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Assignment 1

The document contains 15 quantitative questions involving systems of equations, linear and quadratic functions, optimization problems, and other calculus topics. Students are asked to solve systems of equations, determine functions from data points, interpret intercepts and slopes, find break-even points and profit maximization, and make predictions based on estimating functions.

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Farah Yousaf
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23 views

Assignment 1

The document contains 15 quantitative questions involving systems of equations, linear and quadratic functions, optimization problems, and other calculus topics. Students are asked to solve systems of equations, determine functions from data points, interpret intercepts and slopes, find break-even points and profit maximization, and make predictions based on estimating functions.

Uploaded by

Farah Yousaf
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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ASSIGNMENT # 1

Q.1: Solve the following systems using Gaussian elimination.

(i) 2𝑥1 − 𝑥2 + 𝑥3 = −5

𝑥1 − 3𝑥2 + 2𝑥3 = −12

3𝑥1 + 2𝑥2 + 𝑥3 = 1

(ii) 𝑥1 − 2𝑥2 + 𝑥3 = −4

2𝑥1 + 6𝑥2 − 𝑥3 = 12

−3𝑥1 + 6𝑥2 − 3𝑥3 = 10

Q.2: A major airline purchases a particular type of plane for $75 million. The company estimates
that the salvage (resale) value of the plane is estimated well by the function

𝑆 = 𝑓(𝑥) = 72 − 0.0006𝑥

where S equals the salvage value (in millions of dollars) and x equals the number of hours of
flight time for the plane.

(a) What is the salvage value expected to equal after 10,000 hours of flight time?
(b) How many hours would the plane have to be flown for the salvage value to equal zero?
(c) What interpretation would you give to the y intercept? Why do you think this does not
equal 75?

Q.3: A survey of high school and college football players suggests that the number of career-
ending injuries in this sport is increasing. In 1980 the number of such injuries was 925; in 1988
the number was 1,235. If it is assumed that the injuries are increasing at a linear rate:

(a) Determine the function n=f(t), where ‘n’ equals the estimated number of injuries per year and
‘t’ equals time measured in years since 1980.
(b) Interpret the meaning of the slope of this function.
(c) When is it expected that the number of such injuries will go over the 1,500 mark?
Q.4: Two points on a linear supply function are ($4.00, 28,000) and ($6.50, 55,000).

(a) Determine the supply function 𝑞 = 𝑓(𝑝).


(b) What price would result in suppliers offering 45,000 units?
(c) Determine and interpret the 𝑝 intercept.
Q.5: The function 𝑉 = 𝑓(𝑡) = 36,000 − 4,500𝑡 states that the value of a piece of equipment is
a function of its age. 𝑉 equals the value (in dollars) and 𝑡 equals the age of the equipment (in
years). Determine the restricted domain and range for this function.

Q.6: A company sells a product for $150 per unit. Raw material costs are $40 per unit, labor
costs are $55 per unit, shipping costs are $15 per unit, and annual fixed costs are $200,000.

(a) Determine the profit function 𝑃 = 𝑓(𝑥), where 𝑥 equals the number of units sold.
(b) How many units must be sold in order to earn an annual profit of $750,000?
Q.7: Ridership on a small regional airline has been declining, approximately, at a linear rate. In
1981 the number of passengers was 245,000; in 1986 the number was 215,000. If n equals the
number of passengers using the airline per year and t equals time measured in years (t = 0 for
1981):

(a) Determine the linear estimating function 𝑛 = 𝑓(𝑡).


(b) Interpret the meaning of slope.
(c) What is the number of riders expected to equal in the year 2000?
(d) It is estimated that the airline will go out of business if ridership falls below 180,000.
According to your function in part a, when will this happen?
Q.8: A company is considering the purchase of a piece of equipment to be used to produce a new
product. Three machines are being considered. Machine 1 costs $100,000, and the associated
variable cost of production for the new product estimated at $25. Machine 2 costs $150,000 with
a variable cost of production of $22.50. Machine 3 costs 180,000 with a variable cost of $21.
Determine the ranges of output over which each machine would be the least cost alternative.

Q.9: A car leasing agency purchases new cars each year for use in the agency. The cars cost
$15,000 new. They are used for 3-years, after which they are sold for 3,600. The owner of the
agency estimates that the variable costs of operating the cars, exclusive of gasoline, are $0.16 per
mile. Cars are leased at a flat rate of $0.33 per mile (gasoline not included).

(a) What is the break-even for the 3-year period?


(b) What are total revenue, total cost, and total profit for the 3-year period if a car is leased
for 50,000 miles?
Q.10: A high-technology electronics firm needs a special microprocessor for use in a micro-
computer it manufactures. Three alternatives have been identified for satisfying its needs. It can
purchase the microprocessors from a supplier at a cost of $10 each. The firm also can purchase
one of two pieces of automated equipment and manufacture the microprocessors. One piece of
equipment costs $80,000 and would have variable costs per microprocessor of $8. A more highly
automated piece of equipment costs $120,000 and would result in variable costs of $5 per unit.
Determine the minimum cost alternative for different ranges of output.
Q.11: The supply function for a product is quadratic. Three points lie on the function
are (20,150), (30,400), and (40,750).
(a) Determine the equation of the supply function.
(b) Make any observations you can about the restricted domain of the function.
(c) What quantity would be supplied at a price of $50?
Q.12: The demand function for a product is

(a) How many units will be demanded if a price of $20 is charged?

(b) Determine the intercept of and interpret it.


(c) Determine the intercept of P and interpret it.
Q.13: The monthly demand function for a particular product is

𝑞 = 𝑓(𝑝) = 30,000 − 25𝑝

where 𝑞 is stated in units and 𝑝 is stated in dollars. Determine the quadratic total revenue
function, where 𝑅 is a function of 𝑝, or 𝑅 = 𝑔(𝑝).

(a) What is the concavity of the function?


(b) What is the 𝑞 intercept?
(c) What does total revenue equal at a price of $60?
(d) How many units will be demanded at this price?
(e) At what price will total revenue be maximized?

Q.14: The demand function for a product is 𝑞 = 𝑓(𝑝) = 360,000 − 45𝑝

where 𝑞 equals the quantity demanded and 𝑝 equals price in dollars.

(a) Determine the quadratic revenue function 𝑅 = 𝑔(𝑝)


(b) What price should be charged to maximize total revenue?

Q.15: In recent years, the prosperity within Japan has resulted in heavy investment by the
Japanese in other countries around the world. In 1980, 1984, and 1987 the amounts invested in
Europe were $0.6, $2.1, and $6.25 billion, respectively. Using these three points, determine the
quadratic estimating function I = 𝑓(𝑡), where I equals the Japanese investment (in billions of
dollars) and 𝑡 equals time measured in years since 1980. Using this function, estimate the
expected investment in the year 1995.

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