MATH134: Quantitative Methods 1 Additional
Problems for Chapter 1
1. Using data compiled by the Admissions Office at Faber University, col-
lege admissions officers estimate that 55% of the students who are offered
admission to the freshman class at the university will actually enroll.
(a) Find an equation that expresses the relationship between the number
of students who actually enroll, y, and the number of students offered
admission, x.
2. The annual sales (in billions of dollars) of global positioning systems (GPS)
equipment from 2000 through 2006 follow. Here, x = 0 corresponds to the
year 2000.
Year x Annual Sales y
0 7.9
1 9.6
2 11.5
3 13.3
4 15.2
5 17.0
6 18.8
(a) Plot the annual sales y versus the year x.
(b) Draw a straight line L through the points corresponding to 2000
(x = 0) and 2006 (x = 6).
(c) Derive an equation of the line L.
(d) Use the equation from part (c) to estimate the annual sales in 2005
(x = 5). Compare this estimate with the actual projected sales.
3. A manufacturer obtained the following data relating the cost y (in dollars)
to the number of units x produced:
Units Produced x Cost y
0 200
20 208
40 222
60 230
80 242
100 250
(a) Plot the cost y versus the units produced x.
(b) Draw a straight line through the points (0, 200) and (100, 250).
(c) Derive an equation of this straight line.
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(d) Using this equation as an approximation, estimate the cost of pro-
ducing 54 units.
4. Determine whether the following equations define y as a linear
function of x. If so, write in the form y = mx + b.
(a) 2x − 4y + 9 = 0
(b) 2x2 − 8y + 4 = 0
(c) 2x − 3y 2 + 8 = 0
5. Find the constants m and b in the linear function f (x) = mx + b, given
that f (0) = 2 and f (3) = −1.
6. An office building worth $1,000,000 when completed in 2005 is being de-
preciated linearly over 50 years. What will be the book value of the
building in:
(a) 2010
(b) 2015
(Assume the salvage value is $0).
7. A certain economy’s consumption function is given by:
C(x) = 0.75x + 6
where C(x) is the personal consumption expenditure in billions of dollars,
and x is disposable personal income in billions of dollars.
(a) Find C(0), C(50), and C(100).
8. The management of TMI finds that the monthly fixed costs for producing
their 100-watt light bulbs are $12,100. If the cost of producing each twin-
pack is $0.60 and each sells for $1.15:
(a) Find the cost function C(x).
(b) Find the revenue function R(x).
(c) Find the profit function P (x).
9. A server purchased at a cost of $60,000 in 2006 has a scrap value of $12,000
at the end of 4 years. Using the straight-line depreciation method:
(a) Find the rate of depreciation.
(b) Write the linear equation for the server’s book value V (t) at the end
of t years.
(c) Sketch the graph of V (t).
(d) Find the book value at the end of the third year.
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10. The relationship between temperature in Celsius (C) and Fahrenheit (F )
is linear:
• Freezing point: 0◦ C and 32◦ F
• Boiling point: 100◦ C and 212◦ F
(a) Find the linear equation relating F and C.
(b) Express F as a function of C, and determine F when C = 20◦ .
(c) Express C as a function of F , and determine C when F = 70◦ .
11. For the demand equation:
p = −3x + 60
where p is the unit price in dollars and x is the quantity demanded in
units of 1000:
(a) Sketch the demand curve.
(b) Determine the quantity demanded when the price is p = 30.
12. Find the intersection point of the lines:
(a) 2x − 3y = 6 and 3x + 6y = 16,
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(b) y = 4x −5 and 2x − 32 y = 1.
13. Find the break-even point for the firm with cost function C(x) and revenue
function R(x):
(a) C(x) = 5x + 10, 000; R(x) = 15x
(b) C(x) = 0.2x + 120; R(x) = 0.4x
14. AutoTime manufactures 24-hour timers with a fixed monthly cost of $48,000
and a production cost of $8 per unit. Each sells for $14.
(a) Sketch the cost and revenue functions and find the break-even point
graphically.
(b) Find the break-even point algebraically.
(c) Sketch the profit function.
(d) Where does the profit function cross the x-axis? Interpret this.
15. A division of Gibson Corporation makes bicycle pumps. Each pump sells
for $9, with variable costs at 40% of the selling price, and fixed costs are
$50,000 per month. Find the division’s break-even point.
16. A product can be made on Machine I or Machine II:
• Fixed costs: $18,000 (Machine I), $15,000 (Machine II)
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• Variable costs per unit: $15 (Machine I), $20 (Machine II)
• Selling price per unit: $50
(a) Find the cost functions.
(b) Sketch the graphs of the cost and revenue functions.
(c) Which machine maximizes profit at projected sales of 450, 550, and
650 units?
(d) What are the profits in each case?
17. For supply and demand equations:
(a) 4x + 3p − 59 = 0 and 5x − 6p + 14 = 0
(b) p = −2x + 22 and p = 3x + 12
Find the equilibrium quantity and price in each case.