Quantitative Methods For Business 1st Edition John Buglear - Solutions

8.5 A cab driver pays for fuel, vehicle servicing and maintenance every 3 months, and an annual operating licence. The prices of these in 2003 and in 1999, together with the quantity of each that was purchased during 1999, are:Price in Price in Quantity bought 2003 (£) 1999 (£) in 1999 Fuel
8.4* Zackon Associates, international corporate lawyers, use both email and fax to transmit documents. The company accountant has worked out that the price of sending a document by fax has increased from £0.25 in 1998 to £0.45 in 2003. The price of sending a document by email has increased from
8.3 A pizza manufacturer purchases cheese, pepperoni and tomato paste. The prices of these ingredients in 1999, 2001 and 2003 were:1999 2001 2003 Cheese (per kg) £1.75 £2.65 £3.10 Pepperoni (per kg) £2.25 £2.87 £3.55 Tomato paste (per litre) £0.60 £1.10 £1.35(a) Calculate a simple
8.2* An office manager purchases regular supplies of paper and toner for the photocopier. The prices of these supplies (in £) over the years 2001 to 2003 were:2001 2002 2003 Paper (per 500 sheets) 9.99 11.99 12.99 Toner (per pack) 44.99 48.99 49.99 Calculate a simple aggregate price index for the
8.1 An oil refining company buys crude oil to process in its refineries.The price they have paid per barrel has been:Year 1997 1999 2001 2003 Cost ($) 22 13 28 25(a) Calculate a simple price index for(i) the price in 2003 relative to 1997(ii) the price in 2001 relative to 1997 (iii) the price in
7.20 Select the appropriate definition for each term on the lefthand side from the list on the right-hand side.(i) regression equation (a) another name for Y(ii) Pearson correlation (b) measures association coefficient in ranked data(iii) coefficient of (c) X increases as determination Y
7.19 An economist studying the market for designer watches has produced a regression model to describe the relationship between sales of the different brands of watch (in thousands of units) and the advertising expenditure used to promote them(in £m).Sales 4.32 6.69 Advertising expenditure R2
7.18 An international road transport consultant wants to see if the extent of a country’s motorway network (in kilometres)depends on its land area (in thousands of square kilometres).She has collected figures for a selection of European countries:Land area: 84 31 43 337 544 357 132 41 69 301
7.17 A leak of a hazardous substance at a chemical plant means that all employees working in the area of the plant affected have been tested for contamination. The following figures are the hours worked in the affected area since the leak and the contamination levels (in parts per million) of the
7.16 The annual turnovers (in £000m) and numbers of employees(in 000s) of 12 major retail companies are:Turnover: 20.1 14.0 10.7 10.6 8.6 8.1 5.5 4.9 4.6 4.5 4.3 4.1 Employees: 126 141 107 101 92 70 52 34 57 32 47 26(a) Which variable should be the independent (X) variable?(b) Portray these data
7.15 The percentages of workers in trade unions and the mean hourly wage in nine US states are:Union membership (%): 7.5 17.2 9.1 16.1 25.4 Mean hourly wage ($): 13.80 16.81 13.40 18.00 20.00 Union membership (%): 16.9 23.7 19.5 9.2 Mean hourly wage ($): 15.60 16.63 16.07 11.51(a) Which one of
7.14* An estate agency employs ten qualified sales consultants. The annual salaries and years of experience in the business of these ten are as follows:Salary (£000): 13 18 19 22 25 27 31 36 38 42 Experience(years): 1 4 3 2 7 8 5 13 20 22(a) Which variable is the independent (X) variable?(b)
7.13 The classified advertisement columns of a local paper contain details of 12 used cars of a particular make and model. The prices of these cars and the numbers of miles they have travelled are:Price(£000) 6.8 6.2 5.7 4.7 6.0 5.9 7.0 4.5 5.0 3.0 3.8 3.5 Mileage(000) 9 13 11 33 14 11 3 19 22 35
7.12 In a survey of commuting patterns ten respondents say that they cycle to work. The distances they travel and the mean journey times they report are:Distance (miles) 2 2 3 4 5 6 7 8 8 10 Mean journey time (minutes) 10 15 15 20 25 25 30 40 45 50(a) Which of these is the dependent variable (Y
7.11 Eight prominent football teams play in the same division. The total number of goals scored by each team last season and the league position each was in at the end of the season are:Goals scored 75 60 56 44 43 40 37 52 League position 2 5 9 10 14 16 17 22(a) Produce a scatter diagram to display
7.10* A consumer group has tested nine makes of personal stereo.The prices and the scores (out of 100) awarded to them by a panel of experts the group commissioned to test them, are:Price (£) 95 69 18 32 27 70 49 35 50 Score 74 63 28 33 37 58 38 43 50(a) Plot a scatter diagram to portray the data
