P79/MBA202/EE/20160519
Time : 3 Hours Marks : 80
Instructions :
1. All Questions are Compulsory.
2. Each Sub-question carry 5 marks.
3. Each Sub-question should be answered between 75 to 100 words. Write every questions
answer on separate page.
4. Question paper of 80 Marks, it will be converted in to your programme structure marks.
1. Solve any four sub-questions.
a) Discuss the basic structure of a linear programming problem. 5
b) Explain the concept of Transportation problems. 5
c) Explain the concept of Assignment problem. 5
d) Discuss the need for queuing analysis. 5
e) Explain the difference between decision making under uncertainty and decision making
under risk. 5
2. Solve any four sub-questions.
a) Explain the meaning of Event. Also define the meaning of simple and compound events.
5
b) Discuss the concept of a random variable. State its types. 5
c) Discuss the meaning of Regression. Define linear and curvilinear regression. 5
d) Explain the meaning of null and alternative hypothesis. Give suitable example. 5
e) Discuss the concept of Poisson distribution. Explain its properties. 5
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3. Solve any four sub-questions.
a) A manufacturer wants to determine how to make products A and B to be able to make
maximum total profit from the role of the products. Both products are made in two
processes I and II. It takes 12 hours in process I and 4 hours in process II to manufacture
200 units of product A. It requires 5 hours in process I and 6 hours in process II to
manufacture 100 units of product B. Process I can handle 64 hours of work and process
II can handle 22 hours of work in the scheduled period. If the profit is Rs.11 per 100
units for product A and Rand 4 per 100 units for product B, then how much of each of
products A and B should be manufactured to realise the maximum profit? It is assumed
that whatever is produced can be sold and that the set-up time on two processes is
neglible. Formulate the above problem as a linear programming model. 5
b) determine the initial basic feasible solution of the problem given below using North
West Corner Method : 5
D1 D2 D3 Supply
S1 3 2 1 20
S2 2 4 1 50
S3 3 5 2 30
S4 4 6 7 25
Demand 40 30 55 125
c) Consider a job which requires four activities cutting, assembly, finishing and packaging.
Four workers are employed to perform these activities. The time required by then to
perform each of the activities are as follows : 5
Activities Workers
1 2 3 4
C 14 12 15 15
F 21 18 18 22
A 14 17 12 14
P 6 5 3 6
How should these activities be assigned to the worker so that the job is completed in
minimum time?
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d) A self service store employs one cashier at its counter. Nine customers arrive on an
average in one hour while the cashier can serve 10 customers in an hour. Assuming
Poisson distribution for arrival rate and exponential distribution for service rate,
find : 5
i) Average number of customers in the system
ii) Average waiting time of customers in queue
e) A firm makes three types of products. The Fixed and Variable Cost are given below : 5
Fixed Cost (Rs.) Variable cost
per unit (Rs.)
Product A 20,000 15
Product B 30,000 12
Product C 50,000 8
The likely demand in units of these products are 3000, 6,000 or 9,000 depending
upon poor, moderate or high demand scenario.
Selling price of each type of product is Rs. 20, then prepare the payoff matrix.
4. Solve any four sub-questions.
a) Consider the following profit table : 5
Strategy State of Nature
N1 N2 N3 N4
S1 30 10 10 8
S2 40 –15 5 7
S3 50 20 –6 10
Select a strategy using each of the following decision criteria :
i) Maximin 1
ii) Maximax 1
iii) Minimax Regret 3
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b) Two cards are drawn from a pack of cards in succession with replecement. Find the
probability that both are aces. 5
c) Part record of accidents at an important cross road indicate an average of 5 accidents
per week. The number of accidents are Poisson distributed. Calculate probability of
exactly 0, 1, 2, 3 accidents in any month. 5
d) Obtain the regression line (y = a + bx) from the following data : 5
x: 5 9 1 10 5
y: 7 10 3 8 2
e) Take a case of supplying LPG gas cylinders to Indian Oil. IOC needs pressure bearing
capacity of 100N/m2, but an excessively strong cylinder is also dangerous. The standard
deviation is 1N/m2. Taking a sample of 50 cylinders from production, we find that the
mean stress capacity of the sample is 98.5N/m2. If we use a significance level (α) of
5% in testing, will the cylinders fulfill the pressure requirement. 5
sssssss
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