i

School of Business and Economics

EXAMINATION Version: C

Course : Quantitative Methods 1 Code: EBC 1005

Coordinator(s): Dirk Tempelaar EBC 1006
Date : Friday 26 October EBC 1007
Location : MECC Westhal Time: 13.00-16.00

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This examination consists of: (please check if you received all pages, before you start
answering)
# 15 Numbered pages (Front page included)
# 40 Questions

You are allowed to make use of:

Calculator of the type: Casio FX-82MS or Casio FX-85MS

Norm:
A score of at least 27 correctly answered Multiple-Choice questions, out of 40 (including your
bonus points), & a minimum test score of 9 correct answers for both mathematics and statistics.
A pass for Computer Skills as well as for Participation/Presence

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Page 1
Quantitative Methods I, EBC1005/1006/1007, 2018/2019, 1st Sit Exam, Version C Mathematics part

The underground in Amsterdam considers an increase in the capacity of its lines by

allowing more trains on the tracks. This decreases the intermediate distances of the trains.
For safety reasons there is, however, a minimum distance requirement for consecutive
trains with a given speed. The relation between minimum distance d (in meters) and
speed V (in km/h) is given by the following formula.

(d  200)(75 V )  15000

1) Consider V as a function of d. Approximate, with help of the marginal function of V(d),

the change in speed if the minimum distance decreases from 200 meters to 190 meters
between the trains.

a) The speed decreases with (rounded) 0.94 km/h

b) The speed increases with (rounded) 0.94 km/h
c) The speed decreases with (rounded) 0.094 km/h
d) The speed increases with (rounded) 0.094 km/h

3𝑥−2
(2-3) Consider the function 𝑓 (𝑥 ) =
2𝑥−3

2) Its derivative 𝑓 ′ (𝑥) is

3
a)
2
5
b)
(2𝑥−3)2
−5
c)
(2𝑥−3)2
12𝑥
d)
(2𝑥−3)2

3) Its inverse is 𝑓 −1 (𝑦) is

3𝑦−2
a)
2𝑦−3
2𝑦−3
b)
3𝑦−2
2𝑦−3
c)
(3𝑦−2)2
3𝑦−2
d)
(2𝑦−3)2
Quantitative Methods I, EBC1005/1006/1007, 2018/2019, 1st Sit Exam, Version C Mathematics part

4) We consider the differentiable function f(x) on the domain (0, ) . We know that f(x)
is positive on the whole domain. Which property should f(x) have, so that its point
elasticity is guaranteed to be positive, on the whole domain?

a) Convex.
b) Increasing.
c) Decreasing.
d) None of the above: the point elasticity is always negative.

(5-8) A wine farmer sells wine to customers who visit the farm. Suppose that the daily
demand d in liters as function of the price p in Euro’s per liter is given by:
15
𝑑(𝑝) =
1 + √𝑝

5) In which of the following intervals lies the price at which the demand is 5?

a) 𝑝 in [0,3)
b) 𝑝 in [3,6)
c) 𝑝 in [6,9)
d) 𝑝 in [9,12)

6) At a price of 9 Euro’s per liter, what is the elasticity of the demand function

a) −0.375
b) +0.125
c) +0.375
d) −0.125

7.5 7.5
The derivative of the revenue function 𝑟(𝑝) = 𝑝 ∙ 𝑑(𝑝) is: 𝑟 ′ (𝑝) = +
(1+√𝑝) (1+√𝑝)2

7) In which of the following intervals lies the price at which the revenue is maximum

a) 𝑝 in [0,6)
b) 𝑝 in [6,12)
c) 𝑝 in [12,18)
d) None of the above, since the revenue is increasing.

8) What is the shape of the revenue function.

a) First increasing, then decreasing and convex

b) First increasing, then decreasing and concave
c) Increasing, and convex
d) Increasing, and concave
Quantitative Methods I, EBC1005/1006/1007, 2018/2019, 1st Sit Exam, Version C Mathematics part

9) The sales of a certain product as a function of time can be described with a logistic
growth function as follows:
c2
c1 
1  e 2t
On t=0 the process has value 6 and derivative 4. What are the values of c1 and c2 ?
a) c1  2 and c2  5
b) c1  5 and c2  2
c) c1  2 and c2  8
d) c1  4 and c2  4

10) A farmer wants to fence off a rectangular parcel of land, with length L en width B and
with an area of 1200 m2. One of the sides with length L borders on a ditch and on this
side no fence is needed. One of the sides with width B borders on a forest and on this
forest side the costs equal 200 guilders per linear meter. The costs corresponding to
the remaining two sides equal 100 guilders per linear meter.
The farmer wants to minimize the costs of this fence. Then the ratio of the length L
and the width B of this rectangular parcel will be equal to

a) L/B = 1.5
b) L/B = 2.0
c) L/B = 2.5
d) L/B = 3.0

11) Consider the function f (x) for positive values of x. Let the elasticity of f (x) be
given by E f ( x) . Now let g(x):  f (x) where   0 . What do you know about the
elasticity Eg ( x) of g(x) ?
a) Eg ( x)  E f ( x)
b) Eg ( x)  Ef ( x)/ 
c) Eg (x)   Ef (x)
d) Eg ( x)  constant

