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Mathematical Literacy 2
                         Module 4


                                   Answers to Case Studies




Answers to case studies module 4            Future Managers   1
Case Study: MXit
What is MXit?
MXit is a mobile phone application used by over 4
 million youths across South Africa every single
 day. This number increases by an astounding
 7000-12000 new users per day. To explain in
 simple terms: It is a text chat application on a
 mobile phone.




Answers to case studies module 4         Future Managers   2
Why is it so popular?
The mobile youth of today are constantly seeking
 new and innovative means to be in contact with
 each other and to share information within their
 social networks. MXit offers and almost free
 chat application which enables users to have text
 chats with each other via mobile phone. The
 application is free and the only running costs are
 data charges from Cellular Networks, averaging
 to under 2 cents a message. Undercutting the
 costs of SMS services, MXit has spread like
 wildfire, 100 million messages are being sent
 within the community every day
Answers to case studies module 4   Future Managers   3
Currently during peak time, and SMS on any one
 of our network providers costs around 80c for
 160 characters. Using MXit, the exact same
 message will equate to around 3 to 5c!

Profile of the Users:
• By Sex: Female 45%; Male 55%
• By Age: 0-11 (2.5%); 12 – 18 (42%); 19-25
  (36%); 26+ (19.5%)



Answers to case studies module 4   Future Managers   4
1.Organise the profile of all the Mxit users into a
  table.

                                   Age                       % of Users

                                   0-11                        2.5%

                                   12-18                       42%

                                   19-25                       36%

                                   26+                         19.5%

Answers to case studies module 4           Future Managers                5
1. How many users are joining MXit every
   month?

       New users per month = new users per day x 30
       = 210 000 – 360 000 new users per month
5. What is the rand value of all messages sent on
   a day?

         Rand Value = no of messages x cost of message
         = 100 million x 3 cents
         = R3 million
Answers to case studies module 4   Future Managers   6
1. What is the percentage increase per month of
   the MXit users?
    No of new users per month = 210 000 –360 000
    No of total users = 4 000 000
    % Increase per month = 210000 / 4000000 x 100
                              = 5.25% (min)
    % Increase per month = 360 000 / 4000000 x 100
                                          =9% (max)

Answers to case studies module 4   Future Managers    7
1. What is the mean of the users that join every
   day?

          Mean value = (7000 + 12 000) / 2 = 9 500 users




Answers to case studies module 4   Future Managers   8
1. Draw a pie chart to illustrate the profile of users
   by age.
                                       Mxit users by age


                                                 0-11
                                     26+          3%
                                     20%


                                                              12-18
                                                               41%



                                   19-25
                                    36%




Answers to case studies module 4            Future Managers           9
1. Draw a line graph per month for a period of one
   year to illustrate the growth of Mxit users.

                            Growth of Mxit users in one year

8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
            0
              Jan Feb Mar Apr May Jun                     Jul   Aug Sep Oct Nov Dec

 Answers to case studies module 4       Future Managers                   10
8.Interpret both the pie chart and the line graph.
  What do these two graphs reveal?

          The pie chart tells us that the largest user
          group of Mxit users is teenagers (12-18),
          while users from 19-25 still represent a
          significant portion.
          The line graph tells us that the number of
          Mxit users is growing at a constant (linear)
          rate. This gives us some power to predict the
          number of users in the future.
Answers to case studies module 4   Future Managers   11
Case Study: iTunes
iTunes is a digital media player application, introduced by
Apple on January 10, 2001 at the Macworld Expo in San
Francisco, for playing and organizing digital music and video
files on your computer. The program is also an interface to
manage the contents on Apple’s popular iPod digital media
players as well as the recently introduced iPhone. Additionally,
iTunes can connect to the iTunes Store (provided an internet
connection is present) in order to download purchased digital
music, music videos, television shows and iPod games.
 Answers to case studies module 4   Future Managers   12
Case study: iTunes
•      History of songs sold on the Internet

•      September 12, 2006. Steve Jobs(CEO of Apple) reports 1.5 billion songs sold.