7.9 Eight companies dominate a particular industry. The annual revenue and annual gross profit for these companies are as follows:Company Revenue (£m) Gross profit (£m)Mirovoy 2815 322 Materique 1139 198 Strannar 626 73 Malenky 557 41 Ribar 291 47 Krevetka 172 25 Meesh 144 33 Blochar 85 9(a) Rank
7.8 The ten best-selling cars were studied by a team of designers who ranked them for design and style. The same cars were studied by a team of road accident investigators who ranked them for safety. The results are set out below:Design ranking: 1 2 3 4 5 6 7 8 9 10 Safety ranking: 4 6 1 5 2 3 10 7
7.7 There are eight electoral wards in a town. The crime levels in these wards have been ranked by the local police, with the lowest crime area ranked 1, and the level of house prices ranked by a local estate agent, with the lowest price level ranked 1. The results are:Crime level: 1 2 3 4 5 6 7 8
7.6* A panel of film critics ranked what they consider the six best new films. Their rankings and the box office takings of the films to date are:Critics’ rank Takings ($m)1 2.2 2 0.8 3 7.3 4 1.6 5 1.0 6 0.5 Calculate the Spearman correlation coefficient for these data and comment on its value.
7.5 The cost of placing a full-page colour advertisement and the circulation figures of nine magazines are:Cost (£000) 9 43 16 17 19 13 20 44 35 Circulation (000) 135 2100 680 470 450 105 275 2250 695(a) Which of these variables should be the dependent variable(Y ), and why?(b) Plot a scatter
7.4 The weekly turnover and the total display area, in square metres, of eight ‘late night’ grocery shops are:Turnover (£000) 23 37 33 41 47 86 72 95 Display area (m2) 15 21 30 45 61 77 79 92(a) Identify which variable is the dependent variable (Y ).(b) Plot a scatter diagram to portray these
7.3 Car parking spaces in a city centre are at a premium. The costs of parking a car for a whole day in ten public car parks within the city, and the distances between those car parks and the city centre are:Cost (£) 5 5 7 8 10 12 15 15 18 20 Distance (km) 1.5 1.2 1.0 1.1 0.8 0.5 0.4 0.2 0.1
7.2* Outstanding balances on the monthly bills of nine credit card accounts and the household income of the account holders are:Balance (£) 250 1630 970 2190 410 830 0 550 0 Income (£000) 15 23 26 28 31 35 37 38 42(a) Plot these figures on a scatter diagram with outstanding balance as the
7.1 Consider which of the relationships below are likely to have a positive and which are likely to have a negative correlation coefficient.(a) The distance a vehicle travels and the fuel consumed(b) The demand for laptop computers and their price(c) The average temperature of countries and the
6.22 Select which of the statements on the right-hand side best defines the words on the left-hand side.(i) median (a) the square of the standard deviation(ii) range (b) a diagram based on order statistics(iii) variance (c) the most frequently occurring value(iv) boxplot (d) the difference between
6.21 A ‘while-you-wait’ shoe repair service offers to replace certain types of heels on ladies’ shoes in three minutes. Long experience has shown that the mean replacement time for these heels is 2.8 minutes and the standard deviation is 0.15 minutes.A trainee achieves the following times on
6.20 The ages of holidaymakers staying at two Adriatic resorts on a particular day were taken and the boxplots on the following page were produced. Study the diagram and say whether each of the following is true or false.(a) The youngest holidaymaker is in Journost.(b) The SIQR for Vozrast is
6.19 A report on usage of glass recycling bins contains the following grouped relative frequency distribution:Weight of glass deposited per week (kg) Proportion of bins 0 and under 400 0.23 400 and under 800 0.34 800 and under 1200 0.28 1200 and under 1600 0.11 1600 and under 2000 0.04 Compile a
6.18 The credit balances in the current accounts of customers of a bank are summarized in the following grouped relative frequency distribution:Balance (£) Relative frequency 0 and under 500 0.12 500 and under 1000 0.29 1000 and under 1500 0.26 1500 and under 2000 0.19 2000 and under 2500 0.09
6.17 The costs of work done at a garage on 33 vehicles to enable them to pass the MOT test of roadworthiness were:482 471 277 230 357 491 213 386 357 141 282 184 324 426 408 213 155 287 415 499 470 461 233 314 240 107 113 314 242 112 289 283 389 Identify the median and quartiles of this set of data
6.16* The stem and leaf display below shows the Friday night admission prices for 31 clubs.Stem Leaves 0 44 0 5555677789 1 000224444 1 5555588 2 002 Leaf unit £1.0 Find the values of the median and semi-interquartile range.
