*REVIEW FOR THE FINAL *

The hope is that this will prepare you for the final. If you work out the problems
diligently, bring up questions as necessary and review daily, the final will seem like
just another exercise. Here we go:

Fractions
1) 1/3 + 2/5 * 2/9 – 2/7 =

Multiply the 2/5 by 2/9

1/3 + 4/45 – 2/7 = Find a common denominator

Denominator = 315

The first fraction of 1/3 converts to 105/315

The second fraction of 4/45 converts to 28/315 and
The last fraction converts to 90/315.

You now have: 105 + 28 – 90 = 43

315 315

Answer: 43/315

2) 7/16 divided by 1/8 =

Answer: 7/2 or 3 ½
7/16 * 8/1 = 56/16 = 7/2 or 3 1/2

Conversion of fractions, decimals and percents

Express as a percent:

3) 2.045

Answer: 204.5%

4) 2/225 =

Answer: .888%

5) .876 =

Answer: 87.6%

6) .00456 =

Answer: .456%

Express as a decimal: (Round to at least two decimals)

 7) 3/125 =

Answer: .024

8) 6/57 =

Answer: .10526

Express as a fraction:

9) 2.075 =

Answer: 2 3/40

10) .0035% =

Answer: 7/200,000

Order of Operation

11) (-4) + (-6)(-8) divided by [16 – (-1)] =

(-4) + (-6)(-8) = (-4) + 48 = 44

16 – (-1) 16 + 1 17

Answer: 44/17

12) (-7)(5)(+2) divided by (10 +7) =

(-7)(5)(+2) = (-35)(2) = -70

10 +7 17 17

Answer: -70
17

Evaluation Problems

13) Given the equation X = Y3 + Z/2 divided by [K - 3], Find X when K = (-7), Y =
3 and Z = 6

(3)3 + 6/2 = 27 + 3 = 30 = -3
-7 – 3 -10 -10

Answer: -3
Solve for "x":

14) 3x + 7 = 2(4x –5) –2x =

 3x + 7 = 8x –10 – 2x
3x + 7 = 6x – 10
-3x = -17
x = 17/3

Answer: x = 17/3 or 5 2/3

15) 7(y –2) +4 = 3(8y + 7) =

7y – 14 + 4 = 24y + 21
7y – 10 = 24y + 21
-17y = 31
y = 31/-17

Answer: y = - 31/17 or – 1 14/17

Counting Techniques

16) Interpret the following: (BA II PLUS usage)

• 12! /7! = {12, 2nd, X! / 7, 2nd, X!, =}, = 95,040 (12 x 11 x 10 x 9 x 8)

• 8! /(8 - 4)! = {8, 2nd, X! / 4, 2nd, X!, =}, = 1,680 (8 x 7 x 6 x 5)

Intersection % Union of Sets, Venn diagrams

15) In the rolling of a fair die, what is the probability of rolling an even number or a
number that is less than 3?

Solution:

Let A be the event that consists of observing an even number, and B a number that is
less than 3.

P (A) = P (Even #) = P (2, 4, 6) = ½ and

P (B) = P (# < 3) = P (1, 2) = 2/6 or 1/3, thus

P (A U B) = P (A) + P (B) – P (A ∩ B) =
½ + ⅓ – 1/6 = 4/6 o 2/3
16) Given X = {2, 5, 7} and Y = {3, 4, 5} depict these two sets as a union and an
intersection, i.e., (x U y) =? and (x ∩ y) =?

Solution:
Union: = {2, 3, 4, 5, 7} Intersection: = {5}

Depreciation Expense

A Widget maker was purchased at a cost of $225,000. Depreciation will be calculated on

the Straight-line method over a period of 20 years. The salvage value of this machine is
$25,000. Answer the following question:

17) What is the annual depreciation expense?

Answer: Depreciation = $10,000 per year

18) What is the value of the equipment after 11 ½ years?

Answer: The value formula after T years is: V = $225,000 - $10,000 * T. When
T = 11.5, Value = V = $225,000 - $10,000 * 11.5 = $225,000 - $115,000 = $110,000

19) Give me the depreciation expense for a piece of machinery purchased on April
17th. Assume that the end of this company’s fiscal year is December 31st. If the
yearly depreciation is $1,500, how much can be depreciated in this first year?

Since the purchase of this machinery was after the 15th, that month, April cannot be
depreciated thus, 8 months remain that can or 2/3rds of the $1,500 or $1,000.

