Course : BBA (G)

Subject Module
On
Quantitative Techniques & Operations Research
Semester II (Credit: 4)
“For students for education purpose only”

Module Contributors:
Prof.(Dr.) Harish Singh
Dr. Vijay Dahiya
Dr. Aanchal Tehlan
Dr. Jyoti
Dr. Shashikant Pandey
Module Objectives: This module consists of four units related to assessment of Learning.

After studying this module, students will be acquainted with different mathematical concepts and their

applications. They will get benefitted with different tools of transportation and assignment problem for solving

various kind of problems. This type of tools has wide range of applications in economics, business, engineering

etc.

Every unit is divided into lessons according to the content of each unit.

Unit-I: In this unit you will be acquainted with different concepts associated with measures of central tendency

and dispersion like mean, median and mode. Graphic representation of frequency distribution is also given. We

will also study about measure of variation-range, IQR, quartile decile and percentiles

Unit-II: This unit will make you enable to acquire the knowledge of Correlation and Regression. We will study

about coefficients of determination and correlation, Karl Pearson’s Methods, Spearman’s rank correlation. We

will also get the information of Pitfalls and limitations associated with regression and correlation analysis.

Unit-III: This unit will empower you to understand the concept of linear programming and Queuing. Many

business problems can be solved with the help of various linear programming methods like Simplex Methods,

graphical methods etc. We will also get the knowledge of different queuing models related to birth-death and their

steady state.

Unit-IV: This unit will comprise Transportation and Assignment problems. We will study about structure of

transportation problem, their maximization and optimality condition. Assignment problem approach of the

assignment model, solution and maximization of assignment problem, unbalanced assignment and restriction on

assignment are also the content of this unit.

 Table of Contents:

Third Page

CONTENTS

Unit No. Unit Name Page Number

I Measures of Central tendency and dispersion Pdf file attached

II Correlation / Regression Pdf file attached

III Linear Programming and Queuing Pdf file attached

IV Transportation and Assignment Problems Pdf file attached

Glossary/Key Words:
Mean, Median, Mode, quartiles, deciles, percentiles,
range, Karl’s Pearson’s coefficient, Spearman’s rank
correlation, Regression, linear programming
problems, queuing theory, transportation and
assignment problems
MCQ and long answer type questions, last year Pdf file attached
question papers
References and Further Readings:
1) Gupta SP & Gupta PK, Quantitative
Techniques & Operations Research, Sultan
Chand.
2) Vohra, N.D., Quantitative Techniques in
Management, McGraw Hill Education.
3) Sharma J.K, Operations Research Problems &
Solutions, Macmillan India, Ltd.
4) Render, Barry, Stair, R.M. Hanna M.E., Badri,
Quantitative analysis for Management,
Pearson Education.
 1) Introduction and Learning Objectives:

The objective of the course is to develop student’s familiarity with the

basic concept and tools in statistics and operations research. These
techniques assist specially in resolving complex problems and serve as a
valuable guide to decision makers. These notes cover the entire syllabus,
the language is simple and notes material is self explanatory. Sufficient
number of illustrations of various types are given in the notes. Many self
assessment exercises like MCQ questions, past year question papers are
given in the notes. Some multimedia study material like power point
presentations and video lectures are also included for the better
understanding of the students.
 E-module Online Plan

Syllabus:
Video Lectures:

Subject :- Quantitative Technique

Regression Analysis and Regression Equations
1. https://youtu.be/S997LBhlqfM

Linear Programming Problem :

1. https://youtu.be/ZTMTJnV67Yk
2. https://youtu.be/L2WSzN92zhk
3. https://youtu.be/bq4vUwaskk0

Transportation and Assignment Problem:-

1. https://youtu.be/9rB7IUvF0eg
2. https://youtu.be/GKmLmzowbJk
3. https://youtu.be/IwJYtYzS3Yk
4. https://youtu.be/x7yk5GbX6RQ
5. https://youtu.be/d_P05yRNp0c
6. https://youtu.be/jPM-UTUBIHI
7. https://youtu.be/1lrOqmhy2VY
8. https://youtu.be/xTylU7H4ErY
9. https://youtu.be/Q1l-JahrdSE

Progress Check:

(i) Google form for self assessment MCQ based test.

https://docs.google.com/forms/d/e/1FAIpQLSeOfwIAVx26xsnQvQn3Z
epWaK6Bz7miCFozT4c5Hd-UtNLaVQ/viewform?usp=sf_link
Essential and Additional Readings
1) Gupta SP & Gupta PK, Quantitative Techniques & Operations Research,
Sultan Chand.
2) Vohra, N.D., Quantitative Techniques in Management, McGraw Hill
Education.
3) Sharma J.k, Operations Research Problems & Solutions, Macmillan India,
Ltd.
4) Render, Barry, Stair, R.M. Hanna M.E., Badri, Quantitative analysis for
Management, Pearson Education.
 Subject: Introduction to Statistics
BS Mathematics Morning/Evening program spring semester 2020

Chapter # 03 Measures of Central Tendency

Measure of Central Tendency: Usually when two or more different data sets are to
be compared it is necessary to condense the data, but for comparison the condensation
of data set into a frequency distribution and visual presentation are not enough. It is
then necessary to summarize the data set in a single value. Such a value usually
somewhere in the center and represent the entire data set and hence it is called
measure of central tendency or averages. Since a measure of central tendency (i.e. an
average) indicates the location or the general position of the distribution on the X-
axis therefore it is also known as a measure of location or position.

Types of Measure of Central Tendency

1. Arithmetic Mean
2. Geometric Mean
3. Harmonic Mean
4. Mode
5. Median

Arithmetic Mean or Simply Mean: “ A value obtained by dividing the sum of

all the observations by the number of observation is called arithmetic
Mean”
Sum of All observation
Mean 
Number of observation

Numerical Example:
Calculate the arithmetic mean for the following the marks obtained by 9
students are given below:

Using formula of arithmetic mean for ungrouped data:

x i
xi
x i1
45
n
32
n9 37
46
360 39
x  40 marks 36
9 41
48
36
n

 Numerical Example:  x  360

i1
i

 Calculate the arithmetic mean for the following data given below:

 Using formula of direct method of arithmetic mean for grouped data:

n

fx i i n

x i1
, n   fi
f
n
i1
i

i1

The weight recorded to the nearest grams of 60 apples picked out at random from a
consignment are given below:

106 107 76 82 109 107 115 93 187 95 123 125

111 92 86 70 126 68 130 129 139 119 115 128
100 186 84 99 113 204 111 141 136 123 90 115
98 110 78 185 162 178 140 152 173 146 158 194
148 90 107 181 131 75 184 104 110 80 118 82
 Weight (grams) Frequency
65----84 09
85----104 10
105----124 17
125----144 10
145----164 05
165----184 04
185----204 05
Solution:
Weight (grams) Midpoints ( xi ) Frequency
( fi ) fi xi
65----84 (65  84) 2  74.5 09 9  74.5=670.5
85----104 94.5 10 945.0
105----124 114.5 17 1946.5
125----144 134.5 10 1345.0
145----164 154.5 05 772.5
165----184 174.5 04 698.0
185----204 194.5 05 972.5
n n

 f  60
i1
i  f x  7350.0
i1
i i

fx i i
7350.0
x i1
n
  122.5 grams
f i
60
i1

 Using formula of short cut method of arithmetic mean for grouped data:
n

fD n

n   fi
i i
xA i1 ,
n

f i
i1

i1

Where Di  Xi  A and A is the provisional or assumed mean

Weight (grams) Midpoints ( xi ) Frequency Di  Xi  A
( fi ) A  114.5 fi Di
65----84 (65  84) 2  74.5 09 -40 -360
85----104 94.5 10 -20 -200
105----124 114.5 17 0 0
125----144 134.5 10 20 200
145----164 154.5 05 40 200
165----184 174.5 04 60 240
185----204 194.5 05 80 400
n n

 f  60
i1
i  f D =480
i1
i i


n

fD i i
480
xA i1
n
 114.5   122.5 grams
f i
60
i1

 Using formula of step deviation method of arithmetic mean for grouped data:
n

 fu i i xA

xA  h , ui  , where h is the width of the class interval:

i1 i
n

f
h
i
i1

Xi  A
ui 
Weight (grams) Midpoints ( xi ) Frequency h fi ui
( fi ) A  114.5 , h=20
65----84 (65  84) 2  74.5 09 -2 -18
85----104 94.5 10 -1 -10
105----124 114.5 17 0 0
125----144 134.5 10 1 10
145----164 154.5 05 2 10
165----184 174.5 04 3 12
185----204 194.5 05 4 20
n n

 f  60
i1
i  f u =24
i1
i i

 fu i i
24
xA i1
n
 h  114.5   20  114.5  08  122.5 grams (Answer).
f i
60
i1
Chapter 03 Measures of Central Tendency
  Geometric Mean: “The nth root of the product of “n” positive values is called
geometric mean”
Geometric Mean 
The following are the formulae of geometric mean:

 Numerical example of geometric Mean for both grouped and ungrouped

data:
 Calculate the geometric mean for the following the marks obtained by 9
students are given below:

xi 45 32 37 46 39 36 41 48 36

 Using formula of geometric mean for ungrouped data:

n9

xi log xi
 n 
45 log 45 =1.65321 
i1 log xi 
G.M  anti  log  
32 1.50515  n 
 
37 1.56820  
 46 1.66276  14.38700 
G.M  anti  log 
39 1.59106  9 
 
36 1.55630 G.M  anti  log 1.59856 
41 1.61278
48 G.M  39.68 (Answer).
1.62124
36 1.55630
n

log x =14.38700
i1
i

 Given the following frequency distribution of weights of 60 apples, calculate the

geometric mean for grouped data.

Weights 65--84 85--104 105--124 125--144 145--164 165--184 185--204

(grams)
Frequency 09 10 17 10 05 04 05
  n

  fi log xi 
G.M  anti  log  i1 
 
n

  fi 
 i1 

 Weight (grams) Midpoints ( xi ) Frequency
( fi ) log xi fi log xi n
(65  84) 2  74.5   fi log xi
65----84 09 1.8722 16.8498 G.M  anti  log  i1

n
85----104 10 1.9754 19.7540    fi
105----124 94.5 17 2.0589 35.0013  i1
 
 anti  log  60 
124.2483
125----144 114.5 10 2.1287 21.2870  
 145----164 134.5 05 2.1889 10.9445
165----184 154.5 04 2.2418 8.9672  anti  log 2.0708

185----204 174.5 05 2.2889 11.4445 G.M  117.7

194.5 grams
n n (An

i1
fi  60  f log x =
i1
i i
swer).

124.2483

 Harmonic Mean: “ The reciprocal of the Arithmetic mean of the

reciprocal of the values is called Harmonic mean”

 Sum of reciprocal of the values 


Harmonic Mean  reciprocal of The number of values 
 

The following are formulae of harmonic mean:

 Numerical example of harmonic Mean for both grouped and ungrouped

data:
 Calculate the harmonic mean for the following the marks obtained by 9
students are given below:

xi 45 32 37 46 39 36 41 48 36
  Using formula of harmonic mean for ungrouped 
data: 

n9
n
n
 1 
xi 1 xi H .M 
45 0.02222
32 0.03125  x 
i1  i 

 37 0.02702
9
46 0.02173 H .M 
0.22862
39 0.02564
36 0.02777 H .M  39.36663 (Answer).
41 0.02439
48 0.02083
36 0.02777
n
1
x =0.22862
i1 i

 Given the following frequency distribution of weights of 60 apples, calculate the

harmonic mean for grouped data.

Weights 65--84 85--104 105--124 125--144 145--164 165--184 185--204

(grams)
Frequency 09 10 17 10 05 04 05

f i

H .M  i1
 fi 

 x
n

i1  i 


Weight (grams) Midpoints ( xi ) Frequency 

( fi ) fi xi
65----84 (65  84) 2  74.5 09 0.12081
85----104 94.5 10 0.10582
105----124 114.5 17 0.14847
125----144 134.5 10 0.07435
145----164 154.5 05 0.03236
165----184 174.5 04 0.02292
185----204 194.5 05 0.02571
n n


fi
 f  60
i1
i
xi
=0.53044
i1



n

f i
60
H .M  i1
  113.11grams (Answer).
 fi  0.53044
  x
n

i1 i 


 Median: “when the observation are arranged in ascending or descending order,

then a value, that divides a distribution into equal parts, is called median”

 Numerical example of median for both grouped and ungrouped data:

 Calculate the median for the following the marks obtained by 9 students are
given below:

xi 45 32 37 46 39 36 41 48 36
Arrange the data in
ascending order

32, 36, 36, 37, 39, 41, 45, 46, 48. n  9 “n” is odd

 n 1 
th

Median  Size of  2  observation

 th
 9 1 
Median  Size of  2
 observation
 
Median  Size of 5 observation
th

Median  39 (Answer).

 Calculate the median for the following the marks obtained by 10 students
are given below:

xi 45 32 37 46 39 36 41 48 36 50

Arrange the data in ascending order

32, 36, 36, 37, 39, 41, 45, 46, 48, 50. n  10 “n” is even

 n th  n th 
 
Size of  2    1
   2   observation
Median 
2
 10 th  10 th 
 
Size of  2    1  observation
   2  
Median 
2

Median 
Size of 5 th
 6th  observation
2
39  41
Median   40 (Answer).
2

 The number of values above the median balances (equals) the number of
values below the median i.e. 50% of the data falls above and below the
median.
 Numerical examples: The following distribution relates to the number of
assistants in 50 retail establishments.

No.of 0 1 2 3 4 5 6 7 8 9
assistant
f 3 4 6 7 10 6 5 5 3 1

No. of assistants fi Cumulative frequency ( c. f )

0 3 3
1 4 7
2 6 13
3 7 20
4 10 30
5 6 36
6 5 41
7 5 46
8 3 49
9 1 50
n

 f =50
i1
i

n   fi  50 “n” is even
i1
 n th  n th 
 
Size of  2    1
   2   observation
Median 
2
 50 th  50 th 
 
Size of  2    1
   2   observation
Median 
2
 Size of
25 th
 26th  observation
Median  2

44
Median  4 (Answer).
2

 Numerical example: Find the median, for the distribution of examination marks
given below:

Marks 30--39 40--49 50--59 60--69 70--79 80--89 90--99

Number of 08 87 190 304 211 85 20
students
hn 
Median  l  C here n  n f

f 2 i
  i1
 Class boundaries Midpoints xi  Frequency  fi  Cumulative frequency c. f 
29.5---39.5 34.5 8 8
39.5---49.5 44.5 87 95
49.5---59.5 54.5 190 285
59.5---69.5 64.5 304 589
69.5---79.5 74.5 211 800
79.5---89.5 84.5 85 885
89.5---99.5 94.5 20 905
n

 f =905
i1
i

n 905 =452.5th student which corresponds to marks in the class 59.5---69.5

=
2 2

Therefore h n
  
 10

Median  l   C   59.5  10  905  285   59.5 

452.5  285 
304  2 
 

f 2  304
   

1675
Median  59.5  , Median  59.5  5.5 , Median  65 marks (Answer).
304

 Quartiles: “ when the observati on are arranged in in creasing order

then the values, that divide the whole data into four ( 4 ) equal parts,
are called qu art il es” 

These values are denoted by Q1, Q2 and Q3. It is to be noted that 25% of the data falls
below Q1, 50% of the data falls below Q2 and 75% of the data falls below Q3.

 Deciles: “ when the observati on are arran ged in in creasing order

then the values, that divide the whole data into ten ( 10 ) equal
parts, are called quarti les” 

These values are denoted by D1, D2,…,D9. It is to be noted that 10% of the data falls
below D1, 20% of the data falls below D2,…, and 90% of the data falls below D9.

 Percentiles: “ when the observat ion are arranged in increasi ng

order then the values, that divide the whole data into hundred
( 100 ) equal parts, are called quarti l es” 

These values are denoted by P1, P2,…,P99. It is to be noted that 1% of the data falls
below P1, 2% of the data falls below P2,…, and 99% of the data falls below P99.
 Median  Q2  D5  P50 are same and are equal to median.

 Calculate quartiles for ungrouped data.

 Calculate the quartiles for the following the marks obtained by 9 students
are given below:

xi 45 32 37 46 39 36 41 48 36

Arranged the observation in ascending order

32, 36, 36, 37, 39, 41, 45, 46, 48.

If “n” is odd then we use the below formula:

 jn  th
Qj  Marks obtained by  4  1 student , generalized formula of quartiles

    

where j=1, 2, 3.
 n 


th

Put j=1, n=9, Q1  Marks obtained by  4   1 student

  
 9  th
Q1  Marks obtained by  4   1 student

  


Q1  Marks obtained by 2.25  1 th student

 Q1  Marks obtained by 2  1th student

Q1  Marks obtained by 3thstudent

Q1  36 (Answer).

Calculate Q2 and Q3 from above distribution?

 Calculate quartiles for discrete grouped data.

 3n  th

Q3  Marks obtained by  4  1 student

  

No. of assistants fi Cumulative frequency ( c. f )
0 3 3
1 4 7
2 6 13
3 7 20
4 10 30
5 6 36
6 5 41
7 5 46
8 3 49
9 1 50
n

 f =50
i1
i


 
 3 50   th

Q3  Marks obtained by    1 student

4
  
 150  th
Q3  Marks obtained by    1 student
4
  
Q3  Marks obtained by 38 student
th

Q3  6 (Answer).

 Calculate Decile for ungrouped data.

 Calculate the Decile for the following the marks obtained by 9 students are
given below:

xi 45 32 37 46 39 36 41 48 36
Arranged the observation in ascending order
 32, 36, 36, 37, 39, 41, 45, 46, 48.

If “n” is odd then we use the below formula:

 jn  th
Dj  Marks obtained by  10   1 student , generalized formula of quartiles

   
where j=1, 2, 3, 4, 5, 6, 7, 8, 9.
 4n 


th

Put j=4, n=9, D4  Marks obtained by  10   1 student

  
 4 9  th
D4  Marks obtained by  10   1 student

  

D4  Marks obtained by 3.6  1thstudent

D  Marks obtained by 3  1 student

th

D4  Marks obtained by 4thstudent

D4  37 (Answer).

Calculate D3 , D7 and D9 from above distribution?

 Calculate decile for discrete grouped data.

 6n  th

D6  Marks obtained by  10   1 student

  

No. of assistants fi Cumulative frequency ( c. f )
0 3 3
1 4 7
2 6 13
3 7 20
4 10 30
5 6 36
6 5 41
7 5 46
8 3 49
9 1 50
  
 n

 f =50
i1
i


 
 6 50   th

D6  Marks obtained by    1 student

10

  
  300  
th

D6  Marks obtained by  10   1 student

  
D6 Marks obtained by 31 student
th

Q3  5 (Answer).

 Calculate percentile for ungrouped data.

 Calculate the percentile for the following the marks obtained by 9 students
are given below:

xi 45 32 37 46 39 36 41
48 36
Arranged the observation in ascending order

32, 36, 36, 37, 39, 41, 45, 46, 48.

If “n” is odd then we use the below formula:

 jn  th
Pj  Marks obtained by  100   1 student , generalized formula of quartiles

    
where j=1, 2, …, 99.
  68n 


th

Put j=68, n=9, P68  Marks obtained by  100   1 student

  
 68 9  th
P68  Marks obtained by  100   1 student

  


P68  Marks obtained by 6.12  1  student

th

P68  Marks obtained by 6  1 student

th

P68  Marks obtained by 7thstudent

D4  45 (Answer).

Calculate P9 , P55 , P80 and P95 from above distribution?

  
 Calculate percentile for discrete grouped data.


 49n  th

P49  Marks obtained by   1 student

100  

  
No. of assistants fi Cumulative frequency ( c. f )
0 3 3
1 4 7
2 6 13
3 7 20
4 10 30
5 6 36
6 5 41
7 5 46
8 3 49
9 1 50
n

 f =50
i1
i

 49 50   th
P49 Marks obtained by  100   1 student

  
 2450  th
P49  Marks obtained by  100   1 student

  
P49  Marks obtained by 24 student
th

Q3  4 (Answer).
 Numerical example of Quartile, Decile and Percentile for continuous grouped
data:
 Class boundaries Midpoints xi  Frequency  fi  Cumulative frequency c. f 
29.5---39.5 34.5 8 8
39.5---49.5 44.5 87 95
49.5---59.5 54.5 190 285
59.5---69.5 64.5 304 589
69.5---79.5 74.5 211 800
79.5---89.5 84.5 85 885
89.5---99.5 94.5 20 905
n

 f =905
i1
i

Calculate the 3rd quartile h  3n 

Ql C 
f  4 

2 

 
3n 3 905 = 678.75
=
4 4

10
Q2  69.5  678.75  589 
211

897.5
Q  69.5 
2
211
Q2  73.7535 (Answer)

Calculate the 4th and 8th decile h  4n 

D4  l   C 

f  10  

 
4n 4  905 =362
=
10 10

10
D4  59.5  362  285 
304
770
D  59.5 
4
304
D4  62.0328 (Answer)

h  8n 
D8  l  f  10  C 
 
8n 8 905 =724
=
10 10
 10 724  589 
D8  69.5  211

1350
D  69.5 
8
211
D8  75.8981 (Answer)

Calculate the 18th and 76th Percentile h  18n 

P18  l  f  100  C 
  

18 905

=162.9
100

10
P18  49.5  162.5  95 
190

675
P  49.5   53.05 (Answer).
18
190
h  76n 
P76  l  f  100  C 
  

76  905

=687.8
100

10
P76  69.5  687.8  589 
211

988
P  69.5  = 74.182 (Answer).
76
211
Calculate Q2 , D5 , D8 , P25 , P50 and P88?

Main Objects of Average


The main object (purpose) of the average is to give a bird’s eye view
(summary) of the statistical data. The average removes all the unnecessary
details of the data and gives a concise (to the point or short) picture of the
huge data under investigation.
 Average is also of great use for the purpose of comparison (i.e. the comparison
of two or more groups in which the units of the variables are same) and for
the further analysis of the data.
 Averages are very useful for computing various other statistical measures
such as dispersion, skewness, kurtosis etc.
 Requisites (desirable qualities) of a Good Average: An average will be
considered as good if:
 It is mathematically defined.
 It utilizes all the values given in the data.
  It is not much affected by the extreme values.
 It can be calculated in almost all cases.
 It can be used in further statistical analysis of the data.
 It should avoid to give misleading results.

 Uses of Averages in Different Situations

 A.M is an appropriate average for all the situations where there are no
extreme values in the data.
 G.M is an appropriate average for calculating average percent increase in
sales, population, production, etc. It is one of the best averages for the
construction of index numbers.
 H.M is an appropriate average for calculating the average rate of increase
of profits of a firm or finding average speed of a journey or the average price
at which articles are sold.
 Mode is an appropriate average in case of qualitative data e.g. the opinion
of an average person; he is probably referring to the most frequently expressed
opinion which is the modal opinion.
 Median is an appropriate average in a highly skewed distribution e.g. in the
distribution of wages, incomes etc.

Mode in case of Ungrouped Data: “A vAlue thAt occurs most frequently in A dAtA is
cAlled mode”

OR
“if two or more vAlues occur the sA me number of times but most frequently thAn the
other vAlues, the there is more thAn one whole”
“If two or more VAlues occur the SAme number of times but most frequently th An
the other vAlues, then there is more th An one mode”

 The data having one mode is called uni-modal distribution.

 The data having two modes is called bi-modal distribution.
 The data having more than two modes is called multi-modal distribution.

Mode in case of Discrete Grouped Data: “A v A lue which h A s the lA rgest frequency
in A set of dAtA is cAlled mode”

Mode in case of Continuous Grouped Data: In case of continuous grouped data,

mode would lie in the class that carries the highest frequency. This class is called the
modal class. The formula used to compute the value of mode, is given below:

 Numerical examples of Mode for ungrouped and grouped data

 Calculate Mode for ungrouped data

xi : 2, 3, 8, 4, 6, 3, 2, 5, 3.

Mode = 3 (Answer).

 Calculate Mode in discrete grouped data

No. of assistants fi
0 3
1 4
2 6
3 7
4 10
5 6
6 5
7 5
8 3
9 1
n

 f =50
i1
i

Mode = 4

 Mode in case of Continuous grouped data:

Class boundaries Midpoints xi  Frequency  fi  Cumulative frequency c. f 

29.5---39.5 34.5 8 8
39.5---49.5 44.5 87 95
49.5---59.5 54.5 190 285
59.5---69.5 64.5 304 589
69.5---79.5 74.5 211 800
79.5---89.5 84.5 85 885
89.5---99.5 94.5 20 905
n

 f =905
i1
i

 
f m  f1 304 190
Mode  l   h  59.5  10
 fm  f1    fm  f2  304 190  304  211

114
Mode  59.5  10  Mode  59.5  5.05072
114  93
Mode = 4 (Answer)

Q: What is a measure of location? What is the purpose served by it? What are
its desirable qualities?
Measure of location: A central value that represents the whole data is called
an average. Since average is a value usually somewhere in the center and
represents the entire data set therefore it is called measure of central tendency.
Measure of central tendency indicates the location or the general position of
the data on the X-axis therefore it is also known as a measure of location or
position

Purpose:

 It removes all the unnecessary details of the data and gives a concise
picture of the huge data.
 It is used for the purpose of comparison.
 It is very useful in computing other statistical measures such as
dispersion, skewness and kurtosis etc.

