1.

DATA COLLECTION
1. Define the terms
i) Primary Data
ii) Secondary Data
2. State and briefly explain four (4) methods of extracting data (8).
3. Explain the following terms used in statistics
a) Simple random sampling (4) d) Quota sampling (4)
b) Systematic sampling (4) ) e) Cluster sampling (4
c) Stratified sampling (4)
4. a)Explain in detail the merits and demerits of the following non probability sampling methods
i) Quota sampling (6) ii) Convenience of accidental sampling (6) iii) Judgmental sampling (6)
b) State any two points to note in the design of a good questionnaire (2)
5. Distinguish between the following terms as used in Business Statistics
i) Continuous Data and Discrete Data (2)
ii) Cluster Sampling and Stratified Sampling(2)
iii) Qualitative Data and Quantitative Data(2)

2. Data Description 1: TABLES AND GRAPHS

1. The weights ( measured to the nearest kg) of 40 students were as follows:
69 56 59 79 66 67 64 72 70 73
71 51 68 54 70 61 77 59 65 64
67 83 65 58 59 63 62 64 70 67
83 54 78 76 66 80 67 62 71 73
i) Construct a frequency distribution table with classes 50 to less than 55, 55 to less than 60, etc
ii) Draw a histogram, and on the same diagram draw a frequency polygon
2. The table below shows the profits for some companies in Harare

Profit($000) Number of companies

Under 5 25
5 and under 10 18
10 and under 15 12
15 and under 20 8
20 and under 25 3
Draw a histogram and use it to estimate mode (6)

3. The table below shows the profits for some companies in Harare

Profit($000) Number of companies

Under 5 25
5 and under 10 18
10 and under 15 12
15 and under 20 8
20 and under 25 3

Draw a histogram and use it to estimate mode (6)

4. a)What is the difference between histogram and frequency polygon ?

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 b) A small kiosk selling ice creams has kept a record of sales for November 1991 as shown below
Daily Sales ($) 60 - 70 70 - 80 80 - 90 90 - 100 100 - 110 110 - 120
No. Of days 5 11 22 13 7 3
From this distribution :
i) Draw a histogram (10)
ii) On the same histogram draws a frequency polygon (6)
iii) Name 3 different curves that constitute a Z chart (4)

5. The following is a distribution of marks scored by 50 students in an examination

Mark Interval Number of Students
0 - < 10 9
10 - < 20 12
20 - < 30 17
30 - < 40 7
40 - < 50 4
50 - < 60 1
Construct
i) a frequency polygon (6)
ii) a more than curve (6)
6. The data below shows salaries earned per month at a certain firm
Salary 1000- 2000 2000- 3000 3000- 4000 4000- 5000 5000- 6000

No. of 4 17 30 35 14
Employees
Construct a frequency polygon (4)
7. The weights of salmon in a catch are given as follows :
Weight (KG) No. Of Fish
0-<2 5
2-<4 12
4-<6 18
6- < 8 13
8 - < 10 2
a) Draw the ogives for data (7)
b) Estimate the median from your ogives (5)
8. A company recorded the data on income classes and income before tax and came up with the table
below
Income class $00 No. of employees Total income Before tax $00
Less than 3 6 18
3 -< 4 22 90
4 -< 6 28 160
6 -< 8 50 384
8 - < 10 48 445
10 - < 15 17 220
15 - < 20 9 190
20 - < 30 4 130
30 and above 3 210
Draw a Lorenz curve and comment on it (16)

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9. The following data shows the trade union membership by size of union in Zimbabwe
Size of Union Number of Number of
(Members) trade Union (Members)
Under 100 320 17 600
100 - < 1 000 75 22 500
2 500- < 5 000 25 62 100
5 000 - < 10 000 15 54 000
10 000 - < 25 000 10 125 000
25 000 - < 50 000 5 126 000
50 000 - < 20 000 3 225 000
10 000 - < 200 000 2 302 000
Total 500 1 000 000
Explain the purose of presenting information in the form of Lorenz curve and construct a Lorenz curve
of the above data and comment on your results (10)

3. Data Description 2: MEASURES OF CENTRAL TENDENCY

1. The weights of salmon in a catch are given as follows :
Weight (KG) No. Of Fish
0-<2 5
2-<4 12
4-<6 18
6- < 8 13
8 - < 10 2
a) Compute the mean, modal and median weight (7) b) is the distribution symmetrical ? (1)
2.
Interval Frequency
0 up to 5 2
5 up to 10 7
10 up to 15 12
15 up to 20 6
20 up to 25 3
Calculate:- a) the mean (4) b) the median (4)
3. The data below shows salaries earned per month at a certain firm
Salary 1000- 2000- 3000 3000- 4000 4000- 5000 5000- 6000
2000
No. of Employees 4 17 30 35 14
Calculate the three measures of central tendency (mean, mode and median) (9)

4. The table below shows the profits for some companies in Harare

Profit($000) Number of companies

Under 5 25
5 and under 10 18
10 and under 15 12
15 and under 20 8
20 and under 25 3
Calculate mean and standard deviation (9)

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5. The following table relates the marks obtained by National Diploma students in Quantitative Method test
Marks Number of students
under 20 2
20 to under 40 10
40 to under 60 18
60 to under 80 9
80 to under 100 1
Calculate the :- a) Mean (4) b) Median (4) c)Mode (4)
6. The following table gives information on salaries ( in dollars) for the 30 employees of ABC Ltd company
Salary ($) No. of employees
0 - < 2000 4
2000 - < 4000 7
4000 - < 6000 9
6000 - < 10 000 5
10 000 - < 15 000 3
15 000 - < 20 000 2
From the above data calculate: - a) Mean salary (4) b) Modal salary( 4) c) Median salary(4)

