Math and Economics Diagnostic Test

Section 1 (5 points each)

1. AirAsia employs 300 workers. Blue collar workers are paid $2, 000 per
week, and white collar workers are paid $2, 500 per week. AirAsia's weekly
payroll is $660, 000. AirAsia has blue collar employees.

2. The function f (x) = 2x2 − 28x − 99 has its maximum value for which
value of x?

3. The equation of the line passing through the points (2, 6) and (3, 9) may
be written as

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4. When x = 2, the slope of the function f (x) = 33 + 3x + 2x2 is .

x−3
5. For x = -1, the second derivative of f (x) = is .
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6. Your restaraunt supply company has ve customers, and their average
monthly order volumes (in hundreds) are as follows: (1, 2, 3,3,11). What
is the median customer order volume?

7. Given the data from 6., what is What is the mean customer order volume?

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 8. Given the data from 6., what is the sample standard deviation of cus-
tomer order volumes?

9. You're evaluating the customer service arm of your company and you're
concerned that customer calls are not being returned quickly enough. If
follow up calls are normally distributed with a standard deviation of 2
hours, what is the maximum mean time between a call and follow up
that will ensure that 95% of calls are answered within 4 hours? You may
consult these z-score critical values:

10. Suppose you have a deck of cards with four copies of each of the following
cards: 2, 3, 4, 5, 6 and 7. That is, 6 sets of four cards each for 24 cards
total. If you draw 4 cards, what is the probability that no two cards share
the same number? (Hint: suppose you draw a 2 for your rst card. What
is the probability that you don't draw a 2 for your second card? If you

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 drew a 3 for your second card, what's the probability the third card is
neither a 2 nor a 3? etc.)

11. Based on historical data, you believe a new store in your Chatime franchise
will generate yearly revenue of $2 (in millions) with probability 1/2, $6
with probability 1/3, and $18 with probability 1/6. What is the expected
revenue (in millions)?

12. You're implementing an automated test for defects in a clothing factory,

and you've found that this test detects defects in 50% of defective shirts,
and reports no defects in 100% of non-defective shirts. If 10% of shirts are
defective, what is the probability that an shirt that passes the screening
will be defective?