 − 24x − 6x − 3 + 16 = 0
8x 2 − 30x + 13 = 0
8x 2 − 26x − 4x + 13 = 0
2x(4x − 13) − 1(4x − 13) = 0
(4x − 13)(2x − 1) = 0
13
(4x − 13) = 0 ⇒ x =
4
1
(2x − 1) = 0 ⇒ x =
2

(b) (ii) –1=0

=1
Taking ln on both sides:
ln( )= ln(1)
2xln(e) = 0 [ because ln(1) = 0]
2x(1) = 0 [ because ln(e) = 1]
2x = 0
x=0

Ans.2 (a) Let the required amount be 𝑥𝑥

14𝑥𝑥
Simple interest = �100 � (8) = 1.12𝑥𝑥
Compound interest = 𝑥𝑥[(1.14)8 − 1] = 1.8526𝑥𝑥

According to the question , difference between the two types of interest is 12,500, hence
we have:

1.8526 𝑥𝑥 − 1.12𝑥𝑥 = 12,500

0.7326𝑥𝑥 = 12,500
𝑥𝑥 = 17,063 Hence the required amount is Rs. 17,063.
Page 1 of 8
 QUANTITATIVE METHODS
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Foundation Examinations – Spring 2013

(b) Let the amount borrowed by Ali be P

Now using the relation:

1−(1+i/m)−mn
P = R� �
i/m
0.145 −12(3)
1−�1+ �
P = 34,434 � 12
0.145 �
� �
12

1 − 0.6486 0.3514
P = 34,434 � � = 34,434 � � = 34,434[29.0413]
0.0121 0.0121

P = 1,000,008.1242

i.e. Ali had borrowed Rs. 1,000,008 from the bank.

Total interest = (34,434)(36) − (1,000,008) = 1,239,624 – 1,000,008

= 239,616

Hence total interest paid by Ali is Rs. 239,616

(c) Total cost = 7,000 + 0.3(7,000) = 9,100

Since Profit = Selling price – Cost

∴ 0.125 SP = SP − Cost
⇒ 0.875 SP = Cost
⇒ 0.875 SP = 9,100

Hence SP = Rs. 10,400

Ans.3 (a) y = (x 2 − 1)4 (x 2 + 1)5

dy d d
dx
= (x 2 − 1)4 dx (x 2 + 1)5 + (x2 + 1)5 dx (x 2 − 1)4
= (𝑥𝑥 2 − 1)4 5(𝑥𝑥 2 + 1)4 2𝑥𝑥 + (𝑥𝑥 2 + 1)5 4(𝑥𝑥 2 − 1)3 2𝑥𝑥
= [2x(x2 − 1)3 (x2 + 1)4 ] [5(x2 − 1) + 4(x 2 + 1)]
= [2x(x2 − 1)3 (x2 + 1)4 ] [5x 2 − 5 + 4x 2 + 4]
= 2x (x2 − 1)3 (x2 + 1)4 (9x2 − 1) Hence Proved.

(b) (i) Price function that follows linear relationship may be written as:
𝑃𝑃(𝑥𝑥) = 𝑚𝑚𝑚𝑚 + 𝑐𝑐 − − − − − − − − (1)
According to the given two situations, we have:
38 = 10,200𝑚𝑚 + 𝑐𝑐 − − − − − − − − − −(2)
47 = 8,400𝑚𝑚 + 𝑐𝑐 − − − − − − − − − − (3) P

Solving Eq. 2 and 3, we have:

𝑚𝑚 = −0.005 and 𝑐𝑐 = 89 − − − − − − − − (4)
Substituting the values from Eq. 4 to Eq. 1we have:
𝑃𝑃(𝑥𝑥) = 89 − 0.005𝑥𝑥

Page 2 of 8
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2013

(ii) We know that Total Revenue (TR) = P(x). x

∴ TR = 89𝑥𝑥 − 0.005x2

Since Profit (Pr) = TR − C

∴ Pr = 89x − 0.005x2 − 15,000 − 18x

Hence Pr = 71x − 0.005x 2 − 15,000

dPr
dx
= 71 − 0.01x
dPr
To maximize profit we put =0
dx
⇒ 71 − 0.01x2 = 0
∴ x = 7,100

Now taking second order derivative of P:

d 2 Pr
= −0.02x < 0
dx 2
∴ Profit is maximum at x = 7100

= 71(7,100) – 0.005(7,100)2 – 15,000 = 237,050

Ans.4 (a) 1 1 −1 x 2
Here A = �2 −1 3 � X = �y� B = � 17 �
3 2 −4 z −3
1 1 −1
|A| = �2 −1 3 �
3 2 −4

= 1(4 − 6) − 1(−8 − 9) − 1(4 + 3) = −2 + 17 − 7 =8

Cofactors are
c11 = −2 c12 = 17 c13 = 7
c21 = 2 c22 = −1 c23 = 1
c31 = 2 c32 = −5 c33 = −3
−2 2 2
Adj A = � 17 −1 −5�
7 1 −3
−2 2 2
Adj A 1
A−1 = |A|
= � 17 −1 −5 �
8
7 1 −3
𝑋𝑋 = A−1 B
x −2 2 2 2
1
�y� = � 17 −1 −5� � 17 �
8
z 7 1 −3 −3
24
1
= �32�
8
40
x 3
�y� = �4�
z 5

