DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2017.
First Semester
QUANTITATIVE METHODS
(Upto 2012 13 AY and 2013 CY)
Time Three hours Maximum 100 marks
PART A — 8 40 marks)
Answer any FIVE questions.
1. Define linear and non-linear functions. Give some
examples.
2. Describe the steps involved in the process of decision
making.
3. What are the advantages and limitations of L.P models?
4. Explain the concept of conditional probability with
suitable examples.
5. Show how to balance the transportation model when it is
unbalanced. Also explain the interpretation of the
optimal solution of an unbalanced transportation
problem.
6. Write brief note on decision tree.
7. What is simulation and what are its major limitations?
8. What is a payoff matrix? What is a decision tree? Is there
any benefit in representing a decision problem in either of
these forms?
Sub. Code
14
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PART B — × 15 60 marks)
Answer any FOUR questions.
9. A coastal ship can carry a maximum of 1,00,000
passengers per month at a force of Rs. 850 per passenger.
The variable cost per passenger is Rs. 100, while the fixed
costs are Rs. 75,00,000 per month. Find the Break Even
Quantity (no. of passengers) and Break Even Sales (fares)
for the ship.
10. Determine the initial basic feasible solution to the
following transportation problem using
the least cost method
the Vogel's approximation method.
Destinations
Sources D1 D2 D3 D4 Supply
S1 1 2 1 4 30
S2 3 3 2 1 50
S3 4 2 5 9 20
Demand 20 40 30 10
11. Use the graphical method to solve the following
LP problem.
Maximise Z 5x1 2x2
Subject to, 2x1 3x2 150
3x1 150
5x2 200
and x1;x2 0 .
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12. Two unbiased wins are tossed. Let X be a random
variable which denotes the total number of heads
obtained on a toss and Y be a random variable which
takes a value 1 if head occurs on first win and takes a
value 0 if tail occurs on it. Construct the joint probability
distribution of X and Y. Find the conditional distribution
of X when Y 0. Are X and Y independent variable?
13. A bookstore sell a particular book of tax laws for Rs. 100.
It purchases the book for Rs. 80 per copy. Since some of
the tax laws change every year, the copies unsold at the
end of a year become outdated and can be disposed off for
Rs. 30 each. According to part experience, the annual
demand for this book is between 18 and 23 copies.
14. Explain clearly the various ingredients of a decision
problem. What are the basic steps of a decision-making
process?
15. Explain Break-Even analysis and its uses.
Give the relationship between costs and level of
activity.