6.15 The total spend of a sample of 110 customers of the Peeshar supermarket and the total spend of a sample of 128 customers of the Peevar supermarket were analysed and the following grouped frequency distribution produced:Total spend (£) Frequency (Peeshar) Frequency (Peevar)0.00 to 19.99 13 35
6.14 The time in seconds that a sample of 79 callers trying to contact an insurance company had to wait was recorded. After introducing new procedures the waiting time for a sample of 61 callers was recorded. The results are presented in the following grouped frequency distribution:Frequency
6.13 The playing times of a sample of 57 contemporary pop albums and a sample of 48 reissued ‘classic’ pop albums are summarized in the following grouped frequency distributions:Frequency Frequency Playing time (minutes) (Contemporary) (Reissue)30 and under 35 0 4 35 and under 40 7 9 40 and
6.12* The kilocalories per portion in a sample of 32 different breakfast cereals were recorded and collated into the following grouped frequency distribution:Kcal per portion Frequency 80 and under 120 3 120 and under 160 11 160 and under 200 9 200 and under 240 7 240 and under 280 2 (a) Obtain an
6.11* Three credit card companies each produced an analysis of its customers’ bills over the last month. The following results have been published:Company Mean bill size Standard deviation of bill sizes Akula £559 £172 Bremia £612 £147 Dolg £507 £161 Are the following statements true or
6.10 Two friends work in the same office. One travels to work by bus, the other cycles. The times taken (in minutes) by each to get to work on a sample of 8 days were:Bus passenger 33 28 40 32 41 32 38 42 Cyclist 26 33 27 31 31 30 28 24 Calculate the mean and standard deviation for each set of
6.9* Voditel International own a large fleet of company cars. The mileages, in thousands of miles, of a sample of 17 of their cars over the last financial year were:11 31 27 26 27 35 23 19 28 25 15 36 29 27 26 22 20 Calculate the mean and standard deviation of these mileage figures.
6.8 The crowd sizes for the 22 home league games played by Athletico Almaz were:1976 2162 1502 1782 1523 2033 1564 1320 1951 1714 1841 1648 1345 1837 1718 2047 1954 2000 1479 2571 1739 1781 The crowd sizes for the 22 home fixtures played by a rival club, Red Star Rubine, were:1508 2055 2085 2098
6.7* Toofley the Chemists own 29 pharmacies. The numbers of packets of a new skin medication sold in each of their shops in a week were:7 22 17 13 11 20 15 18 5 22 6 18 10 13 33 13 9 8 9 19 19 8 12 12 21 20 12 13 22(a) Find the mode and range of these data.(b) Identify the median of the data.(c)
6.6 Spina Software Solutions operate an on-line help and advice service for PC owners. The numbers of calls made to them by subscribers in a month are tabulated below:Find the mode, median and mean for both distributions and use them to compare the two distributions.