Page 3 of 8
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2013

(b) Consider x + y ≥ 7
 x+y=7
Putting x = 0, we have y = 7 (0,7)
Putting y = 0, we have x = 7, (7,0)
Consider 2x + y ≥ 10
 2x + y = 10
Putting x = 0, we have y = 10 (0,10)
Putting y = 0, we have x = 5, (5,0)
Consider x + y ≤ 8
 x+y=8
Putting x = 0, we have y = 8 (0,8)
Putting y = 0, we have x = 8, (8,0)

With the help of the above calculated values of x and y, the graph of given inequalities is
drawn as follows:

Ans.5 (a) C.B. Midpoint (x) f fx 𝐟𝐟𝐟𝐟 𝟐𝟐

22-26 24 6 144 3,456
26-30 28 10 280 7,840
30-34 32 8 256 8,192
34-38 36 5 180 6,480
38-42 40 7 280 11,200
42-46 44 1 44 1,936
46-50 48 3 144 6,912
� 𝑓𝑓 = 40 � 𝑓𝑓𝑓𝑓 = 1,328 � fx2 = 46,016

∑ fx
x� = ∑f
1,328
x� = = 33.2
40
∑ fx 2 ∑ fx 2
σ=� ∑f
−�∑ �
f
46,016
�
40
− (33.2)2 = 6.9397

σ
𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂𝐂 𝐨𝐨𝐨𝐨 𝐯𝐯𝐯𝐯𝐯𝐯𝐯𝐯𝐯𝐯𝐯𝐯𝐯𝐯𝐯𝐯𝐯𝐯 = x� × 100
6.9397
= × 100 = 20.90%
33.2
Page 4 of 8
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2013

(b) Commodity 2010 2011 2012

Alpha 64 270 75 276 80 17,280 20,250 21,600 17,664 20,700
Beta 40 124 45 118 41 4,960 5,580 5,084 4,720 5,310
Gama 18 130 21 121 20 2,340 2,730 2,600 2,178 2,541
Eta 58 185 68 267 56 10,730 12,580 10,360 15,486 18,156
35,310 41,140 39,644 40,048 46,707

(i) ∑𝑝𝑝 𝑞𝑞 ∑𝑝𝑝 𝑞𝑞

Fisher Price Index for 2011 = �∑𝑝𝑝1 𝑞𝑞0 × ∑𝑝𝑝 1 𝑞𝑞1 × 100
0 0 0 1

41,140 46,707
=� × × 100 = 116.57
35,310 40,048
(ii) Paasche’s Price Index for 2012
It is given that Fisher Price Index for 2012 = 110.7
∑𝑝𝑝 𝑞𝑞
Whereas Laspayer’s Price Index for 2012= ∑𝑝𝑝2 𝑞𝑞0 × 100 P

0 0
39,644
= × 100 = 112.27
35,310
(Fisher Price Index )2
Since Paasche′ sPrice Index = Laspayer’s Price Index
(110.7)2
⇒ Paasche′ sPrice Index for 2012 = 112.27
= 109.15

Ans.6 (a) X Y 𝐗𝐗𝟐𝟐 𝐘𝐘 𝟐𝟐 XY

150 170 22,500 28,900 25,500
170 110 28,900 12,100 28,700
250 50 62,500 2,500 12,500
270 40 72,900 1,600 10,800
170 90 28,900 8,100 15,300
120 210 14,400 44,100 25,200
110 188 12,100 35,344 20,680
220 60 48,400 3,600 13,200
∑ X = 1,460 ∑ Y = 918 ∑ X 2 = 290,600 ∑ Y 2 = 136,244 ∑ XY = 141,880

1,460 918
x� = 8
= 182.5 y� = 8
= 114.75
n∑ xy − ∑ x∑ y
b=
n∑ x 2 − (∑ x )
2

8(141,880) − (1,460)(918)
b=
8(290,600) − (1,460) 2
1,135,040 − 1,340,280 − 205,240
b= = = −1.0623
2,324,800 − 2,131,600 193,200

𝑎𝑎 = 𝑦𝑦� − 𝑏𝑏𝑏𝑏 ̅
= 114.75 – (-1.0623)(182.5)
= 114.75 + 193.87
= 308.62
𝑦𝑦 = 𝑎𝑎 + 𝑏𝑏𝑏𝑏
𝑦𝑦 = 308.62 − 1.0623x

From the above calculated regression equation we can say that for each policeman
added, crime goes down by almost one per month.

Page 5 of 8
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2013

(b) n∑ xy − ∑ x ∑ y
r=
(n∑ x 2
)(
− (∑ x ) n∑ y 2 − (∑ y )
2 2
)
8(141,480) − (1,460)(918)
r=
(8(290,600) − (1,460) )(8(136,244) − (918) )
2 2

1,135,040 − 1,340,280
r=
(2,324,800 − 2,131,600)(1,089,952 − 842,724)
− 205,240 − 205,240 − 205,240
r= = = = −0.9391
(193,200)(247,228) 47,764,449,600 218,550.79
The above calculated coefficient of correlation indicates that there is strong inverse
relationship between strength of police and rate of crime. We can say that as the
number of policemen increases, the crime decreases.

Coefficient of determination = = (–0.9391)2 = 0.88 =88%

88% variation in the rate of crime is explained by proportionate strength of police and
remaining 12% by other factors.

