D2 June 2019 Q7
7. A company has purchased a plot of land and has decided to build four holiday homes, A, B, C and D, on the land at the rate of one home per year.
The company expects that the construction costs each year will vary, depending on which houses have already been constructed and which house is currently under construction. The expected construction costs, in thousands of pounds, are shown in the table below.
| Construction cost | ||||
|---|---|---|---|---|
| Already built | A | B | C | D |
| Nothing | 25 | 35 | 35 | 30 |
| A | – | 45 | 50 | 55 |
| B | 50 | – | 45 | 55 |
| C | 60 | 45 | – | 50 |
| D | 65 | 55 | 60 | – |
| A and B | – | – | 40 | 35 |
| A and C | – | 55 | – | 30 |
| A and D | – | 55 | 60 | – |
| B and C | 45 | – | – | 50 |
| B and D | 65 | – | 35 | – |
| C and D | 55 | 40 | – | – |
| A and B and C | – | – | – | 65 |
| A and B and D | – | – | 55 | – |
| A and C and D | – | 45 | – | – |
| B and C and D | 55 | – | – | – |
In order to manage annual cash flow, the company needs to choose the order in which it builds the holiday homes so that the greatest expected annual cost of construction is as small as possible.
| Scheme | Marks |
|---|---|
| minimax | B1 |
| (1) |
Notes
a1B1: CAO
| Scheme | Marks | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| M1 A1 (Stage 1) M1 A1 A1 A1 (Stage 2) M1 A1ft A1 (Stage 3) M1 A1 (Stage 4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (11) |
Notes
(The printed mark scheme labels the first M1 A1 “(Stage 2)”; it is for Stage 1, as the notes below confirm. Corrected from the printed mark scheme.)
b1M1: At least three additional rows for the first stage. Value column must contain the values of 55, 45 and 55. Ignore entries in all other columns and condone an error in one value only
b1A1: CAO for the first stage (all three additional rows) – entries in all columns must be correct
b2M1: Second stage – at least 12 rows. Value column must be complete with at least one value correct for each state – ignore entries in all other columns
b2A1: Any two states correct in second stage
b3A1: Any four states correct in second stage
b4A1: Second stage completely correct
b3M1: Third stage – at least 12 rows. Value column must be complete with at least one value correct for each state – ignore entries in all other columns
b5A1ft: Any two states correct in third stage on the ft from second stage
b6A1: Third stage completely correct
b4M1: Fourth stage – at least 4 rows. Value column must be complete with at least one value correct – ignore entries in all other columns
b7A1: Fourth stage completely correct
Special Cases: The number of rows, for each stage, must be as stated above. Fewer rows for any stage leads to M0. In order to score method marks results in each stage must be have been carried forward from the previous stage. The second accuracy mark is awarded if the correct pair of numbers is seen in each of the 12 rows of stage 2, though incorrect manipulation follows.
Minimum Scores at most B0 M1A1 M1A1A0A0 M1A0A0 M1A0 B0M1A0 7/15 marks.
Minimin, Maximum, Maximin Scores at most B0 M1A1 M1A1A0A0 M1A0A0 M1A0 B0M0A0 6/15
| Scheme | Marks |
|---|---|
| Order is A, C, D, B | DB1 |
| Cost is 25 000 + 50 000 + 30 000 + 45 000 = (£)150 000 | M1 A1 |
| (3) | |
| 15 marks |
Notes
c1B1: Correct order – dependent on all M marks awarded in (b)
c1M1: Correct method for calculating cost for their order (condone not working/answer in thousands)
c1A1: CAO