6.5* The numbers of driving tests taken to pass by 28 clients of a driving school are given in the following table:216 Quantitative methods for business Chapter 6 Tests taken Number of clients 1 10 2 8 3 4 4 3 5 3(a) Obtain the mode, median and mean from this frequency distribution and compare
6.4 A supermarket has one checkout for customers who wish to purchase 10 items or less. The numbers of items presented at this checkout by 19 customers were:10 8 7 7 6 11 10 8 9 9 9 6 10 9 8 9 10 10 10(a) Find the mode, median and mean for these data.(b) What do your results for (a) tell you about
6.3 Twenty-six dental patients require the following numbers of fillings during their current course of treatment:2 3 2 2 3 1 2 2 1 3 2 2 2 2 4 3 2 2 2 2 2 1 1 0 1 1(a) Identify the mode, find the median, and calculate the mean of these figures.(b) Compare the results you obtained for (a). What do
6.2 The numbers of credit cards carried by 25 shoppers are:2 5 2 0 4 3 0 1 1 7 1 4 1 3 9 4 1 4 1 5 5 2 3 1 1(a) Determine the mode and median of this distribution.(b) Calculate the mean of the distribution and compare it to the mode and median. What can you conclude about the shape of the
6.1* A supermarket sells kilogram bags of pears. The numbers of pears in 21 bags were:7 9 8 8 10 9 8 10 10 8 9 10 7 9 9 9 7 8 7 8 9(a) Find the mode, median and mean for these data.(b) Compare your results and comment on the likely shape of the distribution.(c) Plot a simple bar chart to portray
5.20 Select which of the statements listed below on the right-hand side describes the words listed on the left-hand side.(i) histogram (a) can only take a limited number of values(ii) time series (b) segments or slices represent categories(iii) pictogram (c) each plotted point represents a pair of
5.19 Sales of cold and flu treatments (in £’000) in a Manchester pharmacy during the last three years were:Quarter Year 1 2 3 4 1 11.3 5.1 3.9 9.5 2 12.6 7.9 3.7 8.8 3 10.9 6.2 4.7 9.3 Draw a time series plot for these data.
5.18 The quarterly sales (in £’000) of greeting cards in a supermarket were:Quarter Year 1 2 3 4 1 12.0 14.8 9.6 19.2 2 13.1 16.3 9.2 20.8 Produce a time series plot to show these figures.
5.17* The sales of organic vegetables (in £’000) by a fruit and vegetable wholesaler over 10 years were:Year 1994 1995 1996 1997 1998 1999 2000 2001 Sales 0.0 0.0 1.2 1.7 3.2 5.1 10.4 12.2 Year 2002 2003 Sales 26.9 47.1 Construct a time series plot to present this set of data.
5.16 The top speeds and engine sizes of 12 performance cars are:Top speed (mph) 137 165 185 118 168 155 125 Engine size (litres) 2.0 5.9 3.6 1.7 3.2 4.2 1.8 Top speed (mph) 177 129 163 157 134 Engine size (litres) 4.2 1.8 5.5 2.7 2.2(a) Which variable is the independent (X) variable?(b) Draw a
5.15 A catalogue shop sells 9 brands of television sets with 14 screens.The prices of these (to the nearest £), and the number of each sold are:Price (£) 75 80 85 100 100 120 140 200 220 Number sold 48 31 39 28 24 17 11 6 2(a) Which is the independent (X) variable?(b) Draw a scatter diagram to
5.14* Levels of expenditure on domestic fuel (in $’000m) and the populations (in millions) of nine countries are:Expenditure($’000m) 5.2 4.1 1.9 1.4 27.2 0.5 11.1 10.2 20.4 Population(m) 10.6 5.4 10.3 4.2 55.9 0.4 15.3 40.1 56.3(a) Identify the dependent (Y) variable.(b) Plot a scatter diagram
5.13 The prices (in £s) of 27 second-hand small hatchback cars on sale at a garage are:4960 1720 2350 2770 3340 4240 4850 4390 3870 2990 3740 2230 1690 2750 1590 4990 3660 1900 4250 4390 3690 1760 4800 1730 2040 4070 2670(a) Compile a stem and leaf display for these figures using thousands as stem
5.12 The hourly wages (in £s) of 32 jobs advertised by a ‘temp’agency are:6.26 4.90 4.52 5.11 5.94 5.82 7.14 7.28 5.15 7.04 4.47 4.67 6.90 5.85 5.65 5.50 4.12 5.27 5.25 6.43 5.65 4.65 5.37 4.24 6.45 4.70 5.09 4.82 6.23 5.40 6.22 5.26(a) Compile a stem and leaf display to present these figures
5.11 The monthly membership fees in £s for 17 fitness centres in local authority leisure centres are:28 50 44 32 31 55 21 36 24 55 51 55 32 39 42 28 55(a) Compile a stem and leaf display to show these figures and the set of data in the previous question. List the leaf digits for this distribution
5.10* Monthly membership fees in £s for 22 health clubs are:34 43 44 22 73 69 48 67 33 56 67 27 78 60 63 32 67 41 65 48 48 77(a) Compile a stem and leaf display of these data.(b) The clubs whose fees appear in bold do not have a swimming pool. Highlight them in your display.
