Financial Accounting with Mathematics

I.D. Number    

International Study Centre

Mock Online Open Book Exam

Examination Question and Answer Book

Level: 3

Cohort: January 2020

MODULE:              XS3003 – Financial Accounting with Mathematics

DURATION:       24 Hours

Instructions to Candidates

This paper contains TWO questions. Answer ALL questions

QUESTION 1 (Statistical Graphs) carries 25 marks

QUESTION 2 (Binomial Probability) carries 25 marks

ALL QUESTIONS HAVE DEDICATED ANSWER SHEETS PROVIDED IN THIS DOCUMENT 

SOME SECTIONS CONTAIN FORMULAE AND TABLES. THESE SECTIONS HAVE BEEN PRE-FORMATTED FOR YOUR CONVENIENCE. YOU SHOULD ONLY TYPE WHERE YOU SEE THE PROMPTS

“  ”

OR

“ Start typing your answer here. The box will expand as you type your answer.”

THIS DOCUMENT, WITH COMPLETE ANSWERS TO ALL QUESTIONS MUST BE UPLOADED ON CANVAS BY

Tuesday 28 July 2020 AT 08:00 AM UK-TIME

QUESTION 1

In a binomial trial, the probability of success is 0.6. The experiment will be repeated 5 times.

Required

1. Calculate the probability that
2. the trial will fail in all five times
3. the trial will succeed once

• the trial will succeed twice

1. the trial will succeed three times only
2. the trial will succeed four times only
3. the trial will succeed all five times

         (18 marks)

1. Calculate the mean and the standard deviation of this binomial distribution.                                                                                      (7 mark)

      (25 MARKS)

(Next page for Answer Sheet to Question 1)

QUESTION 1 (ANSWER SHEET)

1. Formula used

P ( ) = × ( )^^{( )} × ( )^^{( )}

QUESTION 2

XYZ Ltd sells a Table  with a fixed quoted price of £50. Total sales are related to the number of products sold using the following formula

𝑇𝑜𝑡𝑎𝑙 𝑠𝑎𝑙𝑒𝑠=𝑄𝑢𝑜𝑡𝑒𝑑 𝑝𝑟𝑖𝑐𝑒 ×𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑠 𝑠𝑜𝑙𝑑

For example, during the 12-month period to 31 December 2007, the company sold 15,000 tables, producing total sales of £75000

The company estimates the impact of economic recovery as follows:

• Slow recovery – with a probability of occurrence of 0.60, this will result in a 30% decline in the number of products sold from the previous 12 months.

Fast recovery – with a probability of occurrence of 0.40, this will result in a 10% increase in the number of products sold from the previous 12 months.

Required:

1. a) Calculate total sales for the 12-month period ended 31 December 2008 under each scenario (16 marks)
2. b) Calculate the company’s expected total sales for the 6-month period ended 31 December 2008 (9 Marks)

QUESTION 2 (ANSWER SHEET)

a)

b)

END OF PAPER