(c) Estimated crimes as per equation Actual %age of actual to

Town
determined in (a) Crimes estimated crimes
Jay 308.62 − 1.0623(170) = 128.03 90 70.30%
Pee 308.62 − 1.0623(110) = 191.77 188 98.03%

Hence Jay town police is more efficient than the police of Pee town, provided other
factors in both the towns remain constant.

Ans.7 (a) Since it is given that the student knows two correct answers, hence he would only need
to select only three more correct answers out of eight questions to pass the exam and
therefore the required probability would be:

P(Pass) = P(At least 3 Correct) = {1 – [P(2 correct) + P(1 correct) + P(0 correct)]
= 1 − [8𝐶𝐶2 (0.25)2 (0.75)6 + 8𝐶𝐶1 (0.25)1 (0.75)7 + 8𝐶𝐶0 (0.25)0 (0.75)8 ]

= 1 − [28(0.0625)(0.178) + 8(0.25)(0.1335) + 1(1)(0.1001)]

= 1 − [0.3108 + 0.2672 + 0.1001] = (1 − 0.6781) = 0.3219

Hence, there is 32.19% probability that a student who knows two correct answers and
chooses the remaining answers at random will pass the test.
x−μ *
(b) Using the relation: z = and z–table for 31% and 8%, we have:
σ

45−μ
σ
= −0.496 − − − − − − − − − (1) P

64−μ
σ
= 1.405 − − − − − − − − − −(2) P

Page 6 of 8
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2013

Dividing Eq. (2) by Eq. (1)

64−μ 1.405
=
45−μ −0.496
μ = 50 -----------------------------------------(3)

Substituting the value of μ from Eq. (3) to Eq. (1) or Eq. (2), we have:

45−μ 64−μ
σ
= −0.496 Or σ
= 1.405
⇒ σ = 10

Ans.8 (a) We know that confidence interval (CI) for a proportion is:

𝑝𝑝(1−𝑝𝑝)
𝐶𝐶𝐶𝐶 = 𝑝𝑝 ± 𝑧𝑧� 𝑛𝑛

Here:

p = 1040/2000 = 0.52 and z for 97% CI = 2.17

Hence we have;

(0.52)(0.48)
97% 𝐶𝐶𝐶𝐶 = 0.52 ± (2.17)� 2000

= 0.52 ± (2.17)�0.000125)
= 0.52 ± (2.17)(0.011171) = 0.52 ± 0.024242
= 0.495758 𝑎𝑎𝑎𝑎𝑎𝑎 0.544242

i.e. lower limit of the 97% CI = 0.495758 and upper limit of the 97% CI = 0.544242.

Since the lower point of the confidence interval is less than 0.50, so one cannot say with
97% confidence that majority of the viewers like the program.

Similarly for 92% CI we have z for 92% CI = 1. 75

∴ 92% 𝐶𝐶𝐶𝐶 = 0.52 ± (1.75)(0.011171)

= 0.52 ± 0.01955 = 0.50455 𝑎𝑎𝑎𝑎𝑎𝑎 0.53955

i.e. lower limit of the 92% CI = 0.50455 and upper limit of the 92% CI = 0.53955.

Since both limits of the 92% CI are above 0.5, hence one can say with 92% confidence
that majority of the viewers like the program.

(b) H 0 : µ ≥ 8,000 hours

H 1 : µ < 8,000 hours

α = 0.01

Page 7 of 8
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2013

Since the sample size is small i.e., n < 30, population standard deviation is unknown and life
of energy saver is approximately normally distributed, hence we will use t–distribution i.e.,:

x−µ
t=
s
n
7,850 − 8,000
⇒t = = − 18 = −4.243
150
18
From table we have t (0.01, d.f. = 17) = –2.567

Since < and it falls in the critical region, therefore, we reject . Hence we conclude that the
sample data does not support the claim of the company at 0.01 level of significance.

(THE END)

Page 8 of 8
 QUANTITATIVE METHODS
Suggested Answers

Foundation Examinations - Autumn 2013

A.I (a) According to the question:

Cost of IS litre of A = 8(3 00) + 3(240) + 4(180) = 2,400 + 720 + 720 = 3,840
Cost of 15 litre of B = 4(300)+ 3(240) + 8(180) = 1,200 + 720 + 1 ,440 = 3,360

Therefore,

Per litre cost of A = 3,8401 IS = Rs. 256

Per litre cost ofB= 3,360/ 15 = Rs. 224

Per litre cost of C = 252,000 / 1,000 = Rs. 252

Now, according to the question we have :

256a + 224b = 252,000 -------------- (1)

a + b = 1,000 => b = 1,000 - a --------------- (II)

Substituting the value ofb from Eq .(II to Eq .(I), we have:

256a + 224(1,000 - a) = 252,000
32a = 28,000 = > a = 875 and b = 125

Hence ratio of A and Bin C would be:

a: b = 875 : 125 = 7 : 1

(b) Using the relation: an = ar n- 1

No. of appliances produced in the 25 th month

= 1,000(1.05)24 = 1,000 (3.2251) = 3,225.10 say 3,225

Also, using the relation: an = arn-l;

250 = 3,225(0.88)n-1

250

(0.SS)n- 1 = - - = O.OS
3,225
(n - 1)log(O.SS) = log(O.OS)
(n -1 )(-0.0555) = -1.110 6
n = 21