5.9 One branch of a bank has 849 customers who have credit balances in a certain type of current account. The sizes of the balances in these accounts, to the nearest £, have been arranged in the following grouped frequency distribution:Size of balance (£) Number of accounts 0–249 88 250–499
5.8 A video rental shop has 312 different feature films that are available for hire overnight. The number of times these videos were rented out during a month is presented in the following grouped frequency distribution:Number of rentals Number of videos 0–4 169 5–9 71 10–14 39 15–19 18
5.7 The company marketing the revolutionary ‘Girth Control’ diet have distributed a press release that includes a grouped frequency distribution showing the weight losses achieved by the 56 participants in the trial of the diet.Weight lost (kg) Number of participants 0 and under 2 3 2 and under
5.6 Rents per person (to the nearest £) for 83 flats and houses advertised on the notice boards at a university were collected and the following grouped frequency distribution compiled:Rent per person (£) Frequency 35–39 13 40–44 29 45–49 22 50–54 10 55–59 7 60–64 2(a) Plot a
5.5* A roadside breakdown assistance service answers 37 calls in Derbyshire on one day. The response times taken to deal with these calls were noted and have been arranged in the grouped frequency distribution below.Response time (minutes) Number of calls 20 and under 30 4 30 and under 40 8 40 and
5.4 The manager of the customer service department at Prastudar Promotions submits the following frequency distribution for the number of days in the previous week staff in the department were off sick:Days off Number of staff 0 17 1 4 2 2 3 1 4 0 5 2 Construct a bar chart to display this
5.3 A machine vending company operates three hot drinks machines, one at a bus station, a second at a train station and a third at a leisure centre. The numbers of coffee, tea and chocolate drinks dispensed from each in a single day are given in the following table.Number of drinks Location of
5.2 Tourists seeking holiday accommodation in a self-catering complex in the resort of Zidania can make either a one- or twoweek booking. The manager of the complex has produced the following table to show the bookings she received last season:Type of booking Tourist’s home country One-week
5.1* Vorovka Direct Marketing has offices in Liverpool, Motherwell and Newbury. The number of employees in each location and their genders are tabulated below:Number of employees Office Females Males Total Liverpool 12 8 20 Motherwell 9 15 24 Newbury 23 6 29(a) Plot a simple bar chart to show the
4.20 A leisure company operates three amusement arcades in the UK: at Redcar, Skegness and Torquay. As part of a performance review the duration in minutes of the period spent in the arcades by each of a sample of customers visiting was recorded.The durations of visits made by 21 customers visiting
4.19 A company has plants in Manchester and Southampton. Thirty staff from Manchester and 24 staff from Southampton attended a training course at the end of which they were each given a proficiency test.The marks for the test (out of 100) for the staff from Manchester were:49 53 70 35 55 38 44 79
4.18* The monthly membership fees in £s for 22 health clubs are:32 43 44 22 73 69 48 67 33 56 67 28 78 60 63 32 67 41 65 48 48 77(a) Arrange these data into a grouped frequency distribution.Use classes £10 wide starting at £20.(b) The monthly membership fees in £s for 17 fitness centres in
4.17 The hourly wages (in £s) of 32 jobs offered by an employment agency are:6.28 4.90 4.52 5.11 5.94 5.82 7.14 7.28 8.15 7.04 4.41 4.67 6.90 5.85 5.65 5.50 4.12 5.27 5.25 6.43 5.73 4.65 5.37 4.24 6.45 4.70 5.09 4.82 6.23 5.40 6.48 5.26 Construct a grouped frequency distribution for these figures.
