Explain the following terms as used in index numbers: (i) Quantity indices (2 marks) (ii) Base year (2 marks) (iii) Chain index numbers (2 marks) (iv) Retail price index (2 marks)

Susan  has just bought a house on a half acre plot. Her current problem is deciding how to cut the grass. One alternative is to hire someone else to cut it. This would cost Sh. 1,400 each time. The other alternative Susan is considering is buying a riding lawn-mower. The […]

What are the assumptions and limitations of the game theory?

Two participants, husband and wife wish to go to an event together but may disagree whether to go to a football fame or a variety show. Each participant gets a utility of 10 if he/she goes to his/her preferred event, a utility of 5 if they agree to go to […]

You have been invited by a group of CPA I and CPS I students to discuss the matters listed below: Required: In each of the cases provide explanatory notes and computations for use in your discussions with students. (a) (i) A manager who is on full-time employment where he draws […]

In the context of two person game theory, explain the following: (i) Zero-sum and non zero-sum games. (ii) Saddle point. (iii) The pure and the mixed strategy. (i) The concept of dominance. (ii) The value of game.

J.A Computers is a small manufacturer of personal computers. It concentrates production on three models – a Desktop 386, a Desktop 286, and a Laptop 486, each containing one CPU Chip. Due to its limited assembly facilities J.A computers are unable to produce more than 500 desktop models or more […]

Mrs. Mary Meno is a professional dentist who practices in Accra. She has provided you with the details on her clinic for the year ended 31 December 2005: Sh. Gross Professional fees received Subscriptions to professional association and publications Subscriptions to a wildlife magazine Donations to a children’s home Debt […]

Explain the value of sensitivity analysis is linear programming problems and show how dual values are useful in identifying the price worth paying to relax constraints.