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i) Price relative is an index number that compares prices of a given commodity for a given period in relation to its price in another period.
ii) Fixed base method compares prices of a commodity for a given period in relation to price of the commodity in a base period.
iii) In chain base method, the base is the price of the previous period. It is not fixed to a particular period
iv) Weighted index number is one that appropriate weights have been added to reflect relative importance of commodities. This makes index numbers be reliable.
v) Quantity index number is one that shows the change from one period to the other of quantities involved.
Wilfykil answered the question on February 20, 2019 at 10:13
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In brand switching between different toothpastes named Closed-up CU, Cols-gate CG and Aquas-fresh AF, the state transition matrix below is obtained for a particular month.
Required:
i) If the market share for the different toothpastes were 0.4, 0.3 and 0.3 for CU, CG and AF for January 2002, what will be the market share in February 2002 and March 2002?
ii) What is the market share equilibrium situation?
Date posted: February 20, 2019. Answers (1)
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ii) Cyclic chain.
iii) Absorbing state.
iv) State transition matrix.
v) Steady state(Solved)
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i) Markov process.
ii) Cyclic chain.
iii) Absorbing state.
iv) State transition matrix.
v) Steady state
Date posted: February 20, 2019. Answers (1)
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Define the terms systematic, stratified, multistage, cluster and quota sampling as used in statistical inference.
Date posted: February 20, 2019. Answers (1)
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Caterpillar Company Ltd. produces generators and drilling engines. The revenue function that describes total revenue for sales in a particular quarter of these engines is given by:
R = 8x + 5y + 2xy – x2 – 2y2 + 20
Where:
x – number of generator engines in thousands.
y – number of drilling engines in thousands.
At what quantities of x and y is revenue maximised in a particular quarter
Date posted: February 20, 2019. Answers (1)
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Kiko Manufacturing Ltd. wants to take a decision of introducing a new soap Kikope. The cost for introducing Kikope (Initial advertising, promotion and fixed cost for one year of production) is estimated at Ksh.30,000. The variable cost per bar of soap is Ksh.30 and the expected selling price is Ksh.50.
Required:
Draw the cost, revenue and profit functions and from it:
i) Determine the break-even level of production.
ii) Determine the profit on the sale of 2,500 soap bars.
Date posted: February 20, 2019. Answers (1)
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of security.The following are activities and associated costs for the expansion:(Solved)
Vick Press Ltd is planning to expanding into offering security systems in people‟s homes scared of security.The following are activities and associated costs for the expansion:
Required:
i) Determine the critical path.
ii) Determine the minimum time and minimum cost for the networks.
iii) Given that, for every delay beyond 40th week, there is share of Sh.1,000 per week loss of profit. Is it advisable to crash the project from 51 to 45 weeks? Why?
Date posted: February 20, 2019. Answers (1)
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Due to hard economic times and restriction by City Council, sales...(Solved)
Peter and Ngomongo are second hand dealers of electronic equipment and shoes along Baricho road. Due to hard economic times and restriction by City Council, sales have been decreasing. Each of them came up with strategies to expand into the other business (they have monopoly now). Each of them knows what the other is considering thus influences each others decision. Peter had the following matrix of profit per day.
Required:
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ii) Solve the game to determine the average winning (loss) each cousin would have
Date posted: February 20, 2019. Answers (1)
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i) N – person game.
ii) Saddle point.
iii) Strategy.
iv) Rules of dominance(Solved)
Define the following as used in game theory:
i) N – person game.
ii) Saddle point.
iii) Strategy.
iv) Rules of dominance
Date posted: February 20, 2019. Answers (1)
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Zadock ltd. manufactures various kinds of furniture namely ordinary chairs, baby cots, and executive chairs. All the products use raw material (wood), machine time (lathe) and manual labour (technicians). The requirements for the furniture are summarised as below.
Required:
i) Formulate the linear programming problem into standard form for input to the computer spreadsheet
ii) What are the units of each kind of furniture to be produced to maximise profits. What is the maximum profit?
iii) Is there any resource that is not used up? For the used up resource if any, how much would you pay for one additional unit.
Date posted: February 20, 2019. Answers (1)
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Date posted: February 20, 2019. Answers (1)
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The following data relates business turnover and staff of fast moving consumer goods company EAI Ltd:
Required:
i) Fit an appropriate regression equation.
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Date posted: February 20, 2019. Answers (1)
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ii) Bivariate distribution.
iii) Positive correlation.
iv) Confidence interval.
v) Auto correlation(Solved)
With reference to linear regression define the following terms:
i) Scatter diagram.
ii) Bivariate distribution.
iii) Positive correlation.
iv) Confidence interval.
v) Auto correlation
Date posted: February 20, 2019. Answers (1)
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A research studying the role of stress and its implication on personal life in respect of job change over by low cadre staff, came up with the following data. It relates to 30 firms over 3-year period
By fitting a Poisson distribution to get expected frequency, test its goodness of fit.
Date posted: February 20, 2019. Answers (1)
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Date posted: February 20, 2019. Answers (1)
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Given the following distribution of wages for 500 technicians in motor companies in industrial area.
A technician is chosen from the above group. What is the probability that his wages are?
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ii) Above KSh 6,000
iii) Between KSh 5,000 and KSh 6,000
Date posted: February 20, 2019. Answers (1)
- In connection with probability, define the following terms:
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iv) Equally likely events
v) Conditional probability(Solved)
In connection with probability, define the following terms:
i) Compound event
ii) Mutually exclusive events
iii) Collective exhaustive events
iv) Equally likely events
v) Conditional probability
Date posted: February 20, 2019. Answers (1)
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A survey by Marketing Society here in Kenya found out the following buying habits of household air conditioners considered a luxury.
Required:
i)Calculate the arithmetic mean, median and mode. (5 marks)
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Date posted: February 20, 2019. Answers (1)
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iii) Quartile deviation.(Solved)
Define the following terms as used in measures of dispersion:
i) Platykurtic versus leptokurtic and mesokurtic.
ii) Coefficient of skewness.
iii) Quartile deviation.
Date posted: February 20, 2019. Answers (1)
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Three industries, packaging P, Bakery B, and Flour F are related with the intermediate demand matrix below.
Required:
i)Determine the total output for products of industries P, B and F. (10 marks)
ii) Comment on the total output for industries.
Date posted: February 20, 2019. Answers (1)
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ii) Technical coefficients.
iii) Closed model versus open model(Solved)
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i) Final demand.
ii) Technical coefficients.
iii) Closed model versus open model
Date posted: February 20, 2019. Answers (1)