Desirable qualities of a good average: An average will be considered as

good if:
 It is mathematically defined.
 It utilizes all the observations given in a data.
 It is not much affected by the extreme values.
 It is capable of further algebraic treatment.
 It is not affected by fluctuations of sampling.
 School of Distance Education
CHAPTER - 2

CORRELEATION ANALYSIS
Introduction:
In practice, we may come across with lot of situations which need statistical analysis of
either one or more variables. The data concerned with one variable only is called univariate data.
For Example: Price, income, demand, production, weight, height marks etc are concerned with one
variable only. The analysis of such data is called univariate analysis.
The data concerned with two variables are called bivariate data. For example: rainfall and
agriculture; income and consumption; price and demand; height and weight etc. The analysis of
these two sets of data is called bivariate analysis.
The date concerned with three or more variables are called multivariate date. For example:
agricultural production is influenced by rainfall, quality of soil, fertilizer etc.
The statistical technique which can be used to study the relationship between two or more
variables is called correlation analysis.

Definition:
Two or more variables are said to be correlated if the change in one variable results in a
corresponding change in the other variable.
According to Simpson and Kafka, “Correlation analysis deals with the association between
two or more variables”.
Lun chou defines, “ Correlation analysis attempts to determine the degree of relationship between
variables”.
Boddington states that “Whenever some definite connection exists between two or more
groups or classes of series of data, there is said to be correlation.”
In nut shell, correlation analysis is an analysis which helps to determine the degree of
relationship exists between two or more variables.
Correlation Coefficient:
Correlation analysis is actually an attempt to find a numerical value to express the extent of
relationship exists between two or more variables. The numerical measurement showing the degree
of correlation between two or more variables is called correlation coefficient. Correlation
coefficient ranges between -1 and +1.

SIGNIFICANCE OF CORRELATION ANALYSIS

Correlation analysis is of immense use in practical life because of the following reasons:
1. Correlation analysis helps us to find a single figure to measure the degree of
relationship exists between the variables.
2. Correlation analysis helps to understand the economic behavior.

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3. Correlation analysis enables the business executives to estimate cost, price and other
variables.
4. Correlation analysis can be used as a basis for the study of regression. Once we know that
two variables are closely related, we can estimate the value of one variable if the value of
other is known.
5. Correlation analysis helps to reduce the range of uncertainty associated with decision
making. The prediction based on correlation analysis is always near to reality.
6. It helps to know whether the correlation is significant or not. This is possible by comparing
the correlation co-efficient with 6PE. It ‘r’ is more than 6 PE, the correlation is significant.

Classification of Correlation
Correlation can be classified in different ways. The following are the most important
classifications
1. Positive and Negative correlation
2. Simple, partial and multiple correlation
3. Linear and Non-linear correlation

Positive and Negative Correlation

Positive Correlation
When the variables are varying in the same direction, it is called positive correlation. In
other words, if an increase in the value of one variable is accompanied by an increase in the value
of other variable or if a decrease in the value of one variable is accompanied by a decree se in the
value of other variable, it is called positive correlation.

Eg: 1) A: 10 20 30 40 50
B: 80 100 150 170 200

2) X: 78 60 52 46 38
Y: 20 18 14 10 5
Negative Correlation:
When the variables are moving in opposite direction, it is called negative correlation. In
other words, if an increase in the value of one variable is accompanied by a decrease in the value
of other variable or if a decrease in the value of one variable is accompanied by an increase in the
value of other variable, it is called negative correlation.

Eg: 1) A: 5 10 15 20 25
B: 16 10 8 6 2

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2) X: 40 32 25 20 10
Y: 2 3 5 8 12

Simple, Partial and Multiple correlation

Simple Correlation
In a correlation analysis, if only two variables are studied it is called simple correlation. Eg.
the study of the relationship between price & demand, of a product or price and supply of a product
is a problem of simple correlation.
Multiple correlation
In a correlation analysis, if three or more variables are studied simultaneously, it is called
multiple correlation. For example, when we study the relationship between the yield of rice with
both rainfall and fertilizer together, it is a problem of multiple correlation.
Partial correlation
In a correlation analysis, we recognize more than two variable, but consider one dependent
variable and one independent variable and keeping the other Independent variables as constant. For
example yield of rice is influenced b the amount of rainfall and the amount of fertilizer used. But if
we study the correlation between yield of rice and the amount of rainfall by keeping the amount of
fertilizers used as constant, it is a problem of partial correlation.

Linear and Non-linear correlation

Linear Correlation
In a correlation analysis, if the ratio of change between the two sets of variables is same,
then it is called linear correlation.
For example when 10% increase in one variable is accompanied by 10% increase in the
other variable, it is the problem of linear correlation.
X: 10 15 30 60
Y: 50 75 150 300
Here the ratio of change between X and Y is the same. When we plot the data in graph
paper, all the plotted points would fall on a straight line.
Non-linear correlation
In a correlation analysis if the amount of change in one variable does not bring the same
ratio of change in the other variable, it is called non linear correlation.

X: 2 4 6 10 15
Y: 8 10 18 22 26
Here the change in the value of X does not being the same proportionate change in the value of Y.

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This is the problem of non-linear correlation, when we plot the data on a graph paper, the
plotted points would not fall on a straight line.

Degrees of correlation:

Correlation exists in various degrees

1. Perfect positive correlation

If an increase in the value of one variable is followed by the same proportion of increase in
other related variable or if a decrease in the value of one variable is followed by the same proportion
of decrease in other related variable, it is perfect positive correlation. eg: if 10% rise in price of a
commodity results in 10% rise in its supply, the correlation is perfectly positive. Similarly, if 5%
full in price results in 5% fall in supply, the correlation is perfectly positive.

2. Perfect Negative correlation

If an increase in the value of one variable is followed by the same proportion of decrease in
other related variable or if a decrease in the value of one variable is followed by the same proportion
of increase in other related variably it is Perfect Negative Correlation. For example if 10% rise in
price results in 10% fall in its demand the correlation is perfectly negative. Similarly if 5% fall in
price results in 5% increase in demand, the correlation is perfectly negative.

3. Limited Degree of Positive correlation:

When an increase in the value of one variable is followed by a non-proportional increase in

other related variable, or when a decrease in the value of one variable is followed by a non-
proportional decrease in other related variable, it is called limited degree of positive correlation.

For example, if 10% rise in price of a commodity results in 5% rise in its supply, it is limited
degree of positive correlation. Similarly if 10% fall in price of a commodity results in 5% fall in its
supply, it is limited degree of positive correlation.

4. Limited degree of Negative correlation

When an increase in the value of one variable is followed by a non-proportional decrease in

other related variable, or when a decrease in the value of one variable is followed by a non-
proportional increase in other related variable, it is called limited degree of negative correlation.

For example, if 10% rise in price results in 5% fall in its demand, it is limited degree of
negative correlation. Similarly, if 5% fall in price results in 10% increase in demand, it is limited
degree of negative correlation.

5. Zero Correlation (Zero Degree correlation)

If there is no correlation between variables it is called zero correlation. In other words, if the
values of one variable cannot be associated with the values of the other variable, it is zero
correlation.

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Methods of measuring correlation

Correlation between 2 variables can be measured by graphic methods and algebraic

methods.

I Graphic Methods

1) Scatter Diagram

2) Correlation graph

II Algebraic methods (Mathematical methods or statistical methods or Co-efficient of correlation

methods):

1) Karl Pearson’s Co-efficient of correlation

2) Spear mans Rank correlation method

3) Concurrent deviation method

Scatter Diagram

This is the simplest method for ascertaining the correlation between variables. Under this
method all the values of the two variable are plotted in a chart in the form of dots. Therefore, it is
also known as dot chart. By observing the scatter of the various dots, we can form an idea that
whether the variables are related or not.

A scatter diagram indicates the direction of correlation and tells us how closely the two
variables under study are related. The greater the scatter of the dots, the lower is the relationship

X X

X X

X X

X X

X X

X X

X X

X X

0 X 0 X
Perfect Positive Correlation Perfect Negative Correlation

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Y X X
X X
X X
X X
X X
X X
X X
X X
X X
X X
X X
X X
X X
X X
X
X X

0 X
0 X
High Degree of Negative Correlation
High Degree of Positive Correlation

Y X X
X X X
X X X
X X X X
X X X X
X X X X
X X X X
X X X X
X X X X
X X X X
X X X X
X X X
X X X X
X X X X
X
X X X X
X

0 X
0 X
Low Degree of Negative Correlation
Low Degree of Positive Correlation

X X X X X

X X X X X

X X X X X

X X X X X

X X X X X X

0 X
No Correlation (r = 0)

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Merits of Scatter Diagram method

1. It is a simple method of studying correlation between variables.
2. It is a non-mathematical method of studying correlation between the variables. It does not
require any mathematical calculations.
3. It is very easy to understand. It gives an idea about the correlation between variables even
to a layman.
4. It is not influenced by the size of extreme items.
5. Making a scatter diagram is, usually, the first step in investigating the relationship between
two variables.
Demerits of Scatter diagram method
1. It gives only a rough idea about the correlation between variables.
2. The numerical measurement of correlation co-efficient cannot be calculated under this
method.
3. It is not possible to establish the exact degree of relationship between the variables.
Correlation graph Method
Under correlation graph method the individual values of the two variables are plotted on a
graph paper. Then dots relating to these variables are joined separately so as to get two curves. By
examining the direction and closeness of the two curves, we can infer whether the variables are
related or not. If both the curves are moving in the same direction( either upward or downward)
correlation is said to be positive. If the curves are moving in the opposite directions, correlation is
said to be negative.
Merits of Correlation Graph Method
1. This is a simple method of studying relationship between the variable
2. This does not require mathematical calculations.
3. This method is very easy to understand

Demerits of correlation graph method:

1. A numerical value of correlation cannot be calculated.
2. It is only a pictorial presentation of the relationship between variables.
3. It is not possible to establish the exact degree of relationship between the variables.
Karl Pearson’s Co-efficient of Correlation
Karl Pearson’s Coefficient of Correlation is the most popular method among the algebraic
methods for measuring correlation. This method was developed by Prof. Karl Pearson in 1896. It
is also called product moment correlation coefficient.

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Pearson’s coefficient of correlation is defined as the ratio of the covariance between X and
Y to the product of their standard deviations. This is denoted by ‘r’ or r xy

r = Covariance of X and Y
(SD of X) x (SD of Y)
Interpretation of Co-efficient of Correlation

Pearson’s Co-efficient of correlation always lies between +1 and -1. The following
general rules will help to interpret the Co-efficient of correlation:

1. When r - +1, It means there is perfect positive relationship between variables.

2. When r = -1, it means there is perfect negative relationship between variables.
3. When r = 0, it means there is no relationship between the variables.
4. When ‘r’ is closer to +1, it means there is high degree of positive correlation between
variables.
5. When ‘r’ is closer to – 1, it means there is high degree of negative correlation between
variables.
6. When ‘r’ is closer to ‘O’, it means there is less relationship between variables.
Properties of Pearson’s Co-efficient of Correlation

1. If there is correlation between variables, the Co-efficient of correlation lies between +1

and -1.
2. If there is no correlation, the coefficient of correlation is denoted by zero (ie r=0)
3. It measures the degree and direction of change
4. If simply measures the correlation and does not help to predict cansation.
5. It is the geometric mean of two regression co-efficients.

i.e r =Jbsy · byx

Computation of Pearson’s Co-efficient of correlation:

Pearson’s correlation co-efficient can be computed in different ways. They are:

a Arithmetic mean method
b Assumed mean method
c Direct method
Arithmetic mean method:-
Under arithmetic mean method, co-efficient of correlation is calculated by taking actual mean.

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X(s–s¯)(y–ȳ)
r=
ƒX(x–x̄)2 X(y–ȳ)2

or
Xsy
r= whereas x-x-x¯ and y=y-ȳ
ƒXs 2 Cy2
Calculate Pearson’s co-efficient of correlation between age and playing habits of students:
Age: 20 21 22 23 24 25
No. of students 500 400 300 240 200 160
Regular players 400 300 180 96 60 24
Let X = Age and Y = Percentage of regular players
Percentage of regular players can be calculated as follows:-
400 x 100 = 80; 300 x 100 = 75; 180 x 100 = 60; 96 x 100 = 40 ,
500 400 300 240
60 24
x 100 = 30; and x 100 = 15
20 160

Pearson’s Coefficient of
∑(s–s¯).(y–ȳ)
Correlation (r) =
ƒ∑(s–s¯)2 .(y–ȳ)2

Computation of Pearson’s Coefficient of correlation

% of
x — x¯ (y — ȳ)
Age x Regular (x — x¯) (y — ȳ) (x — x¯)2 (y — ȳ)2
(x-22.5) (y-50)
Player y
20 80 -2.5 30 -75.0 6.25 900
21 75 -1.5 25 -37.5 2.25 625
22 60 -0.5 10 - 5.0 0.25 100
23 40 0.5 -10 - 5.0 0.25 100
24 30 1.5 -20 -30.0 2.25 400
25 15 2.5 -35 -87.5 6.25 1225
135 300 -240 17.50 3350
Xs 135
x¯ = = = 22.5
N 6

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Xy 300
ȳ = = = 50
N 6
240 –240 –240

r =
√17.5×3350 √58,625
= = √242.126 = -0.9912
Assumed mean method:

Under assumed mean method, correlation coefficient is calculated by taking assumean only.

N Xdsdy–(Xds)(Xdy)
r=
ƒNXds 2—(Xds)2 x ƒNXdy2—(Xdy)2

Where dx = deviations of X from its assumed mean; dy= deviations of y from its assumed mean
Find out coefficient of correlation between size and defect in quality of shoes:

Size : 15-16 16-17 17-18 18-19 19-20 20-21

No. of shoes
Produced : 200 270 340 360 400 300
No. of defectives: 150 162 170 180 180 114
Let x = size (ie mid-values)
y = percentage of defectives
‫׵‬ x values are 15.5 , 16.5, 17.5, 18.5, 19.5 and 20.5
y values are 75, 60, 50, 50, 45 and 38
Take assumed mean: x = 17.5 and y = 50

Computation of Pearson’s Coefficient of Correlation

x y dx dy dxdy dx2 dy2
15.5 75 -2 25 -50 4 625
16.5 60 -1 10 -10 1 100
17.5 50 0 0 0 0 0
18.5 50 1 0 0 1 0
19.5 45 2 -5 -10 4 25
20.5 38 3 -12 -36 9 144

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Zdx = 3 Zdy Zdxdy Zdx2 Zdy2
= 18 = —106 = 19 = 894

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N Xdsdy–(Xds)(Xdy)
r=
√NXds2—(Xds)2׃NXdy 2—(Xdy)2

(6s–106)– (3s18)
r=
ƒ(6×19)–32 × ƒ(6×894)–182

–636–54
=
ƒ114–9 × ƒ5364–324
–690 –690
=
ƒ105
= 727.46 = -0.9485
× ƒ5040

Direct Method:

Under direct method, coefficient of correlation is calculated without taking actual mean or
assumed mean
N Xsy–(Xs)(Xy)
r=
ƒNXs2—(Xs)2 x ƒNXy2—(Xy)2

From the following data, compute Pearson’s correlation coefficient:

Price : 10 12 14 15 19

Demand (Qty) 40 41 48 60 50

Let us take price = x and demand = y

Computation of Pearson’s Coefficient of Correlation

Price Demand
xy x2 y2
(x) (y)
10 40 400 100 1600

12 41 492 144 1681

14 48 672 196 2304

15 60 900 225 3600

19 50 950 361 2500

Zx = 70 Zy = 239 Zxy = 3414 Zx2 = 1026 Zy2 = 11685

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N Xsy–(Xs)(Xy)
r=
ƒNXs2— (Xs) 2 x ƒNXy 2— (Xy) 2

(5×3414)–(70 x 239)
r=
ƒ(5s1026)— 702׃(5×11685)–2392

17,070–16,730 340
r= = = +0.621
√230 ×√1304 547.65

Probable Error and Coefficient of Correlation

Probable error (PE) of the Co-efficient of correlation is a statistical device which measures
the reliability and dependability of the value of co-efficient of correlation.
2
Probable Error = standard error
3
[

= 0.6745 x standard error

1–r2
Standard Error (SE) =
√n

1—r2
‫ ׵‬PE = 0.6745 ×
√n

If the value of coefficient of correlation ( r) is less than the PE, then there is no evidence of
correlation.

If the value of ‘r’ is more than 6 times of PE, the correlation is certain and significant.

By adding and submitting PE from coefficient of correlation, we can find out the upper
and lower limits within which the population coefficient of correlation may be expected to lie.

Uses of PE:

1) PE is used to determine the limits within which the population coefficient of correlation
may be expected to lie.

2) It can be used to test whether the value of correlation coefficient of a sample is significant
with that of the population

If r = 0.6 and N = 64, find out the PE and SE of the correlation coefficient. Also determine
the limits of population correlation coefficient.

Sol: r = 0.6

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PE = 0.6745×SE
1–r2
SE =
√n
1–(0.6)2 1–0.36 0.64

= = = = 0.08
√64 8 8

P.E = 0.6745 × 0.08

= 0.05396

Limits of population Correlation coefficient = r ± PE

= 0.6 ±0.05396

= 0.54604 to 0.6540

Qn. 2 r and PE have values 0.9 and 0.04 for two series. Find n.

Sol: PE = 0.04

1–r2
0.6745 x =0.04
√n

1–0.92 0.04
=
√n 0.6745

1–0.81
= 0.0593
√n

0.19
= 0.0593
√n

0.0593× √n= 0.19

0.19
√n = 0.0593

√n = 3.2

N = 3.22 = 10. 266

N = 10

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Coefficient of Determination
One very convenient and useful way of interpreting the value of coefficient of correlation is the
use of the square of coefficient of correlation. The square of coefficient of correlation is called
coefficient of determination.
Coefficient of determination = r2
Coefficient of determination is the ratio of the explained variance to the total variance.
For example, suppose the value of r = 0.9, then r 2 = 0.81=81%
This means that 81% of the variation in the dependent variable has been explained by
(determined by) the independent variable. Here 19% of the variation in the dependent variable has
not been explained by the independent variable. Therefore, this 19% is called coefficient of non-
determination.
Coefficient of non-determination (K2) = 1 – r2
K2 = 1- coefficient of determination
Qn: Calculate coefficient of determination and non-determination if coefficient of correlation
is 0.8
Sol:- r =0.8
Coefficient of determination = r2
= 0.82 = 0.64 = 64%
Co efficient of non-determination = 1 – r2
= 1- 0.64
= 0.36
= 36%

Merits of Pearson’s Coefficient of Correlation:-

1. This is the most widely used algebraic method to measure coefficient of correlation.
2. It gives a numerical value to express the relationship between variables
3. It gives both direction and degree of relationship between variables
4. It can be used for further algebraic treatment such as coefficient of determination
coefficient of non-determination etc.
5. It gives a single figure to explain the accurate degree of correlation between two variables

Demerits of Pearson’s Coefficient of correlation

1. It is very difficult to compute the value of coefficient of correlation.

2. It is very difficult to understand

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3. It requires complicated mathematical calculations
4. It takes more time
5. It is unduly affected by extreme items
6. It assumes a linear relationship between the variables. But in real life situation, it may not
be so.
Spearman’s Rank Correlation Method

Pearson’s coefficient of correlation method is applicable when variables are measured in

quantitative form. But there were many cases where measurement is not possible because of the
qualitative nature of the variable. For example, we cannot measure the beauty, morality,
intelligence, honesty etc in quantitative terms. However it is possible to rank these qualitative
characteristics in some order.

The correlation coefficient obtained from ranks of the variables instead of their quantitative
measurement is called rank correlation. This was developed by Charles Edward Spearman in 1904.

6XD2
Spearman’s coefficient correlation (R) = 1-
N3—N

Where D = difference of ranks between the two variables

N = number of pairs

Qn: Find the rank correlation coefficient between poverty and overcrowding from the
information given below:

Town: A B C D E F G H I J

Poverty: 17 13 15 16 6 11 14 9 7 12

Over crowing: 36 46 35 24 12 18 27 22 2 8

Sol: Here ranks are not given. Hence we have to assign ranks
6XD2
R = 1-
N3—N

N = 10

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Computation of rank correlation Co-efficient

Town Poverty Over crowding R1 R2 D D2

A 17 36 1 2 1 1

B 13 46 5 1 4 16

C 15 35 3 3 0 0

D 16 24 2 5 3 9

E 6 12 10 8 2 4

F 11 18 7 7 0 0

G 14 27 4 4 0 0

H 9 22 8 6 2 4

I 7 2 9 10 1 1

J 12 8 6 9 3 9

ZD2 44

6×44
R=1-
103–10
264
=1-
990
=
1 - 0.2667
+
= 0.7333

Qn:- Following were the ranks given by three judges in a beauty context. Determine which pair
of judges has the nearest approach to Common tastes in beauty.
Judge I: 1 6 5 10 3 2 4 9 7 8
Judge I: 3 5 8 4 7 10 2 1 6 9
Judge I: 6 4 9 8 1 2 3 10 5 7
6XD2
R = 1=N3–N

N= 10

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Computation of Spearman’s Rank Correlation Coefficient

Judge I Judge II Judge III R1-R2 R2-R3 R1-R3
D1 2 D22 D32
(R1) (R2) (R3) (D1) (D2) (D3)
1 3 6 2 3 5 4 9 25
6 5 4 1 1 2 1 1 4
5 8 9 3 1 4 9 1 16
10 4 8 6 4 2 36 16 4
3 7 1 4 6 2 16 36 4
2 10 2 8 8 0 64 64 0
4 2 3 2 1 1 4 1 1
9 1 10 8 9 1 64 81 1
7 6 5 1 1 2 1 1 4
8 9 7 1 2 1 1 4 1
ZD2 200 214 60
6XD2
R=1-
N
6×200
Rank correlation coefficient between I & II =
103 –10
1200
= 1-
990
= 1- 1.2121
= - 0.2121
6×214
Rank correlation Coefficient between II & III judges = 1 -
103 –10
1284
= 1-
990

= - 0.297
6×60
Rank correlation coefficient between I& II judges 1-
= 103 –10
360
=1 — 990

= 1- 0.364

= +0.636

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The rank correlation coefficient in case of I & III judges is greater than the other two pairs.
Therefore, judges I & III have highest similarity of thought and have the nearest approach to
common taste in beauty.
Qn: The Co-efficient of rank correlation of the marks obtained by 10 students in statistics & English
was 0.2. It was later discovered that the difference in ranks of one of the students was
wrongly takes as 7 instead of 9 Find the correct result.

R = 0.2
6ZD2
R = 1- N3–N = 0.2

1–0.2 6XD2
=
1 103—10

0.8 6XD2
=
1 990

6ΣD2 = 90×0.8= 792

792
Correct ΣD2 = = 132 - 72 + 92
6

= 164
6XD2
Correct R 1=
N3–N
6×164
= 1-
103 –10
984
= 1-
990

= 1 - 0.9939
= 0.0061
Qn: The coefficient of rank correlation between marks in English and maths obtained by a group
students is 0.8. If the sum of the squares of the difference in ranks is given to be 33, find
the number of students in the group.
6XD2
Sol: R=1- = 0.8
N3–N
6 x 33
ie, 1- = 0.8
N3–N
6 x 33
1-08 =
N3–N

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198
N3 - N = = 990
0.2
N = 10

Computation of Rank Correlation Coefficient when Ranks are Equal

There may be chances of obtaining same rank for two or more items. In such a situation,
it is required to give average rank for all. Such items. For example, if two observations got 4th
4+5
rank, each of those observations should be given the rank 4.5 (i.e =4.5)
2
6+7+8+9
Suppose 4 observations got 6th rank, here we have to assign the rank, 7.5 (ie. )
4
to each of the 4 observations.
When there is equal ranks, we have to apply the following formula to compute rank
correlation coefficient:-
1 1
6[XD2 + (N 3 –N)+ (N 3 –N)+ .......................]
12 12
R= 1-
N3–N

Where D – Difference of rank in the two series

N - Total number of pairs
m - Number of times each rank repeats
Qn:- Obtain rank correlation co-efficient for the data:-

X: 68 64 75 50 64 80 75 40 55 64
Y: 62 58 68 45 81 60 68 48 50 70

Here, ranks are not given we have to assign ranks Further, this is the case of equal ranks.

1
6[ΣD2 + (N3—N)+ ............. ]
12
‫ ׵‬R= 1-
N3—N
1 1 1
6[XD2 + (N 3 –N)+ (N 3 –N)+ (N 3 –N)… .......... ]
12 12 12
R= 1-
N3–N

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Computation of rank correlation coefficient

x y R1 R2 D(R1-R2) D2
68 62 4 5 1 1
64 58 6 7 1 1
75 68 2.5 3.5 1 1
50 45 9 10 1 1
54 81 6 1 5 25
80 60 1 6 5 25
75 68 2.5 3.5 1 1
40 48 10 9 1 1
55 50 8 8 0 0
64 70 6 2 4 16
ΣD2 72

1 1 1
6[72+ (23–2)+ (33–3)+ (23–2)]
12 12 12
R=1- 3
N –N
1 1
6[72+ + 2+ ]
12 12
= 1- 3
10 –10

6×[72+3]
=1-
990

6×75
=1-
990
450
= 1- = 1 - 0.4545
990
= 0.5455

Merits of Rank Correlation method

1. Rank correlation coefficient is only an approximate measure as the actual values are not

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2. It is very simple to understand the method.
3. It can be applied to any type of data, ie quantitative and qualitative
4. It is the only way of studying correlation between qualitative data such as honesty, beauty
etc.
5. As the sum of rank differences of the two qualitative data is always equal to zero, this
method facilitates a cross check on the calculation.

