When faced with single variable the differentiation of a function of cost, revenue or profit will give optimum conditions when equated to zero. Depending on what is to be optimized a manager can be able to obtain the quantity of variable that will optimize a given function.
For example, a fund manager can check behaviour of a given stock and determine the optimum time to purchase the stock, by differential calculus
Wilfykil answered the question on February 20, 2019 at 11:07
- MMK Ltd. plans to conduct a survey. The following table shows the tasks involved, the immediately preceding tasks and for each activity duration the most...(Solved)
MMK Ltd. plans to conduct a survey. The following table shows the tasks involved, the immediately preceding tasks and for each activity duration the most likely estimate (L), the optimistic estimate (O) and the pessimistic estimate (P).
Required:
a) Compute the mean duration and standard deviation for each task
b) The project is budgeted to cost Sh.500,000. Actual costs per day are Sh.10,000. By first identifying the critical path from drawing a network diagram can the project be implemented within the budget.
c) What is the probability of finishing the project 4 days earlier than the expected duration?
Date posted: February 20, 2019. Answers (1)
- Sikoka health club specializes in provision of sports/exercise and medical/dietary advice to clients. The service is provided on residential basis and clients reside for whatever...(Solved)
Sikoka health club specializes in provision of sports/exercise and medical/dietary advice to clients. The service is provided on residential basis and clients reside for whatever number of days that suit their needs. Budget estimates for the year ending 30 June 2003 is as follows:
Required:
i) Summary of budgeted contribution to be earned by Sikoka Health Club for the year ended 30 June 2003 for each of the nine possible outcomes.
ii) State the client fee strategy that will result from the use of the maximax, maximin and minimax regret decision criteria.
Date posted: February 20, 2019. Answers (1)
- What is Laplace criterion? How does it differ from Hurwicz criterion?(Solved)
What is Laplace criterion? How does it differ from Hurwicz criterion?
Date posted: February 20, 2019. Answers (1)
- A fruit/juice kiosk along Lusaka road, VegFresh kiosk has come up with the following formulae of making natural juice for its industrial area customers(Solved)
A fruit/juice kiosk along Lusaka road, VegFresh kiosk has come up with the following formulae of making natural juice for its industrial area customers
- 5 litres lemonade: 2 dozen lemon, 2 kg of sugar, 2 ounces of citric acid and water
- 5 litres grapefruit: 11/2 kg grape fruit, 11/2 kg of sugar, 1 ounces of citric acid and water
- 5 litres orangeade: 11/2 dozen of oranges, 11/2 kg of sugar, 1 ounces of citric acid and water
The selling prices of the fruit juices per every 5 litre are:
Lemonade: Sh. 37.50
Grapefruit: Sh. 40.00
Orangeade: Sh. 42.50
During the cold weather season (May 2002) VegFresh kiosk had in stock 2,500 dozen lemons,2,000 kg grape fruit, 750 dozen oranges, 5,000 kg of sugar and 3,000 ounces of citric acid
Required:
i) Formulate the linear programming problem
ii) Formulate the dual of this primal
Date posted: February 20, 2019. Answers (1)
- Define a dual problem in relation to the primal problem(Solved)
Define a dual problem in relation to the primal problem
Date posted: February 20, 2019. Answers (1)
- Given the following data of production of vehicles by a local car assembly KMA Ltd. Determine the deseasonalised data and using the forecasting relationship forecast...(Solved)
Given the following data of production of vehicles by a local car assembly KMA Ltd. Determine the deseasonalised data and using the forecasting relationship forecast the production in May 2003.
Date posted: February 20, 2019. Answers (1)
- What are the steps in time-series decomposition?(Solved)
What are the steps in time-series decomposition?
Date posted: February 20, 2019. Answers (1)
- Forecasting is the attempt to predict the future by using qualitative or quantitative means. Discuss the qualitative and QUANTITATIVE ANALYSIS available for managers in predicting...(Solved)
Forecasting is the attempt to predict the future by using qualitative or quantitative means. Discuss the qualitative and QUANTITATIVE ANALYSIS available for managers in predicting the future.
Date posted: February 20, 2019. Answers (1)
- i)Explain the meaning of a random variable
ii) Zebro Match Manufacturers finds that 5% of the matches in a box are defective. Determine the probability that...(Solved)
i)Explain the meaning of a random variable
ii) Zebro Match Manufacturers finds that 5% of the matches in a box are defective. Determine the probability that out of a box containing 50 match sticks:
a) None will be defective
b) If the guarantee is not more than 4 will be defective, what is the probability that the box wil meet guarantee quality?
Date posted: February 20, 2019. Answers (1)
- What is a Venn diagram? How can it be used to determine probability of a given event?(Solved)
What is a Venn diagram? How can it be used to determine probability of a given event?