· th
U smg ereIatlOn:
' Sn = ~~
a(r" - l )
r-1
N o. 0 f app1lances pro uce m fiIrst 25 month S
· d d' = 1,000[(1.05)"-1]
1.05 - 1

= 1,000[3.39-1] = 2,396.3 S = 47 727.10 sa 47727

0.05 0.05 ' y ,

Similarly, No. of appliances produced in last 21 months = 3,225[1-(088)"]_

1 - 0.88
3,225

3,2 25[1 -0.07]

0 .12
3,225 = -3,005
0. 1 2
- 3,225 = 25,041.67 - 3,225 = 21,816.67 say 21,817

Hence total appliances produced = 47,727 + 21,816 = 69, 544

Page lof9
 QUANTITATIVE METHODS

Suggested Answers

Foundation Examinations - Autumn 2013

A.2 (a)

At 12% interest rate, required amount at the start of 3" year I October 20 13 would
be:

p = ("'0~~;)~~3
1+- = 1.000,000
1.4250'
=
701360.64:; 701 361
I
4

At 10% interest rate, required amount at the start of 3" year would be:
p = 1,000,000 = 1,000.000 = 743 549,71 :; 743550
( 1 + O.~OfX3 1.3449 I I

:. Additional amo unt req uired = 743,550 - 701.361 = Rs. 42,189

(b) 5= R[(1+ilm)m-1J (1 '/)

ilm +l m

Amount at the end of year 2011:

5=
5000 I( 1+~
~'
)" 1(1 + 0.0 8/12) =
- 1
5000(0.0834)(1.0067) = 419.7939 = 62 655.81
0.0067 0~067 '
"
Future value of62,655.81 atthe end of year 2012
"2(")
51 = 62,655. 81 ( 1 + O~~B ) = 62,655 .81(1.0834) = 67,881.30

Amount accumulated through savings during the year 2012:

5 = R[(1+ijm)m- 1J (1 + ilm)
, m

_ 7S00[ 008)" - lJ(1.0067)

(1+-;-;- _ 7500(0 .0834)(1.0067) _ 629.69 _
52 - ~ - 0.0067 - 0.0067 - 93,983.58
12
Total savings = 51 + 52 = 67,881.30 + 93,983.58 = 161,864.88
(c) U sing the relation: A = _ P­
l - rt

5
Where: P= Rs. 95,000; t=-·
12'
r = 0.12
We have:

95,000

A= 5 12

1-12x 100

95,000 95,000
1-0.05
= 0.95
= Rs.100,000

A. 3 (a) y = e 2x ' lnax 3

:. dy
d.x
= Inax3.!!..
dx
(e2X' ) + e 2X' ..!!.. (lnax3)
dx
= lnax 3.e2 x ' .4x + e 2'"
x .-,.3ax 2
ax
= 4xy + ~ e 2x ' (since y = e 2x ' lnax 3)
x
= ; (4x 2y + 3e 2X ') Hence p)·oved.

Page 2 of9
 QUANTITATIVE METHODS
Suggested Answers

Foundation Examinations - Autum n 2013

(b) 1500
AC = q + 20 + - ­
q

TR = 860q - 3q2

Since total cost = TC = q(AC)

:. TC = q2 + 20q + 1500

Pro/it = P = TR - TC
= 860q - 3q2 - q2 - 20q - 1500
= - 4q2 + 840q - 1500
dP
- = -8q + 840
dq
Profit can be maximized, where dp
dq
= 0 or - 8q + 840 = 0 Or q = 105
d'y
Now , - = - 8<0
dx 2

:. Profit will be maximum at q = 105

Pmax = -4-(10 5)2 + 840(105) - 1500

Pmax = -44100 + 88200 - 1500

Pmax = 42,600
i.e., at q = 105, maximum profit will be Rs. 42,600

TR
Price per unit = -q = 860 - 3q = 860 - 3(105) = 545

A.4 (a) First convert the given equation into matrix form

[ 3~ =~-2
1 -1 -5
Idl = 2 -3 -3
3 - 2 -7

= 11- 3 -31_ (-1) 12 -31 + (-5) 12 -31

-2 -7 3 -7 3 -2

= 1(21 - 6) + 1(-14 + 9) - 5(-4 + 9)

= (15 ­ 5 - 25)

Idl = -15
4 -1 -5
Idxl = 3 -3 -3
2 -2 -7

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 QUANTITATIVE METHODS

Suggested Answers

Foundation Exa minations - Autumn 2013

= 4 (21 - 6) + 1(-21 + 6) - 5(- 6 + 6)

= (60 - 15 - 0)

Idxl = 45
1 4 -5
Idyl = 2 3 -3
3 2 -7

3
=11 -31 _ 4 12 - 3 1+ (_5) 12 31
2 -7 3 -7 3 2

= 1(-21 + 6) - 4(- 14 + 9) - 5(4 - 9)

= (-15+20+25 )

Idyl = 30
1 -1 4
Idzl = 2 -3 3
3 -2 2

= 11- 3 31_ ( - 1) 12 3 1 + (4) 12 - 31

-2 2 3 2 3 - 2

= 1(-6 + 6) + 1(4- 9) +4 (-4 + 9)

= (0 - 5 + 20)
Idzl = 15

Putting the values in the above equations

x = dx
Idl
=~
-15
=- 3

_ dy _~_ -2
Y - Idl - -15 ­

dz 15
Z =-=-=-l
Idl -15

:.x=-3; y=-2 ; z=-l

(b) Converting the given inequalities into equations, we get:

x:55 ~x=5

y2:2 ~y=2

x + y:58 ~x+y=8

Putting x = 0, we have y = 8 (0,8)

Putting y = 0, we have x = 8 (8, 0)

Page 4 of9
 QUANTITATIVE METHODS
Suggested Answers

Foundation Examinations - Autumn 2013

With the help of above equations, the graph of given inequalities would be as
follows:

I
~~
a 8
x 7

6
s
5
- :o:+ y !B
4
- x$S
3
._-- v;::: 2

o ~ --- ---,----~--~-~ --- ~-.--.~ ..

o 2 4 6 8 10
x- axis.

