STATS AND MATHS FOR BUSINESS

ASSIGNMNENT NO 01

Submitted to: Sir Shahzaib Sharif

STUDENT NAME SADIA YASMEEN

CLASS MBA 4 (MORNING)

ID NUMBER 14612
(SPRING 20)

COURSE STATS AND MATHS

FOR BUSINESS

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 TABLE OF CONTENTS

QUESTION NUMBER 01………………………………… Pg. No

EXERCISE 4.1 (QUESTION NO 48) ............................................................... 3
EXERCISE 4.2 (QUESTION NO 49) ............................................................. 4-5
QUESTION NUMBER 02 .................................................................................
EXERCISE 4.2 (QUESTION NO 30) ............................................................. 6-7
EXERCISE 4.2 (QUESTION NO 31) ................................................................ 8
QUESTION NUMBER 03 .................................................................................
SECTION 5.1 (QUESTION NO 01) ................................................................ 09
SECTION 5.1 (QUESTION NO 02) ........................................................... 10-11
QUESTION NUMBER 04 .................................................................................
EXERCISE 7.2 (QUESTION NO 24) ......................................................... 12-13
EXERCISE 7.2 (QUESTION NO 25) ......................................................... 14-15

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 QUESTION NO 01:
EXERCISE 4.1 (QUESTION NO 48)
Required a)
Determine the function Y= f (x) which expresses the daily cost of renting?

Solution:

Data:

Automobiles rate= $15

Numbers of miles = x= 0.08

y=f(x) = 0.08x + 15 ANSWER

Required b)
What is f (300)? What does f (300) represent?

Solution:

Put x = 300

y = f (300) = 0.08(300) + 15

y = f (300) = 24 + 15

y = f (300) = $39 ANSWER

The cost of driven 300 miles is $39.

Required c)
Comment on the restricted domain of this function?

Answer:

Restricted domain cannot be calculated because maximum number of

miles is not given in this question.

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EXERCISE 4.1 (QUESTION NO 49)
Required a)
Determine the function C = f(x) which expresses annual cost?

Solution:

Data:

Fixed Annual Cost = $250,000

Additional Cost = $6

C(x) = 6x + 250,000 ANSWER

Required b)
What is f (200,000)? What does f (200,000) represent?

Solution:

f (x) = 200,000

C(x) = 6x + 250,000

Then,

Put x = 200,000:

C (200,000) = 6 (200,000) + 250,000

C (200,000) = 1200,000 + 250,000

= C (200,000) = $1450, 000 ANSWER.

The above $ 1450,000 represents Annual total cost of producing

200,000 units.

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Required C)
State the restricted domain and restricted range of the function if
maximum reduction capacity is 300,000 units per year?

Solution:

Minimum no. of units = x = 0

Maximum no. of units = x= 300,000

 RESTRICTED DOMAIN:

RESTRICTED DOMAIN: 0 ≤ x ≤ 300,000

Put x =0

C (0) = 6(0) + 250,000

C (0) = 0 + 250,000

C (0) = 250,000units ANSWER

 RESTRICTED RANGE:
Put x = 300,000

C (300,000) = 6(300,000) + 250,000

C (300,000) = 1800,000 + 250,000

(300,000) = 2050,000 ANSWER.

RESTRICTED RANGE: 250,000 ≤ C(x) ≤ 2050,000

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 QUESTION NO 02:
EXERCISE 4.2 (QUESTION NO 30)
 MATHEMATICAL FUNCTION:
𝑪 = 𝒇 (𝑷) = 𝟗𝟎𝟎 – 𝟑. 𝟓𝒑

Required a)
What class of function is this?

Answer:

This is a linear function.

Required b)
What is the Expected number of crimes if 150 officers are assigned to
preventive petrol?

Solution:

Put P = 150

C = f (p) = 900 – 3.5p

C = f (150) = 900 – 3.5(150)

C = f (150) = 900 – 525

C = f (150) = 375 ANSWER

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Required C)
How many officers would have to be assigned if it is desired to reduce
weekly crime level to 500?

Solution:

Put C = 500

C = f (P) = 900 – 3.5p

500 = f (P) = 900 – 3.5(P)

500 + 3.5p = 900

3.5p = 900 – 500

3.5p = 400
400
P=
3.5

P = 114.2857 ANSWER

Required d)
How many officers would have to be assigned if it is desired to reduce
weekly crime level to 0?

Solution:

Put C = 0

C = f (p) = 900 – 3.5p

0 = f (p) = 900 – 3.5(p)

0 = 3.5p = 900

3.5p = 900
900
P=
3.5

P = 257.1428 ANSWER
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EXERCISE 4.2 (QUESTION NO 31)
 MATHEMATICAL FUNCTION: 𝑹 = 𝑭 (𝑷) 𝟏𝟓𝟎𝟎𝒑 – 𝟓𝟎𝒑²

a) What class of function is this?

Answer:

This is a quadratic function.

b) What is the Total revenue expected to equal if the price equals $10?

Solution:

Put p = $10

R = f (p) = 1500p – 50p²

R = f (10) = 1500(10) – 50(10)²

R = f (10) = 15000 – 500

R= f (10) = 10000 ANSWER

c) What prices would result in total revenue equaling zero?

Solution:
Put R = $10

R = f (p) = 1500p – 50p²

0 = 1500(p) – 50(p) ²

0 = p = (15000 – 50p)

EITHER: OR:

P=0 1500-50p=0

50p=1500
150
P=
5

P=30
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 QUESTION NO 03:
SECTION 5.1 (QUESTION NO 01)
Data:
Revenue = $80

Raw material cost = $12.50 per unit

Labor cost = $27.50 per unit and Annual fixed cost = $360,000

Required a)
Determine the profit function p(x), where x equals the number of units sold?

