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QMS 203 Tutorial 1

This document is a tutorial sheet for a Quantitative Methods course at Mzumbe University, covering various mathematical and statistical concepts. It includes questions on the importance of quantitative methods for managers, weaknesses of qualitative approaches, mathematical models, optimization, derivatives, cost functions, revenue, and profit maximization. The tutorial aims to enhance understanding of quantitative analysis in decision-making processes.

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11 views2 pages

QMS 203 Tutorial 1

This document is a tutorial sheet for a Quantitative Methods course at Mzumbe University, covering various mathematical and statistical concepts. It includes questions on the importance of quantitative methods for managers, weaknesses of qualitative approaches, mathematical models, optimization, derivatives, cost functions, revenue, and profit maximization. The tutorial aims to enhance understanding of quantitative analysis in decision-making processes.

Uploaded by

jastinshija3
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MZUMBE UNIVERSITY

FACULTY OF SCIENCE AND TECHNOLOGY


DEPARTMENT OF MATHEMATICS AND STATISTICS STUDIES (MSS)
QMS 203 (QUANTITATIVE METHODS)
TUTORIAL SHEET 1: TOPICS 1&2

1. Why managers needs the study of quantitative methods? Explain briefly.

2. As expected financial manager, briefly explain any two weaknesses of qualitative


decision approach as compared to quantitative decision approach.

3. Briefly differentiate between mathematical models from other models that you
know.

4. For a mathematical model to be complete it must contain an “Objective function”.


What do you understand by “Objective function” for a given mathematical model?

5. What is Optimization?

6. Use the first principle to differentiate each of the following


a) y  4 x b) y  3x 2

7. Find partial derivatives of the second order for the following functions
a) f ( x, y)  3xy 2  4 x3 b) f ( x, y)  4 xy 3  7

c) f ( x, y )  xy d) f ( x, y)  10 at (1, 2)

8. The cost Cin Tshs  of manufacturing a certain article is given by the formula
C  x   4.5 x 2  9000 x  10000000 where x is the number of articles manufactured.
Find the minimum cost.

9. By using differential calculus state whether f ( x)   x2  6 x  13 has maximum or


a minimum value. Find the value

10. A company sells all the units it produces at Tshs 4/= per unit. The total cost of
producing x units is given in Tshs by C  x   50  1.3 x  0.001x 2
(a) Write the expression for the total profit P as a function of x
(b) Find the production volume x so that the profit is maximum
(c ) Find the maximum profit

11. The total revenue from selling fabric is TR  3 x 2  600 x where x is the number
of meters solid.
(a) Find the total revenue and the marginal revenue when 50 meters are sold
(b) Find how many meters must be sold to obtain the highest revenue and the
marginal revenue when maximum revenue is realized.
1
12. It is estimated that the weekly output at a certain plant is given by the
function Q( x, y)  1200 x  500 y  x2 y  x3  y 2 units, where x is the number of
skilled workers and y the number of unskilled workers employed at the plant.
Currently the work force consists of 30 skilled workers, and 60 unskilled
workers. Use marginal analysis to estimate the change in the weekly output
that will result from the addition of 1 more skilled worker if the number of
unskilled workers is not changed.

13. If the marginal cost of producing x units is given by C '( x)  0.3x2  2 x and the
fixed cost Tsh 2,000/=, find the cost function C ( x) and the cost of producing
twenty units

14. The population P(t) of Buza village increases with the increase in time t (in
dP
years). The rate of increase is given by  6000t 2 . Assume that, in the first
dt
year the village had 6000 people. What will the population of the village be in
5 years?

15. In a certain industry, the cost C (in Tsh) is given by a function C  x   1000  2 x 2
and the revenue R (in Tsh) is given by a function R  x   100  3x 2 where x is
the number of items manufactured. Find the following
(a) A value of x for which a business attain its break-even point
(b) The profit of manufacturing 100 items
(c) Marginal cost, marginal revenue and marginal profit if the current
production level is 100 items.

16. Global Publisher company has determined that its profit (P) is a function of the
number of production in two different media. This is given by the following
relationship where X is number newspapers produced and Y is number of Love
story magazines produced:

P( X , Y )  200 X  100Y 10 X 2  20Y 2  20 XY

a) Find the number of newspaper and love story magazine to be produced that
maximizes the Global Publisher’s profit.

b) If in production the company can only produce twice the number of


newspaper as compared to the number of love story magazine produced,
using Lagrange multiplier calculate the number of newspaper and love
story magazine to be produced, that maximizes the Global Publisher’s
profit.

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