KING FAHD UNIVERSITY OF PETROLEUM & MINERALS DEPARTMENT OF MATHEMATICS & STATISTICS DHAHRAN, SAUDI ARABIA MATH 131: FINITE MTHEMATICS

Size: px

Start display at page:

Download "KING FAHD UNIVERSITY OF PETROLEUM & MINERALS DEPARTMENT OF MATHEMATICS & STATISTICS DHAHRAN, SAUDI ARABIA MATH 131: FINITE MTHEMATICS"

Antony Stanley
6 years ago
Views:

1 1 KING FAHD UNIVERSITY OF PETROLEUM & MINERALS DEPARTMENT OF MATHEMATICS & STATISTICS DHAHRAN, SAUDI ARABIA MATH 131: FINITE MTHEMATICS Semester 171 Major Exam Three Wednesday, December 13, 2017 Allowed time 75 minutes Instructor: Musawar Amin Malik Name: Serial #: Directions: ID#: Section: 1) You must show all your work to obtain full credit. 2) You are allowed to use electronic calculators and other reasonable writing accessories that help write the exam. 3) Do not keep your mobile with you during the exam, turn off your mobile and leave it aside. Question No Full Obtained Question No Full Q1 4+4 Q7 4 Q2 4 Q8 5 Q3 6 Q9 5 Q4 6 Q10 5 Q5 3 Q11 6 Q6 3 Total 55 Obtained

2 2 1. Suppose you have two investment opportunities. You can invest 30,000 Saudi riyals at 12% compounded monthly, or you can invest 29,000 at 12.25% compounded quarterly. a. Which has the better effective rate of interest? b. Which is the better investment over 20 years? Why? 2. If interest is compounded continuously, at what annual rate will a principal becomes 4 times in 30 years. Give the answer as a percentage correct to two decimal places.

3 3 3. A debt of $7000 due in 3 years and $11,000 due in 7 years is to be repaid by a single payment of $3,000 now and three equal payments that are due each consecutive year from now. If the interest rate is 7.5% compounded annually, how much are each of the equal payments? 4. The premiums on an insurance policy are $150 per month, payable at the beginning of each month. If the policyholder wishes to pay one year s premium in advance, how much should be paid, provided that the interest rate is 6% compounded monthly?

4 4 5. A combination lock has 26 different letters, and a sequence of three different letters must be selected for the lock to open. How many combination locks are possible? 6. A baseball team wins the World Series if it is the first team in the series to win four games. Thus, a series could range from four to seven games. For example, a team winning the first four games would be the champion. Likewise, a team losing the first three games and winning the last four would be champion. In how many ways can a team win the World Series? 7. A company makes a product that goes through three processes during its manufacture. The first is an assembly line, the second is a finishing line, and the third is an inspection line. There are four assembly lines (A, B, C, and D), two finishing lines (E and F), and two inspection lines (G and H). For each process, the company chooses a line at random. Determine the sample space.

5 5 8. In a certain residential area 60% of all households subscribe to the national newspaper, 45% subscribe to the afternoon paper and 12% of the households do not subscribe to any of these papers. If a household is selected at random, what is the probability that it subscribes to a. At least one of the two newspapers. b. Exactly one of the two newspapers. 9. A department store chain has stores in the cities of Calgary and Edmonton. Each store sells three brands of IPads, A, B, and C. Over the past year, the average monthly unit sales of the IPads was determined, and the results are indicate in the table below. Assume that future sales follow the pattern indicated in the table. Unit Sales per Month A B C Calgary Edmonton a. Determine the probability that a sale of an IPad next month is for brand B. b. Next month, if a sale occurs at the Calgary store, find the probability that it is for brand C.

6 6 10. VOLVO Motor Company manufactures trucks in three plants (say A, B, and C). On average, 4 trucks out of 500 assembled at A are recalled, 10 out 800 assembled at B are recalled, and 10 out of 1000 assembled at C are recalled. If a customer purchases a truck what is the probability that it is recalled from a dealer that receives 35%, 45% and 20% of its trucks from plants A, B and C, respectively? 11. At a shooting gallery, suppose Bill, Jim, and Linda each take one shot at a moving target. The probability that bill hits the target is 0.5, and for Jim and Linda, the probabilities are 0.4 and 0.7, respectively. Assume independence and find each of the following. a. The probability that none of them hit the target. b. The probability that exactly two of them hit the target.

MA 162: Finite Mathematics

MA 162: Finite Mathematics Fall 2014 Ray Kremer University of Kentucky December 1, 2014 Announcements: First financial math homework due tomorrow at 6pm. Exam scores are posted. More about this on Wednesday.