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No. of Pages = 08
No. of Questions = 25



THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA



CERTIFICATE IN ACCOUNTING & BUSINESS - I EXAMINATION
SEPTEMBER 2010





02104 - BUSINESS MATHEMATICS AND STATISTICS



PAPER 'A' - MULTIPLE CHOICE QUESTIONS - (40 MARKS)




TIME ALLOWED ONE (01) HOUR





Instructions

(i) Answer all the questions.

(ii) A booklet containing formulae & mathematical tables is provided.

(iii) Only one answer is correct out of the four given answers for each question

(iv) Answer should be given in the special answer paper given to you.
Number of the most suitable answer to the relevant question should be
entered in the answer paper against the relevant question number.

(v) The answer paper should be handed over to the Supervisor at the end
of the time allocated for the paper i.e. 1 hour.

(vi) Every correct answer is entitled to 1.6 marks.











Question No. 01

Find the coordinates of the points of intersections of the line y = -2x +9 and the curve
y
2
=6x +1.

(1) (-7, 8) and (5/2, 4)
(2) (-7, 8) and (4, 5/2)
(3) (8, -7) and (5/2, 4)
(4) (8, -7) and (4, 5/2)
(1.6 marks)

Question No. 02

The equation log (x +5) =2 log

x

can be written as

10

10

(1) 2x +20 =0
(2) (x +5) x =2
(3) x
2
+10x 100 =0
(4) x
2
+5x 100 =0
(1.6 marks)

Question No. 03

Y


X
1 2 3
-1

- 2

- 3


The shaded area above represents the inequality:

(1) y x 3
(2) y x 3
(3) x y 3
(4) x y 3
(1.6 marks)

(2)
Question No. 04

The diagram shows a demand (D) and supply (S) schedules for tomatoes. The market is in
equilibrium at point x.

D S

X
Price of tomatoes 2
$ per kg
1



70 100 130
Quantity of tomatoes (kg)

What will happen if the government imposes a maximum price of $1 per kg?

(1) Demand will exceed supply by 30 kg.
(2) Demand will exceed supply by 60 kg.
(3) Market price will fall to $1 but quantity will remain at 100 kg.
(4) Market price will remain unchanged but quantity will fall to 70 kg.

(1.6 marks)
Question No. 05

If the marginal cost function is defined as MC =4q 3, what would be the total cost function?
(here k is a constant)
(1) C =2q
2
3q
2
+k
(2) C =4q
2
3q +k
(3) C =2q
2
3q +k
(4) C =4q
2
3q
2
+k
(1.6 marks)
Question No. 06

Mr. A has deposited Rs. 100,000 in a 3 month fixed deposit @ 8.5% per annum. The fixed
deposit is renewed after maturity with interest. In 9 months, he decides to uplift the fixed
deposit. How much would he have earned as interest?

(1) Rs. 6,000
(2) Rs. 8,500
(3) Rs. 6,511
(4) Rs. 6,375

(1.6 marks)


(3)
Question No. 07

A 1.8m tall man walks directly away from a lamp post, whose height is 9m, at an speed of 2ms
-1
.
Find the rate at which his shadow lengthens.

(1) 1 ms
-1

(2) 0.75 ms
-1

(3) 2 ms
-1

(4) 0.5 ms
-1


(1.6 marks)
Question No. 08

Find the sum to infinity of the geometric progression whose second term is 162 and whose fifth
term is 48.

(1) 882
(2) 528
(3) 768
(4) 729

(1.6 marks)
Question No. 09

Systematic sampling is where,

(1) Each item of the population has an equal chance of being chosen.
(2) Every n
th
item of the population is selected.
(3) Every item of a defined sub cluster of the population is selected.
(4) A random selection of the population.

(1.6 marks)
Question No. 10

If the equation 2x
2
- 12x +11 =0 expressed in the form a (x+b)
2
+c =0, then the values of a, b
and c are respectively,

(1) 2, -6, 4
(2) 2, 8, 4
(3) 2, -3, -7
(4) 2, -4, -6
(1.6 marks)






(4)
Question No. 11

Calculate the variance of the following pairs of observations: {(x,y) : (1,5), (2,4), (3,3), (4,2),
(5,1)}

(1) 1
(2) -1
(3) - 2
(4) - 3
(1.6 marks)
Question No. 12

The median of 7, 12, 14, 15, 20, 19 is

(1) 14.5
(2) 14
(3) 15
(4) 15.5
(1.6 marks)
Question No. 13

A biotech lab has weighed its plant saplings (in grams). Results were as follows.

