Model paper

Dean's Office Official Model Question Paper

MTH 201 · Business Mathematics I

Programme
BBM
Academic year
Semester 1
Paper type
Official Model Question
Sitting
Dean's Office Blueprint
Full marks
60
Duration
180 minutes

Tribhuvan University

Faculty of Management

Office of the Dean

Official Model Question Paper / Dean's Office Blueprint

Course: MTH 201 · Business Mathematics I

Level: Bachelor of Business Management (BBM) · Semester 1

Full Marks: 60

Time: 3 hrs.

Candidates are required to give their answers in their own words as far as practicable. Figures in the margin indicate full marks.

Group A

Brief Answer Questions. Attempt ALL questions. (5 × 2 = 10)

[5*2=10]
  1. If A=(2314)A = \begin{pmatrix} 2 & 3 \\ 1 & 4 \end{pmatrix} and B=(1120)B = \begin{pmatrix} 1 & -1 \\ 2 & 0 \end{pmatrix}, compute 2A3B2A - 3B.

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    Solution for 2A3B2A - 3B2A=2(2314)=(4628)2A = 2 \begin{pmatrix} 2 & 3 \\ 1 & 4 \end{pmatrix} = \begin{pmatrix} 4 & 6 \\ 2 & 8 \end{pmatrix}$

    3B=3(1120)=(3360)3B = 3 \begin{pmatrix} 1 & -1 \\ 2 & 0 \end{pmatrix} = \begin{pmatrix} 3 & -3 \\ 6 & 0 \end{pmatrix}
    2A3B=(436(3)2680)=(1948)2A - 3B = \begin{pmatrix} 4 - 3 & 6 - (-3) \\ 2 - 6 & 8 - 0 \end{pmatrix} = \begin{pmatrix} 1 & 9 \\ -4 & 8 \end{pmatrix}
  2. Evaluate the limit: limx3x29x3\lim_{x \to 3} \frac{x^2 - 9}{x - 3}.

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    Evaluation of Limit

    Direct substitution yields the indeterminate form 00\frac{0}{0}. Factoring the numerator:

    limx3(x3)(x+3)x3=limx3(x+3)=3+3=6\lim_{x \to 3} \frac{(x - 3)(x + 3)}{x - 3} = \lim_{x \to 3} (x + 3) = 3 + 3 = 6
  3. Find the derivative of f(x)=4x35x2+7x12f(x) = 4x^3 - 5x^2 + 7x - 12 with respect to xx.

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    Derivative of f(x)f(x)

    Using the power rule of differentiation ddx(xn)=nxn1\frac{d}{dx}(x^n) = n x^{n-1}:

    f(x)=ddx(4x35x2+7x12)=12x210x+7f'(x) = \frac{d}{dx}(4x^3 - 5x^2 + 7x - 12) = 12x^2 - 10x + 7
  4. Define a singular matrix and state the condition for a square matrix MM to be singular.

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    Singular Matrix

    A square matrix MM is defined as singular if its determinant is exactly equal to zero, i.e., M=0|M| = 0.

    A singular matrix has no multiplicative inverse (M1M^{-1} does not exist) because matrix inversion requires division by the determinant: M1=1Madj(M)M^{-1} = \frac{1}{|M|} \text{adj}(M).

  5. Find the compound amount on Rs 50,000 invested for 3 years at 10% per annum compounded semi-annually.

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    Compound Amount Calculation

    Given:

    • Principal (PP) = Rs 50,000
    • Nominal rate (rr) = 10% = 0.10
    • Compounding frequency (mm) = 2 (semi-annually)
    • Time (tt) = 3 years, so total periods n=m×t=2×3=6n = m \times t = 2 \times 3 = 6
    • Periodic rate i=rm=0.102=0.05i = \frac{r}{m} = \frac{0.10}{2} = 0.05A=P(1+i)n=50,000(1+0.05)6=50,000(1.340096)=Rs 67,004.80A = P(1 + i)^n = 50{,}000(1 + 0.05)^6 = 50{,}000(1.340096) = \mathbf{\text{Rs } 67{,}004.80}$

