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Grear Tyre Company has just developed a new steel-belted radial tyre that will be sold through a chain of discount stores.
Because the tyre is a...
(Solved)
Grear Tyre Company has just developed a new steel-belted radial tyre that will be sold through a chain of discount stores.
Because the tyre is a new product, the company‟s management believes that the mileage guarantee offered
with the tyre will be an important factor in the consumer acceptance of product. Before finalizing the tyre mileage guarantee policy, the actual road test with the tyres shows that the mean tyre
data collected indicate that a normal distribution is a reasonable assumption.
Required:
i) Grear Tyre Company will distribute the tyres if 20 per cent of the tyres manufactured can be expected
to last more than 40,000 kilometers. Should the company distribute the tyres?
ii) The company will provide a discount on a new set of tyres if the mileage on the original tyres does not exceed the mileage stated on the guarantee.
What should the guarantee mileage be if the company wants no more than 10% of the tyres to be
eligible for the discount?
Date posted:
December 7, 2018
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Answers (1)
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The past records of Salama Industries indicate that 4 out of 10 of the company?s orders are for
export. Further, their records indicate that 48 percent...
(Solved)
The past records of Salama Industries indicate that 4 out of 10 of the company‟s orders are for
export. Further, their records indicate that 48 percent of all orders are for export in one particular
quarter. They expect to satisfy about 80 orders in the next financial quarter.
Required:
i) Determine the probability that they will break their previous export record
ii) Explain why you have used the approach you have chosen to solve part (i) above.
Date posted:
December 7, 2018
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Answers (1)
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An electric utility company has found out that the weekly number of occurrences of lightning striking the
transformers is a Poisson distribution with mean 0.4.
Required:
i) The...
(Solved)
An electric utility company has found out that the weekly number of occurrences of lightning striking the
transformers is a Poisson distribution with mean 0.4.
Required:
i) The probability that no transformer will be struck in a week.
ii) The probability that at most two transformers will be struck in a week.
Date posted:
December 7, 2018
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Answers (1)
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In a certain factory that employs 500 men, 2% of all employees have a minor accident in a given year. Of
these, 30% had safety instructions...
(Solved)
In a certain factory that employs 500 men, 2% of all employees have a minor accident in a given year. Of
these, 30% had safety instructions whereas 80% of all employees had no safety instructions.
Required:
Find the probability of an employee being accident-free given that he had:
i) no safety instructions.
ii) safety instructions
Date posted:
December 7, 2018
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Answers (1)
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A firm has four plants scattered around the city producing the same homogeneous item at all plants. The first plant produces 30 per cent of...
(Solved)
A firm has four plants scattered around the city producing the same homogeneous item at all plants. The first plant produces 30 per cent of the total production, second plant 25 per cent, third plant 35 per cent and the fourth plant 10 per cent. The firm has a single warehouse in the city for storing the finished product of all the plants without any distinction. From the past performance records on the proportion of defectives, it has been found that 5 per cent, 10 per cent, 15 per cent and 20 per cent from the items produced at plants 1, 2, 3, and 4 respectively are defective. Before the shipment of the items to a dealer, one unit is selected and found defective. What is the probability that the item was produced in plant 3?
Date posted:
December 7, 2018
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Answers (1)
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A firm recently submitted a bid for a turnkey project for a 500 MW power plant. If its main competitor submits a bid, the chances...
(Solved)
A firm recently submitted a bid for a turnkey project for a 500 MW power plant. If its main competitor submits a bid, the chances of bid being awarded to the firm is 0.3. If the main competitor doesn't bid, there is a
3/4 chance of the firm getting the contract. There is a 0.50 chance that the main competitor will bid.
i) What is the probability of the firm‟s getting the contract?
ii) What is the probability that the competitor‟s bid given that the firm's bid is awarded?
Date posted:
December 7, 2018
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Answers (1)
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Three groups of children contain respectively 3 girls and 1 boy; 2 girls and 2 boys; 1 girl and 3 boys. One child is selected...
(Solved)
Three groups of children contain respectively 3 girls and 1 boy; 2 girls and 2 boys; 1 girl and 3 boys. One child is selected at random from each group, show that the chance that the three selected, consist of 1 girl and 2 boys is 13/32.
Date posted:
December 7, 2018
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Answers (1)
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A problem is given to three managers A, B, C whose chances of solving are ½, ?, ¼ respectively. What is the probability that the...
(Solved)
A problem is given to three managers A, B, C whose chances of solving are ½, ⅓, ¼ respectively. What is the probability that the problem will be solved?
Date posted:
December 7, 2018
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Answers (1)
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"The standard deviation is the natural partner to the mean". Explain.
(Solved)
"The standard deviation is the natural partner to the mean". Explain.
Date posted:
December 6, 2018
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Answers (1)
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Why is the mode not used extensively in statistical analysis?
(Solved)
Why is the mode not used extensively in statistical analysis?
Date posted:
December 6, 2018
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Answers (1)
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Describe briefly how to estimate the median on a grouped frequency distribution graphically
(Solved)
Describe briefly how to estimate the median on a grouped frequency distribution graphically.