12) Learning Italian is done with the function N(t )  2000(1 2t ) which expresses the
number of words a person knows after t years. After how many years is the number of
words that one learns per year, dropped to below one.

a) After 11.0 years (rounded)

b) After 10.4 years (rounded)
c) After 2000 years
d) After 20.0 years (rounded)
Quantitative Methods I, EBC1005/1006/1007, 2018/2019, 1st Sit Exam, Version C Mathematics part

13) The table below gives values for the functions f (x) and g(x) and their derivatives for
certain values of 𝑥. If the function ℎ(𝑥) = 𝑓(𝑔(𝑥)), what is the value of ℎ′ (2)?

𝑥 𝑓(𝑥) 𝑔(𝑥) 𝑓′(𝑥) 𝑔′(𝑥)

0 3 2 0 1
1 −4 6 4 0
2 5 1 −2 6

a) −12
b) 12
c) 24
d) 30

1
14) The domain of the function f ( x, y)  is described by
1 y  x
a) y  x.
b) y  x and y  x 1.
c) y  x 1.
d) y  x.

f  x, y   ex  y
2
f
15) The partial derivative of the function is equal to
x
a) x 2
 y  ex  y .
2

 2x 1 ex  y .
2
b)
 2x  y  ex  y .
2
c)
x2  y
d) 2xe .

16) Let f  x, y  be a function of two variables. Which one of the following statements is
true?

a) The function g  x, y   f  x, y   x has the same level curves as f  x, y  .

b) The function g  x, y   f  x, y   x  y has the same level curves as f  x, y  .
c) The function g  x, y   f  x, y  1 has the same level curves as f  x, y  .
d) The function g  x, y   f  x, y   ex has the same level curves as f  x, y  .
Quantitative Methods I, EBC1005/1006/1007, 2018/2019, 1st Sit Exam, Version C Mathematics part

17) Consider Elx f (x, y) , and El y f (x, y) , the elasticities with respect to x and 𝑦 of the

xy
function f  x, y   . Which of the following is true about these two elasticities?
x y

a) Elx f ( x, y)  El y f ( x, y)  1
b) Elx f ( x, y)  El y f ( x, y)  1
c) Elx f (x, y)  El y f (x, y) .
d) Elx f ( x, y)  El y f (x, y)

(18) Mister G. Bates is a monopolist on the market for slow and shaky software. His
latest invention, Bates XL, sells both in the US and here in Europe. If mister Bates
charges a price PUS for XL on the US market, the demand will be QUS  40  PUS and if
he charges a price PEU for XL on the European market, the demand will be
QEU  20  PEU . The costs of producing the quantity Q  QUS  QEU is given by
C Q  10QUS  QEU  . Mister Bates would like you to find out for him what his
maximal profit is when he can set prices PUS and PEU independently, and also what his
maximal profit is when he is forced to charge the same price in both markets.

18) When prices can be chosen independently, the maximal profit is in the interval
a) [0, 50)
b) [150, 300)
c) [300, 500)
d) [50, 150)

19) When one price in both markets is charged, the maximal profit is in the interval
a) [0, 10)
b) [10, 50)
c) [50, 150)
d) [150, 300)

20) The function f  x, y   3x3  9x2 y  4 y3  48 y has

a) 2 stationary points, 1 local maximum location and 1 local minimum location.
b) 2 stationary points, both saddle points.
c) 4 stationary points, 1 local maximum location, 1 local minimum location, and 2
saddle points.
d) 4 stationary points, 2 local maximum locations and 2 local minimum locations.
Quantitative Methods I, EBC1005/1006/1007, 2018/2019, 1st Sit Exam, Version C Statistics part

21. Which of the following is/are categorical variable(s)?

I The modal income of teachers in the Netherlands
II The types of desserts available at a restaurant
III The colours of cars in a parking lot
A) I B) I & II C) I & III D) II & III

22. Recent figures of the customer bases of the seven main supermarkets in the Netherlands
(percentage of households visiting the supermarket in a certain week) are: Albert Heijn 63.6%, Lidl
44.9%, Jumbo 43.6%, Aldi 31.1%, Plus 17.9%, Dirk 13.0%, Coop 9.2% and Emté 6.9%. An appropriate
display to compare the customer bases of different supermarkets is:
A) Bar chart B) Segmented bar chart C) Histogram D) Pie Chart

23. Four histograms with identical horizontal and vertical scales. All histograms refer to datasets with
same number of observations and the same mean. What histogram has largest standard deviation?

