Quantitative Methods 2018 November Knec Past Paper

Explain five advantages of using interview as a method of data collection. (10 marks)
A company advertised for a position of a Managing Director. The number of applicants for the position were 50. out of which 10 were shortlisted for interview.
Determine the probability that are applicant selected at random will be;
(i) shortlisted for interview;
(ii) shortlisted for interview and employed as the Managing Director;
(iii) employed as the Managing Director, given that he has been shortlisted for interview;
(iv) shortlisted for interview and not employed as the Managing Director;
(v) not shortlisted for interview. (10 marks)
Differentiate between each of the following terms as used in financial mathematics:
(i) perpetuity and annuity;
(ii) ordinary annuity and annuity due. (S marks)
1 he following are the ranks awarded to ten employees in a company by three judges X, Y and Z according to their performance.

(i) Calculate Spearman’s rank correlation coefficient fur each pair of judges.
(ii) Based on the results in (i) above, determine the pair of judges that were most consistent in their ranking.
(a) Explain five reasons for classification of data.
(10 marks)
(b) I lie following information shows the distribution of salaries of employees in a company:

Determine the:
(i) mean salary ;
(ii) median salary;
(iii) standard deviation.
(10 marks)
4. (a) Explain five reasons that make sampling to be preferred to census in the collection of data. (10 marks)
(b) The following information shows the contribution to the national income in millions of shillings by three sectors of an economy:

Present the information in a percentage component bar chan. (10 marks)
5, (a) Explain the four components of a time series. – (8 marks)
(b) The following information shows the number of years of experience of ten salespersons and their respective annual sales.

(i) Determine the regression equation of annual sales on years of experience.
(ii) Based on the result in (i) above, estimate the annual sales of a sales person with 12 years of experience. (12 marks)
Explain five rules that should be followed when drawing graphs to present information. (10 marks)
(b) The following is a distribution of profits in millions of shillings of 159 companies in the same industry.

Calculate the:
(i) q uarti Ic deviation;
(ii) percentile 70 (Pm)
Explain the meaning of each of the following terms as used in financial mathematics:
(i) interest;
(ii) principal.
(iii) discounting;
(iv> compounding;
(v) sinking fund. (10 marks)
(b) The following are the sales of a company for the first ten months of the year 2017:

(i) ) Using three-penod moving averages, determine the trend values of the sales
(ii) Based on tise results in (i) above,comment on the trend of the sales.

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