Answer: $1,000

Graphing

20) Given the following two points, (-3, 4) & (3, -6) develop the slope of a line.

4 – (-6) = 4 + 6 = 10 = 5
-3 – 3 -6 -6 -3

Answer: m = - 5/3

23) Place the equation –2x + 3y = 15 in the slope intercept format.

Answer: y = 2/3x + 5

Word Problems

24) Geraldo has 75 items of clothing, all hats and ties. The total value of these items
is $295.50. If the ties cost $3.50 each and the hats $4.50, how many of each does
he have?
 H + T = 75
H=H
T = 75 - H
4.50H + 3.50(75 – H) = 295.50
450H + 350(75 – H) = 29550 (notice no decimals)
450H + 26,250 – 350H = 29,550
100H = 3,300
H = 33 thus
33 + T = 75
T = 75 –33 or 42

Answer: Hats = 33, Ties = 42 33(4.50) = $148.50, 42(3.50) = $147.00.

$148.50 + $147.00 = $295.50…it proves out.

25) Geraldo also has a number of belts and shirts. He has 4 times the number of
belts as shirts. Shirts cost $9.00 each while belts cost $4.00. If the total value of all
the belts and shirts totals $150.00, how many of each item does he have?

Shirts = S
Belts = 4S
9S + 4(4S) = 150
9S + 16S = 150
25S = 150
S = 6, thus shirts = 6
B = 4(6) or belts = 24

Answer: Shirts = 6 x $9.00 = $54.00, Belts = 24 x $4.00 = $96.00

$54.00 + $96.00 = $150.00, it proves out.

26) From the following statistical sample, develop the mean, mode and median.

14 17 8 11 4 17 17 7 6

Solution:

First you need to place the observations in numerical order.

4 6 7 8 11 14 17 17 17

a) mean = 11.22
b) mode = 17
 c) median = 11

27) Compute the standard deviation [sigma x] of the above sample.

Answer: Standard Deviation = 4.89

28) Given the following observations and their related frequency of

occurrence, develop the mean, mode, median and standard deviation.

Observation Frequency
60 33
70 42
80 25
90 50

Solution:

Mean = 76.13
Mode = 90
Median = 75
σ x = 11.59

These are the steps to solve #3:

1) Reset your calculator.
2) Select 2nd, Data
3) When you see X01 = 0.00, put the number 60 in and hit ENTER.
a) This is your first observation.
b) Now select the down arrow ↓, this is the 4th key from
the left in the top row.
4) When you see Y01 = 1.00, put in the corresponding frequency to the
first observation, that would be 33, then hit ENTER.
Remember, the X01 is the observation, the Y01 is the frequency of that
observation.
5) Go up and hit the down arrow ↓ again and you will now see X02. The stage
Is now set for the 2nd observation and its corresponding frequency.
6) Keep repeating these steps until all of the observations and frequencies have
been entered.
7) Now select 2nd, STAT
8) The first time you select the 2nd, SET sequence, you will see LIN, hit 2nd , SET
again and you will get Ln, do it again, you will get EXP, again, you will see
PWR and do it again, one more time and you will get 1-V. This is where you
have to be.
9) Now all you have to do is look at the results. This is accomplished by the use of
the down arrow ↓.
10) Each time you depress the down arrow you will obtain certain information
about the data you entered.
11) The “x” with the horizontal bar directly above it represents the MEAN or
Average. The other information you will get will be the standard deviation. It
Will show up two ways: Sx and σ x. The answer I am looking for is the σ x.
12) The remaining information I require, the Median and Mode must be determined
by you.
13) The mode is easy, which of your observations has the greatest frequency? In
other words, which one shows up the most? It’s obviously the 90, it shows up
50 times.
14) The Median takes a bit more effort:

There are two ways of determining the median and it depends on whether or not
the number of observations or measurements is odd or even. Lets look at an even
number of measurements first. We will use the above observations and their
corresponding frequencies:
Note: The numbers are in ascending order…this is central to your ability in
determining the median of a given sample.

Step 1: Count the number of frequencies for each of your observations.

This totals to 150.
Step 2: Divide this total by 2. 150/2 = 75.
Step 3: Counting left to right (or, based on the way they are
listed, vertically) count to the 75th number. This would
be the 75th observation or the number 70.
Step 4: Take the 76th number is sequence, which is 80, add it to
the 70 (70 + 80) and divide this by 2 to get the median
of 75. This is the geographical center of your observations.

For an explanation of the odd number of frequencies, refer to the lecture on statistics.

