Vehicles pass a certain point on a busy single – lane road at an average rate of two per 10 second interval. Required: (i) Identify situation (3) (2 marks) (ii) Determine the probability that more than three cars pass this point during a 20 second interval. (3 marks)

In each of the following three situations, use the binomial, poisson, or normal distribution depending on which is the most appropriate. In each case, explain why you selected the distribution and draw attention to any feature which supports or casts doubt on the choice of distribution. (a) Situation 1: The […]

You are provided with the following details: 1. Installing a system of ventilation in the factory. 2. Legal expenses incurred when acquiring a new building 3. Giving the factory a fresh cost of plant 4. Replacing 200 tiles on a roof damaged by wind 5. Expenditure incurred in demolishing part […]

Timexa Limited provided the following details with respect to its fixed assets for the year of income 2005. 1. Building Sh. Class I Sh. Class II Sh. Class III Sh. Class IV Sh. 1,400,000 460,000 610,000 800,000 6,200,000 2. The industrial building had been constructed sometimes back in 2000 at […]

Company A sells all its output to company B for Sh. 200 per unit. The cost of the sales per week in company A are given by the function C = 2q2 + 40q + 80 where q is the value of weekly sales. Company B uses the output of […]

Explain briefly the application of calculus to economic models, especially in the context of maximizing contribution and minimizing costs.

Mr. Manubhai works as a sales manager with Kenya Bats Limited. The following are his employment details for the year ended 31 December 2005. The company pays him a salary of Sh.90,000 per month. He is a member of the company’s pension scheme which is registered with the Commissioner for […]

i) Specify the rules relating to payment of Income tax under the Pay As You earn rules. ( 5 marks) (ii) What are the consequences of failure to deduct and pay tax under PAYE?

Consider a hypothetical economy consisting of three sectors A, B and C with inputs and outputs for a particular period. The balanced transaction table has the form shown in the following table. The figures given are in billions of shillings. Input to A B C External demand Total Output Output […]