DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2017.
First Semester
QUANTITATIVE METHODS
(2012-13 Academic Year and 2013 Calendar Year only)
(English Medium Only)
Time Three hours Maximum 100 marks
SECTION A — 8 40 marks)
Answer any FIVE questions.
All questions carry equal marks.
1. The revenue function of a product in terms of its quantity
of sales is given below. Find the marginal revenue
expression and also estimate the marginal revenue when
the quantity of sales is 100. f 10X3 20X2 6X 80
2. How can the concept of duality be useful in managerial
decision making?
3. What is the optimality criterion in the assignment
problem?
4. What is poisson distribution? What are its
characteristics?
5. Define a queue and explain the various queue disciplines.
Sub. Code
14
DE-889
2
sp4
6. Describe the concept of Minimax-Maxmini principle.
7. List and explain different decision environments.
8. How do you convert an unbalanced transportation
problem into a balanced one?
SECTION B — × 15 60 marks)
Answer any FOUR questions.
All questions carry equal marks.
9. How far quantitative techniques can be applied in
management decision making. Discuss with special
reference to any functional area of management.
10. Solve the following LPP using the simplex method.
Max Z X1 X2 3X3
Subject to X1 X2 X3 10
2 2 3 0
2 2
1 2 3
1 3


X X X
X X
and X1,X2 0
11. Obtain the initial basic feasible solution to the following
transportation problem using North West corner rule and
VAM.
D1 D2 D3 Supply
O1 2 7 4 5
O2 3 3 1 8
O3 4 4 7 7
O4 6 6 2 14
Demand 7 9 18
DE-889
3
sp4
12. A banker claims that the life of a regular saving account
opened with his bank averages 18 months with a
standard deviation of 6.45 months.
Assuming normal distribution:
The probability that there will still be money in
22 months in a saving account opened with the said
bank by a depositor.
What is the probability that the account will have
been closed before 2 years?
13. Define simulation. Why simulation used?
What are the advantages and limitations of
simulation models?
14. A business man has two independent investment
portfolios A and available to him, but be lacks
the capital to undertake both of them simultaneously. He
can either choose A first and then stop, or if A is not
successful, then take B or vice versa. The probability of
success of A is 0.6, while for B it is 0.4. Both investment
schemes require an initial capital outlay of Rs. 10,000
and both return nothing if the venture proves to be
unsuccesful. Successful completion of A will return
Rs. 20,000 (over cost) and successful completion of B will
return Rs. 24,000 (over cost). Draw a decision tree in
order, to determine the best strategy.
15. Explain the following with examples
Expected Opportunity Loss
Expected value of perfect information