Demerits of Rank Correlation method

1. Rank correlation coefficient is only an approximate measure as the actual values are
not used for calculations.
2. It is not convenient when number of pairs (ie. N) is large
3. Further algebraic treatment is not possible.
4. Combined correlation coefficient of different series cannot be obtained as in the case
of mean and standard deviation. In case of mean and standard deviation, it is
possible to compute combine arithematic mean and combined standard deviation.

Concurrent Deviation Method:

Concurrent deviation method is a very simple method of measuring correlation. Under this
method, we consider only the directions of deviations. The magnitudes of the values are completely
ignored. Therefore, this method is useful when we are interested in studying correlation between
two variables in a casual manner and not interested in degree (or precision).
Under this method, the nature of correlation is known from the direction of deviation in the
values of variables. If deviations of 2 variables are concurrent, then they move in the same direction,
otherwise in the opposite direction.
The formula for computing the coefficient of concurrent deviation is: -
± (2c–N)
r = J±
N

Where N = No. of pairs of symbol

C = No. of concurrent deviations (ie, No. of + signs in ‘dx dy’ column)
Steps:
1. Every value of ‘X’ series is compared with its proceeding value. Increase is shown
by ‘+’ symbol and decrease is shown by ‘-‘
2. The above step is repeated for ‘Y’ series and we get ‘dy’
3. Multiply ‘dx’ by ‘dy’ and the product is shown in the next column. The column
heading is ‘dxdy’.

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4. Take the total number of ‘+’ signs in ‘dxdy’ column. ‘+’ signs in ‘dxdy’ column
denotes the concurrent deviations, and it is indicated by ‘C’.
5. Apply the formula:

r = ±J± (2c–N)
N

If 2cΣ N, then r = +ve and if 2c € N, then r = —ve.

Qn:- Calculate coefficient if correlation by concurrent deviation method:-

Year : 2003 2004 2005 2006 2007 2008 2009 2010 2011
Supply : 160 164 172 182 166 170 178 192 186
Price : 292 280 260 234 266 254 230 190 200

Sol: Computation of coefficient of concurrent

Deviation
Supply (x) Price (y) dx dy dxdy
160 292 + - -
164 280 + - -
172 260 + - -
182 234 + - -
166 266 - + -
170 254 + - -
178 230 + - -
192 190 + - -
186 200 - + -
C=0

±
r= J± (2C–N)
N

± (2×0)–8
= J±
8

± 0–8 ± –8
= J == J = -1
8 8

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Merits of concurrent deviation method:
1. It is very easy to calculate coefficient of correlation
2. It is very simple understand the method
3. When the number of items is very large, this method may be used to form quick idea about
the degree of relationship
4. This method is more suitable, when we want to know the type of correlation (ie, whether
positive or negative).

Demerits of concurrent deviation method:

1. This method ignores the magnitude of changes. Ie. Equal weight is give for small and big
changes.
2. The result obtained by this method is only a rough indicator of the presence or absence of
correlation
3. Further algebraic treatment is not possible
4. Combined coefficient of concurrent deviation of different series cannot be found as in the
case of arithmetic mean and standard deviation.

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CHAPTER - 3

REGRESSION ANALYSIS
Introduction:-
Correlation analysis analyses whether two variables are correlated or not. After having
established the fact that two variables are closely related, we may be interested in estimating the
value of one variable, given the value of another. Hence, regression analysis means to analyse the
average relationship between two variables and thereby provides a mechanism for estimation or
predication or forecasting.
The term ‘Regression” was firstly used by Sir Francis Galton in 1877. The dictionary
meaning of the term ‘regression” is “stepping back” to the average.

Definition:
“Regression is the measure of the average relationship between two or more variables in
terms of the original units of the date”.

“Regression analysis is an attempt to establish the nature of the relationship between

variables-that is to study the functional relationship between the variables and thereby provides a
mechanism for prediction or forecasting”.

It is clear from the above definitions that Regression Analysis is a statistical device with the
help of which we are able to estimate the unknown values of one variable from known values of
another variable. The variable which is used to predict the another variable is called independent
variable (explanatory variable) and, the variable we are trying to predict is called dependent variable
(explained variable).

The dependent variable is denoted by X and the independent variable is denoted by Y.

The analysis used in regression is called simple linear regression analysis. It is called simple
because three is only one predictor (independent variable). It is called linear because, it is assumed
that there is linear relationship between independent variable and dependent variable.

Types of Regression:-
There are two types of regression. They are linear regression and multiple regression.

Linear Regression:
It is a type of regression which uses one independent variable to explain and/or predict the
dependent variable.

Multiple Regression:
It is a type of regression which uses two or more independent variable to explain and/or
predict the dependent variable.

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Regression Lines:
Regression line is a graphic technique to show the functional relationship between the two
variables X and Y. It is a line which shows the average relationship between two variables X and Y.

If there is perfect positive correlation between 2 variables, then the two regression lines are
winding each other and to give one line. There would be two regression lines when there is no
perfect correlation between two variables. The nearer the two regression lines to each other, the
higher is the degree of correlation and the farther the regression lines from each other, the lesser is
the degree of correlation.
Properties of Regression lines:-
1. The two regression lines cut each other at the point of average of X and average of Y ( i.e
X̄ and Ȳ )
2. When r = 1, the two regression lines coincide each other and give one line.
3. When r = 0, the two regression lines are mutually perpendicular.

Regression Equations (Estimating Equations)

Regression equations are algebraic expressions of the regression lines. Since there are two
regression lines, therefore two regression equations. They are :-
1. Regression Equation of X on Y:- This is used to describe the variations in the values
of X for given changes in Y.

2. Regression Equation of Y on X :- This is used to describe the variations in the value of

Y for given changes in X.
Least Square Method of computing Regression Equation:

The method of least square is an objective method of determining the best relationship
between the two variables constituting a bivariate data. To find out best relationship means to
determine the values of the constants involved in the functional relationship between the two
variables. This can be done by the principle of least squares:
The principle of least squares says that the sum of the squares of the deviations between the
observed values and estimated values should be the least. In other words, Σ(y— yC)2 will be the
minimum.

With a little algebra and differential calculators we can develop some equations (2 equations
in case of a linear relationship) called normal equations. By solving these normal equations, we can
find out the best values of the constants.

Regression Equation of Y on X:-

Y = a + bx
The normal equations to compute ‘a’ and ‘b’ are: -
Σy = Na + bΣx
Σxy = aΣx + bΣx2
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Regression Equation of X on Y:-
X = a + by
The normal equations to compute ‘a’ and ‘b’ are:-

Σx = Na + nΣy

Σxy = aΣy + bΣy2

Qn:- Find regression equations x and y and y on x from the following:-

X: 25 30 35 40 45 50 55
Y: 18 24 30 36 42 48 54

Sol: Regression equation x on y is:

x = a + by
Normal equations are:

Σx = Na + bΣy

Σxy = aΣy + bΣy2

Computation of Regression Equations

x y x2 y2 xy
25 18 625 324 450
30 24 900 576 720
35 30 1225 900 1050
40 36 1600 1296 1440
45 42 2025 1764 1890
50 48 2500 2304 2400
55 54 3025 2916 2970

Σx = 280 Σy = 252 Σx2 = 11900 Σy2 = 10080 Σxy = 10920

280 = 7a+ 252 b -------------------- ( 1)

10920 = 252a+10080 b ------------------ (2)

Eq. 1x 36 ‹ 10080 = 252a + 9072b ------------- (3)

10920 = 252a + 10080b --------------- (2)
(2) x (3) ‹ 840 = 0 + 1008 b

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1008 b = 840
840
b = = 0.83
1008

Substitute b = 0.83 in equation ( 1 )

280 = 7a + (252×0.83)
280 = 7 a + 209.16

7a+ 209.116 = 280

7a = 280-209.160
70.84
a =
7
= 10.12
Substitute a = 10.12 and b =0.83 in regression equation:
X = 10.12 + 0.83 y

Regression equation Y on X is:

y = a + bx
Normal Equations are:-

Σy = Na + bΣx

Σxy = aΣx + bΣx2

252 = 7a + 280 b ------- (1)
10920 = 280 a+ 11900 b ------- (2)
(1) x 40 ‹ 10080 = 280 a + 11200 b ------- (3)
10920 = 280 a+ 11900 b ------- (2)

(2) – (3) ‹ 840 = 0 + 700 b

700 b = 840
840
b = 700 = 1.2

Substitute b = 1.2 in equation (1 )

252 = 7a + (280x1.2)
252 = 7a + 336
7a + 336 = 252

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7a = 252 – 336 = -84
–84
a= = -12
7
Substitute a = -12 and b = 1.2 in regression equation
y = -12+1.2x
Qn:- From the following bivariate data, you are required to: -

(a) Fit the regression line Y on X and predict Y if x = 20

(b) Fir the regression line X on Y and predict X if y = 10

X: 4 12 8 6 4 4 16 8
Y: 14 4 2 2 4 6 4 12

Computation of regression equations

x y x2 y2 xy

4 14 16 196 56

12 4 144 16 48

8 2 64 4 16

6 2 36 4 12

4 4 16 16 16

4 6 16 36 24

16 4 256 16 64

8 12 64 144 96

Σx = 62 Σy = 48 Σx2 = 612 Σy2 = 432 Σxy = 332

Regression equation y on x

y = a + bx
Normal equations are:

Σy = Na + bΣy

Σxy = aΣ × bΣx2

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48 = 8a + 62 b ………(1)

332 = 62a + 612 b ................... (2)

eq. (1) × 62 ‹ 2,976 = 496a + 3844 b .....(3)

eq. (2) × 8 ‹ 2,976 = 496a + 4896 b .... (4)

eq. (3) × eq. (4) ‹ 320 = 0 + —1052b
-1052 b = 320
320
b=
–1052
Substitute b = -0.304 in eq (1)
48 = 8a + (62 x -0.304)
48 = 8a + -18.86
48 + 18.86 = 8a
a = 66.86
66.86
a= = 8.36
8

Substitute a = 8.36 and b = -0.304 in regression equation y on x :

y = 8.36 + -0.3042 x
y = 8.36 – 0.3042 x

If x = 20, then,

y=8.36 – (0.3042x20)

= 8.36 – 6.084

= 2.276

(b) Regression equation X on Y:

X=a + by
Normal equations:

Σx = Na + bΣy

Σxy = aΣy + bΣy2

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62 = 8a + 48 b ............ (1)
332 = 48 a + 432 b............. (2)

eq (1) × 6 ‹ 372 = 48a + 288b ..... (3)

332 = 48 a + 432 b ……(2)
eq (2) — (3) ‹ —40 = 0 + 144b
144 b = -40
–40
b= = - 0.2778
144
Substitute b = -0.2778 in equation (1)

62 = 8a + (48× 0̄. 2778)

62 = 8a + -13.3344
62+13.3344 = 8 a
8a = 75.3344
75.3344
a= = 9.4168
8
Substitute a = 9.4168 and b = -0.2778 in regression equation:
x = 9.4168 + -0.2778 y
x = 9.4168 + -0.2778 y
If y=10, then
x=9.4168 – (0.2778x10)
x= 9.4168 – 2.778

x = 6.6388

Regression Coefficient method of computing Regression Equations:

Regression equations can also be computed by the use of regression coefficients.

Regression coefficient X on Y is denoted as bxy and that of Y on X is denoted as byx.

Regression Equation x on y:

x - = b (y - )

i.e x - = r.

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Regression Equation y on x:

y - = b (x - )

i.e y - = r.

Properties of Regression Coefficient:

1. There are two regression coefficients. They are b xy and byx
2. Both the regression coefficients must have the same signs. If one is +ve, the other will
also be a +ve value.

3. The geometric mean of regression coefficients will be the coefficient of correlation.

r =ƒ bsy.bys.

4. If x x̃ and ỹ are the same, then the regression coefficient and correlation coefficient will be
the same.

Computation of Regression Co-efficients

Regression co-efficients can be calculated in 3 different ways:
1. Actual mean method
2. Assumed mean method
3. Direct method

Actual mean method:-

∑ sy
Regression coefficient x on y (bxy ) =
∑ y2

∑ sy
Regression coefficient y on x (b yx ) = ∑ 2
s

Where x = x–x¯
y = y- ȳ

Assumed mean method:

Xdsdy–(Xds).(Xdy) Xdy2–
Regression coefficient x on y (bxy)
(Xdy)2

Xdsdy–(Xds).(Xdy) Xdy2–
Regression coefficient y on x (byx)
(Xdy)2
Where dx = deviation from assumed mean of X
dy = deviation from assumed mean of Y
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Direct method:-
NXsy–Xs.Xy
Regression Coefficient x on y
NXy2–(Xs)2
(bxy )

Regression Coefficient y on x NXsy–Xs.Xy

NXs2– (Xs)2
(byx)
Qn:- Following information is obtained from the records of a business organization:-

Sales ( in ‘000): 91 53 45 76 89 95 80 65

Advertisement Expense
( in ‘000) 15 8 7 12 17 25 20 13

You are required to:-

1. Compute regression coefficients under 3 methods
2. Obtain the two regression equations and
3. Estimate the advertisement expenditure for a sale of Rs. 1,20,000
Let x = sales

y = Advertisement expenditure

Computation of regression Coefficients under actual mean method

x y x - x̄ y - ȳ xy x2 y2
91 15 16.75 0.375 6.28 280.56 0.14

53 8 -21.65 -6.625 140.78 451.56 43.89

45 7 -29.25 -7.625 223.03 855.56 58.14

76 12 1.75 -2,625 -4.59 3.06 6.89

89 17 14.75 -2.375 35.03 217.56 5.64

95 25 20.75 10.375 215.28 430.56 107.64

80 20 5.75 5.375 30.91 33.06 28.89

65 13 -9.25 -1.625 15.03 85.56 2.64

Σx = 594 Σy = 117 Σxy = 661.75 Σx2 = 2357.48 Σy = 253.87

Quantitative Techniques for Business 42

 School of Distance Education
XX 294
X̄ = = = 74.25
N 8
XF 117
¯
Y= = = 14.625
N 8

Regression coefficient x on y Σxy

(bsy) Σy2

= 661.75
= 2.61
253.87

Regression coefficient Y on X
Σxy
((bys) Σx2

= 661.75
= 0.28
2357.48

Computation of Regression Coefficient under assured mean method

x y x-70 y-15 (dy) dxdy dx2 dy2
(dx)
91 15 21 0 0 441 0
53 8 -17 -7 +119 289 49
45 7 -25 -8 +200 625 64
76 12 6 -3 -18 36 9

89 17 19 2 +38 361 4
95 25 25 10 +250 625 100
80 20 10 5 +50 100 25
65 13 -5 -2 +10 25 4
Σdx = 34 Σdy = —3 Σdxdy = 649 Σdx2 = 2502 Σdx2 = 255

NXdsdy–Xds.Xdy NXdy2–
Regression Coefficient x on y
(Xdy)2
(bxy)

Quantitative Techniques for Business 43

 School of Distance Education

= 8 × 649) — (34 × —3)

(8 × 255) — (—3)2

= 5192 — —102
2040 — 9
= 5192+102 5294
2031
= 2031
= 2.61

NXdsdy–Xds.Xdy NXds2–
Regression coefficient y on x
(Xds)2
(byx)

= (8 × 649) — (34 × —3)

(8 × 2502) — (34)2

5192 — —102
= 20016 — 1156

= 5294
18860

= 0.28

Computation of Regression Coefficient under direct method

x y xy x2 y2

91 15 1365 8281 225

53 8 424 2809 64

45 7 315 2025 49

76 12 912 5776 144

89 17 1513 7921 289

95 25 2375 9025 625

80 20 1600 6400 400

65 13 845 4225 169

Σx = 594 Σy = 117 Σxy = 9349594 Σx2 = 46462 Σy2 = 1965

Quantitative Techniques for Business 44

 School of Distance Education
NXsy–Xs.Xy NXy)2–
Regression coefficient x on y (Xy)2
(bxy)
(8×9349)–(594×117)
=
(8×1965)–1172

= 74792 — 69498 5294

15720 — 13689
2031

= 2.61

Regression coefficient y on x
NXsy–Xs.Xy

(byx) =
NXs2–(Xs)2

(8×9349)–(594×117)
(8×46462)–594) 2

74792 — 69498
371696 — 352836

5294
= 0.28
18860
3) a) Regression equation X on Y:

(x-x¯) = bxy (y-ȳ)

(x-74.25) = 2.61 (ȳ-14.625)

(x-74.25) = 2.61 y-38.17

x = 74.25 – 38.17+2.61y
x = 36.08 + 2.61y

b) Regression equation y pm x:

(y-y) = byx (x-x¯)

(y-14.625) = 0.28 (x-74.25)

y =14.625 = 0.28× —20.79

y = 14.625 – 20.79 + 0.28×
y = -6.165+0.28×

y =0.28× —6.165
Quantitative Techniques for Business 45
 School of Distance Education

4) If sales (x)is Rs. 1,20,000, then

Estimated advertisement Exp (y) = (0.28x120)-6.165

= (33.6 – 6.165
= 27.435
i.e Rs. 27,435
Qn: In a correlation study, the following values are obtained:
s y
Mean
65 67

Standard deviation 2.5 3.5

Coefficient of correlation 0.8
Find the regression equations
Sol: Regression equation x on y is:

x-x¯ = bxy (y-ȳ)

x-x¯ = r . ax (y — ȳ)
ay

x - 65 = 0.8 × 2.5 (y-67)

3.5

x - 65 = 0.5714 (y-67)
x - 65 = 0.5714y-38.2838
x = 65 – 38.2838+0.5714y
x = 26.72 + 0.5714y

Regression equation y on x is:

y - ȳ = byx (x-x¯)
ay
y - ȳ = r . (x — x¯)
ax

3.5
y - 67 = 0.8 x (x-65)
2.5

y - 67 = 1.12 (x-65)
y = 67 – (1.12 x65) = 1.12 x

Quantitative Techniques for Business 46

 y = 67.72.8 + 1.12x School of Distance Education

Quantitative Techniques for Business 47

 School of Distance Education
y = -5.8 +1.12x
y = 1.12x - 5.8

Qn: Two variables gave the following data

x̄ = 20, as = 4, r = 0.7

ȳ = 15, ay = 3
Obtain regression lines and find the most likely value of y when x=24
Sol: Regression Equation x on y is

(x - x¯) = bxy (y - ȳ)

(x - x¯) = r . ax (y — ȳ)
ay

(x - 20) = 0.7x4 (y-15)

3

(x - 20) = 2.8 (y-15)

3

(x - 20) = 0.93(y-15)
x = 20 + 0.93y – 13.95
x = 20 - 13.95 + 0.93y
x = 6.05 + 0.93y

Regression Equation y on x is

(y - ȳ) = byx (x - x¯)

ay
(y - ȳ) = r . (x — x¯)
ax

(y - ȳ) = 0.7 × 3 (x - 20)

4

(y -15) = 0.525(x – 20)

y – 15 = 0.525 x -10.5
y = 15-10.5+ 0.525x
y =4.5+0.525x

If X = 24, then
Quantitative Techniques for Business 48
 y = 4.5 + (0.525×24) School of Distance Education

Quantitative Techniques for Business 49

 School of Distance Education
y = 4.5 + 12.6
y = 17.1

Qn: For a given set of bivariate data, the following results were obtained:

x̄ = 53.2, ȳ = 27.9, bys = -1.5 and bsy = -0.2

Find the most probable value of y when x = 60. Also find ‘r’.
Sol: Regression Equation y on x is:

(y - ȳ) = bys (x-x¯)

(y - 27.9) = -1.5 (x-53.2)

(y - 27.9) = -1.5x + 79.8

y = 79.8+27.9 – 1.5×

y = 107.7 – 1.5×
If x = 60, then

y = 107.7 – (1.5×60)
= 107.7-90
= 17.7

r = ƒbsy × bys

= - √1.5 × 0.2 = -√30 = -0.5477

Correlation Regression

1 It studies degree of relationship It studies the nature of relationship between

between variables variables
2 It is not used for prediction purposes It is basically used for prediction purposes

3 It is basically used as a tool for It is basically used as a tool for studying

determining the degree of relationship cause and effect relationship

4 There may be nonsense correlation There is no such nonsense regression

between two variables

5 There is no question of dependent and There must be dependent and independent

independent variables variables

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MBA-H2040 Quantitative Techniques for Managers

2.1 Introduction

The Assignment Problem can define as follows:

Given n facilities, n jobs and the effectiveness of each facility to each job, here the problem is to assign
each facility to one and only one job so that the measure of effectiveness if optimized. Here the
optimization means Maximized or Minimized. There are many management problems has a assignment
problem structure. For example, the head of the department may have 6 people available for assignment
and 6 jobs to fill. Here the head may like to know which job should be assigned to which person so that
all tasks can be accomplished in the shortest time possible. Another example a container company may
have an empty container in each of the location 1, 2,3,4,5 and requires an empty container in each of the
locations 6, 7, 8,9,10. It would like to ascertain the assignments of containers to various locations so as to
minimize the total distance. The third example here is, a marketing set up by making an estimate of sales
performance for different salesmen as well as for different cities one could assign a particular salesman to
a particular city with a view to maximize the overall sales.
Note that with n facilities and n jobs there are n! possible assignments. The simplest way of finding
an optimum assignment is to write all the n! possible arrangements, evaluate their total cost and select the
assignment with minimum cost. Bust this method leads to a calculation problem of formidable size even
when the value of n is moderate. For n=10 the possible number of arrangements is 3268800.

2.2 Assignment Problem Structure and Solution

The structure of the Assignment problem is similar to a transportation problem, is as follows:

Jobs
1 2 … n
1 c11 c12 c1n 1

2 c21 c21 c2n 1

.
Workers

n cn1 cn2 cnn 1

1 1 … 1

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The element cij represents the measure of effectiveness when ith person is assigned jth job. Assume that the
overall measure of effectiveness is to be minimized. The element xij represents the number of ith
individuals assigned to the jth job. Since ith person can be assigned only one job and jth job can be assigned
to only one person we have the following

xi1 + xi2 + ……………. + xin = 1, where i = 1, 2, ............. , n

x1j + x2j + ……………. + xnj = 1, where j = 1, 2, .............. , n

and the objective function is formulated as

Minimize c11x11 + c12x12 + .............. + cnnxnn

xij ≥ 0

The assignment problem is actually a special case of the transportation problem where m = n and
ai = bj = 1. However, it may be easily noted that any basic feasible solution of an assignment problem
contains (2n – 1) variables of which (n – 1) variables are zero. Because of this high degree of degeneracy
the usual computation techniques of a transportation problem become very inefficient. So, hat a separate
computation technique is necessary for the assignment problem.
The solution of the assignment problem is based on the following results:

“If a constant is added to every element of a row/column of the cost matrix of an assignment
problem the resulting assignment problem has the same optimum solution as the original assignment
problem and vice versa”. – This result may be used in two different methods to solve the assignment
problem. If in an assignment problem some cost elements cij are negative, we may have to convert them
into an equivalent assignment problem where all the cost elements are non-negative by adding a suitable
large constant to the cost elements of the relevant row or column, and then we look for a feasible solution
which has zero assignment cost after adding suitable constants to the cost elements of the various rows
and columns. Since it has been assumed that all the cost elements are non-negative, this assignment must
be optimum. On the basis of this principle a computational technique known as Hungarian Method is
developed. The Hungarian Method is discussed as follows.

Hungarian Method:

The Hungarian Method is discussed in the form of a series of computational steps as follows, when the
objective function is that of minimization type.

Step 1:

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MBA-H2040 Quantitative Techniques for Managers
From the given problem, find out the cost table. Note that if the number of origins is not equal to the
number of destinations then a dummy origin or destination must be added.

Step 2:
In each row of the table find out the smallest cost element, subtract this smallest cost element from each
element in that row. So, that there will be at least one zero in each row of the new table. This new table is
known as First Reduced Cost Table.

Step 3:
In each column of the table find out the smallest cost element, subtract this smallest cost element from
each element in that column. As a result of this, each row and column has at least one zero element. This
new table is known as Second Reduced Cost Table.

Step 4:
Now determine an assignment as follows:

1. For each row or column with a single zero element cell that has not be assigned or
eliminated, box that zero element as an assigned cell.
2. For every zero that becomes assigned, cross out all other zeros in the same row and for
column.
3. If for a row and for a column there are two or more zero and one can’t be chosen by
inspection, choose the assigned zero cell arbitrarily.
4. The above procedures may be repeated until every zero element cell is either assigned
(boxed) or crossed out.

Step 5:
An optimum assignment is found, if the number of assigned cells is equal to the number of rows (and
columns). In case we had chosen a zero cell arbitrarily, there may be an alternate optimum. If no optimum
solution is found i.e. some rows or columns without an assignment then go to Step 6.