A.5

Histogram
3

7
C:=JHi stogr~m freqU e ncy
_____ P{)I,~l gon

o ~~5~.sL-~.
7~ S L-~
9.~5----~~--71S~.s~------~~~--------------­

Class Boundaries

Page 5 of9
 QUANTITATIVE METHODS

Suggested Answers

Foundation Examinations - Autumn 2013

N
Median value size of "2 th value
72
Median value = 2 = 36th value

36th value lies in the interval 19.5 - 29.5

Median (M) = 1 + y(~ - c)

1=19.5, h=10, /=24, N = 72, c = 24

10

Median (M) = 19.5 + 24 (36 - 24)

Median (M) = 24.5

Mean Deviation from median (M. D)

M.D = 670
72

= 9.31

Coefficient of Mean Deviation from median = M: x 100

= 9.31 X 100 = 38%

24.5

A.6 (a)
d=x-y dZ
78
4
90
I 3 9
80
2.5 87
2 0.5 0.25
80
2.5 85
3 -0.5 0.25
85
I 75
5 --4 16
65
7 75
5 2 4
60
8 75
5 3
69
6 70
8 -2
72
5
73
7 -2

Since there are ties in the ranks, in case of each tie, a value equal to 12 (t 3 - t)
is to be added to I d 2 where t represents number of tied values.
In Accounting two marks are tied and in Mathematics three marks are tied.

i. e. ~ (2 3 - 2) + ~ (3 3 - 3) = 2.5 to be added to I d2 .
12 12

i. e. I d2 = 46.5 + 2.5 = 49

6(49)

Rs = 1 - 8(8 2 _ 1) = 0.417

Since Spearmen's coefficient of rank correlation is positive but less than half, there
is a positive but weak relationship between rank performance in Accounting and
Mathematics.

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 QUANTITATIVE METHODS
Suggested Answers

Foundation Examinations - Autumn 2013

(b) r = ±.Jb yx . b xy

r = 0.6, bxy = 0.25

:. 0.6 = ±.Jbyx x 0.25

or 0.25 x b yx = 0.36
b = 0.36 = 1.44
yx 0.25

A.7 (a) Usin g the Binomial Distribution:

P(x) = C)
pXqn-x
Here p = 0.5 (win) and q = 0.5 (loss)

(i)
P(2) = m
Therefore, for P(2 wins and one loss), x = 2 and n = 3

(0.5)2(0.5) = 3 x 0.125 = 0.375

(ii) For P (At least two wins) = P(2 wins) + P(3 wins)
Where P(3) = G) (0.5)3(0.5)0 =1 x 0.125 = 0.125
And P(2) = 0.375 as calculated in part (i) above.

Therefore, P (At least two wins) = 0.125 + 0.375 = 0.5

(iii) Now P (No loss) = P (al! wins) i.e., x = 3, hence as calculated in part (ii) above, we
have:
P (No loss) = 0.125

(iv) P (at most two losses) = 1 - P(3 losses) = I - Peal! wins)

= 1 - 0 .125 (as calculated above)

= 0.875

(b) Xl= 2.99 X2 = 3.01

Using the relation:

X-jl
z =(]­

2.99 -3 3.01-3
:. Zl = 0.005 = - 2 and Zz = 0.005 =2
P(- 2 < Z < 2) = 0.4772 x 2 = 0.9544
=* Probability of rej ected components =1 - 0.9544 = 0.0456
=* Estimated number of of rejected co mponents = 0.0456 x 100,000 = 4,560

Page 70f9
 QUANTITATIVE METHODS
Suggested Answers

Foundation Examinations - Autumn 2013

(c) We will find the required probabilities using the relation for Poisson distribution:
IlXe-1J.
P(x; Il) = - , ­
x.

(i) No insurance claim means P(x = 0) i. e.,

P(x = 0) = e - B = 0.000335
(ii) Less than four insurance claims means:
P(x S; 4) = P(O) + P(l) + P(2) + P(3)
=e- 8 + 8e- 8 + _e-
( 8)2
2
(8)3
8 + +-e-
6
8

= 0.000335 + 0.002684 + 0.010735 + 0.028626 = 0.04238

(iii) At least two insurance claims means:

P(x 2: 2) = 1 - P(1) - P(O)
= 1 - 0.002684 - 0.000335 = 0.996981

A.S (a) As n > 30, the sampling distribution ofx may be approximated by the normal
distribution.
Let the population mean be x, therefore we have
~ = ~x = a X
O.04x
and Ox = vn
r.: = = = 0.0067x
v36
Range ± 1.3% of x = ±O.013x