4.16 The prices (in £s) of 27 second-hand ‘Krushenia’ cars on sale at a car hypermarket are:4860 1720 2350 2770 3340 4240 4850 4390 3870 2790 3740 2230 1690 2750 1390 4990 3660 1900 5200 4390 3690 1760 4800 1730 2040 4070 2670 Create a frequency distribution to present these data.
4.15 The rates of growth in revenue (%) of 25 companies over a year were:4.22 3.85 10.23 5.11 7.91 4.60 8.16 5.28 3.98 2.51 9.95 6.98 6.06 9.24 3.29 9.75 0.11 11.38 1.41 4.05 1.93 5.16 1.99 12.41 7.73 Compile a grouped frequency distribution for these figures.
4.14 The numbers of laptops sold during a week in each of the 37 outlets of a chain of computer dealers were:6 14 22 17 15 12 18 11 23 10 13 17 8 25 13 0 13 20 18 13 16 15 0 15 14 15 9 7 14 17 13 3 15 7 23 10 15 Present these data in the form of a grouped frequency distribution.
4.13* The speeds (in miles per hour) of 24 cars travelling along a road that has a 30 mph speed limit were:31 35 35 27 26 30 36 23 36 33 27 31 32 38 26 40 21 39 33 24 28 23 28 35 Construct a grouped frequency distribution for these data.
4.12 The number of business trips abroad taken in the last year by each of a sample of 41 executives were:3 11 1 10 14 14 12 6 1 10 7 11 9 2 7 11 17 12 13 2 0 14 6 4 3 12 14 8 7 11 9 6 9 15 0 4 9 7 10 4 5(a) Arrange these data into a frequency distribution.(b) Classify these data into a grouped
4.11 The ages of 28 applicants for a graduate management trainee post are:21 23 21 21 23 21 24 22 21 24 21 26 23 22 21 22 23 21 22 21 22 25 21 22 21 22 21 24 Produce a frequency distribution for these figures.
4.10 The ‘To Let’ column in the accommodation pages of a local newspaper contains details of 20 houses available to rent. The numbers of bedrooms in these properties are:2 3 5 2 4 2 4 4 4 3 2 5 3 2 3 4 4 3 2 4 Arrange these data into a frequency distribution.
4.9* The numbers of people in 35 passenger cars travelling along a road during the morning rush hour were:1 1 2 1 2 1 3 5 1 1 2 1 1 1 4 1 2 1 1 1 4 1 2 1 1 4 1 1 2 3 2 3 1 4 1 Compile a frequency distribution for this set of data.
4.8 A total of 127 people applied for several jobs at a new clothing retail outlet. Seventy-four applicants were female, and of these 32 had previous experience of clothing retail and 19 had no previous retail experience. A total of 45 applicants had previous retail experience but not in the
4.7 A hotel had 1360 bookings for accommodation in a month. Of these 940 were for one night. Business bookings amounted to 813 of the total number, all but 141 being for one night. Leisure bookings amounted to a further 362, the remaining bookings being associated with functions (weddings etc.).