Step 6:
Draw a set of lines equal to the number of assignments which has been made in Step 4, covering all the
zeros in the following manner

1. Mark check (√) to those rows where no assignment has been made.

2. Examine the checked (√) rows. If any zero element cell occurs in those rows, check (√) the
respective columns that contains those zeros.

3. Examine the checked (√) columns. If any assigned zero element occurs in those columns,
check (√) the respective rows that contain those assigned zeros.

4. The process may be repeated until now more rows or column can be checked.

5. Draw lines through all unchecked rows and through all checked columns.

Step 7:
Examine those elements that are not covered by a line. Choose the smallest of these elements and subtract
this smallest from all the elements that do not have a line through them.
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Add this smallest element to every element that lies at the intersection of two lines. Then the
resulting matrix is a new revised cost table.

Example 2.1:

Problem
A work shop contains four persons available for work on the four jobs. Only one person can work on
any one job. The following table shows the cost of assigning each person to each job. The objective is to
assign person to jobs such that the total assignment cost is a minimum.

Jobs
1 2 3 4

20 25 22 28
A
15 18 23 17
Persons B
19 17 21 24
C
25 23 24 24
D

Solution

As per the Hungarian Method

Step 1: The cost Table

Jobs
1 2 3 4

A 20 25 22 28

Persons B 15 18 23 17

C 19 17 21 24

D 25 23 24 24

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Step 2: Find the First Reduced Cost Table

Jobs
1 2 3 4

A 0 5 2 8

0 3 8 2
Persons B
2 0 4 7
C
2 0 1 1
D

Step 3: Find the Second Reduced Cost Table

Jobs
1 2 3 4

A 0 5 1 7

0 3 7 1
Persons B
2 0 3 6
C
2 0 0 0
D

Step 4: Determine an Assignment

By examine row A of the table in Step 3, we find that it has only one zero (cell A1) box this zero and
cross out all other zeros in the boxed column. In this way we can eliminate cell B1.

Now examine row C, we find that it has one zero (cell C2) box this zero and cross out (eliminate) the
zeros in the boxed column. This is how cell D2 gets eliminated.

There is one zero in the column 3. Therefore, cell D3 gets boxed and this enables us to eliminate cell
D4.

Therefore, we can box (assign) or cross out (eliminate) all zeros.

The resultant table is shown below:

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MBA-H2040 Quantitative Techniques for Managers

Jobs
1 2 3 4

A 0 5 1 7

Persons B 0 3 7 1

C 2 3 6

D 2 0 0

Step 5: 0

The solution obtained in Step 4 is not optimal. Because we were able to make three assignments when
four were required.

Step 6:
0
Cover all the zeros of the table shown in the Step 4 with three lines (since already we made three
assignments).

Check row B since it has no assignment. Note that row B has a zero in column 1, therefore check
column1. Then we check row A since it has a zero in column 1. Note that no other rows and columns are
checked. Now we may draw three lines through unchecked rows (row C and D) and the checked column
(column 1). This is shown in the table given below:

Jobs
1 2 3 4

0
A

Persons B

D
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0
MBA-H2040 Quantitative Techniques for Managers

Step 7:
Develop the new revised table.

Examine those elements that are not covered by a line in the table given in Step 6. Take the smallest
element in this case the smallest element is 1. Subtract this smallest element from the uncovered cells
and add 1 to elements (C1 and D1) that lie at the intersection of two lines. Finally, we get the new
revised cost table, which is shown below:

Jobs
1 2 3 4

A 0 4 0 6

Persons B 0 2 6 0

C 3 0 3 6

D 3 0 0 0
Step 8:

Now, go to Step 4 and repeat the procedure until we arrive at an optimal solution (assignment).

Step 9:
Determine an assignment

Examine each of the four rows in the table given in Step 7, we may find that it is only row C which has
only one zero box this cell C2 and cross out D2.

Note that all the remaining rows and columns have two zeros. Choose a zero arbitrarily, say A1 and box
this cell so that the cells A3 and B1 get eliminated.

Now row B (cell B4) and column 3 (cell D4) has one zero box these cells so that cell D4 is eliminated.

Thus, all the zeros are either boxed or eliminated. This is shown in the following table

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MBA-H2040 Quantitative Techniques for Managers
Jobs
1 2 3 4

A
0 4 0 6

Persons B 0 2 6

C 3 3 0
6

D 3 0 0

Since the number of assignments equal to the number of rows (columns), the assignment shown
in the above tale is optimal. 0

The total cost of assignment is: 78 that is A1 + B4 + C2 + D3

20 + 17 + 17 + 24 = 78

2.3 Unbalanced Assignment Problem 0

In the previous section we assumed that the number of persons to be assigned and the number of jobs were
same. Such kind of assignment problem is called as balanced assignment problem. Suppose if the
number of person is different from the number of jobs then the assignment problem is called as
unbalanced.
If the number of jobs is less than the number of persons, some of them can’t be assigned any job. So that
we have to introduce on or more dummy jobs of zero duration to make the unbalanced assignment problem
into balanced assignment problem. This balanced assignment problem can be solved by using the
Hungarian Method as discussed in the previous section. The persons to whom the dummy jobs are
assigned are left out of assignment.
Similarly, if the number of persons is less than number of jobs then we have introduce one or more dummy
persons with zero duration to modify the unbalanced into balanced and then the problem is solved using
the Hungarian Method. Here the jobs assigned to the dummy persons are left out.

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Example 2.2:

Solve the following unbalanced assignment problem of minimizing the total time for performing all the
jobs.
Jobs
1 2 3 4 5

A 5 2 4 2 5

B 2 4 7 6 6

Workers CD 6 7 5 8 7

E 5 2 3 3 4

F 8 3 7 8 6

Solution 3 6 3 5 7

In this problem the number of jobs is less than the number of workers so we have to introduce a dummy
job with zero duration.

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The revised assignment problem is as follows:

Jobs
1 2 3 4 5 6

A 5 2 4 2 5 0

B 2 4 7 6 6 0

Workers CD 6 7 5 8 7 0

E 5 2 3 3 4 0

F 8 3 7 8 6 0

3 6 3 5 7 0
Now the problem becomes balanced one since the number of workers is equal to the number jobs. So
that the problem can be solved using Hungarian Method.

Step 1: The cost Table

Jobs
1 2 3 4 5 6

A 5 2 4 2 5 0

Workers BC 2 4 7 6 6 0

D 6 7 5 8 7 0

E 5 2 3 3 4 0

8 3 7 8 6 0

3 6 3 5 7 0

F
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Step 2: Find the First Reduced Cost Table

Jobs
1 2 3 4 5 6

A 5 2 4 2 5 0

B 2 4 7 6 6 0

Workers CD 6 7 5 8 7 0

E 5 2 3 3 4 0

F 8 3 7 8 6 0

3 6 3 5 7 0
Step 3: Find the Second Reduced Cost Table

Jobs
1 2 3 4 5 6

A 3 0 1 0 1 0

B 0 2 4 4 2 0

Workers CD 4 5 2 6 3 0

E 3 0 0 1 0 0

6 1 4 6 2 0

1 4 0 3 3 0

F
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Step 4: Determine an Assignment

By using the Hungarian Method the assignment is made as follows:

Jobs
1 2 3 4 5 6

A 3 0 1 0 1 0

B 2 4 4 2 0

Workers CD 40 5 2 6 3

E 3 0 0 1 0

F 6 1 4 6 2 00

1 4 3 3 0
Step 5:

The solution obtained in Step 4 is not optimal. Because we were

0 able to make five assignments
when six were required.

Step 6:

Cover all the zeros of the table shown in the Step 4 with five lines (since already we made five
assignments).

Check row E since it has no assignment . No0 te that row B has a zero in column 6, therefore check
column6. Then we check row C since it has a zero in column 6. Note that no other rows and columns are
checked. Now we may draw five lines through unchecked rows (row A, B, D and F) and the checked
column (column 6). This is shown in the table given below:

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MBA-H2040 Quantitative Techniques for Managers
Jobs
1 2 3 4 5 6

A 3 0 1 0 1 0

Workers CD 40

F 00

0
Step 7:
Develop the new revised table.

Examine those elements that are not covered by a line in the table given in Step 6. Take the smallest
element in this case the smallest element is 1. Subtract this smallest element from the uncovered cells and
add 1 to elements (A6, B6, D6 and F6) that lie at the intersection of two lines. Finally, we get the new
revised cost table, which is shown below:

Jobs
1 2 3 4 5 6

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MBA-H2040 Quantitative Techniques for Managers

A 3 0 1 0 1 1

B 0 2 4 4 2 1

Workers CD 3 4 1 5 2 0

E 3 0 0 1 0 1

F 5 0 3 5 1 0
Step 8:

1 repeat the
Now, go to Step 4 and 4 procedure
0 until we3 arrive at an
3 optimal
1 solution (assignment).

Step 9:
Determine an assignment

Jobs
1 2 3 4 5 6

3 0 1 0 1 1
A

B 2 4 4 2 1

Workers CD 30 4 1 5 2

E 3 0 0 1 1

F 5 3 5 1 0 0

1 4 3 3 1

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MBA-H2040 Quantitative Techniques for Managers
Since the number of assignments equal to the number of rows (columns), the assignment shown in the
above tale is optimal.

Thus, the worker A is assigned to Job4, worker B is assigned to job 1, worker C is assigned to job
6, worker D is assigned to job 5, worker E is assigned to job 2, and worker F is assigned to job 3. Since
the Job 6 is dummy so that worker C can’t be assigned.

The total minimum time is: 14 that is A4 + B1 + D5 + E2 + F3

2 + 2 + 4 + 3 + 3 = 14

Example 2.3:

A marketing company wants to assign three employees viz. A, B, and C to four offices located at
W, X, Y and Z respectively. The assignment cost for this purpose is given in following table.

Offices
W X Y Z

A 160 220 240 200

Employees B
100 320 260 160

C 100 200 460 250

Solution

Since the problem has fewer employees than offices so that we have introduce a dummy
employee with zero cost of assignment.

The revised problem is as follows:

Offices
W X Y Z

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A 160 220 240 200

Employees B C
100 320 260 160

D 100 200 460 250

0 0 0 0
Now the problem becomes balanced. This can be solved by using Hungarian Method as in the case
of Example 2.2. Thus as per the Hungarian Method the assignment made as follows:

Employee A is assigned to Office X, Employee B is assigned to Office Z, Employee C is assigned

to Office W and Employee D is assigned to Office Y. Note that D is empty so that no one is assigned to
Office Y.

The minimum cost of assignment is: 220 + 160 + 100 = 480

2.4 Infeasible Assignment Problem

Sometimes it is possible a particular person is incapable of performing certain job or a specific job
can’t be performed on a particular machine. In this case the solution of the problem takes into account of
these restrictions so that the infeasible assignment can be avoided.

The infeasible assignment can be avoided by assigning a very high cost to the cells where
assignments are restricted or prohibited. This is explained in the following Example 2.4.

Example 2.4:

A computer centre has five jobs to be done and has five computer machines to perform them.
The cost of processing of each job on any machine is shown in the table below.

Jobs
1 2 3 4 5

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1 70 30 X 60 30

Computer 2 X 70 50 30 30
Machines

3 60 X 50 70 60

4 60 70 20 40 X

5 30 30 40 X 70

Because of specific job requirement and machine configurations certain jobs can’t be done on
certain machines. These have been shown by X in the cost table. The assignment of jobs to the machines
must be done on a one to one basis. The objective here is to assign the jobs to the available machines so
as to minimize the total cost without violating the restrictions as mentioned above.

Solution

Step 1: The cost Table

Because certain jobs cannot be done on certain machines we assign a high cost say for example
500 to these cells i.e. cells with X and modify the cost table. The revised assignment problem is as
follows:

Jobs
1 2 3 4 5

1 70 30 500 60 30

Computer 2 500 70 50 30 30
Machines

3 60 500 50 70 60

4 60 70 20 40 500

5 30 30 40 500 70
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MBA-H2040 Quantitative Techniques for Managers

Now we can solve this problem using Hungarian Method as discussed in the previous sections.

Step 2: Find the First Reduced Cost Table

Jobs
1 2 3 4 5

1 40 0 470 30 0

Computer 2 470 40 20 0 0
Machines

3 10 450 0 20 10

4 40 50 0 20 480

5 0 0 10 470 40

Step 3: Find the Second Reduced Cost Table

Jobs
1 2 3 4 5

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MBA-H2040 Quantitative Techniques for Managers

1 40 0 470 30 0

Computer 2 470 40 20 0 0
Machines

3 10 450 0 20 10

4 40 50 0 20 480

5 0 0 10 470 40

Step 4: Determine an Assignment

Jobs
1 2 3 4 5

1 40 0 470 30 0

Computer 2 470 40 20 0
Machines

3 10 450 200 10

4 40 50 0 20 480

5 0 100 470 40

Step 5:

The solution obtained in Step 4 is not optimal. Because we were able to make four assignments
when five were required.

Step 6:
Cover all the zeros of the table shown in the Step 4 with four lines (since already we made four
assignments). 0

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MBA-H2040 Quantitative Techniques for Managers
Check row 4 since it has no assignment. Note that row 4 has a zero in column 3, therefore check
column3. Then we check row 3 since it has a zero in column 3. Note that no other rows and columns are
checked. Now we may draw four lines through unchecked rows (row 1, 2, 3 and 5) and the checked column
(column 3). This is shown in the table given below:
Jobs
1 2 3 4 5

1 40 0 470 30

Computer 2 470 40 20
Machines

3 10 450 200 10

4 40 50 0 20 480

5 0 100 470 40

Step 7:
Develop the new revised table.

Examine those elements that are not covered by a line in the table given in Step 6. Take the smallest
element in this case the smallest element is 10. Subtract this smallest element from the uncovered cells
and add 1 to elements (A6, B6, D6 and F6) that lie at the intersection of two lines. Finally, we get the new
revised cost table, which is shown below:
Jobs
1 2 3 4 5
0

1 40 0 471 30 0

Computer 2 470 40 21 0 0
Machines

3 0 440 0 10 0

4 30 40 0 10 470

5 0 0 11 470 40
Step 8:

Now, go to Step 4 and repeat the procedure until we arrive at an optimal solution (assignment).
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MBA-H2040 Quantitative Techniques for Managers

Step 9:
Determine an assignment

Jobs
1 2 3 4 5

1 40 0 471 30 0

Computer 2 470 40 21 0
Machines

3 440 0 10 0

4 30 40 10 470

5 00 11 470 40

Since the number of assignments equal to the number of rows (columns), the assignment shown
in the above tale is optimal.
0
Thus, the Machine1 is assigned to Job5, Machine 2 is assigned to job4, Machine3 is assigned to
job1, Machine4 is assigned to job3 and Machine5 is assigned to job2.

The minimum assignment cost is: 170

0
2.5 Maximization in an Assignment Problem

There are situations where certain facilities have to be assigned to a number of jobs so as to
maximize the overall performance of the assignment. In such cases the problem can be converted into a
minimization problem and can be solved by using Hungarian Method. Here the conversion of
maximization problem into a minimization can be done by subtracting all the elements of the cost table
from the highest value of that table.

Example 2.5:

Consider the problem of five different machines can do any of the required five jobs with different
profits resulting from each assignment as illustrated below:

Machines
1 2 3 4 5

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MBA-H2040 Quantitative Techniques for Managers

1 40 47 50 38 50

2 50 34 37 31 46
Jobs

3 50 42 43 40 45

4 35 48 50 46 46

5 38 72 51 51 49

Find out the maximum profit through optimal assignment.

Solution

This is a maximization problem, so that first we have to find out the highest value in the table
and subtract all the values from the highest value. In this case the highest value is 72.

The new revised table is given below:

Machines
1 2 3 4 5

1 32 35 22 34 22

2 22 38 35 41 26
Jobs

3 22 30 29 32 27

4 37 24 22 26 26

5 34 0 21 21 23

This can be solved by using the Hungarian Method.

By solving this, we obtain the solution is as follows:

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MBA-H2040 Quantitative Techniques for Managers

Jobs Machines

1 3

2 5

3 1

4 4

5 2

The maximum profit through this assignment is: 264

2.6 Crew Assignment Problem

The crew assignment problem is explained with the help of the following problem
Problem:

A trip from Chennai to Coimbatore takes six hours by bus. A typical time table of the bus service
in both the direction is given in the Table 1. The cost of providing this service by the company based on
the time spent by the bus crew i.e. driver and conductor away from their places in addition to service times.
The company has five crews. The condition here is that every crew should be provided with more than 4
hours of rest before the return trip again and should not wait for more than 24 hours for the return trip.
Also the company has guest house facilities for the crew of Chennai as well as at Coimbatore.

Find which line of service is connected with which other line so as to reduce the waiting time to
the minimum.

Table 1

Departure from Route Number Arrival at Arrival at Route Number Departure from
Chennai Coimbatore Chennai Coimbatore
06.00 1 12.00 11.30 a 05.30
07.30 2 13.30 15.00 b 09.00
11.30 3 17.30 21.00 c 15.00
19.00 4 01.00 00.30 d 18.30
00.30 5 06.30 06.00 e 00.00

Solution
For each line the service time is constant so that it does not include directly in the computation. Suppose
if the entire crew resides at Chennai then the waiting times in hours at Coimbatore for different route
connections are given below in Table 2.
If route 1 is combined with route a, the crew after arriving at Coimbatore at 12 Noon start at 5.30
next morning. Thus the waiting time is 17.5 hours. Some of the assignments are infeasible. Route c
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MBA-H2040 Quantitative Techniques for Managers
leaves Coimbatore at 15.00 hours. Thus the crew of route 1 reaching Coimbatore at 12 Noon are unable
to take the minimum stipulated rest of four hours if they are asked to leave by route c. Hence 1-c is an
infeasible assignment. Thus it cost is M (a large positive number).

Table 2

Route a b c d e

1 17.5 21 M 6.5 12

2 16 19.5 M 5 10.5

3 12 15.5 21.5 M 6.5

4 4.5 8 4 17.5 23

5 23 M 8.5 12 17.5

Similarly, if the crews are assumed to reside at Coimbatore then the waiting times of the crew in
hours at Chennai for different route combinations are given below in Table 3.

Table 3

Route a b c d e

1 18.5 15 9 5.5 M

2 20 16.5 10.5 7 M

3 M 20.5 14.5 11 5.5

4 7.5 M 22 18.5 13

5 13 9.5 M M 18.5

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MBA-H2040 Quantitative Techniques for Managers
Suppose, if the crew can be instructed to reside either at Chennai or at Coimbatore, minimum
waiting time from the above operation can be computed for different route combination by choosing the
minimum of the two waiting times (shown in the Table 2 and Table 3). This is given in the following
Table 4.
Table 4

Route a b c d e

1 17.5* 15 9 5.5 12*

2 16* 16.5 10.5 5* 10.5*

3 12* 15.5* 14.5 11 5.5

4 4.5* 8* 14* 17.5* 13

5 13 9.5 8.5* 12* 17.5*

Note: The asterisk marked waiting times denotes that the crew are based at Chennai; otherwise they are
based at Coimbatore.

Now we can solve the assignment problem (presented in Table 4) using Hungarian Method.

Step 1: Cost Table (Table 5)

Table 5

Route a b c d e

1 17.5* 15 9 5.5 12*

2 16* 16.5 10.5 5* 10.5*

3 12* 15.5* 14.5 11 5.5

4 4.5* 8* 14* 17.5* 13

5 13 9.5 8.5* 12* 17.5*

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MBA-H2040 Quantitative Techniques for Managers
Step 2: Find the First Reduced cost table (Table 6)

Table 6

Route a b c d e

1 12 9.5 3.5 0 6.5

2 11 11.5 5.5 0 5.5

3 6.5 10 9 5.5 0

4 0 3.5 9.5 13 8.5

5 4.5 1 0 3.5 9

Step 3: Find the Second Reduced cost table (Table 7)

Table 7

Route a b c d e

1 12 8.5 3.5 0 6.5

2 11 10.5 5.5 0 5.5

3 6.5 9 9 5.5 0

4 0 2.5 9.5 13 8.5

5 4.5 0 0 3.5 9

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MBA-H2040 Quantitative Techniques for Managers
Step 4: Determine an Assignment (Table 8)

Table 8

Route a b c d e

12 8.5 3.5 0 6.5

1

2 11 10.5 5.5 0 5.5

3 6.5 9 9 5.5

4 2.5 9.5 13 8.5

5 4.5 0 3.5 90

Step 5: The solution obtained in Step 4 is not optimal since the number of assignments are less than the
number of rows (columns).

Step 6: Check (√) row 2 sinc e0 it has no assignment and note that row 2 has a zero in column d, therefore

check (√) column d also. Then check row 1 since it has zero in column d. Draw the lines through the
unchecked rows and checked column using 4 lines (only 4 assignments are made). This is shown in Table
9.
Table 9

Route a 0b d e

12 8.5 3.5 0 6.5

1

2 11 10.5 5.5 5.5

3 6.5 5.5

4 2.5 9.5 13 8.5

5 4.5 3.5 90

123
0
MBA-H2040 Quantitative Techniques for Managers

Step 7: Develop a new revised table (Table 10)

Take the smallest element from the elements not covered by the lines in this case 3.5 is the smallest
element. Subtract all the uncovered elements from 3.5 and add 3.5 to the elements lie at the intersection
of two lines (cells 3d, 4d and 5d). The new revised table is presented in Table 10.

Table 10

Route a b c d e

1 8.5 5 0 0 3

2 7.5 7 2 0 2

3 6.5 9 9 9 0

4 0 2.5 9.5 16.5 8.5

5 4.5 0 0 7 9

Step 8: Go to Step 4 and repeat the procedure until an optimal solution if arrived.

Step 9: Determine an Assignment (Table 11)

Table 11

Route a b c d e

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MBA-H2040 Quantitative Techniques for Managers

1 8.5 5 0 0 3

2 7.5 7 2 2

3 6.5 9 9 90

4 2.5 9.5 16.5 8.5

5 4.5 0 7 90
The assignment illustrated in the above

Table 11 is optimal since the number of assignments is equal to the number of rows (columns).

Thus, the routes to be prepared to achieve the minimum waiting time are as follows:

10 – c, 2 – d, 3 – e, 4 – a and 5 – b

By referring Table 5, we can obtain the waiting times of these assignments as well as the residence (guest
house) of the crews. This is presented in the following Table 12.
Table 12
Routes R esidence of the Crew Waiting Time
0
1–c Coimbatore 9
2–d Chennai 5
3–e Coimbatore 5.5
4–a Chennai 4.5
5-b Coimbatore 9.5

2.7 Summary

The assignment problem is used for the allocation of a number of persons to a number of jobs so that the
total time of completion is minimized. The assignment problem is said to be balanced if it has equal
number of person and jobs to be assigned. If the number of persons (jobs) is different from the number of
jobs (persons) then the problem is said to be unbalanced. An unbalanced assignment problem can be
solved by converting into a balanced assignment problem. The conversion is done by introducing dummy
person or a dummy job with zero cost.
Because of the special structure of the assignment problem, it is solved by using a special method
known as Hungarian Method.

2.8 Key Terms

Cost Table: The completion time or cost corresponding to every assignment is written down in a table
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MBA-H2040 Quantitative Techniques for Managers

form if referred as a cost table.

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MBA-H2040 Quantitative Techniques for Managers

Hungarian Method: is a technique of solving assignment problems.

Assignment Problem: is a special kind of linear programming problem where the objective is to minimize
the assignment cost or time.

Balanced Assignment Problem: is an assignment problem where the number of persons equal to the
number of jobs.

Unbalanced Assignment Problem: is an assignment problem where the number of jobs is not equal to
the number of persons.

Infeasible Assignment Problem: is an assignment problem where a particular person is unable to perform
a particular job or certain job cannot be done by certain machines.

2.9 Self Assessment Questions

Q1. A tourist company owns a one car in each of the five locations viz. L1, L2, L3, L4, L5 and a passengers
in each of the five cities C1, C2, C3, C4, C5 respectively. The following table shows the distant between
the locations and cities in kilometer. How should be cars be assigned to the passengers so as to minimize
the total distance covered.

Cities
C1 C2 C3 C4 C5

L1 120 110 115 30 36

Locations L2 L3 125 100 95 30 16

L4 155 90 135 60 50

L5 160 140 150 60 60

190
Q2. Solve the following assignment 155
problem 165 90 85
1 2 3 4 5

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MBA-H2040 Quantitative Techniques for Managers

1
Rs.3 Rs.8 Rs.2 Rs.10 Rs.3

2 Rs.8 Rs.7 Rs.2 Rs.9 Rs.7

3 Rs.6 Rs.4 Rs.2 Rs.7 Rs.5

4 Rs.8 Rs.4 Rs.2 Rs.3 Rs.5

5 Rs.9 Rs.10 Rs.6 Rs.9 Rs.10

Q3. Work out the various steps of the solution of the Example 2.3.

Q4. A steel company has five jobs to be done and has five softening machines to do them. The cost of
softening each job on any machine is given in the following cost matrix. The assignment of jobs to
machines must be done on a one to one basis. Here is the objective is to assign the jobs to the machines
so as to minimize the total assignment cost without violating the restrictions.

Jobs
1 2 3 4 5

1 80 30 X 70 30

Softening 2 70 X 60 40 30
Machines

3 X 80 60 80 70

4 70 80 30 50 X

5 30 30 50 X 80

Q5. Work out the various steps of the solution of the problem presented in Example 2.5.

