university of bolton business school ba (hons) accountancy … · ba (hons) accountancy semester 1...

BBS007

UNIVERSITY OF BOLTON

BUSINESS SCHOOL

BA (HONS) ACCOUNTANCY

SEMESTER 1 EXAMINATION 2015/2016

QUANTITATIVE METHODS FOR ACCOUNTANTS

MODULE NO: ACC4018

Date: Thursday 14th January 2016 Time: 10:00am to 1:00pm INSTRUCTIONS TO CANDIDATES: There are SIX questions on this

paper. Answer any FOUR questions. All questions carry equal marks.

Calculators may be used but full workings must be shown. PROVIDED: Formulae books, containing statistical tables.

Five sheets of graph paper.

of 7 University of Bolton Business School BA (Hons) Accountancy Semester 1 Examination 2015/2016 Quantitative Methods for Accountants Module No. ACC4018

Question 1

Shaw’s cycles sell a wide variety of Cycling equipment: bikes, clothing, shoes, helmets, and tools. The quarterly management accounts for recent quarters show that the following numbers of Bikes were sold in the four quarters (seasons) of the year: a) Use a 4-point moving average to analyse the data to show the trend.

(10 marks)

b) Calculate the seasonal variations from the trend.

(7 marks)

c) Use the data to forecast the sales for each quarter of 2016.

(8 marks)

(Total 25 marks)

PLEASE TURN THE PAGE…

Quarter 1 Quarter 2 Quarter 3 Quarter 4

2012 4,000 1,600 2,200 4,800

2013 4,400 2,000 2,500 5,200

2014 4,800 2,400 3,100 5,600

2015 5,200 2,800 3,400 6,000


Question 2 A company wants to determine the relationship between their employee’s ages and the number of days taken as sick leave taken during the year.

The table shows records for a random sample of 10 employees. The paired data are:

a) Draw a scatter diagram of these results. (5 marks)

b) Calculate the equation of the least square regression line of “y on x”

and then draw this line on the scatter diagram.

(10 marks) c) Calculate the Pearson’s correlation coefficient, r and the coefficient of determination r².

(6 marks)

d) Use the regression equation/line to predict the likely absence in days

of three employees, aged 30, 40, and 50 respectively (4 marks)

Total 25 marks)


Employee Age Days

missed

1 44 4

2 25 3

3 62 7

4 20 2

5 35 2

6 39 4

7 46 12

8 52 8

9 44 3

10 60 10


Question 3 The Table below shows the ages for a sample of 40 employees.

25 52 36 61 19 59 46 31

35 27 53 33 62 30 52 44

56 40 20 55 44 49 24 35

18 64 44 50 39 38 41 51

30 39 54 38 42 37 60 34

a) Produce a grouped frequency distribution (GFD) table for this data.

(5 marks) b) Draw a histogram of the grouped frequency distribution, and on the

same graph calculate the mode salary. (5 marks)

c) From the GFD calculate the mean deviation (5 marks)

d) From the GFD calculate the mean salary.

(5 marks) e) Calculate the corresponding variance and standard deviation.

(5 marks)

(Total 25 marks)



Question 4

a) A company will have to spend £500,000 on new plant in three years from now. Currently investment rates are at a nominal 12%.

i. What single sum should now be invested, if compounding is six monthly?

ii. What is the APR? (7 marks)

b) A mainframe computer whose cost is £600,000 will depreciate to a scrap value of £20,000 in 7 years.

i. What is the depreciation rate, if reducing balance depreciation is used?

ii. What is the book value of the computer at the end of the third year?

iii. How much more would the book value be at the end of the third year, if Straight-line depreciation were used?

iv. What is the depreciation rate, if straight-line depreciation is used? (9 marks)

c) You wish to borrow money to buy a house. You can afford a monthly

net repayment of £300 and wish to take out a 100% 25 year repayment mortgage with XYZ Building Society who are offering a rate of 12% per annum, what price house could you afford to purchase?

(9 marks)

(Total 25 marks)



Question 5

A Schoolboy plays in a penalty shoot-out competition. He has three attempts at taking a penalty and scoring a goal. The probabilities are as follows: He has a 0.8 probability of successfully scoring a goal at his first attempt. If he succeeds at the first attempt, the same probability applies on the next two attempts. If he is not successful at any time, he loses confidence and the probability of succeeding on any subsequent attempts is only 0.4.

Use a tree diagram to find the probabilities that:

a) Draw a tree diagram to show the probabilities of success or failure (5 marks)

b) He is successful on all his first three attempts. (5 marks)

c) He fails at the first attempt but succeeds on the next two. (5 marks)

d) He is successful just once in three attempts (5 marks)

e) He is still not successful after the third attempt (5 marks)

(Total 25 marks)



Question 6

a) Invoices at a particular store have amounts which follow a normal distribution with a mean of £100 and a standard deviation of £10.

i. What percentage of invoices will be over £110? ii. What percentage of invoices will be between £90 and £120? iii. Above what amount will 80% of the invoices lie?

(15 marks)

b) In a survey carried out in a large city, 180 households out of a random sample of 250 owned at least one bicycle. Find:

i. The 95% confidence interval and ii. The 99% confidence interval for the percentage of households in the

city who own at least one bicycle. iii. Do the results support a bicycle manufacturer’s claim that three

quarters of all households have at least one bicycle? (5 marks)

c) Firm A claims that its price range is cheaper on average than its rival,

firm B. Firm B disputes the claim so each examine a random sample of their prices with the following results:

Firm A Mean £98 Standard deviation £2 n=36 Firm B Mean £100 Standard deviation £2 n=50 Calculate two 95% confidence intervals to see which firm is correct

(5 marks) (Total 25 marks)

END OF QUESTIONS

BBS007

ACC4018

Quantitative Methods for Accountants

Formulae and Statistical Tables

university of bolton business school ba (hons) accountancy … · ba (hons) accountancy semester 1...

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