4.6* A bus company operates services to and from the East, North, South and West of a city. A recent report from the Chief Executive contains the following summary of their operations.(All figures have been rounded to the nearest thousand.)The total number of passenger journeys made on our services
4.5 Select which of the statements listed below on the right-hand side best describes each of the terms on the left-hand side.(a) time series data (i) concern attitudes and beliefs(b) nominal data (ii) are limited to distinct numerical values(c) hard data (iii) consist of values of two variables(d)
4.4 Indicate which of the variables below are qualitative, discrete quantitative or continuous quantitative.(a) Duration of telephone calls(b) Modes of travel to work(c) The alcohol contents of beers(d) Sizes of theatre audiences(e) Places of birth of passport applicants(f) Numbers of websites
4.3 Indicate which of the variables below will have discrete values and which will have continuous values.(a) Time taken to answer telephone calls(b) Clothing sizes for female apparel(c) Age of consumers(d) Calories in foodstuffs(e) Shoe sizes(f) Visitors to a theme park(g) Interest rates(h)
4.2 Identify the type of scale of measurement (nominal, ordinal, interval or ratio) appropriate for each of the following types of data.(a) Star ratings of hotels(b) Sales revenues of companies(c) Grades of officers in armed forces(d) House numbers in a street(e) Prices of cars(f) Classes of
4.1 Match the definitions listed below on the right-hand side to the words listed on the left-hand side.(a) distribution (i) something that occurs by chance (b) element (ii) a subset of a population (c) random (iii) a complete set of things to study (d) sample (iv) a value of a variable that has
3.20 Aptieka Chemicals uses 80 litres of a solvent per week in a continuous process. Storing the solvent in accordance with fire and safety requirements costs £5 per litre per annum. The cost of administering an order is £26.(a) Assuming the process operates for all 52 weeks of the year, how much
3.19 The kitchen at a children’s hospital used 12,800 kg of ice cream last year and expects to use approximately the same amount this year. The storage costs incurred by keeping 1 kg of ice cream in the freezer for a year are estimated to be £7. To process an order to the supplier costs £28.(a)
3.18 The manager of a garden centre expects that sales of barbecue fuel will reach 16,000 bags for the year. The cost of keeping a bag of barbecue fuel in stock for a year is put at £5 and the administrative and other costs associated with implementing an order amount to £25.(a) Use the EOQ model
3.17 The Pratchka Laundry uses 2205 kg of industrial detergent per year. The cost of processing an order for the detergent is £50 per order, and the cost of storage works out at £5 per kilogram per year.(a) Assuming that the laundry operates for 52 weeks a year, what, according to the Economic
3.16 Mechanics at a large vehicle repair and servicing centre use 56 kg of grease-remover a year. Storage costs for the greaseremover are £2 per kilogram per year, and the cost of putting in an order to the supplier is £14.(a) If the centre is open for 50 weeks of the year how much grease-remover
3.15 A film-processing laboratory uses 37.5 litres of developer per week and is open for business 50 weeks in a year. Administrative and other costs of ordering a consignment of developer are£15 and it costs £10 to keep one litre of developer in stock for a year. Use the Economic Order Quantity
3.14 Twenty packs of paper towels are used in the washrooms in an office block every week. The cost of making an order for them is £6, and the cost of storing one pack for a year is £0.30. If the building is in use 50 weeks of the year, what quantity of towels should be ordered each time new
3.13 The annual demand for dog biscuits at Dogwatch Security amounts to 1690 kg. The cost of the manager going to collect a supply of dog biscuits in her company car is reckoned to be £40 per trip. The cost of storing the biscuits is estimated to be £8 per kilogram per year. The dog biscuits come
3.12* Doroga City Council Highways Department uses 2000 litres of yellow road paint a year at a constant rate. It costs the council£50 per litre to store the paint for a year. Each time a purchase order for paint is processed the cost to the council is £20. What is the optimal order quantity of
3.11 Soumotchka Accessories make customized handbags to order.The price they can charge depends on how many they sell, x, consistent with the expression:Price (£) 242 0.4x The total cost of producing the handbags is:Cost (£) 300 2x 0.1x2(a) What is the profit equation for the
3.10 Avaria Autosports sell rally-driving adventure weekends to companies looking for incentive gifts for staff. Careful study of their past sales suggests that the price per weekend is based on the number of weekends sold, x, in line with:Price (£) 635 3x Their costs depend on the weekends sold
3.9 Gladeet Domestic offers busy professionals a clothes-ironing service. The equations that represent the connections between their volume of business in thousands of clients (x), and firstly the price they charge, and secondly the total cost they incur are:Price (£) 60 x Cost (£000) 80
3.8* Peridatt Audio manufactures specialist sound amplifiers. The company have identified the following expressions to represent the demand for their products and the total cost of their operations:Price (£) 500 3x Cost (£) 150 20x x2 where x is the number of amplifiers produced and

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Quantitative Methods For Business 1st Edition John Buglear - Solutions

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