Professional Documents
Culture Documents
Devi plans an education fund for her new born granddaughter; she wants to
have RM A by the time the child reaches 18 years old. She deposits RM B now
that pays 3.5% interest rate compounded every 3 months. If the accumulated
interest is RM 15 000. Determine the amount of A and B.
Solution
A=B+15000 P=B
n
A=P(1+ i)
0.035 72
B+ 15000=B(1+
)
4
B=RM 17192.52 A=RM 32192.52
The demand function of a tablet is q=20005 p , where p is the unit price
when q units are demanded.
(a) Determine the number of units to be produced in order to achieve
maximum revenue.
(b) Find the maximum revenue and the price of the tablet at maximum
revenue.
(c) Find an approximation for the exact revenue from selling the 101th unit
of tablet.
[4 marks]
[3 marks]
[4 marks]
[2 marks]
Solution
(a)
p=
2000q
2000 qq2
R ( q ) =pq=
5
5
1
R' ( q )= ( 20002 q )=0 q=1000
5
R (q)= {1} over {5} left (-2 right ) <0 thus when q=1000 revenue is maximum
.
2
2000(1000)(1000)
(b) R ( 1000 )=
=RM 200 000p=RM 200 .
5
1
'
(c) R ( 100 ) = ( 20002(100)) =RM 360
5
Page 1
45
40
35
30
25
20
15
10
5
0
x
0
10
20
30
40
State the four linear inequalities which define the region R shown in the
diagram above.
Hence, determine the maximum values of 5 x+3 y subject to the constraints
stated.
Solution
y2 x
x3 y
x+ y 20
4 x +3 y 120
The maximum value of 5 x+3 y
4
[6 marks]
B 6
5 5
Start
0 0
A 5
0 0
C 8
11 11
D 6
11 r
F 12
5 9
H 9
19 19 3
Finish
28 28
E 3
17 18 8
I 7
s 21
Page 2
Amir and Baha, play a two person zero-sum game. The pay off matrix below
indicates the gain or loss ( in RM ) for each choice of plan for Amir.
Plan A
Plan B
Plan C
Amir
Baha
Action 2
3
-1
2
Action 1
6
4
-3
Action 3
-3
-5
5
(a) If Amir chooses to play each plan with equal probabilities while Baha plays
safe all the time, determine the value of the game.
(b) Determine the optimal mixed strategy for Amir.
(c) Find the value of the game and state, with reason if this is a fair game.
[3 marks]
[4 marks]
[2 marks]
Solution
(a)
(b)
E=
1
3
1
3
1
3
)(
)( ) ( )
6
3 3 0
4
4 1 5 1 =
3
3 2
5 0
6
3 3
6 3 3
Using dominance strategy 4 1 5
3 2 5
3 2
5
Let Amir chooses Plan A and Plan C with the probabilities of p and 1-p
respectively.
When Baha chooses Action 1, E1=9 p3
When he chooses Action 2, E2= p+2
when he chooses Action 3, E3=8 p+5
By plotting the graph and using maximin strategy,
8
9
E1=E 3 p= 1 p=
17
17
Thus the optimal mixed strategy for Amir is to chooses Plan A and Plan C
Page 3
8
9
17
17
E=9
Sam want to take a loan of RM 145 000 for five years to buy a car. Republic
Bank charges him a nominal interest rate of 3.00% compounded monthly.
(a) Find the amount of his monthly payment.
[2 marks]
Whereas Nation Bank offers him the same loan with a simple interest of r %.
(b) Given that for both loans have similar monthly payment, find the value of r.
Sam decided to take the loan from Republic Bank.
(c) After 3 years, determine the amount of the loan that he would have already
paid.
[4 marks]
[3 marks]
Solution
0.03
12
=RM 2605.46
(a) R=145 000
0.03 60
1(1+
)
12
(b) A=60 R=156327.61=145 000 ( 1+r ( 5 ) ) r =0.0156=1.56
0.03 24
1 1+
12
(c) P=2605.46(
)=RM 60 618.58
0.03
12
The amount of the loan that he would have already paid
=145000 - 60618.58 = RM 84381.42
Section B ( 15 marks )
Answer any one question in this section
A hotel leases three types of room namely standard, superior and deluxe. The
number of standard rooms leased each month must not be more than 200. The
hotel also expects the total number of superior and deluxe rooms leased per
month will not exceed 200. Note that the hotel only has an annual maintenance
allocation of RM 8 880 000 and that the monthly maintenance per room for
each room type respectively is RM 1000, RM 2000 and RM 3000.
The estimated monthly profit obtainable is RM 500, RM 800 and RM 900 for
Page 4
A store has constant weekly demand of 120 units for one of its items and no
shortages are allowed. The price of each item is RM 25. The lead time to
receive an order is 2 weeks. Every item which is kept in stock incurs a cost of
RM 5 per year. The ordering cost is RM 30 per order.
(a) Calculate the recommended order quantity for this item.
(b) Estimate the annual inventory holding and ordering costs associated with [2 marks]
this item, hence the total annual inventory cost.
Page 5
[3 marks]
[2 marks]
[2 marks]
The store then decided to try out the backorder inventory policy, with a
backorder cost of RM 1.50 per unit per week.
(e) Calculate the total annual inventory cost of this policy.
(f) State, if the store should switch to the economic order quantity with
[5 marks]
backorders.
[1 marks]
Solution
2 6240 30
=273.64 274 units
5
273.64
5=RM 684.10
(b) Annual inventory holding cost=
2
6240
Annual inventory ordering cost=
30=RM 684.11
273.64
Total annual inventory cost
684.10+684.11+6240 25=RM 157 368.22
(c) r=dl=120 2=240units .
An order is placed when the inventory level is 240 units.
(a)
Q=
Cycle time
n 52 7
T= =
=15.962 16 working days
N 22.804
16
32
48
5+
78
2 (569.63 )
2 ( 282.28 )
+6240
30+6240 25=RM 157326.36
282.28
(f) The store should switch to the economic order quantity with backorders
since it has a lower total inventory cost.
Page 6
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