11 10 12 14 13 15 9
What would be the sample mean and standard deviation of these saplings?

(1) Mean 12g, =2g.
(2) Mean 13g, =4g.
(3) Mean 12g, =4g.
(4) Mean 14g, =3g. (1.6 marks)

Question No. 14

Find the income percent on 10% debentures of par value Rs. 100 and available at Rs. 125 in the
market.
(1) 8%.
(2) 10%
(3) 12%
(4) 14%

(1.6 marks)
Question No. 15

If A and B are two mutually exclusive events such that P (A) =1/3 and P (AUB) =, then P (B)
is
(1) 5/12
(2) 2/3
(3) 7/12
(4) 11/12
(1.6 marks)
(5)


Question No. 16

There were five teams competing for a football championship

Team No. of wins No. of loss Draw
A 5 1 4
B 3 3 4
C 3 4 3
D 3 3 4
E 4 2 4

Using probability theory, what is the probability that team A will win the championship ?.

(1) 40%
(2) 50%
(3) 30%
(4) 45% (1.6 marks)


Question No. 17

Find the number of ways of choosing a team of 11 persons from a panel of 15 if two particular
persons out of the 15 must be in that team.

(1) 715
(2) 390
(3) 78
(4) 415 (1.6 marks)

Question No. 18

The consumer price index increased from 3,800 to 4,500 during the year 2009. What would
have been inflation in 2009?

(1) 15%.
(2) 18%.
(3) 17%.
(4) 16%. (1.6 marks)







(6)
Question No. 19

A survey was made of the number of people attending church services on one particular Sunday
morning. A random sample of 500 churches was taken. The results are as follows:
Number of people
attending
1 20 21 40 41 60 61 100 101 200 201 - 300
Number of churches 46 110 122 100 86 36

Find the probability that in each of 3 churches chosen at random from the sample, the number of
people attending was less than 61.
(1) 0.623
(2) 1.001
(3) 0.234
(4) 0.172
(1.6 marks)
Question No. 20

Which statement reflects the base year correctly?

(1) Base year is fixed and cannot be changed.
(2) In the base year, interest % is at the lowest.
(3) Base year has to be changed periodically.
(4) In the base year, inflation % is at the highest.
(1.6 marks)

Question No. 21

In a certain factory turning out razor blades, there is a small chance of 1/100 for any blade to be
defective. The blades are supplied in packets of 10. In a consignment of 10,000 packets, how
many packets are expected to have no defective blade?
(1) 10,100
(2) 9,048
(3) 8,951
(4) 1,000
(1.6 marks)
Question No. 22

Students A B C D E F G
Accountancy rank 7 3 1 5 2 4 6
Maths rank 6 5 2 4 3 1 7
(d)
2
1 4 1 1 1 9 1
Calculate the Spearmans Rank Correlation.
(1) 0.62
(2) 0.38
(3) 0.32
(4) 0.67
(1.6 marks)
(7)
Question No. 23

For a set of bivariate data, the mean values of x and y are and 3 respectively, the regression
coefficient of y on x is 2/3 and that of x on y is -1/4. Then the equations of regression lines are
given by

(1) 3x +2y =10, 4y - x =5
(2) 2x +3y =5, y +4x =15
(3) 2x +3y =10, y +4x =5
(4) 2x +3y =15, y +4x =20


(1.6 marks)


Question No. 24

Coefficient of variation is defined as,

(1) Standard deviation x 100
Mean
(2) Mean x 100
Standard deviation
(3) (Standard deviation) 2 x 100
Mean
(4) Mean x 100
Variance

(1.6 marks)
Question No. 25

A company wishes to monitor the relationship between its sales and advertising expenses.

Based on the study n =10, xy =4,728, x =320, y =130, x
2
=12,614. Determine the
relationship.

