DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2017.
Third Semester
QUANTITATIVE METHODS
(Upto 2012 13 Academic Year and 2013 Calendar Year)
Time Three hours Maximum 100 marks
PART A — 8 40 marks)
Answer any FIVE questions.
1. Linear combination is the common method of trade off
Explain.
2. How are functions represented in graphical form?
3. How will you determine the cost of operating a system?
4. What is break even analysis State its uses.
5. What is the use of duality in solving a linear
programming problem?
6. Explain the concept of probability. How is it defined
under classical approach?
Sub. Code
36
DE-371
2
wk 3
7. A diet conscious housewife wishes to ensure certain
minimum intake of vitamins B and C for the family.
The minimum daily requirements are A 30, B 20 and C
16 units. For the supply of these three vitamins, the
housewife relies on two fresh foods. The first one provides
5 and 2 units of the three vitamins per gram
respectively and the second one provides 4 and 8 units
of the three vitamins per gram respectively. The first food
costs Rs.3 per gram and the second one Rs.2 per gram.
How many grams should the housewife buy to keep her
food as low as possible? Formulate the above problem into
an LPP.
8. What is the use of decision tree approach in choosing an
optimal course of action?
PART B — 15 60 marks)
Answer any FOUR questions.
9. Explain the scope of quantitative analysis in the business
management.
10. Solve the following LPP using Simplex Method:
Maximise Z 9x1
Subject to
0.
6 8 110
10 15 90
5 20 80
1 2
1 2
1 2
1 2




x x
x x
x x
x x
11. Find an economic solution for the following
Transportation Problem:
Destination
D1 D2 D3 D5 Available
O1 11 8 5 7 125
O2 15 4 13 9 225
O3 12 16 11 13 175
Origin
O4 14 14 9 12 155
Required 180 160 150 190
DE-371
3
wk 3
12. The management of XYZ Ltd., is faced with the problem
of choosing one of the two products for manufacturing.
The probability matrix after market research for the two
products is as follows:
Nature of market
Product Good Fair Poor
A 0.75 0.15 0.10
B 0.60 0.30 0.10
The profits at different levels of market are as follows:
Profit (in Rs.) if market is
Product Good Fair Poor
A 35,000 15,000 5,000
B 50,000 20,000 -3,000
Calculate the expected value to choose the profitable
product.
13. A market survey conducted in four cities pertained to
preference for brand A soap. The responses are shown
below:
Response Delhi Kolkatta Chennai Mumbai Total
Yes 45 55 60 50 210
No 35 45 35 45 160
No opinion 5 5 5 5 20
What is the probability that a consumer selected at
random preferred brand
What is the probability that a consumer preferred
brand A and was from Chennai?
What is the probability that a consumer preferred
brand A given that he was from Chennai?
Given that a consumer preferred brand what is
the probability that he was from Mumbai?
DE-371
4
wk 3
14. A company manufactures 30 items per day. The sale of
these items depends on demand which has the following
distribution:
Sales 25 27 29 30 32 34
Probability 0.10 0.15 0.20 0.30 0.20 0.05
The production cost and sale price of each unit are Rs.25
and Rs.30 respectively. Any unsold product is to be
disposed of at a loss of Rs.5 per unit. There is a penalty of
Rs.2 per unit if demand is not met. Using the following
sequence of random numbers, estimate the total
profit/loss of the company for the next 7 days:
10 89 55 79 95 20 69
15. Explain elasticity of demand using functional
relationship.