7. a) The table below shows the profits for some companies in Harare
Profit($000) Number of companies

Under 5 25

5 and under 10 18

10 and under 15 12

15 and under 20 8

20 and under 25 3

Calculate mean (3)

8. The price of fuel increased by 24%, 20%, 25%, 18% and 22% over a five year period. Find the average
annual increase in the price of fuel (5)

9. i)An airplane travels at 950km.hr to Johannesburg from Bulawayo and returns to Bulawayo at
810km/hour . What is the average speed?
ii) An office agreement contains escalation clauses for a particular office block in the CBD. The escalation
rates for 1988, 1989, 1990 and 1991 were 16%, 14%, 10% and 22% respectively. What was the average
rate of escalation in office rentals for this block over a 4 year period ? (2)
The price of fuel increased by 24%, 20%, 25%, 18% and 22% over a five year period. Find the average
annual increase in the price of fuel (5)

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 4. Data Description 3: MEASURES OF DISPERSION
1.
Interval Frequency
0 up to 5 2
5 up to 10 7
10 up to 15 12
15 up to 20 6
20 up to 25 3
Calculate :- a) standard deviation (4) b) the coefficient of variation (3)
2. The data below shows salaries earned per month at a certain firm
Salary 1000- 2000 2000- 3000 3000- 4000 4000- 5000 5000- 6000
No. of Employees 4 17 30 35 14
Calculate the standard deviation (4) Calculate the coefficient of variation (3)
3. Zellco cellular Ltd has implemented a system of charging our cell phone calls on the length of calls. To
find out how this new charging out system would affect its cell phone bill, a Market Research company
which carries out extensive cell phone interviews monitored the duration of 36 call
The following frequency distribution was compiled
Duration Number of
(minutes) Calls
5 - < 10 2
10 - < 15 6
15 -< 20 10
20 - < 25 14
25 -< 30 4
Calculate: coefficient of variation (10)
4. The figures shown below show issue of a computer per day for 40 days from stock
83 80 91 81 88 82 87 97 83 99
90 87 78 93 98 86 80 93 86 88
85 95 80 89 92 84 76 81 103 94
75 83 85 82 72 101 89 82 92 84
a) Using the classes 70 to under 75 , 75 to under 80 etc, draw up the frequency distribution table (6)
b) Calculate the coefficient of variation (6)
5. The table below shows the ages of members of soccer in five (5) class intervals
Class Interval Frequency
Less than 3 6
0 -< 5 22
5 - < 10 28
10 - < 15 50
15 - < 20 48
20 - < 25 17
Calculate the co-efficient of variation (8)
6. a) The table below shows the profits for some companies in Harare
Profit($000) Number of companies

Under 5 25

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 5 and under 10 18

10 and under 15 12

15 and under 20 8

20 and under 25 3

Calculate standard deviation (6)

5. Data Description 4: MEASURES OF POSITION

1. The following table gives information on salaries ( in dollars) for the 30 employees of ABC Ltd company
Salary ($) No. of employees
0 - < 2000 4
2000 - < 4000 7
4000 - < 6000 9
6000 - < 10 000 5
10 000 - < 15 000 3
15 000 - < 20 000 2
th th
From the above data calculate a) The 25 and 75 percentile (4) b) The quartile deviation (4)

2. The following table relates the marks obtained by National Diploma students in Quantitative Method test
Marks Number of students
under 20 2
20 to under 40 10
40 to under 60 18
60 to under 80 9
80 to under 100 1
Calculate the:- a) Third quartile (4) b) 25 percentile (4)

6. Data Description 5: MEASURES OF SKEWNESS & KURTOSIS

1. Zellco cellular Ltd has implemented a system of charging our cellphones calls on the length of calls. To
find out how this new charging out system would affect its cellphone bill, a Market Research company
which carries out extensive cellphone interviews monitored the duration of 36 call
The following frequency distribution was compiled
Duration(minutes) Number of Calls
5 - < 10 2
10 - < 15 6
15 -< 20 10
20 - < 25 14
25 -< 30 4
a) Calculate : the coefficient of skewness and interpret your results (10)
b) Draw superimposed graphs to show different degrees of kurtosis (4)

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2. The table below shows the ages of members of soccer in five (5) class intervals
Class Interval Frequency
Less than 3 6
0 -< 5 22
5 - < 10 28
10 - < 15 50
15 - < 20 48
20 - < 25 17
Calculate the Pearson’s measure of skewness and comment (8)

7. INDEX NUMBERS
1. a)Define the following term :
i) Fixed base method of indexing
ii) Chain base method of indexing (4)
b) The following are 1992 and 1994 prices in dollars per kg and production totals of two food items
1992 1994
Item Price Quality Price Quantity
A 2 4 4 5
B 3 9 5 8
i) Calculate the price relative for item A
ii) Calculate the quantity relative for item B (8)

2. The following table shows the prices and quantities of four products in 2007 and 2009
Price ($) Quantities ($)
Product 2007 2009 2007 2009
A 95 148 260 245
B 200 305 124 118
C 92 122 110 120
D 50 98 48 45
Calculate the following weighted indices
a) Laspeyres price index (5) c) Paasche’s quantity index (5)
b) Laspeyres quantity index (5) d) Paasche’s price index (5)
3. The table below shows the prices and quantities of four products in 1996 and 1998
Prices ($) Quantity (kg)
Product 1996 1998 1996 1998
A 95 148 260 245
B 200 305 124 118
C 92 122 100 120
D 50 98 48 45
Using 1996 as the base year, calculate for 1998
i) The simple price index product A for 1998 (2) iv) Paasche Quantity Index (5)
ii) The unweighted aggregate price index for 1998 (5) v) Value Index
iii) Laspeyres’ Quantity Index (5)

