DISTANCE EDUCATION
M.B.A. DEGREE EXAMINATION, MAY 2017.
Second 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. What are the essential characteristics of a linear
programming model?
2. Explain the ''graphic method'' of solving an L.P.P. What
are its limitations?
3. Express the linear programming problem in generalised
matrix form.
4. What is transportation problem? How does the
transportation problem is a special case in linear
programming problem.
5. What is meant by statistical decision analysis?
6. What are the elements of a queuing system?
7. What is simulation? What are the reasons for using
simulation?
8. Write a note on
Joint probability
Conditional probability.
Sub. Code
21
DE-798
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wk11
PART B — 15 60 marks)
Answer any FOUR questions.
9. Solve the following problem by simplex method.
Maximize z 3x1 2x2 5x3
Subject to
0.
2 8
2 3 5 30
9
1 2 3
1 2 3
1 2 3
1 2 3




x x x
x x x
x x x
x x x
10. Explain the significance of the following variables with
examples.
Slack variables
Surplus variables
Artificial variables.
11. Determine an initial basic feasible solution to the
following transportation problem using row minima
method
To Availability
5 2 4 3 22
From 4 8 1 6 15
4 6 7 5 8
Demand 7 12 17 9
12. Explain stepping stone method for checking the solution
for optimality in transportation problems.
DE-798
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wk11
13. A self-service store employs one cashier at its counter.
Nine customers arrive on an average every 5 minutes
while the cashier can serve 10 customers in 5 minutes.
Assuming Poisson distribution for arrival rate and
exponential distribution for service time. Find
Average number of customers in the system
Average number of customers in the queue
Average time a customer spends in the system
Average time a customer waits before being served.
14. A businessman has two independent investments A and
B available to him, but he lacks the capital to undertake
both of them simultaneously. He can choose to take A
first and then stop, or if A is successful, then take B or
vice versa. The probability of success of A is 0.7, while for
B it is 0.4. Both investments require an initial capital
outlay of Rs. 2,000 and both return nothing if the
venture is unsuccessful. Successful completion of A will
return Rs. 3,000 (over cost) and successful completion of
B will return Rs. 5,000 (over cost). Draw the decision tree
and determine the best strategy.
15. Give an account of the information requirements,
assumptions and applications of the following models
Iconic
Analogue
Sequencing
Dynamic programming
Replacement
Simulation.