National Aviation College Department of Business Administration

Business Quantitative Methods (MBA 611) Final Exam Date: 12/10/2020

Maximum Mark: 40%

Time Allotted: 4hrs

Name: SOLOMON ABERA ID No: GBLR/049/12

Instruction: Answer all questions by showing all the necessary steps.

 1. A manufacturer estimates that when x units of a particular commodity are produced, the
total cost will be C(x) = 1 x2 + 3 + 98 dollars, and that P(x) = 1 (75 − x)dollars per unit
8 3
is the price at which all x units will be sold.
a) Find the marginal cost (5 pts.)
b) Find the marginal revenue (5 pts.)

2. Using graphical method, maximize 





Extreme Point
Objective function value
Coordinates Lines through Extreme Point
z=4X+Y
(X,Y)
3→X≥0
O(0,0) 4(0)+1(0)=0
4→Y≥0
2→3X+Y≤90
A(30,0) 4(30)+1(0)=120
4→X≥0
1→X+Y≤50
B(20,30) 4(20)+1(30)=110
2→3X+Y≤90
1→X+Y≤50
C(0,50) 4(0)+1(50)=50
3→X≥0

X at minimem 0 X max 55
Y at minimum 0 Y max 100
Grid line X 5 Gride line Y 10
3.Suppose that x is normally distributed random variables with a mean 10 and a variance of 4
Find the probability that x will assume a value between 8 and 12.
 4. Suppose we want to study the relationship between input (number of

workers) and output (thousands of Birr) of five factories given in the table
below.

No. Yi (outputs) Xi (inputs)

1 4 2

2 7 3

3 3 1

4 9 5

5 17 9

Find Regression line equations from the following data

NO X Y

1 2 4

2 3 7

3 1 3

4 5 9

5 9 17

Solution:
Mean ˉx = ∑xin =2+3+1+5+95=205 =4
Mean ˉy= ∑yin =4+7+3+9+175 =405 =8

X Y X=x-ˉx=x-4 Y=y-ˉy=y-8 X2 Y2 X⋅Y

2 4 -2 -4 4 16 8
3 7 -1 -1 1 1 1
1 3 -3 -5 9 25 15
5 9 1 1 1 1 1
9 17 5 9 25 81 45
--- --- --- --- --- --- ---
20 40 ∑X=0 ∑Y=0 ∑X2=40 ∑Y2=124 ∑X⋅Y=70

byx=∑XY∑X2 =7040 =1.75

Regression line y on x

y-ˉy=byx(x-ˉx)

y-8=1.75(x-4)

y-8=1.75x-7

y=1.75x-7+8

y=1.75x+1
bxy=∑XY∑Y2

=70124

=0.5645

Regression Line x on y
x- ˉx=bxy (y-ˉy)

x-4=0.5645(y-8)

x-4=0.5645y-4.5161

x=0.5645y-4.5161+4

x=0.5645y-0.5161

To maximize the profit and to produce more amounts of product so human

power or number of employee are highly impact on the number of production
in our word in out puts No impute increases no of production rate also raise
It have positive relationship of wit outputs.
Helps
 Analyze the sources of economic growth using the aggregate production function
 Measure an economy’s rate of productivity growth
 Evaluate the power of sustained growth
 Identify the role of labor productivity in promoting economic growth