Business Math & Stat BCOM 1

BC: 301 Business Mathematics & Statistics Paper 2013
Solution University of Sargodha

Solved by iftikhar Ali (All errors & Omissions are
mine)
Note: Question No.1 is compulsory. Attempt any two questions from
each section. All questions carry equal marks.
Q. 1 Define any ten from the following terms: (20)
a. Relative Dispersion
Relative Dispersion is the percentage term of absolute dispersion. We
calculate absolute dispersion to measure the dispersion of the data in
the form of unit. For example Range, Quartile Deviation, Mean Deviation
& standard deviation, all these are the types of absolute dispersion. To
represent all these in percentage form we calculate relative dispersion.
For example Coefficient of Range, Coefficient of quartile deviation,
Coefficient of mean deviation & Coefficient of standard deviation &
others are types of relative dispersion.
b. Probability
Probability is the statistical measure to calculate the chance of
occurrence or chance of happening something or non-occurrence or not
happening something in a given random experiment. Its answer ranges
from 0 to 1.
c. Classification
Classification is simply the conversion of ungrouped data into grouped
data or it is simply present the data into rows & columns or in tabular
form having rows and columns.
d. Random Variable
A set of numerical values assigned to all possible outcomes of the
random experiment is called random variable. For example in a single
throw of die there are 6 outcomes 1, 2, 3, 4, 5 & 6 is random variable.
Random variable must be in numeric form.
e. Transpose of Matrix
Transpose of Matrix is
simply conversion of
original matrix. It is
example if:
2 3
A= 1 2 Then A t = 2
3
3 8
[ ]
simply the transposition of the original matrix or

rows in to columns and columns into rows of
represented with t of the original matrix. For
1 3
2 8
Prepared & Selected By Iftikhar Ali Msc Economics (AIOU), Certification in Chinese
History & Political Economy Howard University, Behavioral Economics (Toronto
University), Globalization (Howard University), American Capitalism (Cornell
University), Student of CMA (Certified Management Accountant) Institute of Cost &
Management Accountancy Pakistan. Teaching at Punjab College of excellence in
Commerce Kamra Cantt
f. Function
A function is a special relationship where each input has a single
output. It is often written as "f(x)" where x is the input value.
Example: f(x) = x/2 ("f of x is x divided by 2") is a function, because
each input "x" has a single output "x/2":
f (2) = 1
f (16) = 8
f (10) = 5
g. Annuity
Accumulation of amount or investment in series of payments or deposits
after a fixed period of time at certain rate of interest is called an
annuity. Annuity in which payments are deposited in the end of
intervals is ordinary annuity conversely an annuity in which payments
are deposited at the beginning of the time period is called annuity due.
h. Coefficient of Variation
The coefficient of variation expresses the standard deviation as a
percentage in terms of arithmetic mean. It is used as a criterion of
consistent performance, the smaller coefficient of variation, and the
more consistent in the performance.
Or
Coefficient of variation is used to compare the variability of two or
more than two series.
Coefficient of Variation = C.V =

i. Skewness
Skewness in statistics represents an imbalance and asymmetry from the
mean of a data distribution. In positive skewness mean > median >
mode whereas in negative skewness mean < median < mode. In other
words if the frequency curve has a longer tail to right, the distribution
is said to be positively skewed. If the frequency curve has a longer tail
to left, the distribution is said to negatively skewed.
j. Square Matrix
In mathematics, a square matrix is a matrix with the same number of rows and
columns. An n-by-n matrix is known as a square matrix of order n. Any two
square matrices of the same order can be added and multiplied. Square
matrices are often used to represent simple linear transformations, such as

shearing or rotation. For example
k. Compound Interest
Compound interest is interest calculated on the initial principal and also
on the accumulated interest of previous periods of a deposit or loan.
Compound interest can be thought of as interest on interest, and will
make a deposit or loan grow at a faster rate than simple interest, which
is interest calculated only on the principal amount. The formula for
compound interest is:
n
C . I =P(1+i) P
Where P is Principal Amount, i is interest rate & n is
number of time periods

