COMSATS University Islamabad, Lahore Campus

Department of Statistics
Mid Term Exam–Fall 2021
Course Title: Quantitative Business Techniques II Course Code: MGT- Credit Hours: 3(3,0)
Course Instructor/s: Syed Muhammad Irfan Programme Name: BAF
Semester: Batch: Section: Date: 20-Mar-19 11:30-12:30
Time Allowed: 90 minutes Maximum Marks: 25
NOTE: Attempt all questions and all questions carry equal marks

Q#1. BCD clothing compete globally and manufacture uniforms for Army officers working in the lowest
temperature areas. Company manufactures two different types of uniforms. The cost for these two
types of uniforms is $175 and $225, respectively. Company’s current production capacity is 5000
uniforms (both types). Because of the urgency of the need, one major client of the company would
pay the manufacture a bonus of $50,000 plus an additional $25 for each of the unit greater than
5000. Develop a profit function to calculate the sale of uniforms. What is the expected profit if
company manufacture 3500 uniforms of type I, and 2500 uniforms of type II.

Q#2: Due to the increase in no of crimes in the city, city police administration has identified the following
function that represents the total no of crimes (C) and no of extra police officers (p) assigned to
control the crimes.
If C=1275-35p
a) Interpret the equation by explaining the slope and C intercept in this case
b) What is the total no of crimes if 10 extra police officers are assigned.
c) Find the total no of extra police officers assigned so that the no of crimes becomes zero.
Q#3: A petrol station sells regular petrol and premium quality petrol. If the price per gallon charged by
the station is $1.299 for regular and $1.379 for premium quality. The cost per gallon from the
supplier is $1.219 for regular and $1.289 for premium. If x1 equals the number of gallons sold of
regular and x2 the number of gallons sold of premium:
a) Formulate the revenue function from the selling of x1 and x2 gallons, respectively, of the two grades
of petrol.
b) Formulate the cost function from the selling of x1 and x2 gallons, respectively, of the two grades of
petrol.
c) Formulate the total profit function.
d) What is the total profit expected to equal if the station sells 100,000 gallons of regular and 10,000
gallons of premium?
Q#4. The Cellular telephone industry has grown rapidly since the late 1980s. Figure below presents data
regarding the number of subscribers between 1985 and 1990. The pattern of growth in the number
of subscribers looks as if it could be approximated reasonably well by using a quadratic function.
Using the data points for 1985, 1987, 1989, the number of subscribers is 200, 950, and 2,600 stated
respectively. Determine the quadratic estimating function n=f(t), where n equals the number of
subscribers (stated in millions) and t equals time measured in years since 1985. According to this
estimating function, how many subscribers are expected in the year 1995?

e)