.Zl -- x,-~, _ -0.01 3 -

-
- -1 95­
.­
ax 0.0067
Z2
-- x, -~ . _
-
0.013 _
-
195
,
ax 0.0067
Area corresponding to z, = -1.95 = 0.4744
Area correspond ing to 22 = 1.95 = 0.4744
P(-0.987~x S; j(:::; 0.987~x) = P(x) = 0.4744 + 0.4744 = 0.9488

(b) Ho: ~=66

H,: ~;t66

x = LX = 678 = 67.8
n 10
52 =.2....
n-1
[I x2 _ (L X)'] n

Page 8 0/9
 QUANTITATIVE METHODS
,ccc"'P'; Answers
Foundation Examinations ... Autumn 2013

= ~[46050- = 9.067

S = 3.01

t'ab ~~('
9) = ±2.262
(:La",,",

We do not reject 1:r" and conclude that population mean is 66 inches.

(THE END)

Page 9()f9
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2014

Ans.1 (a) Let x be the total number of students in school. Therefore:

Boys = 7x/13 and Girls = 6x/13

After one year:

Boys = (1.1)7x/13 = 7.7x/13 and Girls = (1.15)6x/13 = 6.9x/13

Also, after one year boys will be 120 more than girls, therefore we have:
7.7x/13 = 6.9x/13 +120
 0.8x = 120(13)
 x = 1,950

Hence total number of students = 1,950

(b) x � � 22x � y� � 9y �
� �x � �� � 2�x � ��3y � � � �3y � �� � 22x � y � � 6x � y �
� �� � � 3� � �� � �4����
� �� � � 3� � � 4����� � � 3� � � 4���

(c) We know that slope intercept form of an equation is:

y = mx + c
Comparing the given equation with the slope intercept form, we get:

(i) Slope = –50,000 which means that value of car decreases at the rate of
Rs. 50,000/ year.
(ii) y–intercept = 1,000,000 means that original value of car is Rs. 1,000,000.

Ans.2 (a) PV/FV of the amount

Amount When
Description at the time of Working
Required required
retirement
For son's education 6,000,000 2 years after 5,014,988.42 W1
retirement
For household 100,000 each month 9,933,285.94 W2
expenses for a period of
15 years after
his retirement
Total 14,948,274.36 A

Amount
available
Current savings (2,000,000) (4,902,714.16) W3
Amount received at
the retirement (8,000,000) (8,000,000.00) Given
Total (12,902,714.16) B

Balance amount to be arranged through monthly

contributions 2,045,560.20 A–B

Now we will calculate the monthly deposit required to arrive at the balance amount using
the relation:
��
������� ��
A � R� �� � �1 � i�m�
�
�����
����.������ ��
2,045,560.20 � R � �.��� � �1 � 0.09�12�
��
�.����
2,045,560.20 � R ��.����� �1.0075�
2,045,560.20
R� � 10,492
194.97
Page 1 of 10
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2014

W1:
Present value of 6 million at the time of retirement will be:
���
P � S�1 � i�m�

P � 6,000,000�1.0075���� � 6,000,000�0.8358� � 5,014,988.42

W2:
Present value of monthly installments of Rs.100,000 for 15 years:
���
���������
A � R� �� � �1 � i�m�
�

1 � �1.0075����� 1 � 0.2605
A � 100,000 � � �1.0075� � 100,000 � � �1.0075�
0.0075 0.0075

0.7395
A � 100,000 � � �1.0075� � 100,000�98.5934��1.0075� � 9,933,285.94
0.0075

W3:
��
S � P�1 � i�m�

S � 2,000,000�1.0075���� � 2,000,000�2.4514� � 4,902,714.16

(b) Let x be the amount invested at 10% simple interest. Therefore, according to the question we
have:

0.10x + (1,500,000 – x)[(1 + .08/2)2 – 1] = 140,000

0.10x + (1,500,000 – x)(0.0816) = 140,000

0.10x + 122,400 – 0.0816x = 140,000

0.0184x = 140,000 – 122,400 = 17,600

x = 956,521.74

Hence, Rashid should invest Rs. 956,522 in Bank A to achieve the desired objective.

Page 2 of 10
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2014

Ans.3 (a) (i) � � ���2� �� � 5� �� � 16�

�� � �
� ��� ����� ������ ��� �2� �� � 5� �� � 16��
��

�� ��� �� ���� ��
�
�� �� �� ��� �� ���

(ii) Putting dy/dx = 5 we get:

��� ������ ��
�5
�� ����� �� ���

⇒ 2� �� � 3� �� � 2� �� � 5� �� � 16

⇒ � �� � 8

Taking cube root on both sides we get:

⇒ �� � 2

⇒ � � ��2

� � ���2� �� � 5� �� � 16�

⇒ � � ���2�� � �� � 5�� � �� � 16�

⇒ � � ���2�2�� � 5�2�� � 16� since � � � 2

⇒ � � ���64 � 40 � 16� � ��88

Hence the coordinates are (ln2, ln88) or (0.6931, 4.47712)

(b) � � 3� � � 16� � � 24� � � 5

��
� 12� � � 48� � � 48�
��

��
By putting � 0, we have:
��

12� � � 48� � � 48� � 0

12��� � � 4� � 4� � 0

��� � 2�� � 0

x=0 x=2

���
�� �
� 36� � � 96� � 48

�� �
At � � 0, �� � � 48 � 0

i.e. it is minimum Hence, at x=0; y is minimum

���
�t � � 2; � 36�4� � 96�2� � 48 � 0
�� �

i.e. y is neither minimum nor maximum at x = 2.