l. Mode
Mode is a type of average. In ungroup data mode is the most repeated
value whereas in grouped data, the formula to calculate mode is given
below:
Section-I
Q.2 The following data given the average monthly wages in rupees of
workers in Mushtaq & Co (20)
Wages
of No.
of Wages
of No.
of
workers
Workers
workers
Workers
140-145
1
170-175
10
145-150
3
175-180
8
150-155
2
180-185
5
155-160
4
185-190
4
160-165
4
190-195
2
165-170
6
195-200
1
Find out arithmetic means, geometric mean & harmonic mean.

Solution
fx 8565
( i ) A . M X =
=
=171.3
f
50
( ii ) G. M = Antilog
( iii ) H . M =
flogx 111.63
=
= Antilog 2.2326=170.8441
f
50
f
50
=
=170.3577
f
0.2935
( )
x
Q.3 (a) Define Range, Mean deviation & Standard Deviation.

Answer
Range
The range is a simplest measure of dispersion. It is defined as the
difference b/w the largest and smallest observation in a set of data. It
is denoted by R. This is an absolute measure of dispersion.
Range = R =
Where
= the largest value.
= the smallest value.

Mean deviation
We calculate absolute dispersion to measure the dispersion of the data
in the form of unit. For example Range, Quartile Deviation, Mean
Deviation & standard deviation, all these are the types of absolute
dispersion.
Standard Deviation
Standard Deviation is a measure of the dispersion of a set of data from its
mean. The more spread apart the data, the higher the deviation. Standard
deviation is calculated as the square root of variance. There are lot of formulas
to calculate this but most common used is:
For ungrouped Data S.D = S =
For Grouped data S.D = S =
b. The following are the scores made by two batsmen, (A) & (B) in a
series of innings.
A: 12, 15, 6, 73, 7, 19, 119, 36, 84, 29
B: 47, 12, 76, 48, 4, 51, 37, 48, 13, 0
Who is better as a run getter? Who is more consistent player?
Answer:
Calculations For A
x 1 400
A .M =
=
=40
n
10
x 1/n
x 12
Variance=
n
400/10
29498
Variance=
10
= 2949.8 1600 = 1349.8
Calculations For B
x 2 336
A .M =
=
=33.6
n
10
x 2/n
x 22
Variance=
n
336 /10
16892
Variance=
10
= 1689.2 1128.96 = 560.24
Interpretation of Results
A is better as a run getter because average of A= 40 is greater than Bs
average = 33.6 where as B is better on the basis of consistency as Bs
Variation is 560.24 is less than As variance 1349.8
Q.4 (a)
The following are the figures of sales and profits of a

manufacturing concern for the year. Calculate Coefficient of Correlation.
Sales
in
Rs. 11
(000) X
Profit in Rs. Y
21
09
11
17
18
19
18
16
12
17
20
38
40
42
46
40
38
Solution
Formula
xy x y
n
n
n
r=
1. 2
( )( )
XX =
x 131
=
=14.56
n
9
, yX =
y 302
=
=33.56
n
9
1=
x x
(
)
n
n
1=(12.57)
2=
2021 131
(
)
9
9
11098 302
(
)
9
9
(224.56211.99)
1=3.545
y y
(
)
n
n
2=(106.85)
1=
2=
r=
32.7064
36.64112
(1233.121126.27)
4692 131 302
9
9
9
r=
( 3.545 ) (10.336)
( )( )
( )( )
521.34 488.6336
36.64112
2=10.336
xy x y
n
n
n
r=
1. 2
r=
r=
r=0.892
521.34 488.6336
36.64112
(Positive Relation)
(b) Following are the prices and quantities of two years for four
commodities.
Commodity
1980
1981
Price
Quantity
Price
Quantity
Wheat
30
110
32
112
Rice
40
100
38
110
Maize
25
50
22
80
Sugar
10
40
15
50
Calculate index number by using Laspeyres & Paaschess method,
taking 1980 as base.
Solution
Formulas
'
01
Laspeyr e s Index P =
'
01
Paasch e s Index P =
p1 q0
x 100
p 0 q0
pq
x 100
p q
Laspeyr e' s Index P01 =
p q
x 100
p q
Laspeyr e' s Index P01 =
9020
x 100=100.7821
8950
Paasch e s Index P =
pq
x 100
p q
Paasch e' s Index P01=
10274
x 100=100.1364
10260
'
01
Q.5(a) Three coins are tossed, what is the probability of getting:

