JARAMOGI OGINGA ODINGA UNIVERSITY OF SCIENCE AND TECHNOLOGY SCHOOL OF BUSINESS AND ECONOMICS UNIVERSITY EXAMINATION FOR THE DEGREE OF BACHELORS IN BUSINESS ADMINISTRATION WITH IT RD ND 3 YEAR 2 SEMESTER 2022/2023 ACADEMIC YEAR KISUMU CAMPUS ----------------------------------------------------------------------------------------------------------------------------- COURSE CODE: BAB 1306 [ABA 315] COURSE TITLE: QUANTITATIVE METHODS IN BUSINESS I DATE:15/12/2022 SESSION: 9.00-11.00AM TIME: 2 HOURS ----------------------------------------------------------------------------------------------------------------------------- INSTRUCTIONS: i. This paper contains Five questions ii. Answer question ONE and any other TWO questions iii. Question one is COMPULSORY iv. Candidates are advised not to write on the question paper v. Candidates must hand in their answer booklets to the invigilator while in the examination room 1 | P a g e QuestionOne (30 Marks): a) Explain the difference between PERT and CPA as used in network analysis [3marks] b) Explain the main components of time series data. Which of these would be most prevalent in data relating to unemployment? [5marks] c) Highlight FOUR reasons why a business concern maintains inventory. [4marks] d) Explain FOUR advantages of a moving average method [4marks] e) Find the probability that during any 90 minute period, the number of patients arriving at the hospital accident and emergency department is: i. Exactly 7 [2marks] ii. At least 10 [2marks] f) Highlight FIVE steps in decision making process [5marks] g) Explain FIVE network diagram drawing conventions [5marks] QuestionTwo (20 Marks): The following matrix gives the payoff of different strategies (alternatives) A, B, and C against conditions (events) W, X, Y and Z. W X Y Z A 4,000 (100) 6,000 18,000 B 20,000 5,000 400 0 C 20,000 15,000 (2,000) 1,000 Identify the decision taken under the following approaches: (i) Pessimistic [5marks] (ii) Optimistic [5marks] (iii) Equal probability [5marks] (iv) Regret [5marks] 2 | P a g e Question Three (20 Marks): a) A research findings shows that only 40% of the professional employees in Kenya are employed in the actual areas of their career training. Based on this, determine the probability that among 10 randomly selected professionals employed in Kenya: i. Exactly 4 are employed in their careers [2marks] ii. Between 1 and 3 inclusive are employed in their careers [4marks] iii. At least 4 are employed in their career [4marks] b) Preso Pumps Limited uses about 75,000 valves per year and the usage is fairly constant at 6,250 per month. The valves cost Ksh.1.50 per unit when purchased in quantities and inventory carrying cost is 20% of the average inventory investment on annual basis. The cost to replace an order and to process the delivery is Ksh.18. It takes 45 days to receive from the date of an order and minimum stock of 3,250 valves is desired Calculate: i. Economic Order Quantity (EOQ) [4marks] ii. Number of orders in a year [3marks] iii. Re-order level [3marks] Question Four (20 Marks): a) A firm has analysed their operating conditions prices and costs and have developed the following following functions. Revenue (R) = 4000 - 4Q2 Cost (C) = Q2 + 10Q + 30 Where Q is the number of units sold. The firm wishes to maximization profit and wishes to know; i. What quantity should be sold [4marks] ii. At what price [3marks] iii. What will be the amount of profit [3marks] b) Given the activities of windmill project as have been code from A-K with duration and predecessors as shown below: 3 | P a g e Activity Code Duration Predecessor A 4 None B 9 None C 7 A D 5 B E 10 B F 9 E G 6 D H 5 C I 8 H J 12 F, G K 7 E Required: Construct the network diagram and hence find the project duration [10marks] Question Five (20 Marks): a) The details of student enrolment in a college for three successive years is shown as under: Year Student Enrolment Term 1 Term 2 Term 3 2008 1,500 1,300 1,050 2009 1,600 1,450 1,150 2010 1,750 1,650 1,300 i. Using least square method, determine the trend values [6marks] ii. Using the multiplicative model, determine the seasonal variation for each term [2marks] iii. Forecast the student enrolment for the year 2011 in the college [2marks] b) Suppose that a door way being constructed is to be used by a class of people whose heights are normally distributed with a mean height of 70cm and a standard deviation of 3cm. 4 | P a g e i. How high should the door be so that 25% of the people do not bump their heads? [4marks] ii. If the height of the door is fixed at 76cm [3marks] iii. How many persons out of 50,000 are expected to bump their heads? [3marks] 5 | P a g e