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4. The following table shows the prices and quantities of four products in 1996 and 1998
Price ($) Quantities ($)
Product 1996 1998 1996 1998
A 95 148 260 245
B 200 305 124 118
C 92 122 110 120
D 50 98 48 45
a) Use the above data to:
i) Calculate Fisher’s price and quantity indices (10)
ii) Calculate the quantity relative for products C and D (4)
5. A index of clothing for 2006 based on 2000 is to be constructed. The clothing items to be considered are
shoes and dresses. The prices and quantities are given below. Use 2000 as the base period and 100 as the
base value
2000 2006
Price Quantity Price Quantity
Dress $75 500 $85 520
Shoes $40 1200 $45 1300
a) Determine the i) Laspeyres Price Index (3) ii) Paasche Price Index (3)
b) Determine the corresponding Fisher’s Index (4)

6. a) The following data shows the revenue and quantities of 4 products A, B, C and D sold by a
company in 2009 and 2011.
2009 2011
Product Revenue($) Quantity Revenue($) Quantity
A 600 80 840 70
B 460 46 600 50
C 550 110 460 80
D 270 90 300 75
(2009 =100)
Calculate and interpret
i. Laspeyres price index (4)
ii. Paasche quantity index(4)
7. A rapid growing company produces computer software of three types. Data on prices and sales volume for
2000 and 2003 are given below
TYPE 2000 2003
Unit Price Quantity Unit Price Quantity
$ (000s) $ (000s)
A 300 1,5 300 2,0
B 100 2,0 100 2,5
C 30 5,0 20 5,0
You are require to calculate

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 a) A base- year quantity weighted price index (9) c) Name the index in (a) above (1)
b) A current year quantity weighted price index (9) d) Name the index in (b) above (1)
8. The prices of food from 1985 to 1991 shown below:
Year 85 86 87 88 89 90 91
Index 74 88 100 109 114 96 122
Reset the base from 1987 to 1990 (8)
9. Define
i) chain based index (3) ii) Fixed base index (3)
b) The indices for the price levels of agricultural produce for the years 1995 to 1999 are as follows
Year 1995 1996 1997 1998 1999
Index 100 120 130 135 140
i) Change the100 base year to 1998 (5)
ii) Calculate and determine the chain based index (5)
c) State four factors that require careful consideration when planning the construction of index numbers
(4)
10. Calculate the index number for the group of consumer items listed below
ITEMS WEIGHTING INDEX NUMBER
Food 49.5 120
Fuel 6.5 104
Clothing 8.6 98
Transport 10.8 112
Rent and Rates 7.8 115
Durable goods 5.8 100
Others 11.0 100
100.0
11. The following table shows the average annual salary package of Chartered Accountants and Consumer
Price Index (CPI) . The base (period) year is 2002 for the CPI

Year Salary Package ($) Preceding Activity

2001 287 95
2002 306 100
2003 322 104
2004 348 111
2005 366 121
2006 396 126
2007 410 133

i) Use the CPI to compute the real annual salary package for CAs for each of the years (6)
ii) Based on (i) discuss whether the salary package have kept pace with the headline inflation (CPI)
relative to the base period (6)
12. Compare and comment on the price changes in the Dow Jones Industrial Average (DJIA) and NASDAQ.
The two indexes are selected for periods 1995 to 2005
DATE DJIA NASDAQ
01- 07- 1995 4 708.47 1 001.21
01- 07- 2000 10 521.81 3 766.99
01- 07- 2001 10 522.82 2 027.13
01- 07- 2002 8 736.59 1 328.26

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 01- 07- 2003 9 233.00 1 735.02
01- 07- 2004 10 139.71 1 887.36
01- 07- 2005 10 640.91 2 184.83

8. SIMPLE LINEAR REGRESSION

1. Draw separate scatter diagrams to show
i) perfect positive linear correlation (2)
ii) perfect negative linear correlation (2)
iii) no correlation (2)
2. Jones Bushmen Company dealing in distribution of plastics in Kwekwe recorded the volume of sales
below in 12 different locations in Kwekwe
Location (x) Sales ($ 000) (y)
1 13
2 20
3 40
4 50
5 70
6 20
7 30
8 40
9 50
10 100
11 80
12 4

a) Plot the scatter diagram and comment on your results (7)

b) Calculate the least squares regression model (9)

3. A company is examining the relationship between its advertising expenditure and sales generated
The following information was gathered
Advertising Expenditure (x) ($000s) Sales (y) ($ million)
20 44
24 50
36 52
30 60
16 46
34 54
40 64
30 54
22 50
38 58
i) Plot the scatter diagram (3)
ii) Estimate the least squares regression line (6)
iii) Predict the sales when $25 000 is budgeted for advertising (2)
4. a)What is the difference between regression and correlation (2)