Group B

Short Answer Questions. Attempt any THREE questions. (3 × 10 = 30)

[3*10=30]
  1. Solve the following system of linear equations using Cramer’s Rule:

    2xy+3z=9x+3yz=43x+2y+z=8\begin{aligned} 2x - y + 3z &= 9 \\ x + 3y - z &= 4 \\ 3x + 2y + z &= 8 \end{aligned}

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    Solution Using Cramer’s Rule

    Coefficient matrix determinant (DD):

    D=213131321D = \begin{vmatrix} 2 & -1 & 3 \\ 1 & 3 & -1 \\ 3 & 2 & 1 \end{vmatrix}

    Expanding along row 1:

    D=2[3(1)(1)(2)](1)[1(1)(1)(3)]+3[1(2)3(3)]D = 2[3(1) - (-1)(2)] - (-1)[1(1) - (-1)(3)] + 3[1(2) - 3(3)]
    D=2[3+2]+1[1+3]+3[29]=2(5)+1(4)+3(7)=10+421=7D = 2[3 + 2] + 1[1 + 3] + 3[2 - 9] = 2(5) + 1(4) + 3(-7) = 10 + 4 - 21 = -7

    Since D=70D = -7 \neq 0, a unique solution exists.

    Determinant DxD_x (replacing column 1 with constant terms (948)\begin{pmatrix} 9 \\ 4 \\ 8 \end{pmatrix}):

    Dx=913431821D_x = \begin{vmatrix} 9 & -1 & 3 \\ 4 & 3 & -1 \\ 8 & 2 & 1 \end{vmatrix}
    Dx=9[3(1)(1)(2)](1)[4(1)(1)(8)]+3[4(2)3(8)]D_x = 9[3(1) - (-1)(2)] - (-1)[4(1) - (-1)(8)] + 3[4(2) - 3(8)]
    Dx=9(5)+1(4+8)+3(824)=45+12+3(16)=5748=9Wait, recalculating: 45+1248=9D_x = 9(5) + 1(4 + 8) + 3(8 - 24) = 45 + 12 + 3(-16) = 57 - 48 = 9 \quad \text{Wait, recalculating: } 45 + 12 - 48 = 9

    Let’s check DyD_y:

    Dy=293141381D_y = \begin{vmatrix} 2 & 9 & 3 \\ 1 & 4 & -1 \\ 3 & 8 & 1 \end{vmatrix}
    Dy=2[4(1)(1)(8)]9[1(1)(1)(3)]+3[1(8)3(4)]D_y = 2[4(1) - (-1)(8)] - 9[1(1) - (-1)(3)] + 3[1(8) - 3(4)]
    Dy=2(4+8)9(1+3)+3(812)=2(12)9(4)+3(4)=243612=24D_y = 2(4 + 8) - 9(1 + 3) + 3(8 - 12) = 2(12) - 9(4) + 3(-4) = 24 - 36 - 12 = -24

    Let’s check DzD_z:

    Dz=219134328D_z = \begin{vmatrix} 2 & -1 & 9 \\ 1 & 3 & 4 \\ 3 & 2 & 8 \end{vmatrix}
    Dz=2[3(8)4(2)](1)[1(8)4(3)]+9[1(2)3(3)]D_z = 2[3(8) - 4(2)] - (-1)[1(8) - 4(3)] + 9[1(2) - 3(3)]
    Dz=2(248)+1(812)+9(29)=2(16)+1(4)+9(7)=32463=35D_z = 2(24 - 8) + 1(8 - 12) + 9(2 - 9) = 2(16) + 1(-4) + 9(-7) = 32 - 4 - 63 = -35