Page 3 of 10
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2014

���
It will be a point of inflexion if changes sign to the left and right of this point.
�� �

At x � 1.99;

���
�� �
� 36�1.99�� � 96�1.99� � 48 � 142.56 � 191.04 � �0.48 � 0

At x � 2.01;

�� �
�� �
� 36�2.01�� � 96�2.01� � 48 � 145.44 � 192.96 � �0.48 � 0

���
As �� � changes sign to the left and right of x = 2; hence the function has a point of inflexion
at x = 2.

Ans.4 (a) The given situation can be expressed by following set of equations:

� � 6� � � � 2,500
5� � 6� � 4� � 5,200
3� � � � 8� � 2,900

In matrix form, “AX=B" the above system of equations can be expressed as:

1 6 1 � 2,500
� �5 6 4� ��� � �5,200�
3 1 8 � 2,900

1 6 1 � 2,500
Where � � �5 6 4� � � ��� & � � �5,200�
3 1 8 � 2,900

The determinant of the coefficient matrix is as follows:

1 6 1
��� |�| � �5 6 4�
3 1 8

� 1�6 � 8 � 4 � 1� � 6�5 � 8 � 4 � 3� � 1�5 � 1 � 6 � 3� � 44 � 168 � 13

|�| � �137

|�� | ��� � |�� |

According to Cramer’s rule: � � |�|
, �� |�|
and � � |�|

2,500 6 1
|�� | � �5,200 6 4�
2,900 1 8

� 2,500�6 � 8 � 4 � 1� � 6�5,200 � 8 � 4 � 2,900� � 1�5,200 � 1 � 6 � 2,900�

� 110,000 � 180,000 � 12,200 � �82,200

1 2,500 1
��� � � �5 5,200 4�
3 2,900 8

� 1�5,200 � 8 � 4 � 2,900� � 2,500�5 � 8 � 4 � 3� � 1�5 � 2,900 � 5,200 � 3�

� 30,000 � 70,000 � 1,100 � �41,100

Page 4 of 10
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2014

1 6 2,500
|�� | � �5 6 5,200�
3 1 2,900

� 1�6 � 2,900 � 5,200 � 1� � 6�5 � 2,900 � 5,200 � 3� � 2,500�5 � 1 � 6 � 3�

� 12,200 � 6,600 � 32,500 � �13,700

Hence
|� | ���,���
� � |�|� � � 600
����

��� � ���,���
�� |�|
� � 300
����

|�� | ���,���
�� |�|
� ����
� 100

(b) According to the question, profit maximisation relation will be:

� � 2,000� � 5,000�

We wish to maximize the profit ‘P’ under the constraints

3� � 4� � 480
2� � 6� � 540
�� 0
� �0

For drawing the graph, we will convert each of the above inequalities into equations and
find their x and y intercepts i.e.:

3x + 4y = 480 ---------------------------Eq(i)

Putting x = 0 we have y = 120 => (0,120)

Putting y = 0 we have x = 160 => (160,0)

2x + 6y = 540 ---------------------------Eq(ii)
Putting x = 0 we have y = 90 => (0,90)
Putting y = 0 we have x = 270 => (270,0)

From graph, the co-ordinates of feasible region OABC are:

O(0, 0), A(0,90), B(72,66), C(160,0)

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 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2014

To find the maximum profit, we will put the co-ordinates of feasible region in the objective
function P(x, y) = 2,000x + 5,000y:

Feasible Region Points Value of Objective Function: P(x, y) = 2,000x + 5,000y

A(0, 90) 2,000(0) + 5,000(90) = 0 + 450,000 = 450,000
B(72, 66) 2,000(72) + 5,000(66) = 144,000 + 330,000 = 474,000
C(160, 0) 2,000(160) + 5,000(0) = 320,000 + 0 = 320,000

Hence 72 systems of type M and 66 systems of type N should be produced to maximize the
profit.

Ans.5 (a) (i) First we will arrange the given data in ascending order:

15 18 18 19 20 21 22 23 23 23 24 26 26 27
28 28 29 29 30 32 34 34 35 36 37 39 41 43
44 46 47 49

����� 49 � 15 34
Size of class intervals � � � � 4.86 � 5
��. �� ����� ��������� 7 7

Class Cumulative
Class interval Frequency
Boundaries Frequency
15-19 4 14.5-19.5 4
20-24 7 19.5-24.5 11
25-29 7 24.5-29.5 18
30-34 4 29.5-34.5 22
35-39 4 34.5-39.5 26
40-44 3 39.5-44.5 29
45-49 3 44.5-49.5 32

Cumulative frequency Polygram (Ogive)

� ��
(ii) Median = Size of �� � term

� �� ��
Here � � ���� � � 16�� ����
� �

16th value corresponds to class 24.5 – 29.5, therefore:

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 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2014

� �
Median = � � � � ��
� �
where l = 24.5; h = 5; f = 7; n = 32 and c = 11

� �� ��
∴ Median � 24.5 � � � � 11� � 24.5 � � 28.21
� �

There are two modal classes

1st Modal class is 19.5 – 24.5 2nd Modal class is 24.5 – 29.5

�� ���
Mode � � � �� ��
� ��� ����� ��� �

When mode lies between 19.5 - 24.5

where l = 19.5; fm = 7; f1 = 4; f2 = 7 and h = 5

���
∴ Mode � 19.5 � ����������� � 5 � 19.5 � 5 � 24.5

When mode lies between 24.5 - 29.5

where l = 24.5; fm = 7; f1 = 7; f2 = 4 and h = 5

���
∴ Mode � 24.5 � ����.������� � 5 � 24.5 � 0 � 24.5

(b) Using the Hypergeometric Distribution i.e.

