NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
JANUARY 2018 EXAMINATION

COURSE CODE: BFN728                                       CREDIT UNITS: 2

COURSE TITLE: Quantitative Techniques for Financial Decisions

TIME ALLOWED: 2 Hrs

INSTRUCTIONS:   1. Attempt question number one (1) and any other (2) questions.

                                   2. Question number 1 carries 30 marks, while the other two (2) questions carry 20 marks each.

1a. The following data presents the profit ranges of 100 firms in a given industry.

Profits (N’millions)                            No. of Firms (f)

10 – 15                                                8

16 – 21                                                18

22 – 27                                                20

28 – 33                                                12

34 – 39                                                15

40 – 45                                                17

46 – 51                                                10

                                                                                    Σf = n = 100

You are required to compute the variance and standard deviation of profits within the industry. 20marks

b. Consider the following raw data on hourly wage rate for six executive secretaries:

Raw data (in =N=): X₁ = 950, X₂ = 300, X₃ = 1000, X₄ = 950, X₅ = 850, X₆ = 750

Compute the median hourly wage rate for the six secretaries.  10marks

2. Discuss the following inventory control systems terms;

i. Re-order Level        4marks

ii. Minimum level       4marks

iii. Maximum level     4marks

iv. Ordering (Replacement) Costs   4marks

v. Stock out Costs       4marks

3a. A total of N10, 000 was invested in two business ventures, A and B. At the end of the first year, A and B yielded returns on the original investments of 6 percent and 5.75 percent respectively. How was the original amount allocated if the total amount earned was N588.75? 12marks

b. Solve for the unknowns in the following linear equations:

(i)  7X + 3 - 9X - 8 = 6

          2            4                4marks

(ii). 2(p + 4) = 7p+2     4marks

4a. What do you understand by the following statistical tools?

   i. The Measures of Skewness          2marks

   ii. The Range           2marks

  iii. The Median         2marks

  iv. The Mode                        2marks

  v. The arithmetic mean         2marks

b. List and discuss four basic laws of probability.     10marks

5a. Discuss different types of forecasting.     10marks

b. Discuss the tools of quantitative analysis. 10marks