(1) y =5.3 +x
(2) y =3.3 +0.2x
(3) y =1/5x
(4) y =5.3 +0.23x

(1.6 marks)






(8)

Copyright Reserved


No. of Pages = 03
No. of Questions = 07



THE INSTITUTE OF CHARTERED ACCOUNTANTS OF SRI LANKA



CERTIFICATE IN ACCOUNTING & BUSINESS - I EXAMINATION
SEPTEMBER 2010



PAPER 'B' (60 marks)




02104 - BUSINESS MATHEMATICS AND STATISTICS


Time allowed : 2 hours Marks : 60 marks

Instructions to candidates:

(1) Answer any five (5) questions and submit all workings.
(2) Begin each answer on a separate page.
(3) A booklet containing formulae & mathematical tables is provided.
(4) All answers should be in one language, in the medium applied for, in the answer booklets provided.
__________________________________________________________________________________________
Question No. 01

(a) A Middle East country has oil reserves in 2010 amounting to 200 million liters. It
estimates that the oil reserves will dwindle by 12% each year(on a reducing balance
method). In which year will they lose 50% of the oil reserves?
(4 marks)
(b) Nimal joined as an executive on his 21st birthday. His initial salary per month is
Rs. 10,000. Assuming that he would earn constant increment of 10% each year,
determine his salary when he reaches retirement at 55 years.
(4 marks)
(c) The Gratuity Act prescribes that gratuity needs to be provided as half the last monthly
salary multiplied by the years of service. Based on your answer in (b), calculate Nimals
gratuity benefit at the time of his retirement.
(4marks)
(Total 12 marks)



Question No. 02

The total cost ($C) of a manufacturer of calculators is given by the equation C =12W +40,000,
where W is the total number of calculators produced. The manufacturer sells these calculators to
a supplier at a fixed price of $32 each.
(a) Find the manufacturers cost when 1,000 calculators are produced. (4 marks)

(b) Will the manufacturer make a profit when 1,000 calculators are produced? (4 marks)

(c) How many calculators must this manufacturer produce in order to break-even. (4 marks)
(Total 12 marks)
Question No. 03

A survey was made of the masses of pebbles (to the nearest gram) on a beach and the following
results were obtained.

Mass (grams) 1 40 41 100 101 200 201 300 301 400
Frequency 26 46 75 68 8

Calculate the mean and standard deviation of the masses of these pebbles. (12 marks)

Question No. 04

(a) On average a large cauliflower vegetable weighs 1 kg. Assuming the weight is normally
distributed with a standard deviation of 0.15 kg., determine how many cauliflowers will
have a weight of less than 1.13 kg. in a lorry load of 800 cauliflowers.
(Hint: Normal Distribution Tables)
(6 marks)
(b) An NGO, which is involved in empowering the living standards of rural women in
Bangladesh carried out a survey. Its findings revealed that 28 out of 100 women are
either widows or single mothers. Determine at 99% confidence level, the population
proportion of widows and single women in Bangladesh.
(6 marks)
(Total 12 marks)
Question No. 05

(a) Of the customers visiting the stereo section of a large electronic store, 75% on average
makes a purchase.
Calculate the probability that, out of 14 customers, at least 12 customers make a
purchase.
(6 marks)
(b) Scientists have found that the blood glucose level in diabetic patients are normally
distributed with a mean blood glucose level of 130 mg/dl and a variance of 25 mg/dl.
(milligrams per decilitre)
A sample of 100 diabetic patients blood samples revealed the mean blood glucose level
at 129.25 mg/dl.
Test @ 5% level of significance whether the sample survey readings are not what was
expected. (6 marks)
(Total 12 marks)
(2)
Question No. 06

(a) Briefly describe what is meant by least square regression. (2 marks)
(b) A manufacturing company has tabulated its energy bill and the production output. The
manager wishes to determine whether there is a relationship between the output and
energy bill. Calculate the correlation coefficient (r) and estimate the energy bill if the
output increases to 40,000.

(10 marks)
Question No. 07 (Total 12 marks)
(a) What is meant by cyclical variations? What is the difference between cyclical variation
and seasonal variation?
(b) The quarterly data of tourist arrivals to the city of Colombo is given below::

















(i) Calculate the four quarterly moving average trend.
(ii) Using the multiplication model, and the following seasonal factors, calculate the
seasonally adjusted tourist arrivals for the period 2007 - 2010.
Q 1 - 1.045 Q 2 - 1.343
Q3 - 0.765 Q4 - 0.847
(iii) Why do you need to adjust tourist arrivals for the seasonal factor?. Explain briefly.
(3) (12 marks)

Output (000s) Energy Bill (Rs. 000)
16 170
20 240
23 260
25 300
25 280
19 230
16 200
12 160
19 240
25 290
28 350
12 200
240 2,920
Quarter Tourist arrivals (000)
2007 2 31
3 18
4 20
2008 1 25
2 33
3 19
4 21
2009 1 26
2 33
3 19
4 22
2010 1 27