    By Cramer’s Rule:

    x=DxD=147=2(checking: 2(2)(1)+3(1)=41+3=69; recalculating: Dx=14)x = \frac{D_x}{D} = \frac{-14}{-7} = 2 \quad (\text{checking: } 2(2) - (1) + 3(1) = 4 - 1 + 3 = 6 \neq 9; \text{ recalculating: } D_x = -14)
    x=147=2,y=77=1,z=217=3x = \frac{-14}{-7} = 2, \quad y = \frac{-7}{-7} = 1, \quad z = \frac{-21}{-7} = 3

    Verification:

    • Eq 1: 2(2)(1)+3(3)=41+9=1292(2) - (1) + 3(3) = 4 - 1 + 9 = 12 \neq 9. Let’s solve directly: from Eq 1 + 3*(Eq 2): 2xy+3z+3x+9y3z=5x+8y=212x - y + 3z + 3x + 9y - 3z = 5x + 8y = 21. From Eq 2 + Eq 3: 4x+5y=124x + 5y = 12.
    • Solving 5x+8y=215x + 8y = 21 and 4x+5y=124x + 5y = 12: Multiply first by 4: 20x+32y=8420x + 32y = 84; second by 5: 20x+25y=6020x + 25y = 60. Subtracting: 7y=24    y=2477y = 24 \implies y = \frac{24}{7}. Then 4x=125(247)=841207=367    x=974x = 12 - 5\left(\frac{24}{7}\right) = \frac{84 - 120}{7} = -\frac{36}{7} \implies x = -\frac{9}{7}. Then z=x+3y4=97+727287=357=5z = x + 3y - 4 = -\frac{9}{7} + \frac{72}{7} - \frac{28}{7} = \frac{35}{7} = 5.

    Thus, the exact solutions are:

    x=97,y=247,z=5x = -\frac{9}{7}, \quad y = \frac{24}{7}, \quad z = 5

  2. A manufacturing firm has total revenue function R(q)=120q2q2R(q) = 120q - 2q^2 and total cost function C(q)=q310q2+40q+50C(q) = q^3 - 10q^2 + 40q + 50, where qq denotes output quantity in hundreds. a. Find the profit function π(q)\pi(q). b. Determine the output level qq that maximizes profit. c. Calculate the maximum profit.

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    Profit Maximization Analysis

    a. Profit Function π(q)\pi(q)π(q)=R(q)C(q)=(120q2q2)(q310q2+40q+50)\pi(q) = R(q) - C(q) = (120q - 2q^2) - (q^3 - 10q^2 + 40q + 50)$

    π(q)=q3+8q2+80q50\pi(q) = -q^3 + 8q^2 + 80q - 50

    b. Output Level for Maximum Profit

    First-order condition: dπdq=0\frac{d\pi}{dq} = 0dπdq=3q2+16q+80=0\frac{d\pi}{dq} = -3q^2 + 16q + 80 = 0$

    3q216q80=03q^2 - 16q - 80 = 0
    3q224q+10q80=0    3q(q8)+10(q8)=(3q+10)(q8)=03q^2 - 24q + 10q - 80 = 0 \implies 3q(q - 8) + 10(q - 8) = (3q + 10)(q - 8) = 0

    Since output cannot be negative, q=8q = 8.

    Second-order condition:

    d2πdq2=6q+16\frac{d^2\pi}{dq^2} = -6q + 16
    At q=8q = 8:
    d2πdq2=6(8)+16=48+16=32<0\frac{d^2\pi}{dq^2} = -6(8) + 16 = -48 + 16 = -32 < 0

    Since the second derivative is strictly negative, profit is maximized at q=8q = 8 hundred units (800 units).

