KENYA METHODIST UNIVERSITY

MBAD 503: QUANTITATIVE ANALYSIS

CAT

INSTRUCTIONS: Answer All Questions.

1. A sample of 200 voters revealed the following information about the three
candidates A, B and C who are running for Chairman, secretary and treasurer
respectively. 28 were in favour of both A and B. 98 in favour of A or B but not C.
42 in favour of B but not C or A. 122 in favour of B or C but not A. 64 in favour of
C but not A or B. 14 in favour of A and C but not B. 35 in favour of A but not B or
C: Required:

i. Present the above information in a venn diagram (4Marks)

ii. Determine the percentage of voters who were in favour of the three
candidates. (3 marks)
iii. Determine the candidate who went unopposed if the rule of 50% majority
was used in such a decision. ( 3marks)

2. The main materials used in the assembly of vehicles at KZ vehicle assembly are
A, B, C and D. The matrix below gives the quantities of each type of material
required for each unit of vehicle type:

Materials
Type of vehicle A B C D
Saloon 1.0 2.0 0.7 1.0
Pick-up 0.5 2.4 0.6 0.9
Mini-bus 1.2 1.5 0.5 1.1

It has been proposed that the designs of the vehicles be slightly changed. The
extra materials of each vehicle required will be as follows:

Materials
Type of vehicle A B C D
Saloon 0.2 -0.2 0.1 0.1
Pick-up 0 0.1 0.1 -0.1
Mini-bus 0.1 -0.2 0.2 0.2
 The production and transportation costs per unit of each material are:

Costs in Sh.
Materials Transportation Production
A 100 400
B 200 200
C 0 20
D 0 100

Required:
Using Matrix algebra, determine the total production and transportation costs for
each of the vehicles.
(10Marks)

3. A firm has analyzed its operating conditions and has developed the following
functions. (Figures in millions)
Total Revenue = −10 q 2 + 200 q
Total Cost = q 2 − 20 q +1000
Where q is the number of units produced and sold?
Determine the value of q that:-
i. Maximizes revenue and hence the Maximum Revenue (3 marks)
ii. Minimizes Cost and hence the Minimum Cost (3 marks)
iii. Maximizes profit and hence the Maximum Profit. (4 marks)