UNIVERSITY EXAMINATIONS: 2021/2022

FINAL EXAMINATION FOR THE DEGREE OF BACHELOR OF

COMMERCE AND BACHELOR OF PROCUREMENT&LOGISTICS
MAT 1203: MANAGEMENT MATHEMATICS II
FULL TIME
DATE: DECEMBER 2021 TIME: 2 HOURS

Answer ALL Questions;You must show your workings

QUESTION ONE [20 MARKS]

(a) Find the first derivative of:
(7 x 2  5 x  2)(5 x  3) using product rule. [3 Marks]
(b) A new rapid transit system has just been installed. It is anticipated that each week 80%
of the commuters who used the rapid transit will continue to do so and the rest switch
to car. Of those who traveled by car, 12% will begin to use the rapid transit instead. If
this trend is to continue, what percentage of commuters will use each mode of travel
in the long run? [4 Marks]
(c) Evaluate the following definite integral
5

  3x  2 x 2  7 x  3 dx
3
[2 Marks]
3

7 3 5   6 2 3
(d) A  6 2 8 and B   4 2 5 
 
 3 5 4   2 5 4 

Find:
(i) 4A - 3B. [2 Marks]
(ii) BA. [3 Marks]
(e) Solve the following System of equations simultaneously using the matrix inverse
method .

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 4a  3b  5c  23
5a  2b  3c  8 [6 Marks]
3a  4b  2c  3

QUESTION TWO [15 MARKS]

(a) List any two assumptions behind Markov analysis. [2 Marks]
(b) Briefly explain the following terms as used in Markov chains.
(i) Absorbing state. [1 Mark]
(ii) Closed state. [1 Mark]
(c) Suppose that, during the year 2010, 45% of the drivers in Nairobi had Madison
insurance, 30% had Jubilee insurance, and other companies insured the rest 25%.
Suppose also that a year later of those who had been insured by Madison in 2010, 92%
continued to be insured by Madison, but 8% had switched their insurance to Jubilee;
of those who had been insured by Jubilee in 2010, 90% continued to be insured by
Jubilee, but 4% had switched to Madison and 6% had switched to other companies; of
those who had been insured by other companies in 2010, 82% continued, but 10% had
switched to Madison, and 8% had switched to Jubilee. Using these data, answer the
following questions:
(i) If the trend continued, what percentage of the drivers Madison and Jubilee
will insure in 2012? [3 Marks]
(ii) If the trend continued what percentage of the drivers, each company will
insure in the long run? [3 Marks]
(d) A firm’s profit is given by the function  ( x, y)  600  3x 2  4 x  2 xy  5 y 2  48
subject to the budget constraint 2 x  y  5 where  denotes profit, x output and y
adverting expenditure. Determine the values of x and y which will maximize profit.
[5 Marks]

QUESTION THREE [15 MARKS]

(a) A manufacturer determines that q units of a particular luxury item will be sold when
the price is p  f (q)  215  q ln q3 hundred shilling per unit. Find the revenue and
marginal revenue functions. [3 Marks]
(b) List any two assumptions behind Input-Output analysis. [2 Marks]

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(c) An economy is based on three sectors, agriculture (A), energy (E), and manufacturing
(M). Production of a shilling’s worth of agriculture requires an input of Sh.0.20 from
the agriculture sector and Sh.0.40 from the energy sector. Production of a shilling’s
worth of energy requires an input of Sh.0.20 from the energy sector and Sh.0.40 from
the manufacturing sector. Production of a shillings worth of manufacturing requires an
input of Sh.0.10 from the agriculture sector, Sh.0.10 from the energy sector, and
Sh.0.30 from the manufacturing sector. The final demand of Sh.20 billion for
agriculture, Sh.10 billion for energy, and Sh.30 billion for manufacturing.
(i) Determine the Leontief matrix. [3 Marks]
(ii) Given that the Leontief inverse matrix is:
1.3 0.1 0.2 
0.7 1.4 0.3
 
0.4 0.8 1.6 

Find the output each industry needs to produce to meet the intermediate demand and
the final demand. [4 Marks]
(d) The population P(t) of a small, t months after a census has been carried out is found to
be changing at the rate
dP
 200e0.1t  150e 0.01t
dt
If the population was 200,000 when the census was conducted, what will be the
population 2 years later? [3 Marks]

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