CPA › Quantitative Analysis › September 2021

CPA Quantitative Analysis – September 2021 Past Paper & Answers

Unit: Quantitative Analysis

13 Questions

Download Complete Period

Get all questions and answers for "September 2021" in a single PDF file

Join the community! 550+ students upgraded in the last 24 hours. Limited Discount Seats Available

Questions

Download CPA Quantitative Analysis September 2021 past paper with detailed answers and marking scheme. This paper is based on KASNEB examination standards and is ideal for revision and exam preparation.

Access the full paper online, download the PDF, or study offline. Each question includes step-by-step solutions to help you understand key concepts in Quantitative Analysis.

Other Quantitative Analysis Past Papers

1a
Mathematical Techniques
​ ​ ​ ​ ​​The Aviation Perspectives Agency (APA) recently conducteda market survey to determine the air travel preferences of 170 travellers in a certain country. The air travel preferences were represented by the following airlines; Excellent Airways, Safari Connections and Tumaini Services.

The following results were obtained from the survey:

100 travellers preferred Excellent Airways.

40 travellers preferred Safari Connections.

75 travellers preferred Tumaini Services.

20 travellers preferred Excellent Airways and Safari Connections.

28 travellers preferred Excellent Airways and Tumaini Services.

18 travellers preferred Safari Connections and Tumaini Services.

9 travellers did not record any preference.

Required:

(i) Represent the above information in a Venn diagram.

(ii) Determine the number of travellers who preferred all the three airlines.

(iii) The number of travellers who preferred the Safari Connections and Tumaini Services, but not the Excellent Airways. 

Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
1b
Time series
​ ​ ​​The following data presents the quarterly imports of electrical products by a certain electronics company for the given four-year period:

Imports in Sh."Million"
Year
Quarter 1
Quarter 2
Quarter 3
Quarter 4
2017
2018
2019
2020
43
50
62
73
71
82
89
95
  83
  93
101
120
59
75
81
89

Required: 
(i) Using 4-quarter moving averages, calculate the seasonal variations from the above data. 

(ii) Derive the deseasonalised data for the imports using the additive model.

Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
2a
Decision Theory
​​Explain any four assumptions underlying the game theory.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
2b
Linear programming
​ ​ ​ ​ ​ ​ ​​Zakem Ltd. produces two products namely; "Alkon" and "Zenon". The products pass through three departments namely; Assembly, Finishing and Packaging. There is a maximum of 200 hours in each of the Assembly and Finishing departments. 

In addition, a maximum of 400 hours of packaging are available for packing "Alkon" and "Zenon". 

The table below shows the number of hours required per unit of each product:

Hours required per unit of product
Department
"Alkon"
"Zenon"
Assembly
2
3
Finishing
4
2
Packaging
5
3

Each unit of "Alkon" and "Zenon" gives a profit contribution of Sh.3,000 and Sh.2,000 respectively. 

Required: 
(i) Formulate a linear programming model to solve the above problem. 

(ii) Using the simplex method, solve the linear programming model formulated in (b) (i) above.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
3a
Mathematical Techniques
​ ​​The demand function for a certain product is given by:

P = 0.3Q - 5

Where: 
P is the price in shillings of the product per unit; and 
Q is the quantity of the product demanded in units. 

The total cost (TC) of the firm (Sh."million") is given by TC = 1.7Q² -18Q+15. 

Required: 

(i) The break-even point quantity (in units). 

(ii) The level of output (in units) that maximises profit. 
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
3b(i)
Hypothesis Testing and Estimation
​​​​Explain the difference between "point estimate" and "confidence interval". 

Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
3b(ii)
Hypothesis Testing and Estimation
​ ​ ​ ​​Mali Mali Supermarkets (MMS) operates two branches, one in Kisumu and the other in Mombasa. The management has received complaints that there is a significant difference between the wages paid to employees in the two branches. 

A sample of 40 employees was taken from the Kisumu branch and it had a mean wage of Sh.12,000 and a standard deviation of Sh.1,000. A sample of 50 employees taken from the Mombasa branch had a mean wage of Sh.13,000 and a standard deviation of Sh.1,200. 

Required: 
Advise the management of MMS on whether there is a significant difference between the wages paid in  Kisumu branch and Mombasa branch.

(Use a significance level of 5%).
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
4a
Correlation and Regression Analysis
​​Explain the difference between "correlation coefficient" and "coefficient of determination" as used in regression analysis.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
4b
Correlation and Regression Analysis
​ ​ ​​A group of eight students were tested in "Quantitative Analysis" and "Auditing" examinations. The marks scored were as follows:

Marks in percentage (%)
Student
Quantitative Analysis
Auditing
A
76
82
B
43
57
C
49
75
D
84
86
E
69
68
F
69
92
G
53
43
H
36
53

Required: 
Compute the Spearman's rank correlation coefficient and interpret the results.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
4c
Decision Theory
​ ​ ​ ​​A medium-sized company manufactures product "Ndovu". The current variable production cost per unit of product "Ndovu" is Sh.800 while the selling price is Sh.1,150 per unit. However, the demand for product "Ndovu" is uncertain and has the following probability distribution:

Number of units of product "Ndovu"
Probability demanded
10
0.36
20
0.42
30
0.22

Required:
Advise the company on the optimal number of units of product "Ndovu" to produce using the: 

(i) Expected monetary value (EMV) criterion. 

(ii) Hurwicz criterion. Assume a coefficient of optimism of 0.8.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
5a
Decision Theory
​​Summarise four practical limitations of the "queuing model"
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
5b
Probability
​​A recent inspection of bolts produced by a certain company revealed that 16 bolts were defective out of a total of 40 bolts inspected. 

5 bolts are picked at random and inspected. 

Required: 

(i) Assuming that the distribution of defective bolts follows the poisson distribution, calculate the probability that at least three bolts are defective. 

(ii) Assuming that the distribution of defective bolts follows the binomial distribution, calculate the probability that at most 3 bolts are defective.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
5c
Decision Theory
​ ​ ​​ABC Limited is a construction company. An engineer identified the following activities to complete a project and their estimated expected time in weeks.

Activity
Preceding Activity 
Expected estimated time (in weeks) 
A
-
5
B
-
7
C
-
3
D
A
7
E
A
6
F
B
8
G
C
10
H
E,F
3
I
E,F
4
J
D,I
2
K
G,H,J
4
L
D,I
7

Required: 

(i) Draw a network diagram to represent the above project. 

(ii) Obtain the critical path and project duration.
Want to join the discussion?

Log in to post comments and interact with tutors.

Login to Comment
All Periods
December 2025
August 2025
April 2025
December 2024
August 2024
April 2024
December 2023
August 2023
April 2023
December 2022
August 2022
April 2022
December 2021
Pilot December 2021
September 2021
May 2021
November 2020
November 2019
May 2019
November 2018
May 2018
December 2017
May 2017
November 2016
May 2016
November 2015
Pilot September 2015
Success!

Comment posted! We'll give you feedback soon.