SCHOOL OF BUSINESS, ECONOMICS AND MANAGEMENT

BBA 120 - BUSINESS MATHEMATICS

END OF SEMESTER FINAL EXAMINATION

WEDNESDAY 12th JUNE, 2024

14:00 - 17:00 HOURS

Time allowed: 3 HOURS Plus 5 Minutes Reading Time

Instructions to Candidates:
(1) Read the instructions very carefully.
(2) Check that you have the correct examination paper in front of you.
(3) There are TWO (02) sections in this paper. Section A is COMPULSORY.
Answer any THREE(3) questions from section B.
(4) All questions must be answered in the answer booklet provided only.
(5) No books, files or mechanical/ electronic aids are permitted in the ex-
amination room. Students are permitted to use a non-programmable
electronic calculator.
(6) Begin answering each question on a new page.
(7) Write down the number of questions that you have answered on the
cover of the examination answer booklet provided.
(8) There shall be NO communication among students during the examina-
tion. Any students caught doing this will be disqualified.

DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO.

1
SECTION A (THIS SECTION IS COMPULSORY)

QUESTION ONE
Answer section A in the answer booklet. Note that each question carries 2
Marks.

(1) In business, we often deal with collections of items or entities that share com-
mon characteristics or properties. Sets provide a mathematical framework for
organizing and analyzing such collections. Which of the following is a collec-
tion of items or entities that share common characteristics or properties?

(A) A set of handsome first-year students

(B) A set of short people
(C) A set of employees at the University of Lusaka.
(D) A set of nice food.

(2) If set A contains all even numbers between 1 and 10, and set B contains all
prime numbers between 1 and 10, what is the intersection of sets A and B?

(A) {2, 3, 5, 7}.

(B) {2, 4, 6, 8}.
(C) {3}.
(D) {2}.

(3) By analyzing consumer behavior in response to price changes, businesses

can assess market demand, identify trends, and forecast future sales. The
law of demand states that:

(A) The higher the price the higher the quantity demanded and vice versa.
(B) The higher the price the lower the quantity supplied and vice versa.
(C) The lower the price the lower the quantity demanded and vice versa.
(D) The higher the price the lower the quantity demanded and vice versa.

(4) Mr. YVOK a manager of a newly opened clothing shop observed some
changes in demand and supply of the Kalebwangu T-shirt. Due to a popular
social media influencer promoting the clothing shop, there is a sudden surge
in demand for the Kalebwangu T-shirt. The demand for the Kalebwangu T-
shirt is modelled by P = 870 − 3Q. Find the quantity demanded when price
P of the Kalebwangu T-shirt is K270.

(A) Q = 60.

Page 2 of 12
 (B) Q = 870.
(C) Q = 200.
(D) Q = 3.

(5) In business networking and social network analysis, matrices are often used
to represent relationships between entities. Which operation yields the trans-
pose of a matrix?

(A) Adding the elements of the main diagonal.

(B) Interchanging rows and columns
(C) Multiplying every element by its row index
(D) Multiplying every element by its column index

(6) In business, understanding cost functions is essential for decision-making.

The change in total cost resulting from one unit change in quantity is called:

(A) Average Marginal Cost

(B) Marginal Cost
(C) Average fixed cost.
(D) Total Cost.

(7) Consider a competitive market for which the quantities demanded and sup-
plied (per year) at various prices are given as follows:

Price Demand Supply

(Kwacha) (Millions) (Millions)
70 32 24
90 30 26
110 28 28
130 26 30

What are the equilibrium price and quantity?

(A) Price = 70 and Quantity = 56.

(B) Price = 130 and Quantity = 30.
(C) Price = 110 and Quantity = 28.
(D) Price = 90 and Quantity = 26

(8) Differentiation is used in financial analysis to calculate rates of change, such

as growth rates of revenue, profit, or market share. What do we call the
change in revenue resulting from producing one more unit of a product and
selling it?

Page 3 of 12
 (A) Revenue maximization.
(B) Cost maximization.
(C) Marginal Revenue,
(D) Marginal Cost.

(9) A company manufactures batteries for a mobile phones. The total weekly
cost of producing the batteries is given by C(x) = 50, 000 + 200x − 3x2 . Which
of the following is the Marginal cost (M C):

(A) M C = 200 − 6x.

(B) M C = 200 + 6x.
(C) M C = 50, 000 + 200 − 6x.
(D) M C = 200 − 3x.

(10) If K5000 is invested at an annual interest rate of 8%, compounded annually,

what is the amount of money after 3 years?

(A) K5750.40
(B) K6000.00.
(C) K6848.64.
(D) K8000.00.

(11) Nomba Ninshi company manufactures Zindangwa headsets for mobile phones.
The total weekly cost of producing Zindangwa headsets is given by C(x) =
300, 000 − 400x − 6x2 . Which of the following is the Marginal cost (M C):

(A) M C = −400 + 12x.