Q6. A marketing manager wants to assign salesman to four cities. He has four salesmen of varying
experience. The possible profit for each salesman in each city is given in the following table. Find out an
assignment which maximizes the profit.

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MBA-H2040 Quantitative Techniques for Managers
Cities
1 2 3 4

1 25 27 28 38

Salesmen 2 28 34 29 40

3 35 24 32 33

4 24 32 25 28

Q7. Shiva’s three wife, Rani, Brinda, and Fathima want to earn some money to take care of personal
expenses during a school trip to the local beach. Mr. Shiva has chosen three chores for his wife: washing,
cooking, sweeping the cars. Mr. Shiva asked them to submit bids for what they feel was a fair pay for
each of the three chores. The three wife of Shiva accept his decision. The following table summarizes the
bid received.

Chores
Washing Cooking Sweeping
1 2 3

Rani 25 18 17

Wife’s Brinda 17 25 15

Fathima 18 22 32

Q8. Solve the following problem

Office
O1 O2 O3 O4

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MBA-H2040 Quantitative Techniques for Managers

E1 2600 3200 3400 3000

Employees E2 2000 4200 3600 2600

E3 2000 3000 5600 4000

Q9. The railway operates seven days a week has a time table shown in the following table. Crews (Driver
and Guard) must have minimum rest of six hours between trans. Prepare the combination of trains that
minimizes waiting time away from the city. Note that for any given combination the crew will be based
at the city that results in the smaller waiting time and also find out for each combination the city where
the crew should be based at.

Train No. Departure at Arrival at Train No. Departure at Arrival at

Bangalore Chennai Chennai Bangalore
101 7 AM 9 AM 201 9 AM 11 AM
102 9 AM 11 AM 202 10 AM 12 Noon
103 1.30 PM 3.30 PM 203 3.30 PM 5.30 PM
104 7.30 PM 9.30 PM 204 8 PM 10 PM

2.10 Key Solutions

Q1. L1 – C1, L2 – C3, L3 – C2, L4 _ C4, L5 – C5 and

Minimum Distance is: 450

Q2. 1 – 5, 2 – 3, 3 – 2, 4 – 4, 5 – 1 and
Minimum Cost is: Rs.21

Q4. 1 – 2, 2 – 4, 3 – 3, 4 – 4, 5 – 1 and
Minimum Assignment Cost is:

Q6. 1 - 1, 2 – 4, 3 – 3, 4 – 2 and
Maximum Profit is: 139

Q7. Rani – Cooking, Brinda – Sweeping, Fathima – Washing and

Minimum Bids Rate is: 51

Q8. E1 – O2, E2 – O4, E3 – O1

Since E4 is empty, Office O3 cannot be assigned to any one.
Minimum Cost is: 7800

Q9. Trains Cities

201 – 103 Bangalore

202 – 104 Chennai
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MBA-H2040 Quantitative Techniques for Managers
203 – 101 Bangalore
204 – 102 Bangalore

2.11 Further References

Hamdy A Taha, 1999. Introduction to Operations Research, PHI Limited, New Delhi.

Cooper, L and D. Steinberg, 1974. Methods and Applications of Linear Programmings, Saunders,
Philadelphia, USA.

Mustafi, C.K. 1988. Operations Research Methods and Practices, Wiley Eastern Limited, New Delhi.

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1.1 Introduction

A special class of linear programming problem is Transportation Problem, where the objective is to
minimize the cost of distributing a product from a number of sources (e.g. factories) to a number of
destinations (e.g. warehouses) while satisfying both the supply limits and the demand requirement.
Because of the special structure of the Transportation Problem the Simplex Method of solving is
unsuitable for the Transportation Problem. The model assumes that the distributing cost on a given rout is
directly proportional to the number of units distributed on that route. Generally, the transportation model
can be extended to areas other than the direct transportation of a commodity, including among others,
inventory control, employment scheduling, and personnel assignment.

The transportation problem special feature is illustrated here with the help of following Example 1.1.

Example 1.1:

Suppose a manufacturing company owns three factories (sources) and distribute his products to five
different retail agencies (destinations). The following table shows the capacities of the three factories, the
quantity of products required by the various retail agencies and the cost of shipping one unit of the product
from each of the three factories to each of the five retail agencies.

Retail Agency
Factories 1 2 3 4 5 Capacity
1 1 9 13 36 51 50
2 24 12 16 20 1 100
3 14 33 1 23 26 150

Requirement 100 60 50 50 40 300

Usually the above table is referred as Transportation Table, which provides the basic information
regarding the transportation problem. The quantities inside the table are known as transportation cost per
unit of product. The capacity of the factories 1, 2, 3 is 50, 100 and 150 respectively. The requirement of
the retail agency 1, 2, 3, 4, 5 is 100,60,50,50, and 40 respectively.

In this case, the transportation cost of one unit

from factory 1 to retail agency 1 is 1,
from factory 1 to retail agency 2 is 9,
from factory 1 to retail agency 3 is 13, and so on.

A transportation problem can be formulated as linear programming problem using variables with
two subscripts.
Let
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MBA-H2040 Quantitative Techniques for Managers
x11=Amount to be transported from factory 1 to retail agency 1
x12= Amount to be transported from factory 1 to retail agency 2
……..
……..
……..
……..
x35= Amount to be transported from factory 3 to retail agency 5.

Let the transportation cost per unit be represented by C11, C12, …..C35 that is C11=1, C12=9, and so on.
Let the capacities of the three factories be represented by a1=50, a2=100, a3=150.
Let the requirement of the retail agencies are b1=100, b2=60, b3=50, b4=50, and b5=40.

Thus, the problem can be formulated as

Minimize
C11x11+C12x12+ .................. +C35x35

Subject to:
x11 + x12 + x13 + x14 + x15 = a1
x21 + x22 + x23 + x24 + x25 = a2
x31 + x32 + x33 + x34 + x35 = a3

x11 + x21 + x31 = b1

x12 + x22 + x32 = b2
x13 + x23 + x33 = b3
x14 + x24 + x34 = b4
x15 + x25 + x35 = b5

x11, x12, ……, x35 ≥ 0.

Thus, the problem has 8 constraints and 15 variables. So, it is not possible to solve such a problem
using simplex method. This is the reason for the need of special computational procedure to solve
transportation problem. There are varieties of procedures, which are described in the next section.
1.2 Transportation Algorithm

The steps of the transportation algorithm are exact parallels of the simplex algorithm, they are:
Step 1: Determine a starting basic feasible solution, using any one of the following three methods
1. North West Corner Method
2. Least Cost Method
3. Vogel Approximation Method

Step 2: Determine the optimal solution using the following method

1. MODI (Modified Distribution Method) or UV Method.

1.3 Basic Feasible Solution of a Transportation Problem

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MBA-H2040 Quantitative Techniques for Managers
The computation of an initial feasible solution is illustrated in this section with the help of the example1.1
discussed in the previous section. The problem in the example 1.1 has 8 constraints and 15 variables we
can eliminate one of the constraints since a1 + a2 + a3 = b1 + b2 + b3 + b4 +b5. Thus now the problem
contains 7 constraints and 15 variables. Note that any initial (basic) feasible solution has at most 7 non-
zero Xij. Generally, any basic feasible solution with m sources (such as factories) and n destination (such
as retail agency) has at most m + n -1 non-zero Xij.
The special structure of the transportation problem allows securing a non artificial basic feasible
solution using one the following three methods.

4. North West Corner Method

5. Least Cost Method
6. Vogel Approximation Method

The difference among these three methods is the quality of the initial basic feasible solution they
produce, in the sense that a better that a better initial solution yields a smaller objective value. Generally
the Vogel Approximation Method produces the best initial basic feasible solution, and the North West
Corner Method produces the worst, but the North West Corner Method involves least computations.

North West Corner Method:

The method starts at the North West (upper left) corner cell of the tableau (variable x11).

Step -1: Allocate as much as possible to the selected cell, and adjust the associated amounts of capacity
(supply) and requirement (demand) by subtracting the allocated amount.

Step -2: Cross out the row (column) with zero supply or demand to indicate that no further assignments
can be made in that row (column). If both the row and column becomes zero simultaneously, cross out
one of them only, and leave a zero supply or demand in the uncrossed out row (column).

Step -3: If exactly one row (column) is left uncrossed out, then stop. Otherwise, move to the cell to the
right if a column has just been crossed or the one below if a row has been crossed out. Go to step -1.

Example 1.2:

Consider the problem discussed in Example 1.1 to illustrate the North West Corner Method of determining
basic feasible solution.
Retail Agency
Factories 1 2 3 4 5 Capacity
1 1 9 13 36 51 50
2 24 12 16 20 1 100
3 14 33 1 23 26 150

Requirement 100 60 50 50 40 300

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MBA-H2040 Quantitative Techniques for Managers

The allocation is shown in the following tableau:

Capacity
13 36 51
50
50
24 12 16 20 100 50
50 50
14 33 23 26
10 50 50 40 150 140 90 40

Requirement 100 60 50 50 40
50 10
The arrows show the order in which the allocated (bolded) amounts are generated. The starting
basic solution is given as
x11 = 50,
x21 = 50, x22 = 50
x32 = 10, x33 = 50, x34 = 50, x35 = 40

The corresponding transportation cost is

50 * 1 + 50 * 24 + 50 * 12 + 10 * 33 + 50 * 1 + 50 * 23 + 40 * 26 = 4420

It is clear that as soon as a value of Xij is determined, a row (column) is eliminated from further
consideration. The last value of X ij eliminates both a row and column. Hence a feasible solution computed
by North West Corner Method can have at most m + n – 1 positive Xij if the transportation problem has
m sources and n destinations.

Least Cost Method

The least cost method is also known as matrix minimum method in the sense we look for the row and the
column corresponding to which Cij is minimum. This method finds a better initial basic feasible solution
by concentrating on the cheapest routes. Instead of starting the allocation with the northwest cell as in the
North West Corner Method, we start by allocating as much as possible to the cell with the smallest unit
cost. If there are two or more minimum costs then we should select the row and the column corresponding
to the lower numbered row. If they appear in the same row we should select the lower numbered column.
We then cross out the satisfied row or column, and adjust the amounts of capacity and requirement
accordingly. If both a row and a column is satisfied simultaneously, only one is crossed out. Next, we look
for the uncrossed-out cell with the smallest unit cost and repeat the process until we are left at the end with
exactly one uncrossed-out row or column.

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MBA-H2040 Quantitative Techniques for Managers

Example 1.3:
The least cost method of determining initial basic feasible solution is illustrated with the help of problem
presented in the section 1.1.

Capacity
1 9 13 36 51
50
50
24 12 16 20 1 100 60
60 40
14 33 1 23 26
50 50 50 150 100 50

Requirement 100 60 50 50 40
50

The Least Cost method is applied in the following manner:

We observe that C11=1 is the minimum unit cost in the table. Hence X11=50 and the first row is
crossed out since the row has no more capacity. Then the minimum unit cost in the uncrossed-out row and
column is C25=1, hence X25=40 and the fifth column is crossed out. Next C33=1is the minimum unit cost,
hence X33=50 and the third column is crossed out. Next C22=12 is the minimum unit cost, hence X22=60
and the second column is crossed out. Next we look for the uncrossed-out row and column now C31=14 is
the minimum unit cost, hence X31=50 and crossed out the first column since it was satisfied. Finally
C34=23 is the minimum unit cost, hence X34=50 and the fourth column is crossed out.

So that the basic feasible solution developed by the Least Cost Method has transportation cost is

1 * 50 + 12 * 60 + 1 * 40 + 14 * 50 + 1 * 50 + 23 * 50 = 2710

Note that the minimum transportation cost obtained by the least cost method is much lower than
the corresponding cost of the solution developed by using the north-west corner method.

Vogel Approximation Method (VAM):

VAM is an improved version of the least cost method that generally produces better solutions. The steps
involved in this method are:

Step 1: For each row (column) with strictly positive capacity (requirement), determine a penalty by
subtracting the smallest unit cost element in the row (column) from the next smallest unit cost element in
the same row (column).

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MBA-H2040 Quantitative Techniques for Managers
Step 2: Identify the row or column with the largest penalty among all the rows and columns. If the
penalties corresponding to two or more rows or columns are equal we select the topmost row and the
extreme left column.

Step 3: We select Xij as a basic variable if Cij is the minimum cost in the row or column with largest
penalty. We choose the numerical value of Xij as high as possible subject to the row and the column
constraints. Depending upon whether ai or bj is the smaller of the two ith row or jth column is crossed out.

Step 4: The Step 2 is now performed on the uncrossed-out rows and columns until all the basic variables
have been satisfied.

Example 1.4:

Consider the following transportation problem

Destination
Origin 1 2 3 4 ai
1 20 22 17 4 120
2 24 37 9 7 70
3 32 37 20 15 50
bj 60 40 30 110 240

Note: ai=capacity (supply)

bj=requirement (demand)

Now, compute the penalty for various rows and columns which is shown in the following table:

Destination
Origin 1 2 3 4 ai Column
Penalty
1 20 22 17 4 120 13
2 24 37 9 7 70 2
3 32 37 20 15 50 5
bj 60 40 30 110 240

Row Penalty 4 15 8 3

Look for the highest penalty in the row or column, the highest penalty occurs in the second column and
the minimum unit cost i.e. cij in this column is c12=22. Hence assign 40 to this cell i.e. x12=40 and cross
out the second column (since second column was satisfied. This is shown in the following table:
Destination
Origin 1 2 3 4 ai Column
Penalty
1 20 22 40 17 4 80 13
2 24 37 9 7 70 2
3 32 37 20 15 50 5
bj 60 40 30 110 240
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MBA-H2040 Quantitative Techniques for Managers

Row Penalty 4 15 8 3

The next highest penalty in the uncrossed-out rows and columns is 13 which occur in the first row and
the minimum unit cost in this row is c14=4, hence x14=80 and cross out the first row. The modified table
is as follows:

Destination
Origin 1 2 3 4 ai Column
Penalty
1 20 22 17 4 0 13
40 80
2 24 37 9 7 70 2
3 32 37 20 15 50 5
bj 60 40 30 110 240

Row Penalty 4 15 8 3

The next highest penalty in the uncrossed-out rows and columns is 8 which occurs in the third column
and the minimum cost in this column is c23=9, hence x23=30 and cross out the third column with adjusted
capacity, requirement and penalty values. The modified table is as follows:

Destination
Origin ai Column
Penalty
20 22 17 13
40
24 37 40 17
30
32 37 20 15 50 17
bj 60 40 30 110 240

Row Penalty 15

The next highest penalty in the uncrossed-out rows and columns is 17 which occurs in the second row
and the smallest cost in this row is c24=15, hence x24=30 and cross out the fourth column with the adjusted
capacity, requirement and penalty values. The modified table is as follows:

Destination
Origin ai Column
Penalty
20 22 17 13
40
24 37 10 17
30 30
32 37 20 50 17
bj 60 40 30 240

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MBA-H2040 Quantitative Techniques for Managers

Row Penalty 8 15 8 8

The next highest penalty in the uncrossed-out rows and columns is 17 which occurs in the second row
and the smallest cost in this row is c21=24, hence xi21=10 and cross out the second row with the adjusted
capacity, requirement and penalty values. The modified table is as follows:

Destination
Origin ai Column
Penalty
20 22 17 13
40
24 37 17
10 30 30
32 37 20 50 17
bj 60 40 30 110 240

Row Penalty 15

The next highest penalty in the uncrossed-out rows and columns is 17 which occurs in the third row and
the smallest cost in this row is c31=32, hence xi31 =50 and cross out the third row or first column. The
modified table is as follows:

Destination
Origin ai Column
Penalty
20 22 17 13
40
24 37 17
10 30 30
32 37 20 17
50
bj 60 40 30 110 240

Row Penalty 15

The transportation cost corresponding to this choice of basic variables is

22 * 40 + 4 * 80 + 9 * 30 + 7 * 30 + 24 * 10 + 32 * 50 = 3520

1.4 Modified Distribution Method

The Modified Distribution Method, also known as MODI method or u-v method, which provides a
minimum cost solution (optimal solution) to the transportation problem. The following are the steps
involved in this method.

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Step 1: Find out the basic feasible solution of the transportation problem using any one of the three
methods discussed in the previous section.

Step 2: Introduce dual variables corresponding to the row constraints and the column constraints. If there
are m origins and n destinations then there will be m+n dual variables. The dual variables corresponding
to the row constraints are represented by ui, i=1,2,…..m where as the dual variables corresponding to the
column constraints are represented by vj, j=1,2,…..n. The values of the dual variables are calculated from
the equation given below

ui + vj = cij if xij > 0

Step 3: Any basic feasible solution has m + n -1 xij > 0. Thus, there will be m + n -1 equation to determine
m + n dual variables. One of the dual variables can be chosen arbitrarily. It is also to be noted that as the
primal constraints are equations, the dual variables are unrestricted in sign.

Step 4: If xij=0, the dual variables calculated in Step 3 are compared with the c ij values of this allocation
as cij – ui – vj. If al cij – ui – vj ≥ 0, then by the theorem of complementary slackness it can be shown that
the corresponding solution of the transportation problem is optimum. If one or more c ij – ui – vj < 0, we
select the cell with the least value of cij – ui – vj and allocate as much as possible subject to the row and
column constraints. The allocations of the number of adjacent cell are adjusted so that a basic variable
becomes non-basic.

Step 5: A fresh set of dual variables are calculated and repeat the entire procedure from Step 1 to Step 5.

Example 1.5:
For example consider the transportation problem given below:
Supply
1 9 13 36 51 50
24 12 16 20 1 100
14 33 1 23 26
150
Demand 100 70 50 40 40 300

Step 1: First we have to determine the basic feasible solution. The basic feasible solution using least
cost method is

x11=50, x22=60, x25=40, x31=50, x32=10, x33=50 and x34=40

Step 2: The dual variables u1, u2, u3 and v1, v2, v3, v4, v5 can be calculated from the corresponding cij
values, that is

u1+v1=1 u2+v2=12 u2+v5=1 u3+v1=14

u3+v2=33 u3+v3=1 u3+v4=23

Step 3: Choose one of the dual variables arbitrarily is zero that is u 3=0 as it occurs most often in the
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MBA-H2040 Quantitative Techniques for Managers

above equations. The values of the variables calculated are

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MBA-H2040 Quantitative Techniques for Managers

u1= -13, u2= -21, u3=0

v1=14, v2=33, v3=1, v4=23, v5=22

Step 4: Now we calculate cij – ui – vj values for all the cells where xij=0 (.e. unallocated cell by the basic
feasible solution)
That is
Cell(1,2)= c12-u1-v2 = 9+13-33 = -11
Cell(1,3)= c13-u1-v3 = 13+13-1 = 25
Cell(1,4)= c14-u1-v4 = 36+13-23 = 26
Cell(1,5)= c15-u1-v5 = 51+13-22 = 42
Cell(2,1)= c21-u2-v1 = 24+21-14 = 31
Cell(2,3)= c23-u2-v3 = 16+21-1 = 36
Cell(2,4)= c24-u2-v4 = 20+21-23 = 18
Cell(3,5)= c35-u3-v5 = 26-0-22 = 4

Note that in the above calculation all the cij – ui – vj ≥ 0 except for cell (1, 2) where c12 – u1 – v2 = 9+13-
33 = -11.

Thus in the next iteration x12 will be a basic variable changing one of the present basic variables
non-basic. We also observe that for allocating one unit in cell (1, 2) we have to reduce one unit in cells (3,
2) and (1, 1) and increase one unit in cell (3, 1). The net transportation cost for each unit of such
reallocation is
-33 -1 + 9 +14 = -11
The maximum that can be allocated to cell (1, 2) is 10 otherwise the allocation in the cell (3, 2)
will be negative. Thus, the revised basic feasible solution is

x11=40, x12=10, x22=60, x25=40, x31=60, x33=50, x34=40

1.5 Unbalanced Transportation Problem

In the previous section we discussed about the balanced transportation problem i.e. the total supply
(capacity) at the origins is equal to the total demand (requirement) at the destination. In this section we
are going to discuss about the unbalanced transportation problems i.e. when the total supply is not equal
to the total demand, which are called as unbalanced transportation problem.
In the unbalanced transportation problem if the total supply is more than the total demand then we
introduce an additional column which will indicate the surplus supply with transportation cost zero.
Similarly, if the total demand is more than the total supply an additional row is introduced in the
transportation table which indicates unsatisfied demand with zero transportation cost.
Example 1.6:

Consider the following unbalanced transportation problem

Warehouses
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Plant w1 w2 w3 Supply
20 17 25
X 400
10 10 20
Y 500

Demand 400 400 500

In this problem the demand is 1300 whereas the total supply is 900. Thus, we now introduce an additional
row with zero transportation cost denoting the unsatisfied demand. So that the modified transportation
problem table is as follows:

Warehouses
Plant w1 w2 w3 Supply
20 17 25
X 400
10 10 20
Y 500
Unsatisfied
0 0 0
Demand 400

Demand 400 400 500 1300

Now we can solve as balanced problem discussed as in the previous sections.

1.6. Degenerate Transportation Problem

In a transportation problem, if a basic feasible solution with m origins and n destinations has less than m
+ n -1 positive Xij i.e. occupied cells, then the problem is said to be a degenerate transportation problem.
The degeneracy problem does not cause any serious difficulty, but it can cause computational problem
wile determining the optimal minimum solution.
There fore it is important to identify a degenerate problem as early as beginning and take the
necessary action to avoid any computational difficulty. The degeneracy can be identified through the
following results:
“In a transportation problem, a degenerate basic feasible solution exists if and only if some partial
sum of supply (row) is equal to a partial sum of demand (column). For example the following
transportation problem is degenerate. Because in this problem
a1 = 400 = b1
a2 + a3 = 900 = b2 + b3

Warehouses
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Plant w1 w2 w3 Supply (ai)

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20 17 25
X 400
10 10 20
Y 500
Unsatisfied 0 0 0
demand 400

Demand (bj) 400 400 500 1300

There is a technique called perturbation, which helps to solve the degenerate problems.

Perturbation Technique:

The degeneracy of the transportation problem can be avoided if we ensure that no partial sum of
ai (supply) and bj (demand) is equal. We set up a new problem where

ai = ai +d i = 1, 2, ……, m
bj = bj j = 1, 2, ……, n -1
bn = bn + md d>0

This modified problem is constructed in such a way that no partial sum of a i is equal to the bj.
Once the problem is solved, we substitute d = 0 leading to optimum solution of the original problem.
Example: 1.7
Consider the above problem

Warehouses
Plant w1 w2 w3 Supply (ai)
20 17 25
X 400 + d
10 10 20
Y 500 + d
Unsatisfied 0 0 0
demand 400 + d

Demand (bj) 400 400 500 + 3d 1300 + 3d

Now this modified problem can be solved by using any of the three methods viz. North-west Corner,
Least Cost, or VAM.

1.7 Transshipment Problem

There could be a situation where it might be more economical to transport consignments in several sages
that is initially within certain origins and destinations and finally to the ultimate receipt points, instead of
transporting the consignments from an origin to a destination as in the transportation problem.

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The movement of consignment involves tow different modes of transport viz. road and railways
or between stations connected by metre gauge and broad gauge lines. Similarly it is not uncommon to
maintain dumps for central storage of certain bulk material. These require transshipment.
Thus for the purpose of transshipment the distinction between an origin and destination is dropped
so that from a transportation problem with m origins and n destinations we obtain a transshipment problem
with m + n origins and m + n destinations.
The formulation and solution of a transshipment problem is illustrated with the following Example
1.8.

Example 1.8:

Consider the following transportation problem where the origins are plants and destinations are depots.
Table 1
Depot
Plant X Y Z Supply

A 150
$1 $3 $15
B 300
$3 $5 $25
Demand 150 150 150 450

When each plant is also considered as a destination and each depot is also considered as an origin,
there are altogether five origins and five destinations. So that some additional cost data are necessary, they
are as follows:
Table 2
Unit transportation cost From Plant To Plant
To
Plant A Plant B
From

Plant A 0 55

Plant B 2 0

Table 3
Unit transportation cost From Depot To Depot
To
Depot X Depot Y Depot Z

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From

Depot X 0 25 2

Depot Y 2 0 3

Depot Z 55 3 0
Table 4
Unit transportation cost From Depot to Plant

To
Plant A Plant B
From

Depot X
3 15
Depot Y
25 3

Depot Z 45 55
Now, from the Table 1, Table 2, Table 3, Table 4

we obtain the transportation formulation of the transshipment problem, which is shown in the Table 5.

Table 5
Transshipment Table
Supply
A B X Y Z

A 0 55 1 3 15 150+450=600

B 2 0 3 5 25 300+450=750

X 3 15 0 25 2 450

Y 25 3 2 0 3 450

Z 45 55 55 3 0 450

Demand 450 450 150+450= 150+450= 150+450=

600 600 600

A buffer stock of 450 which is the total supply and total demand in the original transportation
problem is added to each row and column of the transshipment problem. The resulting transportation
problem has m + n = 5 origins and m + n = 5 destinations.
By solving the transportation problem presented in the Table 5, we obtain

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x11=150 x13=300 x14=150 x21=3001 x22=450 x33=300

x35=150 x44=450 x55=450

The transshipment problem explanation is as follows:

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1. Transport x21=300 from plant B to plant A. This increase the availability at plant A to 450 units
including the 150 originally available from A.
2. From plant A transport x13=300 to depot X and x14=150 to depot Y.
3. From depot X transport x35=150 to depot Z.