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 b) The maintenance cost of machines in a factory is thought to depend on machine age .The data below
has been collected for the machine age in months and the associated maintenance costs of machines in a
manufacturing company
Machine Age 5 10 15 20 30 30 50 50 60
Maintenance costs ($ 000) 190 240 250 300 310 300 300 350 395
i) Compute the regression equation of maintenance cost on age (6)
ii) Predict the maintenance costs of machines of age 40 months (2)
5. Determine the linear function
y = a + bx for the following data (7)
X 1 2 3 4 5 6 7 8
Y 4 8 12 10 14 16 18 20
b) Draw a scatter diagram for the data in (a) and comment on it (4)
c) Estimate the value of y given that
i) x = 6
ii) x= 22 (10)
6. In conducting a simple regression model for the number of customer and the area of advertising in m2
used to attract customers , the following data were obtained for six stands
Area of advertising (m2 0.37 0.30 0.30 0.25 0.30 0.28
Number of Customers 240 150 182 95 210 125
i) Compute the least squares regression y = a + bx
ii) What is the expected number of customers if the area of an advertising sign is 0.27m2 ?
7. In a certain region there is a large number of older trees where the ground is marshy but very few where
the ground is dry. The number (x) of older trees and the ground moisture content are found in each of
ten equal areas . The following is a summary of the results of the srvey
∑x = 500, ∑y = 300 ∑𝑥 2 = 27 818
2
∑xy = 16 837 ∑𝑦 = 10 462
i) Find the equation of the regression line (11)
ii) Using the result obtained in (i) estimate the ground moisture content in an area equal to one of the
chosen areas which contains 60 older trees (3)\
8. A real estate agent company specializing in the sale of houses would like to know if their sales can be
predicted based on the number of years of experience of each salesman. A random sample of sales is
taken from 10 experienced sales people within experience ranging from1 to 10 years as given below

Years of experience 1 2 3 4 5 6 7 8 9 10

Sales (units) 3 2 5 4 6 8 9 9 12 10

a) Plot the scatter diagram and comment on your results (7)

b) Estimate the least squares regression line and then superimpose it on your scatter plot (7)
c) Predict the sales for the sales person with six years of experience (2)

9. CORRELATION
1. Calculate the coefficient of correlation for the data and comment on your answer

X 1 2 3 4 5 6 7 8
Y 4 8 12 10 14 16 18 20

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 Calculate the coefficient and comment on it (5)
2. A real estate agent company specializing in the sale of houses would like to know if their sales can be
predicted based on the number of years of experience of each salesman. A random sample of sales is
taken from 10 experienced sales people within experience ranging from1 to 10 years as given below .

Years of experience 1 2 3 4 5 6 7 8 9 10
Sales (units) 3 2 5 4 6 8 9 9 12 10
Calculate the correlation coefficient for the data (use Pearson’s or the product moment method) (4)
3. a)Distinguish between correlation and regression analysis (4)
b) A company is examining the relationship between its advertising expenditure and sales generated.
The following information was gathered
Advertising Expenditure (x) ($000s) Sales ($ 000) (y) ($ million)
20 44
24 50
36 52
30 60
16 46
34 54
40 64
30 54
22 50
38 58
Calculate Pearson’s Product Moment Correlation coefficient and interpret your answer (5)

4. In conduding a a simple regression model for the number of customer and the area of advertising in m2
used to attract customers , the following data were obtained for six stands
Area of advertising (m2 0.37 0.30 0.30 0.25 0.30 0.28
Number of Customers 240 150 182 95 210 125

5. a)What is the difference between regression and correlation (2)

b) The maintenance cost of machines in a factory is thought to depend on machine age .The data below
has been collected for the machine age in months and the associated maintenance costs of machines in a
manufacturing company

Machine Age 5 10 15 20 30 30 50 50 60
Maintenance costs ($ 000) 190 240 250 300 310 300 300 350 395

i Compute the correlation coefficient and comment (6)

ii) Calculate the coefficient of determination (𝑟 2 ) and comment on it (4)
6. The following table shows the number of catalogues sent out and the number of orders received.

Number of catalogues Number of orders

7 14
8 22
5 16
6 18
3 13

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 9 24
10 22
1 11

i) Construct a scatter plot (6)

ii) Calculate the correlation co-efficient r (8)
iii)Calculate the co-efficient of determination 𝑟 2 (2)
iv) Comment on the relationship between number of catalogues and orders (4)

7. Jones Bushmen Company dealing in distribution of plastics in Kwekwe recorded the volume of sales
below in 12 different locations in Kwekwe
Location (x) Sales ($ 000) (y)
1 13
2 20
3 40
4 50
5 70
6 20
7 30
8 40
9 50
10 100
11 80
12 4
Calculate the
a) Pearson’s Correlation Coefficient (10)
b) Coefficient of Determination (1)
8. The table below shows the total costs based on the level of output of a certain Harare company for 2008
Month Output $000(units) Costs $000(y)
January 16 170
February 20 240
March 23 260
April 25 300
May 25 280
June 19 230
July 16 200
August 12 160
September 19 240
October 25 290
November 28 350
December 12 200

a) Plot the Scatter Diagram and comment on the relationships observed (6)
b) Calculate the Co-efficient of Correlation (r) and the Co-efficient of Determination (10)
c) Comment (4)
9. Draw scatter diagrams which show
i) Zero correlation ii) Strong positive correlation iii) Weak negative correlation (9)

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 b) Find the rank correlation coefficient for the following data
Dram Competition order of merit
PLAY A B C D E F G H I J
Adjudicator 1 3 7 10 2 9 1 5 4 6 8
Adjudicator 2 1 10 9 8 3 2 7 5 6
10. Draw scatter diagrams which show:
i. Zero correlation (2)
ii. Strong positive correlation(2)
iii. Weak negative correlation (2)
b) Consider the following data done by two adjudicators for a play

Play A B C D E F G H I J
Adjudicator 1 3 7 10 2 9 1 5 4 6 8
Adjudicator 2 1 10 9 4 8 3 2 7 5 6