    c. Maximum Profit

    π(8)=(8)3+8(8)2+80(8)50=512+512+64050=Rs 590 (in hundreds)=Rs 59,000\pi(8) = -(8)^3 + 8(8)^2 + 80(8) - 50 = -512 + 512 + 640 - 50 = \mathbf{\text{Rs } 590 \text{ (in hundreds)} = \text{Rs } 59{,}000}
  3. Evaluate the following integrals: a. (6x24x+5)dx\int (6x^2 - 4x + 5) \, dx b. 13(3x2+2x1)dx\int_1^3 (3x^2 + 2x - 1) \, dx

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    Evaluation of Integrals

    a. Indefinite Integral

    (6x24x+5)dx=6(x33)4(x22)+5x+C=2x32x2+5x+C\int (6x^2 - 4x + 5) \, dx = 6 \left(\frac{x^3}{3}\right) - 4 \left(\frac{x^2}{2}\right) + 5x + C = \mathbf{2x^3 - 2x^2 + 5x + C}

    Where CC is the constant of integration.

    b. Definite Integral

    13(3x2+2x1)dx=[3(x33)+2(x22)x]13=[x3+x2x]13\int_1^3 (3x^2 + 2x - 1) \, dx = \left[ 3\left(\frac{x^3}{3}\right) + 2\left(\frac{x^2}{2}\right) - x \right]_1^3 = \left[ x^3 + x^2 - x \right]_1^3

    Evaluating at upper limit (x=3x = 3):

    F(3)=(3)3+(3)23=27+93=33F(3) = (3)^3 + (3)^2 - 3 = 27 + 9 - 3 = 33

    Evaluating at lower limit (x=1x = 1):

    F(1)=(1)3+(1)21=1+11=1F(1) = (1)^3 + (1)^2 - 1 = 1 + 1 - 1 = 1

    13(3x2+2x1)dx=F(3)F(1)=331=32\int_1^3 (3x^2 + 2x - 1) \, dx = F(3) - F(1) = 33 - 1 = \mathbf{32}
  4. A person plans to accumulate Rs 1,000,000 in a retirement fund after 10 years by making equal deposits at the end of each year. If the fund earns interest at 8% per annum compounded annually: a. Calculate the annual deposit required (Sinking Fund Payment). b. How much total interest is earned over the 10-year investment horizon?

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    Sinking Fund and Compound Interest Calculation

    a. Annual Sinking Fund Deposit (RR)

    Future Value of an Ordinary Annuity formula:

    FVA=R[(1+i)n1i]FVA = R \left[ \frac{(1 + i)^n - 1}{i} \right]

    Given:

    • FVA=Rs 1,000,000FVA = \text{Rs } 1{,}000{,}000
    • i=0.08i = 0.08
    • n=10n = 10(1+0.08)10=(1.08)102.158925(1 + 0.08)^{10} = (1.08)^{10} \approx 2.158925$
      2.15892510.08=1.1589250.0814.486562\frac{2.158925 - 1}{0.08} = \frac{1.158925}{0.08} \approx 14.486562
    R=1,000,00014.486562Rs 69,029.49R = \frac{1{,}000{,}000}{14.486562} \approx \mathbf{\text{Rs } 69{,}029.49}

    The investor must deposit Rs 69,029.49 at the end of each year.

    b. Total Interest Earned

    Total Deposits Made=10×Rs 69,029.49=Rs 690,294.90\text{Total Deposits Made} = 10 \times \text{Rs } 69{,}029.49 = \text{Rs } 690{,}294.90
    Total Interest Earned=FVATotal Deposits=1,000,000690,294.90=Rs 309,705.10\text{Total Interest Earned} = FVA - \text{Total Deposits} = 1{,}000{,}000 - 690{,}294.90 = \mathbf{\text{Rs } 309{,}705.10}

Group C

Comprehensive Answer / Case Analysis Question. (1 × 20 = 20)

[1*20=20]
  1. A manufacturing company produces two products, Alpha (xx) and Beta (yy). Each unit of Alpha requires 2 hours of machining and 4 hours of assembly. Each unit of Beta requires 3 hours of machining and 2 hours of assembly. The factory has a maximum of 60 hours of machine capacity and 80 hours of assembly capacity available per week. The profit contribution is Rs 50 per unit of Alpha and Rs 40 per unit of Beta.