Thus, the total cost of transshipment is:

2*300 + 3 * 150 + 1*300 + 2*150 = $1650

Note: The consignments are transported from pants A, B to depots X, Y, Z only according to the
transportation Table 1, the minimum transportation cost schedule is x13=150 x21=150 x22=150 with a
minimum cost of 3450.

Thus, transshipment reduces the cost of consignment movement.

1.8 Transportation Problem Maximization

There are certain types of transportation problem where the objective function is to be maximized instead
of minimized. These kinds of problems can be solved by converting the maximization problem into
minimization problem. The conversion of maximization into minimization is done by subtracting the unit
costs from the highest unit cost of the table.
The maximization of transportation problem is illustrated with the following Example 1.9.

Example 1.9:

A company has three factories located in three cities viz. X, Y, Z. These factories supplies consignments
to four dealers viz. A, B, C and D. The dealers are spread all over the country. The production capacity of
these factories is 1000, 700 and 900 units per month respectively. The net return per unit product is given
in the following table.
Dealers
Factory A B C D capacity

X 6 6 6 4 1000

Y 4 2 4 5 700

Z 5 6 7 8 900

Requirement 900 800 500 400 2600

Determine a suitable allocation to maximize the total return.

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This is a maximization problem. Hence first we have to convert this in to minimization problem.
The conversion of maximization into minimization is done by subtracting the unit cost of the table from
the highest unit cost.
Look the table, here 8 is the highest unit cost. So, subtract all the unit cost from the 8, and then we
get the revised minimization transportation table, which is given below.

Dealers
Factory A B C D capacity

X 2 2 2 4 1000 = a1

Y 4 6 4 3 700 =a2

Z 3 2 1 0 900 =a3

Requirement 900=b1 800=b2 500=b3 400=b4 2600

Now we can solve the problem as a minimization problem.

The problem here is degenerate, since the partial sum of a1=b2+b3 or a3=b3. So consider the
corresponding perturbed problem, which is shown below.

Dealers
Factory A B C D capacity

X 2 2 2 4 1000+d

Y 4 6 4 3 700+d

Z 3 2 1 0 900+d

Requirement 900 800 500 400+3d 2600+3d

First we have to find out the basic feasible solution. The basic feasible solution by lest cost
method is x11=100+d, x22=700-d, x23=2d, x33=500-2d and x34=400+3d.
Once if the basic feasible solution is found, next we have to determine the optimum solution
using MODI (Modified Distribution Method) method. By using this method we obtain
u1+v1=2 u1+v2=2 u2+v2=6
u2+v3=4 u3+v3=1 u3+v4=0

Taking u1=0 arbitrarily we obtain

u1=0, u2=4, u3=1 and
v1=2, v2=3, v3=0

On verifying the condition of optimality, we know that

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C12-u1-v2 < 0 and C32-u3-v2 <0

So, we allocate x12=700-d and make readjustment in some of the other basic variables.

The revised values are:

x11=200+d, x12=800, x21=700-d, x23=2d, x33=500-3d, and x34=400+3d

u1+v1=2 u1+v2=2 u2+v1=4

u2+v3=4 u3+v3=1 u3+v4=0
Taking u1=0 arbitrarily we obtain
u1=0, u2=2, u3=-1
v1=2, v2=2, v3=2, v4=1
Now, the optimality condition is satisfied.

Finally, taking d=0 the optimum solution of the transportation problem is

X11=200, x12=800, x21=700, x33=500 and x34=400

Thus, the maximum return is:

6*200 + 6*800 + 4*700 + 7*500 + 8*400 = 15500

1.9 Summary

Transportation Problem is a special kind of linear programming problem. Because of the transportation
problem special structure the simplex method is not suitable. But which may be utilized to make efficient
computational techniques for its solution.
Generally transportation problem has a number of origins and destination. A certain amount of
consignment is available in each origin. Similarly, each destination has a certain demand/requirements.
The transportation problem represents amount of consignment to be transported from different origins to
destinations so that the transportation cost is minimized with out violating the supply and demand
constraints.
There are two phases in the transportation problem. First is the determination of basic feasible
solution and second is the determination of optimum solution.
There are three methods available to determine the basic feasible solution, they are
1. North West Corner Method
2. Least Cost Method or Matrix Minimum Method
3. Vogel’s Approximation Method (VAM)
In order to determine optimum solution we can use either one of the following method

1. Modified Distribution (MODI) Method

Or
2. Stepping Stone Method

Transportation problem can be generalized into a Transshipment Problem where transportation of

consignment is possible from origin to origin or destination as well as destination to origin or
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destination. The transshipment problem may be result in an economy way of shipping in some
situations.
1.10 Key Terms

Origin: is the location from which the shipments are dispatched.

Destination: is the location to which the shipments are transported.
Unit Transportation Cost: is the transportation cost per unit from an origin to destination.
Perturbation Technique: is a method of modifying a degenerate transportation problem in order to
solve the degeneracy.

1.11 Self Assessment Questions

Q1. Four companies viz. W, X, Y and Z supply the requirements of three warehouses viz. A, B and C
respectively. The companies’ availability, warehouses requirements and the unit cost of transportation are
given in the following table. Find an initial basic feasible solution using

a. North West Corner Method

b. Least Cost Method
c. Vogel Approximation Method (VAM)

Warehouses
Company A B C Supply

W 10 8 9 15

X 5 2 3 20

Y 6 7 4 30

Z 7 6 9 35

Requirement 25 26 49 100

Q2. Find the optimum Solution of the following Problem using MODI method.

Destination
Source 1 2 3 Capacity
A 42
8 9 10
B 30
9 11 11
C 28
10 12 9

Demand 35 40 25 100

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Q3. The ABT transport company ships truckloads of food grains from three sources viz. X, Y, Z to four
mills viz. A, B, C, D respectively. The supply and the demand together with the unit transportation cost
per truckload on the different routes are described in the following transportation table. Assume that the
unit transportation costs are in hundreds of dollars. Determine the optimum minimum shipment cost of
transportation using MODI method.

Mill
Source A B C D Supply

X 10 2 20 11 15

Y 12 7 9 20 25

Z 4 14 16 18 10

Demand 5 15 15 15

Q4. An organization has three plants at X, Y, Z which supply to warehouses located at A, B, C, D, and E
respectively. The capacity of the plants is 800, 500 and 900 per month and the requirement of the
warehouses is 400, 400, 500, 400 and 800 units respectively. The following table shows the unit
transportation cost.

A B C D E
X
$5 $8 $6 $6 $3
Y
$4 $7 $7 $6 $6
Z
$8 $4 $6 $6 $3

Determine an optimum distribution for the organization in order to minimize the total cost of
transportation.

Q5. Solve the following transshipment problem

Consider a transportation problem has tow sources and three depots. The availability, requirements and
unit cost are as follows:
Depot
Source D1 D2 D3 Availability
S1 30
9 8 1

S2 1 7 8 30

Requirement 20 20 20 60

In addition to the above, suppose that the unit cost of transportation from source to source and from
depot to depot are as:
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Source

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S1 S2
S1
Source 0 1

S2 2 0

Depot
D1 D2 D3
D1
0 2 1
Depot
D2 2 0 9

D3 1 9 0

Find out minimum transshipment cost of the problem and also compare this cost with the corresponding
minimum transportation cost.

Q6. Saravana Store, T.Nagar, Chennai interested to purchase the following type and quantities of dresses

Dress V W X Y Z
Type
Quantity 150 100 75 250 200

Four different dress makers are submitted the tenders, who undertake to supply not more than the
quantities indicated below:

Dress A B C D
Maker
Dress 300 250 150 200
Quantity

Saravana Store estimates that its profit per dress will vary according to the dress maker as indicates in
the following table:

V W X Y Z

A 2.75 3.5 4.25 2.25 1.5

B 3 3.25 4.5 1.75 1

C 2.5 3.5 4.75 2 1.25

D 3.25 2.75 4 2.5 1.75

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Determine how should the orders to be places for the dresses so as to maximize the profit.

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1.12 Key Solutions

Q1. a. x11 = 15, x21 = 10, x22 = 10, x32 = 16, x33 = 14, x43 = 35
Minimum Cost is: 753

b. x13 = 15, x22 = 20, x33 = 30, x41 = 25, x42 = 6, x43 = 4
Minimum Cost is: 542

c. x13=15, x22=20, x33=30, x41=25, x42=6, x43=4

Minimum Cost is: 542

Q2. x11=2, x12=40, x21=30, x31=3, x33=25

Minimum Transportation Optimal cost is: 901.

Q3. x12=5, x14=10, x22=10, x23=15, x31=5, x34=5

Minimum Optimal Cost is: $435

Q4. x15=800, x21=400, x24=100, x32=400, x33=200, x34=300, x43=300 (supply shortage)
Minimum Cost of Transportation is: $9200

Q5. Transportation Problem

S1-D2=10, S1-D3=20, S2-D1=20, S2-D2=10 and
Minimum Transportation Cost is: 100

Transshipment Problem
x11=60, x12=10, x15=20, x22=50, x23=40, x33=40, x34=20, x44=60, x55=60 and
Minimum Transshipment Cost is: 100
Q6. 150 dresses of V and 50 dresses of Z by Dress Maker A
250 dresses of Y by Dress Maker B
150 dress of Z by Dress Maker C
100 dress of W and 75 dresses of X by Dress Maker D

Maximum Profit is: 1687.50

1.13 Further References

Hamdy A Taha. 1999. Introduction to Operations Research, PHI Limited, New Delhi.

Mustafi, C.K. 1988. Operations Research Methods and Practice, Wiley Eastern Ltd., New Delhi.

Mittal, K.V. 1976. Optimization Methods in Operations Research and Systems Analysis, Wiley Eastern
Ltd., New Delhi.

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LESSON 5

PERT

LESSON OUTLINE
 The concept of PERT
 Estimates of the time of an activity
 Determination of critical path
 Probability estimates

LEARNING OBJECTIVES

After reading this lesson you should be able to

- understand the importance of PERT
- locate the critical path
- determine the project completion time
- find out the probability of completion of a project before a stipulated time

INTRODUCTION
Programme Evaluation and Review Technique (PERT) is a tool that would help a project manager
in project planning and control. It would enable him in continuously monitoring a project and
taking corrective measures wherever necessary. This technique involves statistical methods.

ASSUMPTIONS FOR PERT

Note that in CPM, the assumption is that precise time estimate is available for each activity in a
project. However, one finds most of the times that this is not practically possible.
In PERT, we assume that it is not possible to have precise time estimate for each activity
and instead, probabilistic estimates of time alone are possible. A multiple time estimate approach
is followed here. In probabilistic time estimate, the following 3 types of estimate are possible:
1. Pessimistic time estimate ( t p )

2. Optimistic time estimate ( to )

3. Most likely time estimate ( tm )

The optimistic estimate of time is based on the assumption that an activity will not involve any
difficulty during execution and it can be completed within a short period. On the other hand, a
pessimistic estimate is made on the assumption that there would be unexpected

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problems during the execution of an activity and hence it would consume more time. The most
likely time estimate is made in between the optimistic and the pessimistic estimates of time. Thus
the three estimates of time have the relationship
to  tm  tp .

Practically speaking, neither the pessimistic nor the optimistic estimate may hold in reality
and it is the most likely time estimate that is expected to prevail in almost all cases. Therefore, it
is preferable to give more weight to the most likely time estimate.
We give a weight of 4 to most likely time estimate and a weight of 1 each to the pessimistic
and optimistic time estimates. We arrive at a time estimate ( te ) as the weighted average of these
estimates as follows:
to  4 tm  tp
te 
6
Since we have taken 6 units ( 1 for tp , 4 for tm and 1 for to ), we divide the sum by 6. With

this time estimate, we can determine the project completion time as applicable for CPM.
Since PERT involves the average of three estimates of time for each activity, this method
is very practical and the results from PERT will be have a reasonable amount of reliability.
MEASURE OF CERTAINTY
The 3 estimates of time are such that
to  tm  tp .

Therefore the range for the time estimate is tp  to .

The time taken by an activity in a project network follows a distribution with a

standard deviation of one sixth of the range, approximately.
tp  to
i.e., The standard deviation = 
6
2
tt
and the variance = 2
  p o 
 6 
The certainty of the time estimate of an activity can be analysed with the help of the
variance. The greater the variance, the more uncertainty in the time estimate of an activity.
Problem 1:
Two experts A and B examined an activity and arrived at the following time estimates.
Expert Time Estimate

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to tm tp

A 4 6 8
B 4 7 10

Determine which expert is more certain about his estimates of time:

Solution:
2
 tp  to 

2
Variance ( ) in time estimates = 
 6 
2
 8 4  4
In the case of expert A, the variance =  

 6  9
2
 10  4 
As regards expert B, the variance =  1

 6 
So, the variance is less in the case of A. Hence, it is concluded that the expert A is more
certain about his estimates of time.
Determination of Project Completion Time in PERT
Problem 2:

Find out the time required to complete the following project and the critical activities:

Activity Predecessor Optimistic time Most likely time Pessimistic time

Activity estimate (to days) estimate (tm days) estimate (tp days)
A - 2 4 6
B A 3 6 9
C A 8 10 12
D B 9 12 15
E C 8 9 10
F D, E 16 21 26
G D, E 19 22 25
H F 2 5 8
I G 1 3 5
Solution:

From the three time estimates tp , tm and to , calculate te for each activity. We obtain the following table:

Activity Optimistic 4 x Most likely Pessimistic to+ 4tm+ tp Time estimate

time estimate time estimate time estimate to  4 tm  tp
(to) (tp) te 
6
A 2 16 6 24 4
B 3 24 9 36 6
C 8 40 12 60 10
D 9 48 15 72 12
E 8 36 10 54 9
F 16 84 26 126 21

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G 19 88 25 132 22
H 2 20 8 30 5
I 1 12 5 18 3

Using the single time estimates of the activities, we get the following network diagram for the project.

B 3 D F H6
6 12 21 5
A
1 4 2
C 10 E 5G I 8
9 22 3

4 7
Consider the paths, beginning with the start node and stopping with the end node. There are
four such paths for the given project. They are as follows:
Path I

A B D F H
1 2 3 5 6 8

4 6 12 21 5
Time for the path: 4+6+12+21+5 = 48 days.

Path II

1 2
12
Time for the path: 4+6+12+ 6+3 = 31 days.

Path III
A F H
49
4 2 10 215 5

Time for the path: 4+10+9+ 21+5 = 49 days.

Path IV
E
4
10
Time for the path: 4+10+9+ 6+3 = 32 days.

Compare the times for the four paths.

Maximum of {48, 31, 49, 32} = 49.
We see that Path III has the maximum time.
Therefore the critical path is Path III. i.e., 1  2  4  5  6  8.
The critical activities are A, C, E, F and H.
The non-critical activities are B, D, G and I.
Project time (Also called project length) = 49 days.

Problem 3:

Find out the time, variance and standard deviation of the project with the following time estimates in weeks:

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Activity Optimistic time Most likely time Pessimistic time

estimate (to) estimate (tm) estimate (tp)
1-2 3 6 9
1-6 2 5 8
2-3 6 12 18
2-4 4 5 6
3-5 8 11 14
4-5 3 7 11
6-7 3 9 15
5-8 2 4 6
7-8 8 16 18

Solution:

From the three time estimates tp , tm and to , calculate te for each activity. We obtain the following table:

Activity Optimistic 4 x Most likely Pessimistic to+ 4tm+ tp Time estimate

time estimate time estimate time estimate to  4 tm  tp
(to) (tp) te 
6
1-2 3 24 9 36 6
1-6 2 20 8 30 5
2-3 6 48 18 72 12
2-4 4 20 6 30 5
3-5 8 44 14 66 11
4-5 3 28 11 42 7
6-7 3 36 15 54 9
5-8 2 16 6 24 4
7-8 8 64 18 90 15

With the single time estimates of the activities, we get the following network diagram for the project.

C 3 F
12 11

2 5I
D 5 G
A 6 7
4
4
1 5 B H
8
E 15
9
Consider the paths, begin6ning with the start node and stopping with the end node. There are three such paths for
7
the given project. They are as follows:

Path I

F
1 2 3

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6 12 11 4
Time for the path: 6+12+11+4 = 33 weeks.

Path II
A D G I
1 2 4 5 8
6 5 7 4
Time for the path: 6+5+7+ 4= 22 weeks.

Path III
B E H

69 7
15

Time for the path: 5+9+15 = 29 weeks.

Compare the times for the three paths.

Maximum of {33, 22, 29} = 33.
It is noticed that Path I has the maximum time.
Therefore the critical path is Path I. i.e., 1  2  3  5  8
The critical activities are A, C, F and I.
The non-critical activities are B, D, G and H.
Project time = 33 weeks.

Calculation of Standard Deviation and Variance for the Critical Activities:

Critical Optimistic Most likely Pessimistic Range Standard Variance
2
Activity time time time (tp - to) deviation = tt
estimate estimate estimate t t 2
  p o 
(to) (tm) (tp)  p o  6 
6
A: 12 3 6 9 6 1 1
C: 23 6 12 18 12 2 4
F: 35 8 11 14 6 1 1
I: 58 2 4 6 4 2/3 4/9

Variance of project time (Also called Variance of project length) =

Sum of the variances for the critical activities = 1+4+1+ 4/9 = 58/9 Weeks.
Standard deviation of project time = √Variance = √58/9 = 2.54 weeks.

Problem 4
A project consists of seven activities with the following time estimates. Find the probability that the project will
be completed in 30 weeks or less.

Activity Predecessor Optimistic time Most likely time Pessimistic time

Activity estimate (to days) estimate (tm days) estimate (tp days)
A - 2 5 8
B A 2 3 4
C A 6 8 10
D A 2 4 6
E B 2 6 10
F C 6 7 8
G D, E, F 6 8 10
Solution:

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From the three time estimates tp , tm and to , calculate te for each activity. The results are furnished in the
following table:

Activity Optimistic 4 x Most Pessimistic time to+ 4tm+ tp Time estimate

time estimate likely time estimate (tp) to  4 tm  tp
(to) estimate te 
6
A 2 20 8 30 5
B 2 12 4 18 3
C 6 32 10 48 8
D 2 16 6 24 4
E 2 24 10 36 6
F 6 28 8 42 7
G 6 32 10 48 8

With the single time estimates of the activities, the following network diagram is constructed for the project.

B 3 6 E
4F

A D G
5 4 8
1 2

Consider the paths, beginning with the start node and stopping with the end node. There are three such paths for
the given project. They are as follows:

Path I
E
1 2 3
5 3

Time for the path: 5+3+6+8 = 22 weeks.

Path II
A C F G
1 2 4 5 6
5 8 7 8
Time for the path: 5+8+7+ 8 = 28 weeks.

Path III
G
1 2 5

Time for the path: 5+4+8 = 17 weeks.

Compare the times for the three paths.

Maximum of {22, 28, 17} = 28.
It is noticed that Path II has the maximum time.

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Therefore the critical path is Path II. i.e., 1  2  4  5  6.

The critical activities are A, C, F and G.
The non-critical activities are B, D and E.
Project time = 28 weeks.

Calculation of Standard Deviation and Variance for the Critical Activities:

Critical Optimistic Most likely Pessimistic Range Standard Variance

2
Activity time time time estimate (tp -to) deviation = tt
estimate estimate (tp) t p  to 2
  p o 
(to) (tm)   6 
6

A: 12 2 5 8 6 1 1
C: 24 6 8 10 2 4
3 9
4
F: 45 6 7 8 1 1
3 9
2
G: 56 6 8 10 2 4
4 3 9

Standard deviation of the critical path = √2 = 1.414

The standard normal variate is given by the formula

Given value of t  Expected value of t in the critical path

Z
SD for the critical path
30  28
So we get Z  = 1.414
1.414
We refer to the Normal Probability Distribution Table.
Corresponding to Z = 1.414, we obtain the value of 0.4207
We get 0.5 + 0.4207 = 0. 9207
Therefore the required probability is 0.92
i.e., There is 92% chance that the project will be completed before 30 weeks. In other words, the chance that it
will be delayed beyond 30 weeks is 8%

QUESTIONS:
1. Explain how time of an activity is estimated in PERT.
2. Explain the measure of certainty in PERT.
3. The estimates of time in weeks of the activities of a project are as follows:

Activity Predecessor Optimistic Most likely Pessimistic

Activity estimate of time estimate of time estimate of time
A - 2 4 6
B A 8 11 20
C A 10 15 20
D B 12 18 24

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E C 8 13 24
F C 4 7 16
G D,F 14 18 28
H E 10 12 14
I G,H 7 10 19

Determine the critical activities and the project completion time.

4. Draw the network diagram for the following project. Determine the time, variance and standard deviation of
the project.:

Activity Predecessor Optimistic Most likely Pessimistic

Activity estimate of time estimate of time estimate of time
A - 12 14 22
B - 16 17 24
C A 14 15 16
D A 13 18 23
E B 16 18 20
F D,E 13 14 21
G C,F 6 8 10

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5. Consider the following project with the estimates of time in weeks:

Activity Predecessor Optimistic Most likely Pessimistic

Activity estimate of time estimate of time estimate of time
A - 2 4 6
B - 3 5 7
C A 5 6 13
D A 4 8 12
E B,C 5 6 13
F D,E 6 8 14

Find the probability that the project will be completed in 27 weeks.

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 QUANTITATIVE TECHNIQUES FOR BUSINESS – I

1. Which one of the following is not a function of statistics?

(a) To simplify complexities (b) To compare data with respect to time and date
(c) To forecast the future (d) To pass a bill
2. Statistical methods are
(a) Collection of data (b) Analysis of data
(c) Classification of data (d) All of these
3. In sense, statistics refers to a set of methods and techniques used for
collection, tabulation, analysis and interpretation of statistical data.
(a) Normal (b) Singular
(d) Plural (d) Varied
4. Which branch of statistics is used to make generalisation about the population based
on the samples?
(a) Descriptive Statistics (b) Inferential Statistics
(c) Empirical Statistics (d) General Statistics
5. Statistics can
(a) Prove anything (b) Disprove anything
(c) Neither prove nor disprove anything: but is a tool (d) solve everything
6. Statistical results are
(a) Absolutely correct (b) Universally Correct
(c) True on an average (d) Not correct
7. Distrust of statistics arises on account of
(a) Lack of Knowledge and limitation of its uses (b) Science of statistics
(c) Collection of data by skilled persons (d) Complete disclosure of data collected
8. Which one of the following is not true?
(a) Statistics does not study the individual cases
(b) Statistical results are true only an average
(c) Statistics reveal the entire story of the problem
(d) Statistics are only one of the methods of studying a problem
9. Primary data as compared to secondary data are
(a) less reliable (b) equally reliable
(c) not actual data (d) more reliable
10. Data collected from “The Hindu” newspaper is an example of
(a) Primary data (b) Secondary data
(c) Continuous data (d) None of these
11. is a suitable method of collecting data in cases where the informants are
literate and spread over a vast area
(a) Mailed Questionnaire (b) Direct personal Interview
(c) Observation Method (d) Schedule method
12. The data collected on the height of a group of students after recording their heights
with a measuring tape are
(a) Primary data (b) Secondary data
(c) Discrete data (d) Continuous data
13. If all the units of the universe under study are considered for data collection, this
method of data collection is called
(a) Sampling method (b) Survey method
(c)Primary method (d) Census method
14. Which method of data collection is suitable when data to be collected are
confidential?
 (a) Mailed Questionnaire (b) Direct personal Interview
(c) Observation Method (d) Schedule method
15. Data originally collected for an investigation is called
(a) Discrete data (b) Secondary data
(c) Primary data (d) Continuous data
16. Which one of the following is not true about census method?
(a) It is suitable when population is heterogeneous
(b) Census method possess high degree of accuracy
(c) Census method helps in intensive study of a problem
(d) It is cheap and is less time consuming
17. The technique of inspecting or studying only a selected representative and adequate
fraction of the population and drawing conclusions based on the study for the entire
universe is called..
(a) Sampling (b) Survey
(c)Primary method (d) Census
18. The listing of all units in the population under study is called
(a)List (b) stub
(c)Frame (d) Caption
19. Ton, kilogram, Rupees, hour etc are examples of
(a) Simple units (b) Composite units
(c) Primary unit (d) Complex units
20. Primary Data are in the nature of from which the investigator draws
conclusions by applying statistical methods for analysis and interpretations
(a) Raw materials (b) Finished products
(c) Work in progress (d) Closing stock
21. Secondary data are in the nature of as they have already passed
through the statistical machine.
(a) Raw materials (b) Finished products
(c) Work in progress (d) Closing stock
22. Which type of data goes through further analysis and changes its shape in the course
of its use?
(a) Discrete data (b) Secondary data
(c) Primary data (d) Continuous data
23. Which type of data requires less precaution at the time of collection but more at the
time of analysis?
(a) Discrete data (b) Secondary data
(c) Primary data (d) Continuous data
24. Which one of the following is not a method of primary data collection?
(a) Observation Method (b) Schedules sent through enumerators
(c) Indirect oral investigation (d) Publications of Trade associations
25. The group of individuals under study is known as
(a) Sample (b) Data
(c) Population (d) None of the above
26. Which method of data collection is free from sampling errors?
(a) Census Method (b) Sample Survey
(c) Non random sampling (d) None of the above
27. Which method of sampling uses random selection to generate representative samples
from population?
(a) Non – Probability Sampling (b) Non random sampling
(c) Probability sampling (d) None of the above
28. Which one of the following is not a method of simple random sampling?
(a) Lottery Method (b) Table of random numbers
(c) Grid System (d) Quota Sampling
29. Which one of the following is not a method of Non Probability Sampling?
(a) Convenient Sampling (b) Quota Sampling
(c) Snowball Sampling (d) Cluster Sampling
30. is a method of stratified sampling in which selection within strata is
non-random.
(a) Convenient Sampling (b) Quota Sampling
(c) Snowball Sampling (d) Cluster Sampling
31. Presenting numerical facts in rows and columns is known as
(a) Classification (b) Coding
(c) Editing (d) Tabulation
32. In this type of interview the interviewer does not follow any list of pre-determined
questions
(a) Structured (b) Unstructured
(c) Depth (d) focused
33. A population containing definite number of object is called
(a) Finite Population (b) Infinite Population
(c) Destructive Population (d) Universe
34. Random sampling under restricted sampling technique is called
(a) Lottery method (b) Cluster sampling
(c) Complex random sampling (d) Random number method
35. Under this method samples are drawn stage by stage.
(a) Cluster sampling (b) Multi stage sampling
(c) Random sampling (d) Judgement sampling
36. Table numbers are given for identification and
(a) Attractiveness (b) Promptness
(c) Future reference (d) Brevity