(i) Exactly 2 heads (ii) At-least 2 heads (iii) Atmost 2 heads
Solution:
n
(S) = N where N (Aspects)= 2 & n = 3
(S) =
23
=8
All possible Outcomes

HHH, HHT, HTH, THH
TTT, TTH, THT, HTT

Events:
(i)
Exactly 2 heads (A) = 3
(ii) At-least 2 heads (B) = 4
(iii) Atmost 2 heads (C) = 6
Probability:
(i)
P ( A )=
( A) 3
= =0.375
( S) 8
(ii)
P (B)=
(B) 4
= =0.5
(S ) 8
(iii)
P (C ) =
(C) 6
= =0.75
(S) 8
(b) Two fair dice are thrown. What is the probability of getting?
(i) The sum of the face is 5 (ii) The sum of the face is 10 or more
(iii) A product of numbers on two dice is 12.
Solution:
n
(S) = N
(S) =
where N (Aspects)= 6 & n = 2

= 36
All Posible Outcomes
Events:
(i)
The sum of the face is 5 (A) = 4
(ii) The sum of the face is 10 or more (B) = 6
(iii) A product of numbers on two dice is 12 (C) = 4
Probability:
(i)
P ( A )=
( A) 4
= =0.12
(S) 36
(ii)
P (B)=
(B) 6
= =0.167
(S ) 36
(iii)
P (C ) =
(C) 4
= =0.12
(S) 36
Section-II
Q.6 : Solve for X & Y: 2X + 5Y = 30; 3X 2Y = 7
2x + 5y = 30 & 3x - 2y = 7
Solution
2x + 5y = 30 (i)
3x - 2y = 7 (ii)
Multiply equation (i) by 3 & (ii) by 2 to eliminate x
6x + 15y = 90
6x - 4y = 14
11y = 76
y = 76/11 = 6.909 Put y = 6.909 in any equation to get x
3x - 2y = 7 (ii)
3x 2(6.909) = 7
3x 27.636 = 7
3x = 7 + 27.636
3x = 34.636
x = 34.636/3
= 11.5454
so x = 11.5454 & y = 6.909
(b) The length of a rectangle is 5 meters more than its width. If the
perimeter is 60 meters, find the dimensions of the rectangle.
Solution
Assuming you mean the field is a rectangle...
Let the width be x
The length will be x+5
The perimeter will be length + width + length + width = x+5 + x + x+5
+ x = 4x + 10
We know the total perimeter is 60.
So, we have:
4x + 10 = 60
4x = 60 10
4x = 50
x = 50/4
x = 12.5
So the width will be 12.5 meters & length will be x+5 = 12.5 + 5 = 17.5
meters
Therefore the width is 15 meters and the length is 31 meters
Check: 2 x 12.5 + 2 x 17.5 = 25 + 35 = 60
[ ] [
3 5 4
A= 2 6 5
1 3 7
Q.7 If
1 4 3
B= 8 2 5
3
5
6
Then find: i. A + B, ii A B, iii. AB

