M.Com. (Semester II) (CBCS) Examination, 2017
ADVANCED STATISITICS (PAPER-I)
Day Date: Wednesday, 19-04-2017 Max. Marks: 70
Time: 10.30 AM to 01.00 PM
N.B. All questions are compulsory.
Each question carries equal marks.
Figures to the right indicate full marks.
Use of Soundless calculator is allowed.
Q.1 Choose the correct alternatives form the following. 14
A transportation problem is said to be unbalanced if
Eai Ebj Eai Ebj Eai Ebj a or b
In a matrix minima method of finding an IBFS to the given
transportation problem, the first allocation is made in a cell
With least cost in first row With least cost in first column
With least cost in the matrix None of these
In the procedure of testing on IBFS for optimality we compute all ui and
vj from the basic cells with relation
A cell is said to be Basic cell if the quantity allocation is
Positive Equal to zero Negative None of these
In which of the method next to minimum cost is also considered in the
process of allocation for finding on IBFS to the transportation problem
Row minima method Column minima method
Matrix minima method None of the above
Which of the following consume some of the resources such as time,
money, etc. in Network scheduling?
Activity Event
Both a and b None of these
PERT stands for
Probabilistic Equation and Research Technique
Programme Education and Research Technique
Project Evaluation and Review Technique
None of these
PERT has how many time estimates?
2 3 4 None of these
Page 1 of 3
SLR-Q -17
For a critical activity the float time is
Positive Negative Equal to zero None of these
10) For the items that deteriorate gradually,
Operating and maintenance costs steadily increase with passage
time, whereas depreciation per year decreases with time.
Optimum replacement interval is the minimum time elapsing
between successive replacements.
The annual maintenance cost and annual depreciation tend to
decrease.
All the above.
11) When time value of money is considered.
Costs need to be considered
Costs need to be discounted.
The present value factors were as the weights.
All the above.
12) Which of the following is correct?
When there are two items to be replaced, the one with longer
replacement interval is decidedly better.
For items that fail suddenly, no replacement policy can be laid
because the failure time of none of the items is certain.
Replacement situations discussed in the text allow replacement of
items at any point in time
Expected cost of a replacement policy of individual replacements
can be obtained as follows.
Expected cost per time period is equal to number of units multiplied
by replacement per unit.
13) Inventories in general are build up to
Satisfy demand during period of replenishment
Carry reserve stocks to avoid shortage
Keep pace with changing market conditions
All the above
14) Which costs can vary with order quantity?
Unit cost only Holding cost only
Re-order cost only All of these
Q.2 Describe briefly the EOG concept. What are its limitations? Discuss. 07
Discuss in brief replacement procedure for the items that deteriorate
with time.
07
Q.3 Explain in brief: 07
1. Matrix Minima Method
2. North West Corner Rule
The following information is given: 07
Activity 1-2 2-3 2-4 3-5 4-6 5-6 5-7 6-7
tp 3 9 6 8 8 0 5 8
tm 3 6 4 6 6 0 4 5
to 3 3 2 4 4 0 3 2
1. Draw the Network diagram.
2. Expected time duration
3. Variance to each activity
Page 2 of 3
SLR-Q -17
Q.4 Attempt any one of the following. 14
A small project consists of seven activities for which the relevant data
are given below.
Activity Preceding Activity Activity Duration (Days)
A 4
B 7
C 6
D A,B 5
E B 7
F E 6
G E 5
Draw the network and find the project completion time.
Calculate total float for each of the activities and highlight the
critical path.
Draw the time scaled diagram.
What is a replacement problem? When does it arise? Describe
various types of replacement situations.
Q.5 Attempt any one of the following. 14

Explain deterministic inventory problems with no shortages.
A manufacturing company purchases 9000 parts of a machine for its
annual requirements, ordering one month usage at a time. Each part
costs Rs. 20. The ordering cost per order is Rs. 15 and the carrying
charges are 15% of the average inventory per year. You have been
assigned to suggest a more economical purchasing policy for the
company. What advice would you offer and how much would it save
the company per year?