Solution:
Profit Function = p(x) = P(x) =80x

Profit = Revenue – Cost

P = 80x - (40x+ 360,000)

P = 80x - 40x - 360,000

P = 40x - 360,000 ANSWER

*WORKING FOR COST: Cost = Raw material cost + Labor cost

= $12.50 + $27.50 = $40

Required b)
How many units would have to be sold to earn an annual profits of $250,000?

Solution:
P = 40x - 360,000

250,000 = 40x - 360,000

250,000 + 360,000 = 40x

610,000 = 40x
610,000
𝑥= = x= 15,250 ANSWER
40

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SECTION 5.1(QUESTION NO 02)
Required a)
Construct a joint total revenue function for the sales of the three products?

Solution:

 Total Revenue Function:

R (𝒙𝟏 , 𝒙𝟐 , 𝒙𝟑 ) = 25𝒙𝟏 + 35𝒙𝟐 + 50𝒙𝟑 ANSWER

Required b)
Determine an annual cost function for production of the three products?

Solution:

 Total Cost Function:

Total cost function = fixed cost +variable costs

C (𝒙𝟏 , 𝒙𝟐 , 𝒙𝟑 ) = 75000 + 15𝒙𝟏 + 20𝒙𝟐 + 17.5𝒙𝟑 ANSWER

CALCULATIONS FOR VARIABLE COST:

 3.0 x 5 = 15
 4.0 x 5 = 20
 3.5 x 5 = 17.5

Required c)
Determine the profit function for the three products. Is there anything
unusual about this function?

Solution:

 Profit Function:

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 R= (𝒙𝟏 , 𝒙𝟐 , 𝒙𝟑 ) – C ( 𝒙𝟏 , 𝒙𝟐 , 𝒙𝟑 )

=25 𝒙𝟏 + 35 𝒙𝟐 + 50 𝑥3 – C (75,000 + 15 𝑥1 + 20 𝑥2 + 17.5𝑥3 )

=25 𝒙𝟏 + 35 𝒙𝟐 + 50 𝑥3 – 75,000 + 15 𝑥1 + 20 𝑥2 + 17.5𝑥3

=25 𝒙𝟏 − 15 𝑥1 + 35 𝒙𝟐 - 20 𝑥2 + 50 𝑥3 − 17.5𝑥3 − 75,000

=10 𝒙𝟏 + 15 𝒙𝟐 + 32.5 𝑥3 − 75,000 ANSWER

Required d)
What is annual profit if 20,000, 10,000 and 30,000 units are sold,
respectively of the three products?

Solution:

 Annual Profit:

Put:
 𝑥1 = 20,000
 𝑥2 = 10,000
 𝑥3 = 30,000
R= (𝒙𝟏 + 𝒙𝟐 + 𝒙𝟑 ) – C

=10 𝒙𝟏 + 15 𝒙𝟐 + 32.5 𝑥3 – 75,000

=10(20,000) + 15 (10,000) + 32.5 (30,000) – 75,000

=200,000 + 150,000 + 975,000 – 75,000

= 1325,000 – 75,000

= 1250,000 ANSWER

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 QUESTION NO 04:
EXERCISE 7.2 (QUESTION NO 24)
Required a)
Determine the exponential estimating function N= f (t), where N equals the
number of installation per day and t equals time measured in years.

Solution:

DATA GIVEN:

𝑁0 = 250

5.5
Percentage = K = 5.5% = 100 = 0.055

 Function:

N = f (t)

N = 𝑁0 𝑒 𝑘𝑡

N= f (t) = 250𝑒 0.055𝑡 ANSWER

Required b)
If the pattern continues, what is the daily rate of installation expected to be
5 years from today? 20 years from today?

Solution:

Put = t = 5years

N = f (t) = 250𝑒 0.055𝑡

N = f (t) = 250𝑒 0.055(5)

N = f (t) = 250𝑒 0.275

N = f (t) 250 (1.3165)

N = 329.1326 ANSWER

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THEN,

Put = t = 20years

N = f (t) = 250𝑒 0.055𝑡

N = f (t) = 250𝑒 0.055(20)

N = f (t) = 250𝑒 1.1

N = f (t) = 250 (3.0041)

N = f (t) 751.0415 ANSWER

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EXERCISE 7.2 (QUESTION NO 25)
Required a)
If the current population is estimated at 180,000, determines the
exponential decay function p= f (t), where p is the estimated population of
the species and t equals time measured in years?

Solution:

DATA GIVEN:

Population = 𝑃0 = 250
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Percentage = K = 4% = 100 = 0.04

 Decay Function:

p = f (t)

p = 𝑝0 𝑒 −𝑘𝑡

p = f (t) = 180,000𝑒 −0.04𝑡 ANSWER

Required b)
What is the population expected to equal in 4 years? In 10 years?

Solution:

Put = t = 4years

p = f (t) = 180,000 𝑒 −0.04𝑡

p = f (t) = 180,000 𝑒 −0.04(4)

p = f (t) = 180,000 𝑒 −0.16

p = f (t) = 180,000(0.8521)

p = f (t) = 153,385.882 ANSWER

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  Put:
t = 10 years

p = f (t) = 180,000 𝑒 −0.04𝑡

p = f (t) = 180,000 𝑒 −0.04(10)

p = f (t) = 180,000 𝑒 −0.4

p = f (t) = 180,000(0.6703)

p = f (t) = 120657.6083 ANSWER

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