Compound Interest, Annuities and Sinking Funds

29) Find the monthly payment on a loan for $2,000 to be amortized over 2 years at 18%
compounded monthly.

STEPS: 1) 2,000. PV 2) 2nd , P/Y, 12, Enter, 2nd, Quit; 3) 2, 2nd, N, N, 4) 18, I/Y, 5)
CPT, PMT

Answer: $99.85

30) A debt of $10,000 is to be amortized with 6 equal semiannual payments. Find the
semiannual payment if interest is at 14% compounded semiannually.
STEPS: 1) 2nd P/Y…key in 2, ENTER, 2nd, QUIT 2) 10,000, PV 3) 3, 2nd, N, N
[that’s three (3) years] 4)14, I/Y 5) CPT, PMT

Answer: $2,097.96

31) A savings plan has been determined that would allow for payments of $75 at the
end of each month for a period of 16 years. If interest is earned at a rate of 6
% compounded daily what is the Value of the Annuity at the end of the 16-year period?

STEPS: 1) 2nd, P/Y…the 12 is OK since payments are to be made monthly. Arrow

down and key in 365, ENTER, 2nd QUIT. 2) 75, +/-, PMT 3) 6, I/Y 4) 16, 2nd, N, N
5) CPT, FV.

Answer: $24,113.96

32) A used car is to be purchased at a cash price of $3,200 with $200 down and a
finance rate of 7%. Repayment is to be made over a period of 12 months. Find the
monthly payment.

STEPS: 1) 3,200 – 200 = 3,000…key in 3,000, PV 2) 7, I/Y 3) 2nd, P/Y, 12, Enter,
2nd, Quit; 4) 1, 2nd, N, N 5) CPT, PMT.

Answer: $259.58

33) A couple purchased a home and signed a mortgage contract for $50,000 to be paid
in equal monthly payments over 29 years with interest at 12% compounded monthly.
If taxes and insurance totals $1,200.00 per year, what is their total monthly
payment? Using the 25% rule, what must their yearly income be in order to qualify for
this mortgage?

STEPS: 1) 50,000, PV 2) 2nd , P/Y, 12, Enter, 2nd, Quit; 3) 29, 2nd, N, N 4) 12, I/Y
5) CPT, PMT 6) Divide 1,200 by 12 to get monthly taxes and insurance, add to
mortgage payment of 516.18 to get total monthly payment. 7) Divide $616.18 by .
25(which is 25%) and multiply by 12 to get yearly income. In simple language, what
you make in ¼ of a month or one week must be equal to what the Principal, Interest,
Taxes and Insurance are for the entire month. That will give you the monthly
income needed, to get the annual income, just multiply by 12.

Answer: Total Monthly Payment = $616.18, Yearly income required = $29,576.64

34) A company is issuing a bond for capital expansion and has promised to repay
the investors the amount of $120,000 in 8 years. If the company plans to set aside
periodic payments every quarter for 8 years, earning 6.5% compounded daily,
what would their quarterly payments be?
STEPS: 1) 2nd, P/Y, 4, ENTER, arrow down, 365, ENTER, 2nd, QUIT 2) 120,000,
FV 3) 8, 2nd, N, N 4) 6.5, I/Y 5) CPT, PMT.

Answer: $2,882.55

35) I will be investing, at simple interest, the amount of $1,500. I anticipate that
this amount will grow to $2,500 over a period of 7 years. At what rate of interest must
I invest in order to accomplish this goal?

STEPS: 1) I = PRT,
2) $1,000 = $1,500R(7)
3) $1,000 = 10,500R,
4) Divide both sides by 10,500
5) 1,000/10,500 = .0952 rate of interest or 9.52%

Break-Even Analysis

36) A Junior College is offering a special course in sculpturing for which tuition will be
$75 per student. The college has found that the cost of the course is $700 plus $25 for
each student who enrolls in the course. How many students must take the course for the
university to break even?

Solution:

Break Even: Cost = Revenue

Cost = 25x + 700

Revenue = 75x
x = # of students
$700 = Fixed Costs

75x = 25x + 700

50x = 700
x =14 students

Proof:

75(14) = 25(14) + 700

1,050 = 350 + 700
1,050 = 1,050, thus

14 students enrolled represents the Break Even point.