5 5 5 5

4 4 4 4

3 3 3 3

2 2 2 2

1 1 1 1

0 0 0 0
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5

A B C D
A) A B) B C) C D) D

24. Descriptive statistics of the QM1 MathEntryTest, as calculated by StatCrunch, are provided in the
table. In what range falls the MathEntryTest z-score of a student getting 10 points in the test?

A) 0 ≤ z < 0.5 B) 0.5 ≤ z < 1 C) 1 ≤ z < 2 D) 2 ≤ z

25. An automobile service station performances oil changes and tire replacements, as well as other
services. Sixty percent of its customers request an oil change, 30 percent request tire replacements,
and 10 percent request both. A customer requests an oil change. What is the probability this customer
does not request tire replacements?
A) 1/2 B) 7/10 C) 5/6 D) 6/7
Quantitative Methods I, EBC1005/1006/1007, 2018/2019, 1st Sit Exam, Version C Statistics part

26. Three datasets (scores on a test for three classes), pictured as histograms (Class 1, Class 2, Class 3,
from left to right) and pictured as boxplots (A, B, C). What boxplot matches with what histogram?

A) Class 1 = A B) Class 1 = B C) Class 1 = C D) Class 1 = C

Class 2 = B Class 2 = A Class 2 = A Class 2 = B
Class 3 = C Class 3 = C Class 3 = B Class 3 = A

27. Which of the following statements about any two events A and B is true?
A) P(A or B) = 0 implies events A and B are independent
B) P(A or B) = 1 implies events A and B are mutually exclusive
C) P(A and B) = 0 implies events A and B are independent
D) P(A and B) = 0 implies events A and B are mutually exclusive

28. In which of the following situations is a Binomial model not an appropriate model to describe the
outcome?
A) The number of heads in three tosses of a coin
B) The number of rainy days in Maastricht in a given week
C) The number of even faces when rolling four dice
D) The number of students in your tutorial group having blood type B.

29. Scores on quiz part of the course assessment are distributed with a mean of 4 and a standard
deviation of 0.3. Scores on the written exam part of the course assessment are independent and
distributed with a mean of 24 and a standard deviation of 0.6. What are the mean and standard
deviation of the final assessment score (sum of quiz and exam score)?
A) mean 14 and standard deviation 0.45 B) mean 28 and standard deviation 0.45
C) mean 28 and standard deviation 0.67 D) mean 28 and standard deviation 0.90

30. The amount of rainfall per month in October in Maastricht is Normally distributed with a mean of
60 cm and a standard deviation of 16 cm. Which of the following is the highest amount of rainfall
Maastricht could have this October to be among the 10% driest months?
A) 80.5 cm B) 76.0 cm C) 39.5 cm D) 33.7 cm
Quantitative Methods I, EBC1005/1006/1007, 2018/2019, 1st Sit Exam, Version C Statistics part

31. A company has 400 employees. Their mean income is €41000, and the standard deviation of their
incomes is €7500, The distribution of incomes is approximately Normal. How many of the 400
employees are expected to have an income between €26000 and €48500?
A) 320 B) 327 C) 342 D) 348

32. A company with offices in five different countries is interested in estimating the proportion of its
employees in favour of banning smoking on the office premises. It is known that the views of people
from different countries on issues like smoking tend to vary due to the different local social
structures. Which of the following is an appropriate sampling technique to use in this situation?
A) simple random sample B) systematic sample
C) cluster sample D) stratified sample

33. From a survey of co-workers you find that 48% of 200 have already received this year’s flu
vaccine. An approximate 95% confidence interval is (0.409, 0.551). Which of the following are true?
A) 95% of the co-workers fall in the interval (0.409, 0.551).
B) We are 95% confident that the proportion of co-workers who have received this year’s flu vaccine is
between 40.9% and 55.1%.
C) There is a 95% chance that a random selected co-worker has received the vaccine.
D) We are 95% confident that between 40.9% and 55.1% of the samples will have a proportion near 48%.