(B) M C = −400 − 12x.
(C) M C = 300, 000 − 400 − 12x.
(D) M C = 300, 000.

(12) Given a 2 by 2 matrix:

 
3 −2
A=
5 4

Which of the following is the determinant |A| of A?

(A) |A| = 2.
(B) |A| = 12.
(C) |A| = 22.

Page 4 of 12
 (D) |A| = 10.

(13) Businesses often use mathematical functions to forecast sales based on his-
torical data and various factors such as advertising expenditure, seasonality,
economic indicators, and market trends. To optimize supply chain operations,
define the function
f (x) = 3x2 + 3x − 5
where x represents the decision variable that affects the supply chain opera-
tions. What is the behavior of f (x) at x = 2

(A) f (2) = 18.

(B) f (2) = 23.
(C) f (2) = 13.
(D) f (2) = 12.

(14) Set difference can be applied in competitive analysis to identify the unique
strengths and weaknesses of competitors. Define two sets A = {1, 2, 3, 4}
and B = {3, 4, 5, 6}. What is the difference of set A and set B?

(A) A − B = {1, 2, 3, 4, 5, 6}.

(B) A − B = {5, 6}.
(C) A − B = {3, 4}.
(D) A − B = {1, 2}.

(15) Given the equation of a straight line as 4y − 2x = 28. Which of the following
is the y-intercept?

(A) y-intercept = −7.

(B) y-intercept = −14.
(C) y-intercept = 14.
(D) y-intercept = 7.

(16) Given the equation of a straight line as 4y − 12x = 28. Which of the following
is the Slope of the line?

(A) Slope M = −3.

(B) Slope M = 3.
(C) Slope M = −7.
(D) Slope M = −12.

(17) Given the equation y = 3x3 − 2x2 + 4x − 9, what is the rate of change of y with
respect to x?

Page 5 of 12
 (A) y ′ = 6x2 − 4x + 4.
(B) y ′ = 6x2 − 4x
(C) y ′ = 9x2 − 4x + 4.
(D) y ′ = 9x2 + 4x + 4

(18) Define a set A = {1, 2, 3, 3, 4, 5, 6, 6, 7, 8}. What is the cardinality of A?

(A) n(A) = 10
(B) n(A) = 8
(C) n(A) = 9
(D) n(A) = 11

(19) Given the matrix:

 
7
A =  4 ,
−1

What is the transpose of A?

(A) AT = 7 4 −1 .
 
7
T
(B) A =  4
−1


(C) AT = −1 4 7 .
 
−1
T
(D) A =  4
7

(20) In marketing, businesses often categorize customers into different segments

based on various criteria such as demographics, purchasing behavior, or ge-
ographic location. The complement of a customer segment represents the
customers who do not fit into any of the predefined segments. According to
De Morgan’s Laws, what is the complement of the union of two sets A and
B?

(A) A ∩ B ′
(B) A′ ∪ B ′ .
(C) A′ ∩ B ′ .
(D) A ∪ B ′

[Total: 40 marks]

Page 6 of 12
SECTION B: ANSWER ANY THREE

QUESTION TWO
a. In the dynamic landscape of business partnerships, two companies have
come together with distinct strengths to enhance their operations. The first
company, renowned for its marketing expertise, is captured by the linear func-
tion f (x) = 2x + 3, while the second company, excelling in customer service,
is represented by the linear function g(x) = 3x − 1. Collaborating to stream-
line processes and improve customer satisfaction, they seek to understand
the combined impact of their efforts, encapsulated by the composite function
(f ◦ g)(x).
Required:

i. Solve the composite function (f ◦ g)(x)

[5 marks]
ii. Evaluate the inverse function (f ◦ g)−1 (x)

[4 marks]

b. Consider a market where the demand function for a certain product is given
by P = 100 − 2Q and the supply function is represented by P = 50 + 3Q,
where P denotes the price per unit and Q denotes the Quantity.

i. Plot both the demand and supply functions on the same graph.
[4 marks]
ii. Hence or otherwise determine the equilibrium price at which the quantity
demanded equals the quantity supplied
[2 marks]
iii. Calculate the equilibrium quantity traded at this price.
[2 marks]

c. John deposited K5,000 in a savings account that offers simple interest at an

annual rate of 4%. If he keeps the money in the account for 3 years, calculate
the total amount he will have at the end of the period.

[3 marks]

[Total: 20 marks]

Page 7 of 12
QUESTION THREE
a. In a bustling city of Lusaka with 2000 potential customers, various leisure
activities are popular among its residents. Based on a survey, the following
information about participation preferences was gathered:

• 1200 youths participate in Yoga classes.