Find the rank correlation for the above data (14)

1. a) The following table shows the ratings of a group of ten supervisors who have been evaluated
independently for leadership on a scale of 1 to 10 , by the production manager and the workers
whom they supervise.
Production Manager Workers
Evaluation evaluation
Supervisor x y
John 4 3
Kudzi 2 4
James 2 5
Trust 7 7
Ben 1 1
Black 9 8
Nyasha 3 6
Tendai 5 8
Gracious 2 5
Tawanda 7 3

Calculate Spearsman’s rank correlation and interpret it (10)

10. TIME SERIES

1. a) Define a time series
b) State 4 components of a time series (4)

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 c) The sales in millions of a Shoes Company were recorded to give the data below:
Year 1990 1991 1992 1993 1994 1995 1996 1997
Sales 210 230 240 250 260 300 310 350

i) Estimate the trend line using the least squares method (8) ii) Estimate sales in 1999 (2)

2. The following table shows the annual output( 1 000 tonnes) for XYZ Corporation over 4 years period
Year Output (‘000 tonnes)
2001 66
2002 78
2003 108
2004 138
2005 166
Using the method of least squares forecast the 2007 production figures (10)
3. The following amounts, in millions of dollars, represent a company‘s expenditure on salaries of seven
years. Data for the first and seventh year are missing

Year 1 2 3 4 5 6 7
Expenditure * 20 25 26 29 30 *
i) Plot the data and comment on the main features of the data (4)
ii) Estimate the regression for this data (7)
ii) Hence estimate expenditures on salaries for the two years for the figures that are missing (4)
iv) Calculate the correlation coefficient and comment (5)

4. Calculate the four quarterly moving average trend of the following time series (8)

Quarter

Year 1 2 3 4
1998 28 31 40 27
1999 32 38 49 38
2000 47 47 55 41

c) Compute mean quarterly seasonal indexes for the above data (8

5. Calculate the four point moving average trend of the following time (10)
Year QUARTER

1 2 3 4
2007 28 31 40 27
2008 32 38 49 38
2009 47 47 55 7
c) Compute means quarterly seasonal indexes for the above data (6)
ii) Consider the following quarterly sales (in R000) of a firm

6.
𝑄1 𝑄2 𝑄3 𝑄4

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 Year 1 2 3 4
1990 2 6 1 3
1991 3 5 2 4
1992 2 7 1 3
1993 2 6 2 5
Compute the quarterly Seasonal indices by the method of ratio-to-moving average using the data
provide (10)

7. Consider the following table :

Quarter 1987 1988 1989
1 54 59 63
2 55 59 65
3 56 60 67
4 55 60 69
a) Calculate the seasonal indexes using the ratio-to-moving average method. (16)
b) Deseasonalise the data for 1989 (4)

8. The following data gives the sales figures in (000) from 2009 to 2011

Year 𝑄1 𝑄2 𝑄3 𝑄4
2009 37 24 62 80
2010 77 95 94 133
2011 148 155 128 161

i. Calculate centered 4-point moving average (4)

ii. Calculate average seasoned indices for each quarter( assuming a multiplicative model) (6)

11. Financial Mathematics 1: SIMPLE AND COMPOUND INTEREST

1. How much must a company set aside quarterly at 20% p.a. compounded quarterly if it is to have
accumulated to $ 30 000in 3 years’ time?
2. How long will it take for a figure to double itself if it is invested at 20% p.a. compound interest. [20]
3. a)Explain the difference between simple and compound interest (6)
b) A man has two sons aged 3 and 6 respectively. If he can invest money at 10% per annum , how
much must he set aside now , if he wishes to give each son $10 0000 on each son’s 21 st birthday ? (18)
4. Distinguish between the following :
i) Simple interest and compound interest (2)
ii) Compound interest and annuity (2)
b) Find the rate , if simple interest obtained by investing $200 000 for five years is $40 000. (4)
c) A fixed deposit of $ 250 000 will mature in six years . The interest charged is 6% compounded
monthly. What is the maturity value (6)
5. Distinguish between the following :
i) Simple interest and compound interest (2)
ii) Compound interest and annuity (2)
b) Find the rate , if simple interest obtained by investing $200 000 for five years is $40 000.(5)
c) A fixed deposit of $250 000 will mature in 6 years. The interest charged is 6% per annum
compounded monthly. Find maturity value

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 6. What rate of interest per annum compounded half yearly is required for $60 000 to amount to
$ 100 000 in 4 years? (4)

12. Financial Mathematics 2: ANNUITIES

1. A sinking fund is formed by depositing $200 000 a year at the end of each year for 10 years. If
this earns interest at 8% per annum , what will the amount in the fund be at the end of the
period (6)
2. Calculate the present value of an annuity of 4 000 payable at the end of each quarter for 12
𝟏
years if money is worth 8 % interest per annum compounded quarterly.
𝟒

13. Financial Mathematics 3:AMORTISATION SCHEDULES

1. A debt of $ 5 000 to be repaid through the amortisation over 5 years . The rate of interest is
15% p.a
a) Calculate the annual repayments (4)
b) Draw the amortisation schedule (12)
c) Indicate the capital and interest portion of the third payment (4)
2. A debt of $4 000 is said to be repaid through armotisation over three(3) years . The rate of
interest is 12 % per annum compounded half yearly
i) Calculate the annual repayments (2)
ii) Draw up the armotisation schedule (10)
3. A debt of $60 000 is to be repaid through amortization over 2 years. The rate of interest is 12%
per annum compounded quarterly
i) Calculate the quarterly payment applicable (4)
ii) Draw up the amortization schedule (4)