Date posted:
December 6, 2018
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Answers (1)
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A machine produces circular bolts and, as a quality control test, 250 bolts were selected randomly and
the diameter of their heads measured as follows:
(Solved)
A machine produces circular bolts and, as a quality control test, 250 bolts were selected randomly and
the diameter of their heads measured as follows:
Required:
Determine whether the customer is getting reasonable value if the label on the circular bolt advertises
that the average diameter of the head is 0.97642 cm.
Date posted:
December 6, 2018
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Answers (1)
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The index of industrial production in the Utopia country by July 2001 is given below:
(Solved)
The index of industrial production in the Utopia country by July 2001 is given below:
Required:
i) Calculate the index of industrial production for all industries and manufacturing industries.
ii) Comment on your results.
Date posted:
December 6, 2018
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Answers (1)
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(a) Given the following input – output matrix and demand vector of shoes S, rubber R and glue G industries,
determine the production vector.
(Solved)
(a) Given the following input – output matrix and demand vector of shoes S, rubber R and glue G industries,
determine the production vector.
(b) If in (a) above the demand of industries changes as follows:
S decreases by 10 units
R increases by 5 units C
increases by 10 units.
What should be the production levels?
Date posted:
December 6, 2018
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Answers (1)
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Drumstick Chicken Wings Ltd supplies chicken wings for Kuku Inn with the following demand and cost
functions for a given week:
P = 100 – 0.01 x...
(Solved)
Drumstick Chicken Wings Ltd supplies chicken wings for Kuku Inn with the following demand and cost
functions for a given week:
P = 100 – 0.01 x - Price
TC = 50x + 30,000 - Total cost
Where:
x – number of chicken wings supplied.
Required:
i) Total revenue for Drumstick Chicken Wings Ltd.
ii) Determine the number of chicken wings that maximize weekly profit.
iii) What is the difference in profit if the Drumstick Chicken Wings Ltd. objective is to maximize revenue rather than profit?
Date posted:
December 6, 2018
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Answers (1)
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A company employs four classes of machine operators (A,B,C,D): all new employees are hired as class D
and, through a system of promotion, may work up...
(Solved)
A company employs four classes of machine operators (A,B,C,D): all new employees are hired as class D
and, through a system of promotion, may work up to a higher class. Currently, there are 200 class D, 150
class C, 90 class B and 60 class A employees. The company has signed an agreement with the union
specifying that 20 percent of all employees in each class be promoted, one class in each year. Statistics show that each year 25 percent of the class D employees are separated from the company by reason such as retirement, resignation and death. Similarly 15 percent of class C, 10 percent of class B and 5 percent of class A employees are also separated. For each employee lost, the company hires a new class D employee.
Required:
i) The transition matrix.
ii) The number of employees in each class two years after the agreement with the union.
iii) The equilibrium state in number of employees.
Date posted:
December 6, 2018
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Answers (1)
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XYZ Company Limited invests in a particular project and it has been estimated that after X months of
running,
(Solved)
XYZ Company Limited invests in a particular project and it has been estimated that after X months of
running, the cumulative profit (Sh.„000‟) from the project is given by the function 10x-x2-5,
where x represents time in months. The project can run for eleven months at most.
Required:
i) Determine the initial cost of the project.
ii) Calculate the break-even time in months for the project.
iii) Determine the best time to end the project.
iv) Determine the total profit within the break-even points
Date posted:
December 6, 2018
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Answers (1)
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Gatheru and Kabiru Certified Public Accountants have recently started to give business advise to their
clients. Acting as consultants, they have estimated the demand curve of...
(Solved)
Gatheru and Kabiru Certified Public Accountants have recently started to give business advise to their
clients. Acting as consultants, they have estimated the demand curve of a clients firm to be;
AR=200-8Q
Where AR is average revenue in millions of shillings and Q is the output in units.
Investigation of the client firm‟s cost profile shows that marginal cost (MC) is given by:
MC=Q2-28Q+211(In million shillings)
Further investigations have shown that the firm‟s cost when not producing output is sh.10 million.
Required:
i) The equation of total cost
ii) The equation of total revenue
iii) An expression for profit.
iv) The level of output that maximizes profit
v) The equation of marginal revenue.
Date posted:
December 6, 2018
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Answers (1)
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Two CPA students were discussing the relationship between average cost and total cost. One student said
that since average cost is obtained by dividing the cost...
(Solved)
Two CPA students were discussing the relationship between average cost and total cost. One student said
that since average cost is obtained by dividing the cost function by the number of units Q, it follows that the derivative of the average cost is the same as marginal cost, since the derivative of Q is 1.
Required:
Comment on this analysis.
Date posted:
December 6, 2018
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Answers (1)
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Demand function for a firm is given by
P=12 - 0.4Q
P is the price of the product, Q is the quantity demanded, and the total cost...
(Solved)
Demand function for a firm is given by
P=12 - 0.4Q
P is the price of the product, Q is the quantity demanded, and the total cost (C) is given by
C = 5 + 4Q + 0.6Q2
At what price and quantity will the firm have maximum profit? If the firm aims at maximizing sales, what
price should it charge?
Date posted:
December 6, 2018
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Answers (1)