37) A manufacturer produces items at a daily cost of $10.30 per item and sells them for
$14.80 per item. His daily operational overhead is $1,800. How many items must be
produced and sold in order to have a profit?
Solution:

Cost = Revenue

10.30x + 1,800 = 14.80x, thus

1,800 = 4.50x

x = 400

Proof:

10.30(400) + 1,800 = 14.80(400)

4,120 + 1,800 = 5,920

5,920 = 5,920

Since this represents the break-even point x > 400 in order to have a profit.

Supply & Demand

38) Find the market price for sugar given the following information:

• S = .7p + .15
• D = - .4p + .45

Where p is measured in dollars and S and D are measured in pounds units of sugar.

Solution:

Market Price is achieved when Supply equals Demand.

.7p + .15 = -.4p + .45, thus

1.1p = .30, Divide both sides by 1.1, thus

p = .2727 or p = 27 cents per pound

Probability

39) 18 marbles are in a box. Of those 18, 7 are green, 5 are blue and the remaining 6
are red. What is the probability that a green marble will be selected?

P (E) = m The Probability of an Event happening is the m ways out of a possible n

n possible equally likely outcomes of a sample space.

Solution:
P (E) = 7
18

40) A single die is rolled. Find the probability of rolling

· a 3, = P (3) = 1/6
· an even number, = P (2, 4, 6) = 3/6 = 1/2
· a 4 or 5, = P (4 or 5) = 2/6 = 1/3
· an 8, = P (8) = 0/6 = 0 (Absolutely no possibility)
· a number greater than “0” = P (# > 0) = 6/6 = 1 (A 100% possibility)

41) Suppose two dice are rolled. What is the probability that the sum of the two dice will
be?
a. 6? b. 12?

Solution:

a. There are 36 possible outcomes so n = 36. Let m be the event of getting a 6 on the
dice, so m contains 3 outcomes:

m = {(1,5), (2,4), (3,3), (5, 1), (4, 2)}

Thus the probability of m, or P (m) = 5/36

b. This is handled the same as part a. There are 36 possible outcomes so n = 36. Let m
be the event of getting a 12 on the dice, so m contains only 1 possible outcome:

m = {(6,6)}

Thus the probability of m, or P (m) = 1/36

42) A recent survey indicated that 67.2% of students polled enjoyed classes that consisted
of team project work. What is the Theoretical Probability that a randomly selected
college student would NOT enjoy classes consisting of team project work?

Solution:

Using the formula P (not E) = 1 – P (E) we have

P (those who do not enjoy Project Work) = 1 – (those who do enjoy Project work)

= 1 - .672 = .328

43) If a baseball player is at bat 342 times and gets 106 hits (walks are not counted) what
is the Empirical Probability of his getting a hit his next time up?
Solution:

Empirical Probability is the kind of probability that requires the individual to observe the
actual outcomes of an experiment when it is repeated many times. Thus, to compute
Empirical Probability you need to divide the number of times the event has occurred by
the total number of times the experiment has been performed.

106/342= 53/171 or.310

44) 200 raffle tickets were sold for a trip to Jamaica and one person purchased 65 of
them. What are the odds against the man winning the trip?

Solution:

P (E) = 65/200 or 13/40

P (Not E) = 1 – 13/40 or 27/40

45) Suppose we compare probability to odds such that the P (E) = ¼. What are the odds
against the event occurring?

Solution:

The odds against an event occurring are a to b, where

a = probability E will not occur = 1 – P (E) thus

b probability E will occur P (E)

a=1–¼=¾=3
b ¼ ¼ 1
So the odds are 3 to 1

46) Using the multiplication rule for probability

P (A and B) = P (A) • P (B|A)

If two cards are randomly drawn from a deck of 52 cards, what is the probability that
both cards will be Queens? How about 3 Queens in a row?

Solution:

a. From the multiplication rule above we know that

P (first card a queen and second card a queen)

= P (first card a queen) • P (second card a queen|first card a queen)
Because there are 4 queens in the deck of 52 cards, we have

P (first card a queen) = 4/52

After the first queen is drawn, there are 3 queens in a deck of only 51 cards, and
We see that

P (second card a queen|first card a queen) = 3/51

Therefore,

P (first card a queen and second card a queen) = 4/52 • 3/51 = 1/13 • 1/17 = 1/221

b. Applying the multiplication rule twice, we see that P (all three queens)
is given by

P (first card a queen) • P (second card a queen|first card a queen) • P (third card a
queen|first and second cards are queens)

Therefore we have

P (all three cards queens) = 4/52 • 3/51 • 2/50 = 1/13 • 1/17 • 1/25
= 1/5,525