2. a) Define the following terms as they are used in financial mathematics

i. interest (1)
ii. annuity (1)
b) A debt of $45 000 is to be repaid through amortisation over 2 years. The rate of interest is 8% per
annum compounded quarterly.
i. Calculate the quarterly payment applicable (4)
ii. Draw up the amortisation schedule (8)

14. Financial Mathematics 4: SINKING FUND SCHEDULE

1. a)Define sinking fund (3)
b) A firm wishes to accumulate a fund of $ 20 000 000,00 in 5 years by paying equal annual
instalments earning 4 % per annum interest . Construct a sinking fund schedule for the accumulation
of the fund (15)
2. A company borrows $20 000 for six years at 16% p.a compounded annually. In order to pay off
the debt at the end of six years , the company establishes a sinking fund by making equal
annual deposits at the end of each year into a bank savings account paying 12% p.a
compounded annually.
a) Calculate the fund deposit (5)
b) Construct a sinking fund schedule (12)
c) Calculate the yearly cost of servicing the debt (3)

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 15. MATRICES
𝟒 𝟐 𝟏 𝟐 𝟕
1. a)i) Given that A = (𝟏𝟐 𝟔 𝟑) B = [ 𝟓 𝟖 ] Find AB (3)
𝟔 𝟒 𝟐 𝟏𝟐 𝟒
ii) Using the Cramer’s Rule solve the following simultaneous equations
4x – 3y = 6
-2x + 5y = 4 (5)
2. Using Cramer’s Rule solve the following simultaneous equations:
3x – 4y =1
7x + y = 23 (8)
3. Given that :
𝟐 𝟏
A=( )
𝟏 𝟐

𝟑 𝟐
B= ( )
𝟒 −𝟏
Evaluate 3A – 2B (2)
𝟑 𝟐
ii) Find the inverse of( ) (2)
𝟒 𝟏
iii) Solve the following simultaneous equations using matrix method
4x +2y = 8
3x + y = 5

3. a)Define the following terms:

i. Identity matrix (2)
ii. Singular matrix (2)
3 2
b) Given the matrix ( ) is a singular find x (3)
6 4𝑥
c) Matrices A and B are as given below
3
A =(−2); B = (4 1 −3)
5
Find
i. AB (3)
ii. BA (2)

16. CRITICAL PATH ANALYSIS

1. A company is opening a new office and identifies the main activities and dependence as
follows:

Activity Description Preceding Activity

A Find office location -
B Recruit new staff -
C Make office alterations A
D Order equipment A

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 E Install new equipment D
F Train staff B
G Start operations C,E,F

Draw a network diagram for this project (10)

17.LINEAR PROGRAMMCING
1. A company manufactures 2 kinds of products chairs and tables. A chair requires 5 minutes to
make and a table requires 4 minutes to make. There is a total of 30 hours labour available. A
chair and a table generate a profit of $100 000 and $ 20 000 respectively. The company wants
to produce at least 100 chairs and at least 100 tables. Formulate a linear programming
problem and solve it graphically (15)

18. CALCULUS
1. a)Find i) ∫8𝒙𝟑 + 2𝒙𝟐 + 3dx (2)
𝟏𝟓
ii) ∫𝟎 𝟏𝟎𝟎 − 𝟐𝒙𝒅𝒙 (2)
b) Differentiate i) y = 3𝒙𝟑 + 10𝒙𝟐 + 𝟗𝒙𝟑 (2)
𝟏
ii) y = 𝟑 𝒙 - 60𝒙𝟒 (2)
2. Y = 10𝒙𝟐 + 5𝒛𝟐 - 4xz + 12
Find
𝒅𝒚 𝒅𝒚
i)𝒅𝒙 ii) 𝒅𝒛 (10)

3. Find
𝒅𝒚 𝟏
i) 𝒅𝒙
if y =3𝒙𝟐 - 𝟒x + 1 (2)
𝟐
ii) Evaluate ∫𝟏 (𝟑𝒙𝟐 − 𝟏𝟎)𝒅𝒙 (3)

) A manufacturer knows that if x (hundred) products are demanded in a particular week; (1) the total
cost function ($000) is 19 - 2𝑥 2
i. Derive the (total) profit function (2)
ii. Find the profit break even points (4)
iii. Calculate level of demand that maximises profit and the amount of profit obtained (6)

19.PERMUTATIONS AND COMBINATIONS

b) Evaluate

i. 𝟓𝐏𝟐 (2)
ii. 𝟏𝟑𝐂𝟔 (2)
c) In how many ways can 16 people be transported by a car if only 5 passengers ( excluding the driver )
can be taken at a time (8)

20. APPROXIMATIONS AND ERRORS

1. Define the terms
i) Absolute Error (2)

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 ii) Relative Error(2)

2. Define the following terms

i) Absolute errors (2)
ii) Relative errors (2)
iii) Biased errors (2)
iv) Unbiased errors (2)
b) XYZ Manufacturing Ltd has the following expenses in making articles
Materials $ 70 000 + 10%
Wages $ 400 000 + $ 50 000
The Company plans to sell the articles as follows
Number of articles 1000 + 70
Price per article $8 000 + 6.25%

i) Maximum and minimum expenses (3)

ii) Maximum and minimum receipts (3)
iii) Maximum and minimum profits (3)
iv) Maximum and minimum profits per article (3)
3. a)The following costs were incurred by ABC Ltd producing 100 grinding mills
Labour $1 200 000 + 2%
Materials $ 2 500 000 + $ 5 000
Others $ 1 000 000 + $2 000
If the grinding mills were sold at $ 70 000 to the nearest thousand each, determine the profit ?loss
indicating the limits of error.