�� ���
� �� ��� �
���� �
��
��

where k = 3; x = 2, 3; N = 12 and n = 4

Probability that at least 2 laptops are defective � ��� � 2� � ��� � 2� � ��� � 3�

���� ����� � ���� ����� �

��� � 2� � �
���� ����

������� ������ ��� �

���� � ���
� ���
� � ��� � 0.218 +0.018
���

���� � 0.236

Ans.6 (a) Scatter Diagram

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 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2014

(b) ODI Test

xy x2 y2
Average (x) Average (y)
33 44 1,452 1,089 1,936
42 50 2,100 1,764 2,500
31 38 1,178 961 1,444
46 42 1,932 2,116 1,764
36 31 1,116 1,296 961
35 44 1,540 1,225 1,936
24 31 744 576 961
39 35 1,365 1,521 1,225
40 41 1,640 1,600 1,681
45 49 2,205 2,025 2,401
371 405 15,272 14,173 16,809

� ∑ ���∑ � ∑ �
Using the relation r � we have:
��� ∑ �� ��∑ ��� ��� ∑ �� ��∑ ��� �

�����,���������������
r�
�������,����������� �������,����������� �

���,�������,��� �,��� �,��� �,���

r� � � � � 0.605
�����,���������������,�������,���� ���,������,���� √��,���,��� �,���.��

The result shows that the batting averages in test and ODI have positive and moderate
correlation.

(c) ��� �
Probable error of coefficient of correlation P. E. � �0.6745 �
√�

1 � �0.605��
� �0.6745 �
√10

� �0.6745 � 0.201 � �0.135

i.e., � � 0.605 � 0.135

Hence co-efficient of correlation actually lies between 0.469 and 0.740.

Ans.7 (a) According to the given situation:

p = 7/10 = 0.7

Therefore, q = 1 – 0.7 = 0.3

(i) Using the relation:

���� � ��� � � � ���

Probability that all patients survive is:

��
��12� � ��� �0.7��� �0.3��

��10� � 1 �0.0138��1� � 0.0138

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 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2014

(ii) Probability that at least 10 patients survive is:

��� � 10� � ��� � 10� � ��� � 11� � ��� � 12�

��
��� � 10� � ��� � �0.7��� � �0.3�� � ���
��
� �0.7��� � �0.3�� � ���
��
� �0.7��� � �0.3��

��� � 10� � 0.1678 �0.0712 �0.0138 � 0.2528

(iii) Probability that at most 10 patients survive is:

��� � 10� � 1 � ���� � 11� � ��� � 12��

��
��� � 10� � 1 � ���� ��
� �0.7��� � �0.3�� � ��� � �0.7��� � �0.3�� �

��� � 10� � 1 � �0.0712 � 0.0138� � 1 � 0.0850 � 0.9150

(b) ��� � 2,800� �?

Using the relation:

���
�� , we have:
�

�,�����,���
�� ���
� �2.0

Looking up values in z–table we have:

� � 0.4772

⇒ ��� � 2,800� � 0.5 � 0.4772 � 0.0228

∴ ��� � 2,800� � 1 � 0.0228 � 0.9772

Hence the probability that the life of light bulb selected is not less than 2,800 hours is 97.72%

W-1: Determination of mean life

It is given that ��� � 3,200� � 0.0228

Value of Z(0.5 – 0.0228), i.e. Z0.4772 is 2.0

Using the relation:

���
�� , we have:
�

3,200 � �
2.0 �
100

� � 3,200 � 2.0 � 100 � 3,000

Page 9 of 10
 QUANTITATIVE METHODS
Suggested Answers
Foundation Examinations – Spring 2014

Ans.8 (a) (i) �̅ � 985 �����

� � 30 �����

We know that the general form of a large sample 95% confidence interval for a
population mean � is:
� �
�̅ � ��⁄� ��̅ � �̅ � 1.96 � �̅ � 1.96
√� √�

At 95% confidence interval for the mean production of the population (�) will be:

30
� 985 � 1.96 � 985 � 1.96�4.743� � 985 � 9.296
√40

i.e. 975.7 � � � 994.3

(ii) Using the relation:

�∝⁄� � � �
�� � �
�

Where �∝⁄� at 99% confidence interval is 2.58

For the given situation:

2.58 � 30 � 77.4 �
�� � � �� � � �7.74�� � 59.91
10 10

Thus the company should select a sample of 60 units.

(b) (i) ��
��� � � 0.25
��

Similarly,
��
��� � � 0.167
��

∴ ����� �������� ���� � ��� � � 0.250 � 0.167 � 0.083

(ii) ��� �� �����

��������� � � � ��
� ��

�.����.�� �.�����.��� �.���� �.����

��������� � � � � �� �
�� �� �� ��

�.����
��������� � � � ��
� √0.005440 � 0.07376

(THE END)

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