37. refers to the techniques, procedures and methods used for checking and
adjusting data for omissions, errors, consistency and legibility.
(a) Coding (b) Tabulation
(c) Editing (d) Classification
38. is an analytical process in which data, both in quantitative form or
qualitative form are categorised to facilitate analysis.
(a) Coding (b) Tabulation
(c) Editing (d) Classification
39. The process of arranging the data in groups or classes according to resemblances and
similarities in order to make the data clear and meaningful is called .
(a) Coding (b) Tabulation
(c) Editing (d) Classification
40. Column headings are called
(a) Stubs (b) Captions
(c) Source Note (d) Head Note
41. Row headings are known as
(a) Stubs (b) Captions
(c) Source Note (d) Head Note
42. In tabulation source of the data, if any, is shown in the
(a) Footnote (b) Body
 (c) Stub (d) Caption
43. The primary data are collected by
(a) Interview Method (b) Schedule
(c) Observation (d) All of these
44. Investigator’s knowledge about the population is the basis in
(a) Purposive Sampling (b) Stratified Sampling
(c) Random Sampling (d) Systematic Sampling
45. Sampling errors are present only in
(a) Complete enumeration survey. (b) Sample Survey
(c) Both sample and census surveys (d) None of the above

46. Sampling errors can be reduced by

(a) Convenient Sampling (b) Increasing the sample Size
(c) Decreasing the sample Size (d) None of the above
47. In chronological classification data are classified on the basis of
(a) Attributes (b) Class intervals
(c) Time (d) Locations
48. What is the difference between the upper limit and lower limit of the class known as?
(a) Class Limit (b) Class Frequency
(c) Class Interval (d) Class mark
49. Under which method of forming class intervals, the upper limit of one class interval is
the lower limit of the next class?
(a) Exclusive method ` (b) Inclusive method
(c) Statistical series (d) None of the above
50. A collection of items, which cannot be exactly measured, but placed within certain
limits is called
(a) Continuous series (b) Discrete series
(c) Individual series (d) Class limits
51. The methods of finding out the average value of a statistical series is called measures
of
(a) Dispersion (b) Frequency
(d) Central Tendency (d) Positions
52. Which one of the following is not a positional average?
(a) Median (b) Quartiles
(c) Mode (d) Harmonic Mean
53. Which one of the following is not a mathematical average?
(a) Arithmetic mean (b) Median
(c) Geometric mean (d) Harmonic mean
54. The arithmetic mean of observations 14,13,32,41 and 55 is:
(a) 23 (b) 25
(c) 31 (d) 32

55. Which of the following is not affected by extreme values?

(a) Arithmetic mean (b) Median
(c) Geometric mean (d) Harmonic mean
56. Which one of the following is a positional average?
(a) Arithmetic mean (b) Median
(c) Geometric mean (d) Harmonic mean
57. Which of the following statement is wrong?
(a) Mean is rigidly defined (b) Mean is not affected due to sampling fluctuations
 (c) Mean has some mathematical properties
(d) Mean is not affected by extreme values
58. For averaging the speed of a vehicle the best average is
(a) Arithmetic mean (b) Median
(c) Geometric mean (d) Harmonic mean
59. Quartiles divide the given data into
(a) Four equal parts (b) Two equal parts
(c) Five equal parts (d) Ten Equal parts
60. Median can be determined graphically by using
(a) Histogram (b) Frequency Polygon
(c) Ogive (d) Pie Diagram
61. Median from the observations (15, 13, 3, 18, 21, 2) is
(a) 14 (b) 21 (c) 3 (d) 18
62. Mode of the observations (5, 12, 13, 11, 2, 5, 12, 7, 5)
(a) 12 (b) 13 (c) 7 (d) 5
63. Which of the following cannot be calculated if any observation is Zero?
(a) Arithmetic Mean (b) Harmonic Mean
(c) Geometric Mean (d) Median
64. Mean of 3 items is 20. The first two items are 25 and 15. What is the third item?
(a) 20 (b) 15
(c) 25 (d) 18

65. Mean and median of a series are 20. What is mode?

(a) 40 (b) 15
(c) 20 (d) Cannot identify
66. Which of the following is correct?
(a) Median = 3 Mode – 2 Mean
(b) Mean = 3 Median – 2 Mean
(c) Mode = 3 Mean – 2 Median
(d) Mode = 3 Median – 2 Mean
67. If mode is 10, the highest value of the observation is increased by 5. What will be the
new mode?
(a) 20 (b) 15
(c) 10 (d) 5
68. Which of the measure of central tendancy based on all the observations
(a) Mean (b) Median
(c) Mode (d) Quartile
69. For determination of mode, the class intervals should be
(a) Uniform (b) Maximum
(c) Minimum (d) None
70. The value of a set of observation that occurs most is called
(a) Mean (b) Median
(c) Mode (d) Quartile
71. Second quartile is also known as
(a) Mean (b) Median
(c) Mode (d) Percentile
72. When 10 is added to all the observations in a series, then mean is
(a) Increased by 10 (b) Decreased by 10
(c) Same (d) Zero
73. For a moderately asymmetrical distribution, which of the following relationship is
correct?
(a) Mean – Mode = 3 (Mean – Median)
(b) Mean – Mode = 3 (Median – Mean)
(c) Mean – Median = 3 (Mean – Median)
(d) Mean – Mode = 3 (Mode – Median)
74. If median is 20 and mean is 22.5 in a moderately skewed distribution, then compute
approximate value of mode?
(a) 21 (b) 15
(c) 22.5 (d) 20
75. Mutually exclusive classification
(a) Excludes both the class limits
(b) Exclude the upper class limit but includes the lower class limit
(c) Includes the upper class limit but excludes the upper class limit
(d) Either (b) or (c)
76. Mode of a distribution can be obtained from
(a) Histogram (b) Less than type ogives
(c) More than type ogives (d) Frequency polygon
77. Median of a distribution can be obtained from
(a) Frequency polygon (b) Histogram
(c) Less than type ogives (d) None of these
78. The number of observations falling within a class is called
(a) Density (b) Frequency
(c) Class Size (d) Class Interval
79. Difference between the maximum and minimum value of a given data is called
(a) Width (b) Size
(c) Range (d) None of the above
80. Class: 0-10 10-20 20-30 30-40 40-50
Frequency: 5 10 11 6 2
What is the cumulative frequency of the class 20-30?
(a)11 (b) 15
(c)34 (d) 26
81. Find the arithmetic mean of the following distribution(10,15,20,25,30,35)
(a) 20 (b) 22.5
(c)25 (d) 17.5
82. The point of intersection of the ‘less than’ and ‘more than’ ogives corresponds to
(a) Median (b) Mode
(c) Mean (d) Percentile
83. In a symmetrical distribution mean is median and mode.
(a) Greater than (b) Less than
(c) Equal to (d) greater than or equal to
84. is the reciprocal of the arithmetic average of the reciprocal of values of
various items in the variable.
(a) Geometric Mean (b) Arithmetic Mean
(c) Harmonic Mean (d) Median
85. If in a moderately asymmetrical frequency distribution, the values of the median and
arithmetic mean are 72 and 78 respectively, estimate the value of the mode.
(a) 74 (b) 76
(c) 78 (d) 60
86. is defined as the N th root of the product of N items.
 (a) Geometric Mean (b) Arithmetic Mean
(c) Harmonic Mean (d) Median
87. Q2, second quartile is better known as
(a) Mean (b) Median
(c) Mode (d) Percentile
88. The sum of the deviations of the items from the arithmetic mean, taking into account
plus and minus signs, is always
(a) Positive (b) negative
(c) Zero (d) Greater than 1
89. Which type of average is usually used to calculate growth rates like population growth
or interest rates.
(a) Arithmetic Mean (b) Geometric Mean
(c) Harmonic Mean (d) Median
90. Which measures are also called averages of the ‘second order’?
(a) Measures of Dispersion (b) Measures of Frequency
(d) Measures of Central Tendency (d) Measures of Positions

91. indicates the extent to which the individual values fall away from the
average or central value.
(a) Dispersion (b) Frequency
(d) Central Tendency (d) Positions
92. Dispersion is the measure of of the items
(a) Average (b) Normality
(c) Position (d) Variation
93. Which of the following is not correct about measure of dispersion?
(a) It is capable of algebraic treatment
(b) It indicates degree of variations
(c) It helps in comparison
(d) It is affected by extreme values
94. Relative measures of dispersion is also known as?
(a) Co-efficients of dispersion (b) Absolute dispersion
(c) Cumulative dispersion (d) None of the above
95. Which of the following measures of dispersion is not a positional measure?
(a) Range (b) Inter Quartile Range
(c) Quartile Deviation (d) Mean Deviation
96. Which of the following measures of dispersion is a positional measure?
(a) Mean Deviation (b) Quartile Deviation
(c) Standard Deviation (d) Lorenz Curve
97. Which of the following is/are algebraic measures of dispersion?
(a) Mean Deviation (b) Standard Deviation
(c) Both (a) and (b) (d) Neither (a) nor (b)
98. The difference between the two extreme values of a series is called?
(a) Frequency (b) Range
(c) Mean Deviation (d) Standard Deviation
99. Which of the following measures of dispersion is a graphic method based on
cumulative frequency?
(a) Range (b) Median
(c) Mean deviation (d) Lorenz Curve
100. From the following distribution ascertain the value of range?
Days: Monday Tuesday Wednesday Thursday Friday
 Price: 200 280 150 400 500
(a) 300 (b) 350
(b) 500 (d) 500
101. From the following series determine the value of range?
Marks: 10 20 30 40 50 60 70
No of students 3 5 7 8 1 5 1
(a)7 (b) 8
(c) 70 (d) 60
102. is defined as the difference between the two extreme quartiles of a series
(a) Range (b) Median
(c) Inter Quartile Range (d) Quartile Deviation
103. Inter Quartile range represents the difference between the third quartile and
(a) First Quartile (b) Second Quartile
(c) Range (d) Fourth Quartile
104. is defined as the average of the difference between the two extreme
quartiles of a series
(a) Range (b) Median
(c) Inter Quartile Range (d) Quartile Deviation
105. Semi Inter Quartile Range is also called by the name
(a) Standard Deviation (b) Mean Deviation
(c) Quartile Deviation (d) Co-efficient of Quartile Deviation
106. Quartile deviation gives the average amount by which the two quartiles differ from the
.
(a) Range (b) Mean
(c) Median (d) Mode
107. What is defined as the arithmetic average of the deviations of items of a series taken
from its central value ignoring the plus and minus sign?
(a) Range (b) Mean Deviation
(c)Quartile Deviation (d) Standard Deviation
108. Mean deviation can be calculated from which of the following measures of central
tendency?
(a) Mean (b) Median
(c) Mode (d) All of the above
109. The square root of the arithmetic average of the squares of deviation taken from the
arithmetic average of a series is called?
(a) Range (b) Mean Deviation
(c)Quartile Deviation (d) Standard Deviation
110. Which measure of dispersion is also known as ‘root-mean-square deviation’?
(a) Range (b) Mean Deviation
(c) Quartile Deviation (d) Standard Deviation
111. Standard deviation can be calculated from which of the following measures of central
tendency?
(a) Arithmetic Mean (b) Median
(c) Mode (d) All of the above
112. Mean deviation is based on simple average of the sum of
(a) Absolute deviations (b) Squared Deviations
(c) Positive Deviations (d) Negative deviations
113. Standard deviation is based on simple average of the sum of
(a) Absolute deviations (b) Squared Deviations
(c) Positive Deviations (d) Negative deviations
114. The ratio of Standard deviation to actual mean expressed in percentage is called
(a) Co-efficient of Mean (b) Co-efficient of Quartile Deviation
(c) Co-efficient of Variation (d) None of the above
115. is the mean of the squares of deviations of all observations of a
series from their mean.
(a) Co-efficient of Variation (b) Variance
(c) Range (d) Standard deviation
116. The square of standard deviation is called
(a) Coefficient of Variation (b) Mean
(c) Variance (d) Co-efficient of Quartile Deviation

117. The graphical method of showing deviation of size of items from the average is called
(a) Histogram (b) Ogive
(c) Polygon (d) Lorenz Curve
118. The extend of symmetry or asymmetry in a distribution is called
(a) Kurtosis (b) Moments
(c) Skewness (d) Variance
119. In a series with positive skewness
(a) Mean = Median = Mode (b) Mean is negative
(c) Mean > Median > Mode (d) Mean < Median < Mode
120. In a series with negative skewness
(a) Mean = Median = Mode (b) Mean is negative
(c) Mean > Median > Mode (d) Mean < Median < Mode
121. If the value of mean is greater than mode, skewness will be
(a) Symmetric (b) Positive
(c) Negative (d) Zero
122. If the value of mean is less than mode, skewness will be
(a) Symmetric (b) Positive
(c) Negative (d) Zero
123. The arithmetic average of a certain power of deviations of the items from their
arithmetic mean is called as .
(a) Moments (b) Skewness
(c) Kurtosis (d) Variance
124. The first central moment will be always
(a) Positive (b) Negative
(c) One (d) Zero
125. means the degree of the extent of peakedness of a distribution
compared to a normal distribution.
(a) Moments (b) Skewness
(c) Kurtosis (d) Variance

126. What is called for a frequency curve which is more peaked than the normal curve?
(a) Leptokurtic (b) Mesokurtic
(c) Platykurtic (d) Isokurtic
127. A normal curve which is neither too peaked nor too flat is called
(a) Leptokurtic (b) Mesokurtic
(c) Platykurtic (d) Isokurtic
128. When a frequency curve is more flat topped than the normal curve, it is called as
(a) Leptokurtic (b) Mesokurtic
 (c) Platykurtic (d) Isokurtic
129. Measures of dispersion means measurement of
(a) Scatterness of data (b) Concentration of data
(c) Similarity of data (d) Both (a) and (b)
130. Measurement based on extreme values in the series is ;
(a) Range (b) Standard deviation
(c) Quartile Deviation (d) All of these
131. Sum of the deviations from mean is;
(a) Negative (b) Least
(c) Positive (d) Zero
132. Which of the following measure is considered for comparison of two or more set of
observations?
(a) Mean Deviation (b) Standard Deviation
(c) Coefficient of variation (d) All of these
133. Which of the following measure is based on all the observations?
(a) Range (b) Inter Quartile Range
(c) Quartile Deviation (d) Standard Deviation
134. The range of the observation, 20, 31, 15,8, 39, 42 is;
(a) 34 (b) 24
(c) 26 (d) 15

135. Standard deviation of a set of observation is 8. If all the observations are multiplied by
5, then the new standard deviation would be,
(a) 13 (b) 40
(c) 8 (d) 3
136. The degree to which numerical data tend to spread about an average value is called;
(a) Variation (b) Dispersion
(c) Both (a) and (b) (c) None of these
137. When Q1 is 15 and Q3 is 24, the value of quartile deviation is:
(a) 9 (b) 19.5
(c) 4.5 (d) 12
138. Range of a set of values is 12 and its highest value is 35, then its lowest value is
(a) 23 (b) 15
(c) 47 (d) 11.5
139. The less the co-efficient of variation of a distribution, the is the
consistency.
(a) Less (b) More
(c) zero (d) Minimum
140. A distribution is said to be symmetric when its:
(a) Mean = Median = Mode (b) Mean = Median + Mode
(c) Mode = 3 Median – 2 Mean (d) Mean, median and mode are not equal
141. Skewness refers to:
(a) Peakedness (b) Asymmetry
(c) Symmetry (d) Flatness
142. For a symmetric distribution the value of skewness is
(a) One (b) Greater than 1
(c) Negative (d) Zero
143. Bowley’s coefficient of skewness is based on
(a) Quartiles (b) Mode
 (c) Range (d) None of these

144. If each of the items of a series is multiplied by a common factor, the value of standard
deviation is;
(a) Unaffected (b) decreased
(c) Increased (d) Zero
145. Two basic statistical laws concerning a population are
(a) The law of statistical irregularity and the law of inertia of large numbers
(b) The law of statistical regularity and the law of inertia of large numbers
(c) The law of statistical regularity and the law of inertia of small numbers
(d) The law of statistical irregularity and the law of inertia of small numbers
146. The the size of a sample more reliable is the result.
(a) Medium (b) Smaller
(c) Larger (d) none
147. The more the mean moves away from the mode, the larger the
(a) Symmetry (b) Kurtosis
(c) Median (d) Skewness
148. Which of the following is not true about skewness?
(a) It refers to lack of symmetry
(b) Skewness will be always positive
(c) It is always used as a relative measure
(d) It studies the concentration of the data either in lower or higher values
149. The absolute measure of skewness is based on the difference between
(a) Mean and Mode (b) Mean and Median
(c)Median and Mode (d) None
150. Relative measure of skewness is also known as
(a) Mean Variation (b) Co-efficient of skewness
(c) Coefficient of Variance (d) Kurtosis
151. Bowley’s Co-efficient of skewness is also known as
(a) Range co-efficient of skewness (b) Percentile Co-efficient of skewness
(c) Mean co-efficient of skewness (d) Quartile Co-efficient of skewness

152. refers to the insertion of an intermediate value is a series of items.

(a) Interpolation (b) Extrapolation
(c) Moments (d) None
153. refers to the projection of a value for the future
(a) Interpolation (b) Extrapolation
(c) Moments (d) None
154. helps us in forecasting.
(a) Interpolation (b) Extrapolation
(c) Moments (d) None
155. gives us the missing link.
(a) Interpolation (b) Extrapolation
(c) Moments (d) None
156. Name the statistical technique used for estimating the population of 2012, if
population of 2010 and 2015 is known?
(a) Interpolation (b) Extrapolation
(c) Moments (d) None
157. refers to estimating values for future period.
(a) Interpolation (b) Extrapolation
(c) Moments (d) None
158. Statistics is an art as well as
(a) Average (b) Theory
(c) Science (d) None
159. is the most commonly used measure of central tendency?
(a) Mean (b) Median
(c) Mode (d) Quartile
160. When the distribution is of open end classes which average may be appropriate?
(a) Mean (b) Median
(c) Mode (d) None
161. Geometric mean is useful in
(a) Finding average % increase in sales, production (b) Finding index numbers
(c) Both (d) None
162. The formula for finding Quartile Deviation is
(a) (Q3-Q1)/2 (b) (Q2-Q3)/2
(c) (Q2-Q1)/2 (d) (Q3 + Q1)/2
163. Standard Deviation was first introduced by
(a) Karl Pearson (b) Horas Secrist
(c) Lorance (d) Spearman
164. Moments are used to find a measure of
(a) Central tendency (b) Dispersion
(c) Skewness (d) All these
165. Statistical methods are most dangerous tools in the hands of
(a) Expert (b) Inexpert
(c)Business man (d) All of them
166. is used whenever the relative importance of the items in a series differs.
(a) Simple arithmetic mean (b) Weighted arithmetic mean
(c) Geometric mean (d) None
167. Median is a average.
(a) Mathematical (b) Neutral
(c) Arithmetical (d) Positional
168. Which of the following is not a mathematical average?
(a) Arithmetic Mean (b) Harmonic Mean
(c) Geometric Mean (d) Mode
169. divides the data into four equal parts?
(a) Range (b) Mean
(c) Quartiles (d) Median
170. Which of the following cannot be computed from an open ended distribution?
(a) Range (b) Mean
(c) Both (a) and (b) (d) None

171. Measures of dispersion are statistical devices to measure the in a series.

(a) Variability (b) Convertibility
(c) Flexibility (d) None
172. Squares of is known as variance
 (a) Standard Deviation (b) Mean
(c) Mean Deviation (d) Median
173. In standard deviation, deviations are measured from
(a) Mean (b) Median
(c) Mode (d) None
174. A measure of dispersion is an average of
(a) Variance (b) Skewness
(c) Median (d) Deviation
175. When first quartile (Q1) is 20 and third quartile (Q3) is 40, What will be the quartile
deviation?
(a) 5 (b) 30
(c) 10 (d) 25
176. If the range of a series is 20 and its lowest value is 10. What will be the highest value
in the series?
(a) 20 (b) 30
(c) 40 (d) 200
177. Statistics is defined in terms of numerical data in
(a) Singular sense (b) Plural sense
(c) Both (d) None
178. Measures of central tendency is also known as measures of
(a) Central calculation (b) Central location
(c) Central information (d) Central data
179. Short cut method for calculating arithmetic mean also known as
(a) Assumed average method (b) Assumed variable method
(c) Assumed mean method (d). Arithmetic variable method

180. There are equal numbers of observation on the right and on the left of _ value.
(a) mean (b) median
(c) mode (d) 1st Quartile
181. is the percentage variation in mean.
(a) Variance (b) S.D
(c) Co-efficient of variation (d) M.D
182. Which of the following is an absolute measure of dispersion?
(a) Co-efficient of variation (b) Standard deviation
(c) Co-efficient of quartiles (d) Co-efficient of mean deviation
183. Standard deviation is always than mean deviation.
(a) Smaller (b) greater
(c) Negative (d) Nuetral
184. Average is a measure of .
(a) Correlation (b) Dispersion
(c) Central Tendency (d) Skewness
185. In kurtosis, the normal curve is termed as .
(a) Leptokurtic (b) Mesokurtic
(c) Platokurtic (d) None
186. Lorenz curve is a geometric method of measuring
(a) Variability (b) flexibility
(c) Normality (d) Skewness
187. percentage of values of a series are less than Q1.
(a) 10 (b) 25
 (c) 50 (d) 15
188. Random sampling is also referred to as sampling
(a) Probability (b) Non Probability
(c) Purposive (d) Easy
189. Classification is the step in tabulation.
(a) Final (b) First
(c) Second (c) Third
190. Harmonic mean is the of the arithmetic mean of the values.
(a) Square (b) negative
(c) Opposite (d) Reciprocal
191. The sum of squares of deviations is least when measured from
(a) Median (b) Mean
(c) Mode (d) Zero
192. The quartile deviation includes the
(a) First 50% (b) Last 50 %
(c) Central 50 % (d) None
193. According to Bowely, “Statistics may rightly be called the science of
(a) Numbers (b) Figures
(c) Averages (d) Arithmetics
194. Which sampling provides separate estimate for population means for different
segments and also an overall estimate?
(a) Multistage sampling (b) Stratified Sampling
(c) Simple Random Sampling (d) Systematic Sampling
195. Which sampling is subjected to the discretion of the sampler?
(a) Systematic Sampling (b) Purposive Sampling
(c) Quota Sampling (d) Random Sampling
196. Determine the value of median from the following items
Runs : 110, 115, 140, 117, 109, 113, 120
(a) 140 (b) 117
(c) 115 (d) 120
197. Which of the following is not a partition value?
(a) Quartiles (b) Percentiles
(c) Deciles (d) Mode
198. The value of median is 141 and mean is 140 in a moderately assymmetrical
distribution. Find the value of mode?
(a) 140 (b) 141
(c) 142 (d) 143

199. Which of the following is not a characteristic of measure of dispersion?

(a) It is capable of algebraic treatment (b) It indicates degree of variation
(c) It is affected by extreme values (d) It Helps in comparison
200. Which measure is based on only the central fifty percent of the observations?
(a) Standard Deviation (b) Mean Deviation
(c) Quartile Deviation (d) Range