4. For three different areas the number of households and average consumption of fruit per week are as
follows
Area Number of Households Kilos per household
Avondale 43 500 1,56
Highlands 273 000 1,29
Borrowdale 527 000 2,17

If the number of households is rounded to the nearest thousand and the average consumption to the
nearest one hundredth of a kilo,
Estimate
a) the total consumption of each separate area and (16)
b ) the total area consumption for the three areas combined showing limits of error in each case (4)
5. The total weekly wage bill in a clothing factory is $75 300 correct to the nearest hundred dollars and
the number of employees is 960 correct to the nearest 10. Find the average wage bill for each
employee and the limits of error within which the wage lie (8)
6. a) The following costs were incurred by ABC Limited in producing 100 grinding mills
Labour $ 1 200 000 + 2%
Materials $ 2 500 000 + 5 000
Others $ 1 200 000 + 2 000
If the grinding mills were sold at $ 70 000 each to the nearest thousand dollars, determine the
profit/loss indicating the limits of error (6)

7. Distinguish between

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 i) absolute error and relative error (2)
ii) biased errors and unbiased errors (2)
8. A construction Company produced 20 housing units incurring the following costs
Materials $ 80 000 + 500
Labour $ 20 000 + 5%
Overheads $ 20 000 + 10%

The housing units were sold at an average price of $ 8 000 + 10% each. Calculate the profit realised,
giving limits of error. (6)

21.Probability 1.BASICS PROBABILITY RULES

1. a)The estimated probabilities that competing companies will enter the market are :
Competitor A enters the market is 0.4
Competitor B enters the market is 0.7
Competitor c enters the market is 0.2
Calculate the probability that:
i) No companies will enter the market (3)
ii) Competitor A and B will enter the market but C will not (3)
iii)There will exactly be one competitor (4)

22. Probability 2:BINOMIAL PROBABILITY DISTRIBUTION

1. On average 10 percent of employees of a company are absent on any given day. The company
employs 6 switchboard operators. What is the probability that
i) all switchboard operators will be present on any given day (2)
ii) at least four of them will be present on any given day (4)
iii) at most one will be present on any given day (3)
2. A third of a crate of eggs bought from a certain company is known to be bad. If 3 eggs are
selected at random without replacement , what is the probability using a tree diagram that :
i) All three are bad (3)
ii) Only two are bad (3)
iii) The first two selected are bad (4)
3. Past history shows that 60% of college students are smokers . A sample of 5 students is
selected. What is the probability that :
i) exactly two students are smokers ?
ii) At most students are smokers ?
iii) What is the variance of smokers ? (13)
4. 60% of customers pay by credit card. Find the probability that in a randomly selected sample
of 10
i) exactly two (2) pay by credit card (3)
ii) less than one (1) pay by credit card (3)
iii) more than eight (8) pay by credit card (4)

5. At Fungai Supermarket , 60% of customers pay by credit card. Find the probability that in a
randomly selected sample of ten customers
i) exactly two pay by credit card (2)

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ii) more than seven pay by credit card (3)
2. a)The probability that a person supports a political party A is 0.6. Find the probability that in a
random sample of 8 voters.
i) Exactly 3 will support political part A
ii) More than 5 will support political party A
iii) Exactly 6 will not support part A

23. Probability 3: POISSON PROBABILITY DISTRIBUTION

1. The Division of Commerce at Bulawayo Polytechnic has determined that the number of small
business that declare bankruptcy per month follows approximately a Poisson Distribution
with the mean of 6.4
i) Find the probability of at least 5 bankruptcies occurring next month (5)
ii) Find the probability exactly 4 bankruptcies occurring next month (5)
2. On average 1.6 customers arrive per minute at any one of the check out counters of a grocery
store. The arrivals are independent of each other.
i) What is the probability that there will exactly three arrivals in 2 minutes ?
ii) What is the probability that there will be at least one customer arriving at a check out counter at a
given minute? (7)
3. Battery World (Pvt) Ltd , which supplies batteries receives , on average six(6) orders per day.
What is the probability that on a given day :
i) only one order will be received (3)
ii) no more than three (3) orders will be received (4)
iii) at least three (3) orders will be received (3)

24. Probability 4:The Normal Distribution

1. The Human Resources Manager of HEXCO Ltd has analysed the number of hours employees
have taken as sick leave. She has found that the amount of sick leave per year has a
distribution that is approximately normal with a mean of 26 hours and a standard deviation of
7 hours . Calculate the percentage of employees who will take
i) More that 35 hour of sick leave per year (4)
ii) More that 20 hours of sick leave year (4)
iii) Between 18 and 23 hours of sick leave per year (4)

2. a)It takes an average 70 minutes with standard deviation of 10 minutes to assemble a

particular microcomputer. Assume that assembly time is normally distributed , what is the
probability that a given micro computer will
i) take between 70 and 80 minutes to assemble? (3)
ii) be assembled within 62 minutes ? (4)
iii) take between 56 and 72 minutes to be assembled ? (4)

3. A luxury passenger liner has 500 passengers whose ages are normally distributed around a
mean of 60 years with a standard deviation of 12 years . How many passengers are:

i) Between 45 and 78 years old (3)

ii) Older than 78 years (3)
iii) Younger than 45 years( 4)

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 4. The weekly production of a company is normally distributed with mean 2 500 units and
standard deviation 250 units.
i) Exceed 3 050 units (6)
ii) Lie between 3 100 units and 2 200 units (7)
b) Find the level of production which will be exceeded on 90% 0f occasions (7)