•      February 23, 2006. 1 billion songs sold. One notable addition to the list of countries
       at this point was Japan, and there were a number of sub-sites, like a French and a
       Dutch site for Belgium.

•      July 17, 2005. 500 million songs sold. At this point, iTunes was available in 19
       countries: US, Austria, Belgium, Canada (excluding the Province of Quebec),
       Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,
       Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the UK.

•      May 10, 2005. 400 million songs sold. iTunes opens in Denmark, Norway, Sweden
       and Switzerland

•      January 24, 2005. 250 million songs sold.
    Answers to case studies module 4      Future Managers                       13
Case study: iTunes
•      July 12, 2004. 100 million songs sold - mostly in the US, the three additional stores
       had only opened less than a month earlier.

•      June 15, 2004. iTunes opens in the UK, France, and Germany.

•      April 28, 2004. 70 million songs sold.

•      March 15, 2004. 50 million songs sold.

•      December 15, 2003. 25 million songs sold.

•      October 16, 2003. iTunes available for Windows. 13 million songs sold.

•      September 8, 2003. 10 million songs sold.

•      June 23, 2003. 5 million songs sold.

•      May 14, 2003. 2 million songs sold.

•      May 5, 2003. One million songs sold. Managers
    Answers to case studies module 4    Future                                 14
Case study: iTunes
1. Compile a table of “tunes” sold over the period
   May 2003 – September 2006
       Date                                 Songs sold
       May, 5 2003                          1 million
       May 14, 2003                         2 million
       June 23, 2003                        5 million
       September 8, 2003                    10 million
       October 16, 2003                     13 million
       December 15, 2003                    25 million
       March 15, 2004                       50 million
       April 28, 2004                       70 million
       July 12, 2004                        100 million
       October 14, 2004                     150 million
       December 16, 2004                    200 million
       January 24, 2005                     250 million
       May 10, 2005                         400 million
       July 17, 2005                        500 million
       February 23, 2006                    1 billion
       September 12, 2006                   1.5 billion
Answers to case studies module 4   Future Managers        15
Case Study: iTunes
1. Draw a broken line graph with the dates
   (months) as x-values and the number of songs
   sold as y-values. Use the following scale: 50
   million = 1cm and 1 month = 1cm




Answers to case studies module 4   Future Managers   16
Answers to case studies module 4   Future Managers   17
Case Study: iTunes
1. From the graph determine how many tunes
   were downloaded in:
     –     August 2004
     –     February 2005
     –     October 2005
     –     April 2006
     –     July 2006




Answers to case studies module 4   Future Managers   18
Answers to case studies module 4   Future Managers   19
Case Study: iTunes
1. From the graph determine how many tunes
   were downloaded in:
     –     August 2004                               120 million
     –     February 2005                             280 million
     –     October 2005                              680 million
     –     April 2006                                1100 million
     –     July 2006                                 1320 million




Answers to case studies module 4   Future Managers                  20
Case Study: iTunes
1. If this growth in downloading of tunes
   continues, estimate how many tunes would
   have been sold in January 2007




Answers to case studies module 4   Future Managers   21
Answers to case studies module 4   Future Managers   22
Case Study: iTunes
1. If this growth in downloading of tunes
   continues, estimate how many tunes would
   have been sold in January 2007
   Approximately 1.7 billion songs




Answers to case studies module 4   Future Managers   23
Case Study: iTunes
5. How many could be sold in January 2008




Answers to case studies module 4   Future Managers   24
Answers to case studies module 4   Future Managers   25
Case Study: iTunes
1. How many could be sold in January 2008
   Approx 3.5 billion songs




Answers to case studies module 4   Future Managers   26
Case Study: iTunes
1. Analyse the number of tunes sold by
   calculating:
     – Percentage increase between each year.
     – What is the Mean, Mode and Median years between
       October 2004 – September 2006?

                  Year             Number of iTunes      % increase
                                   sold
                  Oct 2004         120 million           ----------------
                  Oct 2005         620 million           416%
                  Sept 2006        1480 million          138%




Answers to case studies module 4       Future Managers                      27
Case Study: iTunes
• Describe the growth of sales on the internet
   Sales are growing at an almost exponential rate i.e. the graph
   is getting steeper. As the market saturates we may expect to
   see the graph become more linear over time (closer to a
   straight line). This is because no new customers will be taken
   on board, but the current ones will continue to order.




