M.B.A. DEGREE EXAMINATION, APRIL 2016
Second Semester
QUANTITATIVE METHODS
(Common for
(CBCS 2012 onwards)
Time 3 Hours Maximum 75 Marks
Section A 3 15)
Answer all questions.
1. Explain Feasible solution.
2. Define multiplication theorem of Probability.
3. List the components of system queueing.
4. Explain expected value of pay-off.
5. Explain partial correlation.
Section B 10 50)
Answer all questions.
6. Obtain all the basic solutions to the following
system of linear equation.
x1 2x2 x3 2x1 x2 5x3 5 .
Or
Find the maximum value of Z 5x1 3x2 Subject
to the constraints x1 x2 2x1 3x2
0 x 0 x2 3 .
Sub. Code
641702/
643207/
652702
RW-10744
2
WSS
7. A manufacturer produces airmail envelopes whose
weights have mean 1.50 gms and standard
deviation 0.15 gm. The envelopes are sold in lots of
500. Assuming that weights are normally
distributed, find how many envelopes in a lot will
weight heavier than 1.85 gms.
Or
What do you understand by conditional probability?
State Baye's theorem and explain its role in
management decision making.
8. Customers arrive at a sales counter manned by a
single person according to Poisson process with a
mean rate of 20 per hour. The time required to
serve a customer has an exponential distribution
with a mean of 100 seconds. Find the average
waiting time of a customer.
Or
Explain the advantages and limitations of
simulation. Also mention five reasons for using
simulation to solve management problems.
9. A business man 'has three alternatives open to him
each of which can be followed by any of the four
possible; events. The conditional pay offs (in Rs.) for
each action event combination are given below.
Alternative Payoffs conditional on events
A B C D
X 8 0 -10 6
Y 12 18
Z 14 6 0 8
Determine which alternative should the
businessman choose, if he adopts the maximum
criteria.
Or
With suitable illustrative examples, explain the
maximum, minimax and the regret criteria in
decision making.
RW-10744
3
WSS
10. Differentiate between correlation and regression
analysis pointing out their role in business.
Or
Distinguish between simple, partial and multiple
correlation with suitable examples.
Section C 10 10)
Compulsory
11. A food product company is contemplating the introduction
of a revolutionary new product with new packaging to
replace the existing product at much higher price or
a moderate change in the composition of existing product
with a new packaging at a small increase in price or
a small change in the composition of the existing except
the word with a negligible increase in price
The three possible states of nature of events are
high increase in sales
no change in sales and
decrease in Sales
The marketing dept. of the company worked out the
pay offs in terms of yearly net profits for each of the
strategies of these events (excepted sales). This is
represented in the following table
State of Nature
Strategies
Pay offs in
N1 N2 N3
S1 7,00,000 3,00,000 1,50,000
S2 5,00,000 4,50,000 0
S3 3,00,000 3,00,000 3,00,000
Which strategy should the executive concerned
choose on the basis of
maximum criterion
maximax criterion.
Justify you answer.