34. The registrar’s office at a university has noticed that a large proportion of students fail to report a
change of address. The registrar decides to take a random sample of 200 students and determine the
number of students with the correct address on record. She finds that 60% of the students have the
correct address on record. What would be the 95% confidence interval of the true proportion of
students who have failed to report a change of address?
A) (0.543, 0.657) B) (0.532, 0.668) C) (0.343, 0.457) D) (0.332, 0.468)

35. A team of engineers at the research centre of a car manufacturer perform crash tests to determine
the proportion of times the cars’ airbag fail to operate in a crash. With the airbag system’s new
modified design, the team expected to reduce the failed proportion to below the last year’s
proportion of 0.08. They decide to test H0: p = 0.08 versus HA: p < 0.08, where p = the proportion of
failed airbags during crash test. If 300 crashes performed in the lab resulted in 18 failures, which of
the following is the test statistic for this test?
0.06−0.08 0.06−0.08 0.08−0.06 0.08−0.06
A) 𝑧 = . B) 𝑧 = . C) 𝑧 = . D) 𝑧 = .
0.08(1−0.08) 0.06(1−0.06) 0.08(1−0.08) 0.06(1−0.06)
√ √ √ √
300 300 300 300

36.A grocer would like to determine the proportion of milk cartons that have expired within 0.05 of
the true proportion with a 95% confidence interval. What is the minimum required sample size?
A) 385 B) 380 C) 375 D) 390
Quantitative Methods I, EBC1005/1006/1007, 2018/2019, 1st Sit Exam, Version C Statistics part

37. Researchers are concerned that the mean number of eggs per nest of robin’s eggs in a particular
forest has decreased from the mean of 4.8 eggs measured 10 years ago. They plan to send out teams
to locate and count the number of eggs in 50 different nests, and then perform a hypothesis test to
determine if their concerns are well founded. What is the most appropriate test to perform in this
situation?
A) A one-tailed z-test on one population proportion.
B) A one-tailed t-test on one population proportion.
C) A one-tailed z-test on one population mean.
D) A one-tailed t-test on one population mean.

38. A farmer wants to know whether a new fertilizer has increased the mean weight of his apples.
With the old fertilizer, the mean weight was 4 ounces per apple. The farmer decides to test H0:  = 4
ounces versus HA:  > 4 ounces, at a 5 percent level of significance. The weights of apples are
approximately normally distributed. The farmer takes a random sample of 16 apples and computes a
mean of 4.3 ounces and a standard deviation of 0.6 ounces. Which of the following gives the p-value
for this test?
A) P(z > 2) B) P(z < 2)
C) P(t > 2) with 15 degrees of freedom D) P(t < 2) with 15 degrees of freedom

39. Given the null hypothesis that all adults sleep 8 hours, which of the following is a Type I error?
A) Claiming all adults do not sleep 8 hours, when in fact, they do.
B) Failing to reject the claim that all adults sleep 8 hours when the statement is not true.
C) Claiming all adults sleep 8 hours when it is true.
D) Accepting the claim that all adults sleep 8 hours, when that statement is not true.

40. Which of the following is true about the power of a test?

A) the power decreases as the sample size increases.
B) the power decreases as the effect size decreases.
C) the power decreases as  increases.
D) the power decreases as the Type I error rate increases.
 Formulas for mathematics:
Line through point (𝑠, 𝑡) with slope 𝑎: 𝑦 − 𝑡 = 𝑎(𝑥 − 𝑠)
𝑡 −𝑡
Line through points (𝑠1 , 𝑡1 ) and (𝑠2 , 𝑡2 ): 𝑦 − 𝑡1 = 𝑠2 −𝑠1 (𝑥 − 𝑠1 )
2 1

 b  b 2  4ac
f ( x)  ax 2  bx  c  0 for x 
2a
Inverses:
𝑓(𝑥) = 𝑥 𝑎 𝑓 −1 (𝑦) = 𝑦1/𝑎 (𝑎 ≠ 0; 𝑥, 𝑦 > 0)
𝑓(𝑥) = 𝑎 𝑥 𝑓 −1 (𝑦) = 𝑎log 𝑦 (𝑎 > 0)

Important derivatives f ( x)  x a f ' ( x)  ax a 1 (a  0)

f ( x)  a x f ' ( x)  a x ln a (a  0)
1
f ( x) a log x f ' ( x)  ( a  0)
x ln a

Rules for derivatives Let f'(x) and g'(x) exist, then

Operation Function Derivative

Sum f(x )  g ( x) f ' (x)  g ' ( x)
Product f(x )  g ( x) f ' (x)  g ( x)  f ( x)  g ' ( x)

f(x ) g ( x) f ' ( x)  f ( x) g ' ( x)

Quotient
g ( x) g 2 ( x)

Composition f ( g ( x)) f ' ( g ( x)) g ' ( x)

f ' ( x)
Relative rate of increase:
f ( x)
x
Elasticity: EL x f ( x)  f ' ( x)
f ( x)

Let f(x,y) have a stationary point ( x0 , y0 )

Minimum f xx ( x0 , y 0 )  0 f yy ( x0 , y 0 )  0 f xx f yy  ( f xy ) 2  0
Maximum f xx ( x0 , y 0 )  0 f yy ( x0 , y 0 )  0 f xx f yy  ( f xy ) 2  0
Saddle - point f xx f yy  ( f xy ) 2  0