Date posted: February 20, 2019. Answers (1)
- In a base period, salaries comprise 50% of selling price of product, materials and overheads 40%, and profits 10%. If salary structure rose by 20%...(Solved)
In a base period, salaries comprise 50% of selling price of product, materials and overheads 40%, and profits 10%. If salary structure rose by 20% and materials and overhead costs rose by 10% from base period. What must have been the percentage increase in selling price if profits remained 10% of selling price?
Date posted: February 20, 2019. Answers (1)
- The price index for 2001 with base 1985=100 for the listed goods is(Solved)
The price index for 2001 with base 1985=100 for the listed goods is
Find the Arithmetic mean and geometric mean of these three indices.
Date posted: February 20, 2019. Answers (1)
- Write short notes on the following:
i) Price relatives.
ii) Fixed base method.
iii) Chain base method.
iv) Weighted index number.
v) Quantity index number.(Solved)
Write short notes on the following:
i) Price relatives.
ii) Fixed base method.
iii) Chain base method.
iv) Weighted index number.
v) Quantity index number.
Date posted: February 20, 2019. Answers (1)
- In brand switching between different toothpastes named Closed-up CU, Cols-gate CG and Aquas-fresh AF, the state transition matrix below is obtained for a particular month.(Solved)
In brand switching between different toothpastes named Closed-up CU, Cols-gate CG and Aquas-fresh AF, the state transition matrix below is obtained for a particular month.
Required:
i) If the market share for the different toothpastes were 0.4, 0.3 and 0.3 for CU, CG and AF for January 2002, what will be the market share in February 2002 and March 2002?
ii) What is the market share equilibrium situation?
Date posted: February 20, 2019. Answers (1)
- Define the following:
i) Markov process.
ii) Cyclic chain.
iii) Absorbing state.
iv) State transition matrix.
v) Steady state(Solved)
Define the following:
i) Markov process.
ii) Cyclic chain.
iii) Absorbing state.
iv) State transition matrix.
v) Steady state
Date posted: February 20, 2019. Answers (1)
- Define the terms systematic, stratified, multistage, cluster and quota sampling as used in statistical inference.(Solved)
Define the terms systematic, stratified, multistage, cluster and quota sampling as used in statistical inference.
Date posted: February 20, 2019. Answers (1)
- Caterpillar Company Ltd. produces generators and drilling engines. The revenue function that describes total revenue for sales in a particular quarter of these engines is...(Solved)
Caterpillar Company Ltd. produces generators and drilling engines. The revenue function that describes total revenue for sales in a particular quarter of these engines is given by:
R = 8x + 5y + 2xy – x2 – 2y2 + 20
Where:
x – number of generator engines in thousands.
y – number of drilling engines in thousands.
At what quantities of x and y is revenue maximised in a particular quarter
Date posted: February 20, 2019. Answers (1)
- Kiko Manufacturing Ltd. wants to take a decision of introducing a new soap Kikope. The cost for introducing Kikope (Initial advertising, promotion and fixed cost...(Solved)
Kiko Manufacturing Ltd. wants to take a decision of introducing a new soap Kikope. The cost for introducing Kikope (Initial advertising, promotion and fixed cost for one year of production) is estimated at Ksh.30,000. The variable cost per bar of soap is Ksh.30 and the expected selling price is Ksh.50.
Required:
Draw the cost, revenue and profit functions and from it:
i) Determine the break-even level of production.
ii) Determine the profit on the sale of 2,500 soap bars.
Date posted: February 20, 2019. Answers (1)
- Vick Press Ltd is planning to expanding into offering security systems in people?s homes scared
of security.The following are activities and associated costs for the expansion:(Solved)
Vick Press Ltd is planning to expanding into offering security systems in people‟s homes scared of security.The following are activities and associated costs for the expansion:
Required:
i) Determine the critical path.
ii) Determine the minimum time and minimum cost for the networks.
iii) Given that, for every delay beyond 40th week, there is share of Sh.1,000 per week loss of profit. Is it advisable to crash the project from 51 to 45 weeks? Why?
Date posted: February 20, 2019. Answers (1)
- Peter and Ngomongo are second hand dealers of electronic equipment and shoes along Baricho road.
Due to hard economic times and restriction by City Council, sales...(Solved)
Peter and Ngomongo are second hand dealers of electronic equipment and shoes along Baricho road. Due to hard economic times and restriction by City Council, sales have been decreasing. Each of them came up with strategies to expand into the other business (they have monopoly now). Each of them knows what the other is considering thus influences each others decision. Peter had the following matrix of profit per day.
Required:
i) Interpret the matrix.
ii) Solve the game to determine the average winning (loss) each cousin would have
Date posted: February 20, 2019. Answers (1)