Solution:
A + B=
3+(1)
5+4
4+(3)
2+8
6+(2)
5+5
1+3
3+5
7+6
2 9 1
A + B= 10 4 10
4 8 13
4
1 7
A + B= 6 8 0
2 2 1
3 (1 )+5 x 8+4 x 3 3 x 4 +5(2)+ 4 x 5 3 (3 )+ 5 x 5+4 x 6

AB= 2 (1 ) +6 x 8+5 x 3 2 x 4 +6(2)+5 x 5 2 (3 ) +6 x 5+5 x 6
1 (1 ) +3 x 8+7 x 3 1 x 4 +3(2)+ 7 x 5 1 (3 ) +3 x 5+7 x 6
3(1)
54
4(3)
AB= 28
6(2)
55
13
35
76
[
[
3+40+ 12 12+(10)+20 9+25+ 24

AB= 2+48+15 8+(12)+25 6+ 30+30
1+24+ 21 4+(6)+35 3+15+ 42
49 22 40
AB= 61 21 54
44 33 54
Q.8 (a) Solve the equation by quadratic formula;
6 x 13 x+ 6=0
Solution:
a = 6, b = -13 c = 6
x=
b b24 ac
2a
13 13 24 ( 6 ) (6)
x=
2(6)
x=
13 5
12
x=
13+ 5
12
x=
135
12
x=
18
12
= 1.5
8
12
= 0.67
x=
So S . S [1.5,0.67 ]
(b) Find the compound interest on Rs. 4000 for one year at 8% payable
quarterly.
Data C.I = ?, P = 4000, n = 1 year = 1 x 4 = 4, i= 8%= 8/4 = 2% = 2/100
= 0.02
Formula
C . I =P(1+i)nP
4
C . I =4000(1+ 0.02) 4000

C . I =4000(1.0824 )4000
C . I =4329.64000
C . I =329.6
Q.9 (a) If Rs. 200 are invested each year at 5% interest compounded
annually. What would be the total amount of the investment after ten
years?
Solution:
We assume here an ordinary annuity because it is not given in the
question
R = 200, n = 10 , i = 5% = 5/100 = 0.05
S = R
( 1+i ) 1
i
S = 200
( 1+ 0.05)101
0.05
S = 200
0.6289
0.05
S = 200 x 12.578
S = 2515.6
(b) Find the amount of an annuity of Rs. 500 payable at the end of each
year for 10 years if the interest rate is 6% compounded annually.
Solution:
R = 500, n = 10 , i = 6% = 6/100 = 0.06
S = R
( 1+i ) 1
i
S = 500
( 1+ 0.06) 1
0.06
S = 500
0.7908
0.06
10
S = 500 x 13.18
S = 6590

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BC: 301 Business Mathematics & Statistics Paper 2013

Solution University of Sargodha

simply the transposition of the original matrix or

Coefficient of Variation = C.V =

matrices are often used to represent simple linear transformations, such as

Where P is Principal Amount, i is interest rate & n is

number of time periods

Find out arithmetic means, geometric mean & harmonic mean.

Q.3 (a) Define Range, Mean deviation & Standard Deviation.

= the largest value.

= the smallest value.

For ungrouped Data S.D = S =

For Grouped data S.D = S =

= 2949.8 1600 = 1349.8

= 1689.2 1128.96 = 560.24

The following are the figures of sales and profits of a

4692 131 302

Laspeyr e' s Index P01 =

Laspeyr e' s Index P01 =

Paasch e' s Index P01=

Q.5(a) Three coins are tossed, what is the probability of getting:

All possible Outcomes

TTT, TTH, THT, HTT

where N (Aspects)= 6 & n = 2

All Posible Outcomes

Then find: i. A + B, ii A B, iii. AB

3 (1 )+5 x 8+4 x 3 3 x 4 +5(2)+ 4 x 5 3 (3 )+ 5 x 5+4 x 6

3+40+ 12 12+(10)+20 9+25+ 24

Q.8 (a) Solve the equation by quadratic formula;

C . I =4000(1+ 0.02) 4000

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