Maulana Azad National Institute of Technology Bhopal

Department of Mathematics, Bioinformatics and Computer Applications

Mathematics-IV (MTH-241)
Assignment-5 Due Date: Even Sem: 2023-24

Q1. Solve the following game by using maximin (minimax) principle, whose payoff matrix is
given below. Include in your answer:
(i) strategy selection for each player,
(ii) the value of the game to each player.
Does the game have a saddle point?
Player B
B1 B2 B3 B4 B5
A1 -2 0 0 5 3
A2 3 2 1 2 2
Player A
A3 -4 -3 0 -2 6
A4 5 3 -4 2 6

Q2. Solve the game

Firm B
B1 B2 B3 B4 B5
A1 3 -1 4 6 7
A2 -1 8 2 4 12
Firm A
A3 16 8 6 14 12
A4 1 11 -4 2 1

Q3. Two competitive manufacturers are producing a new toy under licence from a patent holder.
In order to meet the demand they have the option of running the plant for 8, 16 or 24 hours a day.
As the length of production increases so does the cost. One of the manufacturers, say A, has set
up the matrix given below. They use the matrix to estimate the percentage of the market that they
could capture and maintain the different production schedules:
Manufacturer B
C1 : 8 hrs C2: 16 hrs C3 : 24 hrs
S1 : 8 hrs 60% 56% 34%
Manufacturer A S2 : 16 hrs 63% 60% 55%
S3 : 24 hrs 83% 72% 60%
(i) At which level should each produce?
(ii) What percentage of the market will B have?
Q4. Two computer manufacturers A and B are attempting to sell computer systems to two banks
1 and 2. Company A has 4 salesperson, company B only has 3 salesperson available. The
computer companies must decide upon how many salesperson to assign to sell computer to each
bank. Each bank will buy one computer system. The probability that a bank will buy from a
particular computer company is directly related to the number of salesperson calling from that
company, relative to the total salesperson calling. Thus, if company A assigns 3 salesperson to
bank 1 and company B assigns 2 salesperson, the odds would be three to five that bank 1 would
purchase company A’s computer system. If none calls from either company the odds are one-half
for buying either computer.
Let the payoff be the expected number of computer systems that company A sells. What
strategy would company A use in allocating its salesperson? What strategy should company B
use? What is the value of the game to company A? What is the meaning of the value of game in
this problem?

Q5. A company is currently involved in negotiations with its union on the upcoming wage
contract. The table below represents the conditional costs to the company (in lakhs). Positive
signs in table represent wage increase while negative sign represents wage reduction. What are
the optimal strategies for the company as well as the union? What is the game value?
Union Strategies
U1 U2 U3 U4
C1 0.25 0.27 0.35 -0.02

Company C2 0.20 0.06 0.08 0.08

Strategies C3 0.14 0.12 0.05 0.03
C4 0.30 0.14 0.19 0.00

Q6. In a small town, there are only two stores, ABC and XYZ, that handle sundry goods. The
total number of customers is equally divided between the two, because the price and the quality
of goods sold are equal. Both stores have good reputation in the community, and they render
equally good customer service. Assume that a gain of customers by ABC is a loss to XYZ and
vice versa. Both stores plan to run annual pre-festival sales during the first week of November.
Sales are advertised through a local newspaper, and through radio and television. With the aid of
an advertising firm, store ABC constructed the game matrix given below where figures represent
a gain or loss of customers.
Strategy of XYZ
Newspaper Radio Television
Newspaper 3 40 -80
Strategy of ABC Radio 0 15 -20
Television 90 20 50
Determine the optimal strategies and the worth of such strategies for both ABC and XYZ.
Q7. Even though there are several manufacturers of scooters, two firms with brand names Janata
and Praja, control their market in Western India. If both manufacturers make changes in the
model in the same year, their respective market shares would remain constant. Likewise, if
neither makes model changes, even then their market shares would remain constant. The payoff
matrix, in terms of increased/decreased percentage of market share, under different possible
conditions is given below
Praja
No change Minor change Major change
No change 0 -4 -10
Janata Minor Change 3 0 5
Major Change 8 1 0
(a) Find the value of the game.
(b) What change should Janata consider, if this information is available only to itself?

Q8. Two firms F and G make colour and black & white television sets. F can make either 300
colour sets in a month or an equal number of black & white sets. They make a profit of ₹200 on a
colour set and ₹150 on a black & white set. G can make either 600 colour sets or 30 colour sets
and 300 black & white sets or 600 black & white sets per month. It has the same profit margin as
F. Each month there is a market of 300 colour sets and 600 black & white sets and the
manufacturers would share the market depending upon the proportion in which they manufacture
a particular type of sets. Write the payoff matrix of F and G per month. Obtain F and G’s optimal
strategies and the value of the game.

Q9. Solve the following game graphically:

Player B
B1 B2
A1 1 2
A2 4 5
Player A A3 9 -7
A4 -3 -4
A5 2 1
Q10. Two competitors are competing for the market share of a similar product. The payoff
matrix in terms of their advertising plan is shown below. Suggest optimal strategies for the two
firms and the net outcome thereof.
Competitor B
No Medium Heavy
Advertising Advertising Advertising
No
10 5 -2
Advertising
Medium
Competitor A 13 12 13
Advertising
Heavy
16 14 10
Advertising

JK Sharma - 389 3b, 5, 6, 7, Ex12.6 (393), Ex 12.9(395), Q9 - LPP(Scooter), Q14, Ex 12.17(407), Ex12.12(401)