• 1100 youths participate in Swimming.
• 800 youths participate in Cycling.
• 765 youths participate in both Yoga classes and Swimming.
• 450 youths participate in both Yoga classes and Cycling.
• 400 youths participate in both Swimming and Cycling.
• 100 youths participate in all three activities: Yoga classes, Swimming,
and Cycling.

i. Create a Venn diagram to represent the participation preferences of the

youths in the city.
[6 marks]
ii. Determine the number of youths that exclusively participate in Yoga
classes
[2 marks]
iii. Identify the number of youths that do not participate in any of the three
activities.
[2 marks]

b. You start working for a startup company that produces and sells slippers. The
fixed cost of production is K300, and the variable cost per slipper is K20. After
production, each slipper is sold at K100. Given that the slippers made are in
the range of 0 ≤ Q ≤ 15.

i. Determine the Total Cost Function.

[1 marks]
ii. Determine the Total Revenue Function.
[1 marks]
iii. Sketch the Total Cost (TC), Total Revenue (TR), and Profit functions on
the same graph.
[2 marks]
iv. How many slippers need to be made to start obtaining a profit?

Page 8 of 12
 [2 marks]

c. John invests K8,000 in a savings account that compounds interest quarterly

at an annual rate of 5%. If he keeps the money in the account for 3 years,
calculate the total amount he will have at the end of the period.

[4 marks]

[Total: 20 marks]

QUESTION FOUR
a. Solve the following systems of simultaneous equations

x + 2y − z = −8,
2x − y + z = 4,
8x + y + z = 2.

[8 marks]

b. Consider the following scenario:

A company produces two types of products, A and B. The production process
for each product requires a certain number of raw materials and labor hours.
The company has a total of 500 units of raw materials and 300 hours of labor
available per week.
Product A requires 2 units of raw materials and 3 hours of labor per unit
produced, while Product B requires 3 units of raw materials and 2 hours of
labor per unit produced.

i. Define two equations to represent the constraints imposed by the avail-

ability of raw materials and labor.
[4 marks]
ii. Solve the system of equations to find the maximum number of units of
each product that the company can produce per week.

[4 marks]

c. A company purchased machinery for K50,000. If the machinery depreciates

by 10% each year, what will be its value after 5 years?

[4 marks]

[Total: 20 marks]

Page 9 of 12
QUESTION FIVE
a. Given Matrix A:
 
1 2 3
A = 4 5 6
7 8 9

i. Calculate the transpose of matrix A.

[2 marks]

ii. Perform matrix multiplication of A with its transpose AT and write the resulting
matrix B.

[6 marks]

b. Consider the following matrices:

 
2 −1
A=
3 4
 
5 1
B=
−2 3

i. Perform matrix addition of matrices A and B, and write the resulting matrix
C.

[2 marks]

ii. Calculate the determinant of matrix A.

[3 marks]

iii. Find the inverse of matrix B if it exists.

[4 marks]

b. James borrowed K3000 from a friend and promised to repay it with simple
interest after 2 years. He paid a total of k3300 when he returned the money.
Determine the annual interest rate.

[3 marks]

[Total: 20 marks]

Page 10 of 12
QUESTION SIX
a. Consider a company that manufactures and sells a product. The company’s
revenue function R(x) in Kwacha is given by:

R(x) = 20x − 0.5x2

where x represents the number of units sold per week.

i. Determine the marginal revenue function M R(x) .

[4 marks]
ii. Calculate the number of units that the company must sell to maximize
its revenue.
[4 marks]

b. Consider a scenario where a company sells a product whose production cost

varies depending on the quantity produced. The cost function C(q) in Kwacha
is given by:

C(q) = 1000 + 5q + 0.01q 2

where q represents the quantity of the product produced.

The company sells the product at a fixed price per unit of K20. The revenue
function R(q) in dollars is given by:

R(q) = 20q

Estimate the total profit earned by the company.

[7 marks]

c. Jane invests K5000 in a savings account that offers compound interest. After
3 years, the amount in the account has grown to K6050. Calculate the annual
interest rate compounded annually.

[5 marks]

[Total: 20 marks]

END OF EXAMINATION PAPER

Page 11 of 12
 Formula Sheet
0.1 QUADRATIC FORMULA
√
−b ± b2 − 4ac
x= .
2a

0.2 MATHEMATICAL FINANCE

Simple Interest
Pt = P0 (1 + it).

Compound Interest
Pt = P0 (1 + i)t .

Compounding Periods
i mt
Pt = P0 (1 + m
) .

Continuous Compounding
Pt = P0 eit .

0.3 LOAN AMORTIZATION

i
P0 ×
R=  m−mt .
i
1− 1+ m

0.4 ELASTICITY
Point Elasticity

%∆Q
ϵ=
%∆P
∆Q P
=
∆P Q

Interval Elasticity

∆Qd P1 + P2 ∆Qs P1 + P2
ϵd = × ϵs = ×
∆P Q1 + Q2 ∆P Q1 + Q2

Page 12 of 12