Quantitative Methods

Page 1 of 3

Assignment

Answer ALL questions in this section.

QUESTION 1 (35 marks)

(a)

The following table shows the commissions obtained by a sales person from 30 sales
transactions.

Commissions
(RM)
Frequency

0-99

100-199

200-299

300-399

400-499

500-599

On graph paper, plot an ogive to represent the data.

(5 marks)
Use your Ogive to estimate the
(i)
median,
(2 marks)
(ii)

first quartile,

(iii)

third quartile,

(iv)

number of transaction where the commission is more than RM350.

(v)

quartile measure of skewness(Qsk) for the distribution.

(2 marks)
(2 marks)
(2 marks)

(b)

(2 marks)
For a random sample of 25 workers from a department, the accompanying table
shows the amount of working time (in hours) for a week.
Study Time

1 to 4

No.
of 3
Students

5 to 8

9 to 12 13 to 16

17 to 20

Estimate the following, using the data given above

(i)

the mean,
(4 marks)

(ii)

the median,
(5 marks)

(iii)

the mode.
(5 marks)

(iv)

the sample standard deviation

(6 marks)
(Total 35 marks)

Diploma Part 1

Asia Pacific University of Information Technology

2013

Quantitative Methods

Page 2 of 3

Assignment

QUESTION 2 (25 marks)

(a)

The price of petrol in the year 1999 is $1.05 per liter. The price index of petrol in year
2001 based on year 1999 is 132.
(i)

Calculate the price of petrol in year 2001.

(3 marks)
From the year 1999 to the year 2003, the price of petrol increase by 65%,
(a) State the price index of petrol in year 2003 based on the year 1999.
(2 marks)
(b) Hence, calculate the price index of petrol in the year 2003 based on 2001.
(2 marks)
A company sells three different products A, B and C. The table below shows the unit
price ($) and quantity consumed for each of these in 2000 and 2004.
(ii)

(b)

Product
A
B
C

2000
Unit price ($)
Quantity
35
580
28
450
19
750

2004
Unit price ($)
Quantity
68
380
55
320
31
560

Using 2000 as the base year,

(i)
calculate the Laspeyre price index (LPI) for 2004,
(4 marks)
(ii)

calculate the Paasche price index (PPI) for 2004,

(4 marks)

(iii)
(c)

comment on the values on part b(i) and part b(ii).

(2 marks)
A company produces three models of sofa A, B and C. The selling price per unit and
the number of units sold in year 2004 and year 2005 are given in the following table:
Item
Model A
Model B
Model C

Price
2004
2005
800
850
1200
1400
1500
1550

Quantitiy
2004
2005
150
200
450
490
180
220

Weighted
6
5
9

Using 2004 as the base year, calculate

(i)
Weighted aggregate price index of sofa in year 2005.
(4 marks)
(ii)

Weighted aggregate quantity index of sofa in year 2005.

(4 marks)
(Total 25 marks)

Diploma Part 1

Asia Pacific University of Information Technology

2013

Quantitative Methods

Assignment

Page 3 of 3

QUESTION 3 (40 marks)

(a)

(b)

(c)

(d)

If Parvin has a choice of investing RM5000 for 3 years at 5% compounded daily or

7% compounded quarterly, which one is the better choice for her? (Assume 365 days
in a year).
(5 marks)
A sum of money is left invested for 3 years. The first year it earns interest at 15%
compounded monthly. In the second year, the rate of interest earned is 10%
compounded quarterly and in the third year the rate of interest changes to 12%
compounded daily (1 year =365 days). Find the APR that would give the same
accumulated value at the end of three years,
(6 marks)
Bella wants to pursue her master degree at Oxford Engineering School. Her parents
establish a fund to save $200,000 in 5 years to fulfill her dreams. Assuming that her
parents can earn interest at 9% p.a. compounded monthly.
(i)
What monthly sinking-fund assessment will be required per month?
(5 marks)
(ii)
Construct a sinking fund statement for the first five deposits.
(8 marks)
A loan of $10,000 is to be repaid by using five annual installment payments, to be
made at the end of each year. Find the amount of each installment and construct an
amortization schedule if interest rate is 10% p.a. effective.
(16 marks)
(Total 40 marks)

Diploma Part 1

Asia Pacific University of Information Technology

2013