Feasibility Studies and Projects

Evaluation
Time:
Date: 04 / 12 / 2014

The Islamic University of Gaza

College of Commerce
The Economic Dep.

Mid-Term Exam First Semester 2014 / 2015

Name:
....................................

Number: ..

Question 1: Answer the following questions

1. Suppose that you have the following information about beef market in Gaza city :

Price of beef ( NIS )

Annual quantity demanded for beef (Ton)

Year
2013
40

Year
2014
P

Year
2015
2P

80

100

??

If the price elasticity demand for beef = ( -3 ). Forecast the quantity demanded for beef in year
2015 ?

Question 2 : Answer the following questions

1. Suppose you have the following information about the demand for lentil in khan Younis
city, and suppose that lentil is an inferior good :
Item
Quantity demanded of lentil in 2014 as the base year by ( ton )
Population growth rate %
Income growth rate % ( Y% )
Advertising elasticity of demand ( Ea )
The power of advertising in year (t) over the years
Advertising spending growth rate % ( a% )
Income elasticity of demand for lentil ( Ey )

Value
720
4%
20%
10
1/t
5%
-4

Forecast the quantity demand for lentil in 2015 and 2016 by ton ?. Use the following table to
answer the question :
Year
Year 2014 ( 0 )
Year 2015 ( 1 )
Year 2016 ( 2 )

2. If the actual sales for cucumbers in Rafah governorate during the years 2011, 2012 ,
2013 and 2014 were as follow :
Time

Year

1
2
3
4
5

2011
2012
2013
2014
2015

Actual Sales
in (TON)
55
62
75
88

Calculate the forecasted Sales for cucumber in 2014, 2015 using a 3-month weighted
moving average forecast with weights of 0.52 for the most recent observation, 0.35 for the
next observation, and 0.13 for the most distant observation ?

Question 3 : Answer the following questions

1. Using the trend projection method to forecast demand for ice-cream in Jabalia camp
during the period 2010 2013, where the year 2010 was the base year ( t = 0 ), If
The estimated sales formula was:

and

The operation ratio formula was:

Answer the following questions :

a. Calculate the estimated sales of ice-cream in year 2016 ?

b. Determine the year where estimated sales reach to the maximum ?

2. If the marketing study for child clothes with good quality in Egypt in 2013 shows the
following :
Number of Population = 82 million
The population are classified into different groups according to their incomes as follow :
Group
A
B
C

Income
level
Low
Average
High
Total

% of
population
28%
40%
32%

The percentage of children in each group are as follow : 22% of group (A), 26% of
group (B), and 25% of group (C).
The targeted children for the proposed project are as follow : 15% of group (B), and
50% of group (C)
Annual per capita consumption is 6 units per child.
The domestic production of child clothes is 15 million units.
1. Calculate the demand gap for this type of products in the local market ?
2. If the minimum optimal size of child clothes is 0.5 million units, calculate the number of
possible projects in the market during the same period ?