Answers to case studies module 4   Future Managers        28

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NCV 2 Mathematical Literacy Hands-On Training Case Studies Module 4

  • 1. Mathematical Literacy 2 Module 4 Answers to Case Studies Answers to case studies module 4 Future Managers 1
  • 2. Case Study: MXit What is MXit? MXit is a mobile phone application used by over 4 million youths across South Africa every single day. This number increases by an astounding 7000-12000 new users per day. To explain in simple terms: It is a text chat application on a mobile phone. Answers to case studies module 4 Future Managers 2
  • 3. Why is it so popular? The mobile youth of today are constantly seeking new and innovative means to be in contact with each other and to share information within their social networks. MXit offers and almost free chat application which enables users to have text chats with each other via mobile phone. The application is free and the only running costs are data charges from Cellular Networks, averaging to under 2 cents a message. Undercutting the costs of SMS services, MXit has spread like wildfire, 100 million messages are being sent within the community every day Answers to case studies module 4 Future Managers 3
  • 4. Currently during peak time, and SMS on any one of our network providers costs around 80c for 160 characters. Using MXit, the exact same message will equate to around 3 to 5c! Profile of the Users: • By Sex: Female 45%; Male 55% • By Age: 0-11 (2.5%); 12 – 18 (42%); 19-25 (36%); 26+ (19.5%) Answers to case studies module 4 Future Managers 4
  • 5. 1.Organise the profile of all the Mxit users into a table. Age % of Users 0-11 2.5% 12-18 42% 19-25 36% 26+ 19.5% Answers to case studies module 4 Future Managers 5
  • 6. 1. How many users are joining MXit every month? New users per month = new users per day x 30 = 210 000 – 360 000 new users per month 5. What is the rand value of all messages sent on a day? Rand Value = no of messages x cost of message = 100 million x 3 cents = R3 million Answers to case studies module 4 Future Managers 6
  • 7. 1. What is the percentage increase per month of the MXit users? No of new users per month = 210 000 –360 000 No of total users = 4 000 000 % Increase per month = 210000 / 4000000 x 100 = 5.25% (min) % Increase per month = 360 000 / 4000000 x 100 =9% (max) Answers to case studies module 4 Future Managers 7
  • 8. 1. What is the mean of the users that join every day? Mean value = (7000 + 12 000) / 2 = 9 500 users Answers to case studies module 4 Future Managers 8
  • 9. 1. Draw a pie chart to illustrate the profile of users by age. Mxit users by age 0-11 26+ 3% 20% 12-18 41% 19-25 36% Answers to case studies module 4 Future Managers 9
  • 10. 1. Draw a line graph per month for a period of one year to illustrate the growth of Mxit users. Growth of Mxit users in one year 8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Answers to case studies module 4 Future Managers 10
  • 11. 8.Interpret both the pie chart and the line graph. What do these two graphs reveal? The pie chart tells us that the largest user group of Mxit users is teenagers (12-18), while users from 19-25 still represent a significant portion. The line graph tells us that the number of Mxit users is growing at a constant (linear) rate. This gives us some power to predict the number of users in the future. Answers to case studies module 4 Future Managers 11
  • 12. Case Study: iTunes iTunes is a digital media player application, introduced by Apple on January 10, 2001 at the Macworld Expo in San Francisco, for playing and organizing digital music and video files on your computer. The program is also an interface to manage the contents on Apple’s popular iPod digital media players as well as the recently introduced iPhone. Additionally, iTunes can connect to the iTunes Store (provided an internet connection is present) in order to download purchased digital music, music videos, television shows and iPod games. Answers to case studies module 4 Future Managers 12
