Docstoc
EXCLUSIVE OFFER FOR DOCSTOC USERS
Try the all-new QuickBooks Online for FREE.  No credit card required.

ans

Document Sample
ans Powered By Docstoc
					BA&SC Exam January 2005
Summary answers to selected questions


2.   (a)   (i)     Because NPV at discount rate of 17% = -£25000
                   - ie it is “nearly zero” in this context of millions -
                   Therefore IRR is nearly 17% (just a bit less)

           (ii)    In fact IRR = 16.82% = 16.8% to one dp
           (iii)   The choice is 5% of 10.5million
                                  OR £1.5million discounted to year 5
                                                   ( we assume at 17%)?
                   That is:£525000 or £684000 – choose the second unless
                   you don’t trust the project – in which case don’t do the
                   project.

     (b)   Monthly at 11.4% has          APR = 12.01%
           Daily at 11.3% has            APR = 11.96%
           The contractor’s bank is slightly more economical


3    (a)   (i)     Linear graph with slight positive correlation
           (ii)    r = 0.905 r2 = 82%
                   82% of the variation in costs is explained by the variation in
                   production – a good model
           (iii)   15.6 means fixed costs of £15600
                   2.3 means each 1000 bottles cost an additional
                   2.3 hundred pounds - £0.23 extra per bottle

     (b)   b = 2.1897            a = 55.565
           Y = 55.565 + 2.1897 X
           Fixed costs of improved model are much higher
           Marginal costs are slightly less


4    (a)   (i)     Systematic sampling – say 10 jars a day?
           (ii)    Not given.
           (iii)   Median = 0.416 approx
           (iv)    LQ = 0.4 and UQ = 0.427,
                   Lower bar at 0.38 and Upper bar at 0.43 approx
           (v)     Confidence interval is 0.414 up to 0.424

     (b)   (i)     3.36%
           (ii)    0.414 litres.

				
DOCUMENT INFO
Shared By:
Tags:
Stats:
views:14
posted:4/29/2011
language:Vietnamese
pages:1