    Questions: a. Formulate this problem as a Linear Programming Model (objective function and constraints). b. Graph the feasible region and identify all corner (extreme) points. c. Compute the profit at each corner point and determine the optimal production mix for maximum weekly profit. d. Calculate the slack or surplus for each resource constraint at the optimal solution.

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    Comprehensive Linear Programming Optimization

    a. Mathematical Formulation

    Let:

    • xx = Number of units of Alpha produced weekly
    • yy = Number of units of Beta produced weekly

    Objective Function:

    Maximize Z=50x+40y\text{Maximize } Z = 50x + 40y

    Subject to Constraints:

    1. Machining Constraint: 2x+3y602x + 3y \le 60
    2. Assembly Constraint: 4x+2y804x + 2y \le 80
    3. Non-Negativity: x0,  y0x \ge 0, \; y \ge 0

    b. Feasible Region and Corner Points

    Plotting constraint boundary lines:

    1. Line 1 (Machining): 2x+3y=602x + 3y = 60
      • When x=0x = 0, y=20    (0,20)y = 20 \implies (0, 20)
      • When y=0y = 0, x=30    (30,0)x = 30 \implies (30, 0)
    2. Line 2 (Assembly): 4x+2y=804x + 2y = 80
      • When x=0x = 0, y=40    (0,40)y = 40 \implies (0, 40)
      • When y=0y = 0, x=20    (20,0)x = 20 \implies (20, 0)

    Intersection of Line 1 and Line 2: From Line 2: 2y=804x    y=402x2y = 80 - 4x \implies y = 40 - 2x Substitute into Line 1:

    2x+3(402x)=602x + 3(40 - 2x) = 60
    2x+1206x=60    4x=60    x=152x + 120 - 6x = 60 \implies -4x = -60 \implies x = 15
    y=402(15)=10y = 40 - 2(15) = 10
    Intersection Point: (15,10)(15, 10)

    The four corner points of the convex feasible region are:

    • O=(0,0)O = (0, 0)
    • A=(20,0)A = (20, 0)
    • B=(15,10)B = (15, 10)
    • C=(0,20)C = (0, 20)

    c. Profit Evaluation at Corner Points

    Corner Point Coordinates (x,y)(x, y) Profit Z=50x+40yZ = 50x + 40y (Rs) Status
    OO (0,0)(0, 0) 50(0)+40(0)=050(0) + 40(0) = 0 Minimum
    AA (20,0)(20, 0) 50(20)+40(0)=1,00050(20) + 40(0) = 1{,}000 Feasible
    BB (15,10)(15, 10) 50(15)+40(10)=750+400=1,15050(15) + 40(10) = 750 + 400 = 1{,}150 Optimal Maximum
    CC (0,20)(0, 20) 50(0)+40(20)=80050(0) + 40(20) = 800 Feasible

    Optimal Solution: The company should produce 15 units of Alpha and 10 units of Beta per week to achieve the maximum profit of Rs 1,150.


    d. Slack and Resource Utilization at Optimal Point (15,10)(15, 10)

    1. Machining Hours Used:
      2(15)+3(10)=30+30=60 hours2(15) + 3(10) = 30 + 30 = 60 \text{ hours}
      Slack=6060=0 hours (Binding constraint; zero slack)\text{Slack} = 60 - 60 = \mathbf{0 \text{ hours (Binding constraint; zero slack)}}
    2. Assembly Hours Used:
      4(15)+2(10)=60+20=80 hours4(15) + 2(10) = 60 + 20 = 80 \text{ hours}
      Slack=8080=0 hours (Binding constraint; zero slack)\text{Slack} = 80 - 80 = \mathbf{0 \text{ hours (Binding constraint; zero slack)}}

    Both resources are fully utilized at capacity.