  • 13. Case study: iTunes • History of songs sold on the Internet • September 12, 2006. Steve Jobs(CEO of Apple) reports 1.5 billion songs sold. • February 23, 2006. 1 billion songs sold. One notable addition to the list of countries at this point was Japan, and there were a number of sub-sites, like a French and a Dutch site for Belgium. • July 17, 2005. 500 million songs sold. At this point, iTunes was available in 19 countries: US, Austria, Belgium, Canada (excluding the Province of Quebec), Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the UK. • May 10, 2005. 400 million songs sold. iTunes opens in Denmark, Norway, Sweden and Switzerland • January 24, 2005. 250 million songs sold. Answers to case studies module 4 Future Managers 13
  • 14. Case study: iTunes • July 12, 2004. 100 million songs sold - mostly in the US, the three additional stores had only opened less than a month earlier. • June 15, 2004. iTunes opens in the UK, France, and Germany. • April 28, 2004. 70 million songs sold. • March 15, 2004. 50 million songs sold. • December 15, 2003. 25 million songs sold. • October 16, 2003. iTunes available for Windows. 13 million songs sold. • September 8, 2003. 10 million songs sold. • June 23, 2003. 5 million songs sold. • May 14, 2003. 2 million songs sold. • May 5, 2003. One million songs sold. Managers Answers to case studies module 4 Future 14
  • 15. Case study: iTunes 1. Compile a table of “tunes” sold over the period May 2003 – September 2006 Date Songs sold May, 5 2003 1 million May 14, 2003 2 million June 23, 2003 5 million September 8, 2003 10 million October 16, 2003 13 million December 15, 2003 25 million March 15, 2004 50 million April 28, 2004 70 million July 12, 2004 100 million October 14, 2004 150 million December 16, 2004 200 million January 24, 2005 250 million May 10, 2005 400 million July 17, 2005 500 million February 23, 2006 1 billion September 12, 2006 1.5 billion Answers to case studies module 4 Future Managers 15
  • 16. Case Study: iTunes 1. Draw a broken line graph with the dates (months) as x-values and the number of songs sold as y-values. Use the following scale: 50 million = 1cm and 1 month = 1cm Answers to case studies module 4 Future Managers 16
  • 17. Answers to case studies module 4 Future Managers 17
  • 18. Case Study: iTunes 1. From the graph determine how many tunes were downloaded in: – August 2004 – February 2005 – October 2005 – April 2006 – July 2006 Answers to case studies module 4 Future Managers 18
  • 19. Answers to case studies module 4 Future Managers 19
  • 20. Case Study: iTunes 1. From the graph determine how many tunes were downloaded in: – August 2004 120 million – February 2005 280 million – October 2005 680 million – April 2006 1100 million – July 2006 1320 million Answers to case studies module 4 Future Managers 20
  • 21. Case Study: iTunes 1. If this growth in downloading of tunes continues, estimate how many tunes would have been sold in January 2007 Answers to case studies module 4 Future Managers 21
  • 22. Answers to case studies module 4 Future Managers 22
  • 23. Case Study: iTunes 1. If this growth in downloading of tunes continues, estimate how many tunes would have been sold in January 2007 Approximately 1.7 billion songs Answers to case studies module 4 Future Managers 23
  • 24. Case Study: iTunes 5. How many could be sold in January 2008 Answers to case studies module 4 Future Managers 24
  • 25. Answers to case studies module 4 Future Managers 25
  • 26. Case Study: iTunes 1. How many could be sold in January 2008 Approx 3.5 billion songs Answers to case studies module 4 Future Managers 26
  • 27. Case Study: iTunes 1. Analyse the number of tunes sold by calculating: – Percentage increase between each year. – What is the Mean, Mode and Median years between October 2004 – September 2006? Year Number of iTunes % increase sold Oct 2004 120 million ---------------- Oct 2005 620 million 416% Sept 2006 1480 million 138% Answers to case studies module 4 Future Managers 27
  • 28. Case Study: iTunes • Describe the growth of sales on the internet Sales are growing at an almost exponential rate i.e. the graph is getting steeper. As the market saturates we may expect to see the graph become more linear over time (closer to a straight line). This is because no new customers will be taken on board, but the current ones will continue to order. Answers to case studies module 4 Future Managers 28