25. Probability 5:DISCRETE RANDOM VARIABLES

1. The weekly demand for a product is normally distributed with mean of 1000 and a standard deviation of
200.
The profit depends upon the level of sales . If the weekly sales are less than 700, the average profit is
$!000. If the sales are between 700 and 1 400 the average profit is $5 000. If the sales are more than $1
400, the average profit is $8 000.
Calculate the expected weekly profit for this product(10)

26. Confidence Intervals1: USE OF NORMAL DISTRIBUTION

1. Independent random samples for male and female senior accounting students were taken of
120 men 107 expected to be working full time ten years later. Of 141 women , 73 have the
same expectations. Find a 95% confidence interval for the difference between the two
populations. Comment on your findings.(12)
2. a)What is the difference between point estimation and interval estimation ? (2)
c) The following table below shows the number of cell phone call made by 64 Quantitative Techniques
students in the month of May 2009
1. A consumer protection agency took a random sample of 36 batteries and found that the mean
life of the sample is 43.75 months with a standard deviation of four (4) months. Find the 99%
confidence interval for the population mean lifetime of the batteries (10)

Number of Calls 0-9 10-19 20-29 30-39 40-49 50-59 60-69 70-79 Total
Frequency 0 5 10 20 15 10 4 0 64
Using the data above
i) Find the mean and the standard deviation(6)
ii)Find the 95% confidence limits of the population mean of the above (6)

27. Confidence Intervals 2:STUDENT T’ S DISTRIBUTION

2. The following figures show prices in dollars of 1 kg packet of sugar from 8 randomly selected
outlets in Harare.
8,50 6,20 8,00 7,40 8,30 8,50 8,80 9,10
i) Calculate the mean and standard deviation from the above data
ii) Determine a 95 % confidence interval of the average price of 1kg packet for all Harare outlets (11)

3. a)A retail store manager has determined that in a sample of 10 customers 60% are females .
Constuct a 98% confidence interval estimate for the true population proportion of customers
that are female (10)
4. The mass of vitamin E in a capsule manufactured by a certain drug company is normally
distributed with a standard deviation of 0.042mg. A random sample of of 5 capsules was
analysed and the mean mass of Vitamin E was found to be 5.12mg. Calculate a symmetric

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 95% confidence interval for the population mean mass of Vitamin E per capsule Give the
values of the end-points of the interval correct to 3significant figures (5)

28. Hypothesis Testing 1 :Use of Normal Distribution

1. A local television station claims that 50 % of the viewing audience tunes in to the 8.00 pm
news bulletin. An Advertising company wants to test the validity of this claim . It caries
out a survey on 400 viewers an d finds that 176 of the viewers watch the said bulletin.
Should this company accept the station’s claim. Test at 5% level of significant (8) )
2. The sales manager of a firm that manufactures light bulbs claims that the average life of
these light bulbs is 1 500 hrs. A sample of 36 bulbs showed a mean of 1430 hrs with a
standard deviation of 100 hrs . Does this sample result suggest that the population mean
life is in fact less than 1500 hrs? Test at the 0.01 significance level (9)

3. a)What is hypothesis testing ? (2)

b) A trade union claims that the average hourly rate paid to domestic cleaners is only $2.85 . A
housewife league wants to test this claim. The league , therefore , conduct a survey amongst a
sample of 250 domestic cleaners through the country and found that the hourly rate paid to domestic
cleaners was $3.03 with a population standard deviation of S 1.00 (15)
Test the hypothesis at 5% significance level that the average hourly rate paid to domestic cleaners
throughout the country is indeed $2.85 (3)

4. There are two methods of packing a product . The weights packed by each method were
recorded over a period of time

Method A Method B
Mean weight packed 756 735
Standard Deviation 12 14
Number of Packets observed 100 125

Test to see if the difference between the mean weights is significant at 0.005 levels
A company was considering a new packaging for an existing product. Two styles of packaging decided to
try the new packaging in a random sample of shops. The sample sizes and the results are given

Packaging
A B
Sample size 60 50
Mean sales 280 300
Standard deviation of sales 50 70
Test at 5% whether the sales for the product with B packaging were significantly higher than for the
product with A packaging (8)
5. a)What is meant by the term hypothesis testing ? (2)
b) Each year trainees throughout the country sit for a test . Over a period of time it has been
established that the marks can be modeled by a normal distribution with mean 70 and standadrd
deviation 6. This year , it was thought that the trainees from a particular country did not pertform
well as expected . The marks of a random sample of 25 trainees from the country were scrutinized and

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it was found that their mean mark was 67.3. Does this provide evidence at the 5% significance level ,
that trainees from this country did not perform well as expected ? (18)

29. Hypothesis Testing 2 :Use of t- Distribution

1. A firm ordered bags of chemicals with an average weight of 50kg. A random sample of
eight (8) bags was taken and it was found that the sample mean was 49.2kg with a
standard deviation of 1.6kg. Test whether the mean weight of a sample of bags is
significantly less than the average weight using the 5% level of significance (10)

30. Hypothesis Testing 3 :CHI-SQUARE

4. a) A bank was concerned about the level of defaults on loans advanced to farmers. A random
sample of farmers with loans was selected and analysed by province. Whether they were in default,
and , if in default , whether less than 6 months or more than 6 months behind with payments . The
results were as follows:
PROVINCE
Mashonaland Matebeleland Masvingo
West South
Not in default 130 80 90
In default less than 6 40 40 20
In default more than 6 20 20 10
months

At 5% , examine whether there is a relationship between defaults on loans and province (1

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