Answers
1. (d) To pass a bill
2. (d) All of these
3. (b) Singular
4. (b) Inferential Statistics
5. (c)Neither prove nor disprove anything: but is a tool
6. (c) True on an average
7. (a) Lack of Knowledge and limitation of its uses
8. (c) Statistics reveal the entire story of the problem
9. (d) more reliable
10. (b) Secondary data
11. (a) Mailed Questionnaire
12. (a) Primary data
13. (d) Census method
14. (b) Direct personal Interview
15. (c) Primary data
16. (d) It is cheap and is less time consuming
17. (a) Sampling
18. (c)Frame
19. (a) Simple units
20. (a) Raw materials
21. (b) Finished products
22. (c) Primary data
23. (b) Secondary data
24. (d) Publications of Trade associations
25. (c) Population
26. (a) Census Method
27. (c) Probability sampling
28. (d) Quota Sampling
29. (d) Cluster Sampling
30. (b) Quota Sampling
31. (d) Tabulation
32. (b) Unstructured
33. (a) Finite Population
34. (c) Complex random sampling
35. (b) Multi stage sampling
36. (c) Future reference
37. (c) Editing
38. (a) Coding
39. (d) Classification
40. (b) Captions
41. (a) Stubs
42. (a) Footnote
43. (d) All of these
44. (a) Purposive Sampling
45. (b) Sample Survey
46. (b) Increasing the sample Size
47. (c) Time
48. (c) Class Interval
49. (a) Exclusive method
50. (a) Continuous series
51. (d) Central Tendency
52. (d) Harmonic Mean
53. (b) Median
54. (c) 31
55. (b) Median
56. (b) Median
57. (d) Mean is not affected by extreme values
58. (d) Harmonic mean
59. (a) Four equal parts
60. (c) Ogive
61. (a) 14
62. (d) 5
63. (b) Harmonic Mean
64. (a) 20
65. (c) 20
66. (d) Mode = 3 Median – 2 Mean
67. (c) 10
68. (a) Mean
69. (a) Uniform
70. (c) Mode
71. (b) Median
72. (a) Increased by 10
73. (a) Mean – Mode = 3 (Mean – Median)
74. (b) 15
75. (b) Exclude the upper class limit but includes the lower class limit
76. (a) Histogram
77. (c) Less than type ogives
78. (b) Frequency
79. (c) Range
80. (d) 26
81. (b) 22.5
82. (a) Median
83. (c) Equal to
84. (c) Harmonic Mean
85. (d) 60
86. (a) Geometric Mean
87. (b) Median
88. (c) Zero
89. (b) Geometric Mean
90. (a) Measures of Dispersion
91. (a) Dispersion
92. (d) Variation
93. (d) It is affected by extreme values
94. (a) Co-efficients of dispersion
95. (d) Mean Deviation
96. (b) Quartile Deviation
97. (c) Both (a) and (b)
98. (b) Range
99. (d) Lorenz Curve
100. (b) 350
101. (d) 60
102. (c) Inter Quartile Range
103. (a) First Quartile
104. (d) Quartile Deviation
105. (c) Quartile Deviation
106. (c) Median
107. (b) Mean Deviation
108. (d) All of the above
109. (d) Standard Deviation
110. (d) Standard Deviation
111. (a) Arithmetic Mean
112. (a) Absolute deviations
113. (b) Squared Deviations
114. (c) Co-efficient of Variation
115. (b) Variance
116. (c) Variance
117. (d) Lorenz Curve
118. (c) Skewness
119. (c) Mean > Median > Mode
120. (d) Mean < Median < Mode
121. (b) Positive
122. (c) Negative
123. (a) Moments
124. (d) Zero
125. (c) Kurtosis
126. (a) Leptokurtic
127. (b) Mesokurtic
128. (c) Platykurtic
129. (a) Scatterness of data
130. (a) Range
131. (d) Zero
132. (c) Coefficient of variation
133. (d) Standard Deviation
134. (a) 34
135. (b) 40
136. (c) Both (a) and (b)
137. (c) 4.5
138. (a) 23
139. (b) More

140. (a) Mean = Median = Mode

141. (b) Asymmetry
142. (d) Zero
143. (a) Quartiles
144. (c) Increased
145. (b) The law of statistical regularity and the law of inertia of large numbers
146. (c) Larger
147. (d) Skewness
148. (b) Skewness will be always positive
149. (a) Mean and Mode
150. (b) Co-efficient of skewness
151. (d) Quartile Co-efficient of skewness
152. (a) Interpolation
153. (b) Extrapolation
154. (b) Extrapolation
155. (a) Interpolation
156. (a) Interpolation
157. (b) Extrapolation
158. (c) Science
159. (a) Mean
160. (b) Median
161. (c) Both
162. (a) (Q3-Q1)/2
163. (a) Karl Pearson
164. (d) All these
165. (b) Inexpert
166. (b) Weighted arithmetic mean
167. (d) Positional
168. (d) Mode
169. (c) Quartiles
170. (c) Both (a) and (b)
171. (a) Variability
172. (a) Standard Deviation
173. (a) Mean
174. (d) Deviation
175. (c) 10
176. (b) 30
177. (a) Singular sense
178. (b) Central location
179. (c) Assumed mean method
180. (b) median
181. (c) Co-efficient of variation
182. (b) Standard deviation
183. (b) greater
184. (c) Central Tendency
185. (b) Mesokurtic
186. (a) Variability
187. (b) 25
188. (a) Probability
189. (b) First
190. (d) Reciprocal
191. (b) Mean
192. (c) Central 50 %
193. (c) Averages
194. (b) Stratified Sampling
195. (b) Purposive Sampling
196. (c) 115
197. (d) Mode
198. (d) 143
199. (c) It is affected by extreme values
200. (c) Quartile Deviation
Multiple Choice Questions (MCQs) for TYBMS 1

TM

OPERATIONS RESEARCH
(BMS Third Year : Sixth Semester)
(Core Courses – Compulsory)
NITIN KULKARNI

Multiple Choice Questions (MCQs)

Chapter 1 Introduction to Operations Research

(1) Operations Research Models in which values of all variables and all possible
outcomes are known with certainty are called models.
(a) Physical
(b) Symbolic
(c) Deterministic
(d) Probabilistic
(2) Operations Research Models in which some or all variables are random in nature
are called models.
(a) Physical
(b) Symbolic
(c) Deterministic
(d) Probabilistic
(3) Mean, median and mode are measures of .
(a) Central tendency
(b) Dispersion
(c) Probability
(4) and are techniques applied in project management.
(a) CPM and PERT
(b) Assignment and Transportation
(c) Decision theory and Inventory models
(5) Operations Research techniques are in nature.
(a) Qualitative
(b) Judgemental
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2 Operations Research (BMS) by Nitin Kulkarni

(c) Approximate
(d) Quantitative
[Ans.: (1 – Deterministic); (2 – Probabilistic); (3 – Central tendency); (4 –
CPM, PERT); (5 – Quantitative)]

Chapter 2 Linear Programming - I

(1) are the entities whose values are to be determined from the solution
of the LPP.
(a) Objective function
(b) Decision Variables
(c) Constraints
(d) Opportunity costs
(2) specifies the objective or goal of solving the LPP.
(a) Objective function
(b) Decision Variables
(c) Constraints
(d) Opportunity costs
(3) Objective function is expressed in terms of the .
(a) Numbers
(b) Symbols
(c) Decision Variables
(4) are the restrictions or limitations imposed on the LPP.
(a) Variables
(b) Costs
(c) Profits
(d) Constraints
(5) The type of constraint which specifies maximum capacity of a resource is ‘ or
equal to’ constraint.
(a) Less than
(b) Greater than
(c) Less than or greater than
(6) In linear programming represents mathematical equation of the
limitations imposed by the problem. (April 19)
(a) Objective function
(b) Decision variable
(c) Redundancy
(d) Constraints

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Multiple Choice Questions (MCQs) for TYBMS 3

[Ans.: (1 – Decision variables); (2 – Objective function); (3 – decision variables);

(4 – Constraints); (5 – less than); (6 – Constraints)]

Chapter 3 Linear Programming - II

(1) The region of feasible solution in LPP graphical method is called .
(a) Infeasible region
(b) Unbounded region
(c) Infinite region
(d) Feasible region
(2) When it is not possible to find solution in LPP, it is called as case of
.
(a) Unknown solution
(b) Unbounded solution
(c) Infeasible solution
(d) Improper solution
(3) When the feasible region is such that the value of objective function can extend to
infinity, it is called a case of .
(a) Infeasible solution
(b) Alternate optimal
(c) Unbounded solution
(d) Unique solution
(4) When the constraints are a mix of ‘less than’ and ‘greater than’ it is a problem
having .
(a) Multiple constraints
(b) Infinite constraints
(c) Infeasible constraints
(d) Mixed constraints
(5) In case of an ‘ ’ constraint, the feasible region is a straight line.
(a) less than or equal to
(b) greater than or equal to
(c) mixed
(d) equal to
(6) In linear programming, unbounded solution means . (April 19)
(a) Infeasible solution
(b) Degenerate solution
(c) Infinite solutions
(d) Unique solution
[Ans.: (1 – Feasible region); (2 – Infeasible solution); (3 – Unbounded solution);
(4 – Mixed constraints); (5 – equal to); (6 – Infinite solutions)]
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4 Operations Research (BMS) by Nitin Kulkarni

Chapter 4 Linear Programming - III

(1) The incoming variable column in the simplex algorithm is called
.
(a) key column
(b) incoming column
(c) variable column
(d) important column
(2) The outgoing variable row in the simplex algorithm is called .
(a) outgoing row
(b) key row
(c) interchanging row
(d) basic row
(3) The intersection value of key column and key row is called .
(a) vital element
(b) important element
(c) key element
(d) basic element
(4) The variable added to the LHS of a less than or equal to constraint to convert it
into equality is called .
(a) surplus variable
(b) artificial variable
(c) slack variable
(d) additional variable
(5) A resource which is completely utilized is called in simplex.
(a) null resource
(b) scarce resource
(c) zero resource
(d) abundant resource
(6) A resource which is partially utilized is called in simplex.
(a) surplus resource
(b) extra resource
(c) available resource
(d) abundant resource
(7) The value of one extra unit of resource is called in simplex.
(a) unit price
(b) extra price
(c) retail price
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Operations Research (BMS) by Nitin Kulkarni
Multiple Choice Questions (MCQs) for TYBMS 5

(d) shadow price

(8) In simplex, a maximization problem is optimal when all Delta J, i.e. Cj – Zj
values are .
(a) Either zero or positive
(b) Either zero or negative
(c) Only positive
(d) Only negative
[Ans.: (1 – key column); (2 – key row); (3 – key element); (4 – slack variable); (5 –
scarce resource); (6 – abundant resource); (7 – Shadow price); (8 – Either zero or
negative)]

Chapter 5 Transportation Problems

(1) To find initial feasible solution of a transportation problem the method which
starts allocation from the lowest cost is called method.
(a) north west corner
(b) least cost
(c) south east corner
(d) Vogel’s approximation
(2) In a transportation problem, the method of penalties is called
method.
(a) least cost
(b) south east corner
(c) Vogel’s approximation
(d) north west corner
(3) When the total of allocations of a transportation problem match with supply and
demand values, the solution is called solution.
(a) non-degenerate
(b) degenerate
(c) feasible
(d) infeasible
(4) When the allocations of a transportation problem satisfy the rim condition (m + n
– 1) the solution is called solution.
(a) degenerate
(b) infeasible
(c) unbounded
(d) non-degenerate
(5) When there is a degeneracy in the transportation problem, we add an imaginary
allocation called in the solution.
(a) dummy
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Operations Research (BMS) by Nitin Kulkarni
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6 Operations Research (BMS) by Nitin Kulkarni

(b) penalty
(c) epsilon
(d) regret
(6) If M + N – 1 = Number of allocations in transportation, it means .
(Where ‘M’ is number of rows and ‘N’ is number of columns)
(a) There is no degeneracy
(b) Problem is unbalanced
(c) Problem is degenerate
(d) Solution is optimal
(7) Which of the following considers difference between two least costs for each row
and column while finding initial basic feasible solution in transportation?
(a) North west corner rule
(b) Least cost method
(c) Vogel’s approximation method
(d) Row minima method
[Ans.: (1 – least cost); (2 – Vogel’s approximation); (3 – feasible); (4 –
non-degenerate); (5 – epsilon); (6 – There is no degeneracy); (7 – Vogel’s
approximation method)]

Chapter 6 Assignment Problems

(1) If the number of rows and columns in an assignment problem are not equal than it
is called problem.
(a) prohibited
(b) infeasible
(c) unbounded
(d) unbalanced
(2) The method of solution of assignment problems is called
method.
(a) NWCR
(b) VAM
(c) LCM
(d) Hungarian
(3) When a maximization assignment problem is converted in minimization problem,
the resulting matrix is called .
(a) Cost matrix
(b) Profit matrix
(c) Regret matrix
(d) Dummy matrix

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Operations Research (BMS) by Nitin Kulkarni
Multiple Choice Questions (MCQs) for TYBMS 7

(4) The extra row or column which is added to balance an assignment problem is
called .
(a) regret
(b) epsilon
(c) dummy
(d) extra
(5) When a particular assignment in the given problem is not possible or restricted as
a condition, it is called a problem.
(a) infeasible
(b) degenerate
(c) unbalanced
(d) prohibited
(6) If in an assignment problem, number of rows is not equal to number of columns
then .
(a) Problem is degenerate
(b) Problem is unbalanced
(c) It is a maximization problem
(d) Optimal solution is not possible
[Ans.: (1 – unbalanced); (2 – Hungarian); (3 – Regret matrix); (4 –
Dummy); (5 – Prohibited); (6 – Problem is unbalanced)]

Chapter 7 Network Analysis - I

(1) The longest path in the network diagram is called path.
(a) best
(b) worst
(c) sub-critical
(d) critical
(2) The second longest path in the network diagram is called path.
(a) alternate
(b) feasible
(c) sub-critical
(d) critical
(3) Forward pass calculations are done to find occurrence times of
events.
(a) exact
(b) earliest
(c) latest
(d) approximate

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(4) Backward pass calculations are done to find occurrence times of

events.
(a) tentative
(b) definite
(c) latest
(d) earliest
(5) An activity whose start or end cannot be delayed without affecting total project
completion time is called activity.
(a) dummy
(b) non-critical
(c) critical
(d) important
(6) Floats for critical activities will be always . (April 19)
(a) one
(b) zero
(c) highest
(d) same as duration of the activity
[Ans.: (1 – Critical); (2 – Sub-critical); (3 – earliest); (4 – latest);
(5 – critical); (6 – Zero)]

Chapter 8 Network Analysis - II

(1) The two types of costs involved in project crashing are and
costs.
(a) direct and indirect
(b) total and partial
(c) visible and invisible
(d) measurable and non-measurable
(2) In project crashing, rent and overheads are treated as costs.
(a) significant
(b) insignificant
(c) direct
(d) indirect
(3) In project crashing, the costs associated with actual activities (e.g. manpower,
materials, machinery etc.) are called costs.
(a) visible
(b) measurable
(c) direct
(d) indirect

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Multiple Choice Questions (MCQs) for TYBMS 9

(4) In project crashing, as we systematically crash the project, direct cost of project
and indirect cost of project .
(a) increases - decreases
(b) decreases - increases
(c) increases - remains same
(d) remain same - decreases
(5) In project crashing, as we systematically crash the project, total project cost
initially and after the optimal point, it .
(a) increases - decreases
(b) decreases - increases
(c) remains same - decreases
(d) decreases - remains same
[Ans.: (1 – direct, indirect); (2 – indirect); (3 – direct); (4 – increases, decreases);
(5 – decreases, increases)]

Chapter 9 Network Analysis - III

(1) The shortest possible completion time of an activity in PERT is called
time.
(a) pessimistic
(b) optimistic
(c) most likely
(d) expected
(2) The longest possible completion time of an activity in PERT is called
time.
(a) expected
(b) most likely
(c) pessimistic
(d) optimistic
In PERT, the time estimate calculated by using formula 
a + 4m + b
(3) is
 6 
called time.
(a) optimistic
(b) pessimistic
(c) most likely
(d) expected
(4) In PERT, the expected project completion time is also called as
project completion time.
(a) average
(b) normal
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(c) mean
(d) critical
(5) Fill in the blanks with ‘<’ or ‘>’ sign as applicable a m b
(a) <, >
(b) >, <
(c) >, >
(d) <, <
(6) The maximum time in which an activity will be completed assuming all possible
delays and postponements is termed as .
(a) optimistic time
(b) most likely time
(c) pessimistic time
(d) expected time
[Ans.: (1 – optimistic); (2 – pessimistic); (3 – expected); (4 – mean); (5 –
<, <); (6 – pessimistic time)]

Chapter 10 Job Sequencing Problems

(1) The time required by each job on each machine is called time.
(a) elapsed
(b) idle
(c) processing
(d) average
(2) The order in which machines are required for completing the jobs is called
.
(a) machines order
(b) working order
(c) processing order
(d) job order
(3) The time between the starting of the first job and completion of the last job in
sequencing problems is called .
(a) total time
(b) assignment time
(c) elapsed time
(d) idle time
(4) The time during which a machine remains waiting or vacant in sequencing
problem is called time.
(a) processing
(b) waiting
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Multiple Choice Questions (MCQs) for TYBMS 11

(c) idle
(d) free
(5) In sequencing problem, the order of completion of jobs is called
.
(a) completion sequence
(b) job sequence
(c) processing order
(d) job order
(6) The total time required to complete all the jobs in a job sequencing problem is
known as .
(a) idle time
(b) processing time
(c) elapsed time
(d) processing order
[Ans.: (1 – processing); (2 – processing order); (3 – elapsed time); (4 – idle); (5 –
job sequence); (6 – elapsed time)]

Chapter 11 Theory of Games

(1) The participants in a game are called .
(a) clients
(b) members
(c) customers
(d) players
(2) A game having more than two players is called game.
(a) multi-person
(b) many person
(c) n-person
(d) unknown person
(3) The outcome of the interaction of selected strategies of opponents in a game is
called .
(a) income
(b) profit
(c) payoff
(d) gains
(4) In a game, the alternatives or courses of action available to each player are called
.
(a) options
(b) choices

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(c) actions
(d) strategies
(5) A situation in a game where, in the payoff matrix, maximin of row is equal to
minimax of column is called .
(a) centre point
(b) main point
(c) saddle point
(d) equal point
(6) The various alternatives or courses of actions available to each player in a game
are called as .
(a) saddle points
(b) strategies
(c) pay-off
(d) ‘n’ player game
[Ans.: (1 – players); (2 – n-person); (3 – payoff); (4 – strategies); (5 – saddle point);
(6 – strategies)]

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 Multiple Choice Questions
BCA
IV Sem
OPERATIONS RESEARCH

1. Operations Research (OR) , which is a very powerful tool for ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

a) Research
b) Decision – Making
c) Operations
d) None of the above
2. Who coined the term Operations Research?
a) J.F. McCloskey
b) F.N. Trefethen
c) P.F. Adams
d) Both A and B
3. The term Operations Research was coined in the year ‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) 1950
b) 1940
c) 1978
d) 1960
4. This innovative science of Operations Research was discovered during ‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Civil War
b) World War I
c) World War II
d) Industrial Revolution
5. Operations Research was known as an ability to win a war without really going in to a ‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Battle field
b) Fighting
c) War
d) Both A and B
6. Who defined Operations Research as scientific method of providing executive departments with
a quantitative basis for decisions regarding the operations under their control?
a) Morse and Kimball (1946)
b) P.M.S. Blackett (1948)
c) E.L. Arnoff and M.J. Netzorg
d) None of the above
7. Who defined Operations Research as scientific approach to problem solving for executive
management ?
a) E.L. Arnoff
 b) P.M.S. Blackett
c) H.M. Wagner
d) None of the above
8. Who defined Operations Research as an aid for the executive in marketing his decisions by
providing him with the quantitative information based on the scientific method of analysis ?
a) C. Kitte
b) H.M. Wagner
c) E.L. Arnoff
d) None of the above
9. Operations Research has the characteristics the it is done by a team of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Scientists
b) Mathematicians
c) Academics
d) All of the above
10. There is a great scope for ‐‐‐‐‐‐‐‐‐‐‐‐ working as a team to solve problems of defence by using the
Operations Research approach
a) Economists
b) Administrators
c) Statisticians and Technicians
d) All of the above
11. Operations Research emphasizes on the overall approach to the system. This charecteristics of
Operations Research is often referred as
a) System Orientation
b) System Approach
c) Interdisciplinary Team Approach
12. Operations Research cannot give perfect ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ to problems
a) Answers
b) Solutions
c) Both A and B
d) Decisions
13. Operations Research simply helps in improving the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the solution but does not result
in a perfect solution.
a) Quality
b) Clarity
c) Look
d) None of the above
14. Operations Research involves ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ attack of complex problems to arrive at the
optimum solution
a) Scientific
b) Systematic
c) Both A and B
d) Statistical
15. Operations Research uses models built by quantitative measurement of the variables concerning
a given problem and also derives a solution from the model using ‐‐‐‐‐‐‐‐‐‐‐‐‐ of the diversified
solution techniques
a) Two or more
b) One or more
c) Three or more
d) Only One
16. A solution may be extracted from a model either by
a) Conducting experiments on it
b) Mathematical analysis
c) Both A and B
d) Diversified Techniques
17. Operations Research uses models to help the management to determine its ‐‐‐‐‐‐‐‐‐‐‐
scientifically
a) Policies
b) Actions
c) Both A and B
d) None of the above
18. Operations Research is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Science
b) Art
c) Mathematics
d) Both A and B
19. What have been constructed for Operations Research problems and methods for solving the
models that are available in many cases?
a) Scientific Models
b) Algorithms
c) Mathematical Models
d) None of the above
20. Which technique is used in finding a solution for optimizing a given objective, such as profit
maximization or cost minimization under certain constraints?
a) Quailing Theory
b) Waiting Line
c) Both A and B
d) Linear Programming
21. What aims at optimizing inventory levels?
a) Inventory Control
b) Inventory Capacity
c) Inventory Planning
d) None of the above
22. What can be defined as a useful idle resource which has economic value eg; raw materials, spare
parts, finished items, etc?
a) Inventory Control
b) Inventory
c) Inventory Planning
d) None of the above
23. Which theory concerns making sound decisions under conditions of certainity, risk and
uncertainty
a) Game Theory
b) Network Analysis
c) Decision Theory
d) None of the above
24. Key concept under which technique are network of events and activities , resource allocation,
time and cost considerations, network paths and critical paths ?
a) Game Theory
b) Network Analysis
c) Decision Theory
d) None of the above
25. Which technique is used to imitate an operation prior to actual performance ?
a) Simulation
b) Integrated Production Models
c) Inventory Control
d) Game Theory
26. What is concerned with the prediction of replacement costs and determination of the most
economic replacement policy ?
a) Search Theory
b) Theory of replacement
c) Probabilistic Programming
d) None of the above
27. What refers to Linear Programming that includes an evaluation of relative risks and
uncertainties in various alternatives of choice for management decisions ?
a) Probabilistic Programming
b) Stochastic Programming
c) Both A and B
d) Linear Programming
28. What enables us to determine the earliest and the latest times for each of the events and
activities and thereby helps in the identification of the critical path?
a) Programme Evaluation
b) Review Technique (PERT)
c) Both A and B
d) Deployment of resources
29. Linear Programming technique is used to allocate scarce resources in an optimum manner in
problems of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ?
a) Schedule
b) Product Mix
c) Both A and B
d) Servicing Cost
30. Operations Research techniques helps the directing authority in optimum allocation of various
limited resources, such as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Men and Machine
b) Money
c) Material and Time
d) All of the above
31. Operations Research study generally involves how many phases ?
a) Three
b) Four
c) Five
d) Two
32. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ models involves the allocation of resources to activities in such a manner that some
measure of effectiveness is optimized.
a) Sequencing
b) Allocation Models
c) Queuing Theory
d) Decision Theory
33. Allocation problems can be solved by
a) Linear Programming Technique
b) Non – Linear Programming Technique
c) Both A and B
d) None of the above
34. In ‐‐‐‐‐‐‐‐‐‐‐ models, everything is defined and the results are certain,
a) Deterministic Models
b) Probabilistic Models
c) Both A and B
d) None of the above
35. In ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ models there is risk and uncertainty
a) Deterministic Models
b) Probabilistic Models
c) Both A and B
d) None of the above
36. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ models are obtained by enlarging or reducing the size of the item
a) Iconic Models
b) Analogue Models
c) Symbolic Models
d) None of the above
37. Operations Research attempts to find the best and ‐‐‐‐‐‐‐‐‐‐‐‐‐ solution to a problem
a) Optimum
b) Perfect
c) Degenerate
d) None of the above
38. The word ‐‐‐‐‐‐‐‐‐‐‐‐‐ may be defined as some action that we apply to some problems or
hypothesis.
a) Research
b) Operation
c) Both A and B
d) None of the above
39. The operations Research technique, specially used to determine the optimum strategy is
a) Decision Theory
b) Simulation
c) Game Theory
d) None of the above
40. The operations Research technique which helps in minimizing total waiting and service costs is
a) Queuing Theory
b) Decision Theory
c) Both A and B
d) None of the above
41. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are the representation of reality
a) Models
b) Phases
c) Both A and B
d) None of the above
42. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are called mathematical models
a) Iconic Models
b) Analogue Models
c) Symbolic Models
d) None of the above
43. It is not easy to make any modification or improvement in
a) Iconic Models
b) Analogue Models
c) Symbolic Models
 d) None of the above

44. In ‐‐‐‐‐‐‐‐‐‐ models one set of properties is used to represent another set of properties
a) Iconic Models
b) Analogue Models
c) Symbolic Models
d) None of the above
45. Allocation Models are ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Iconic models
b) Analogue Models
c) Symbolic Models
d) None of the above
46. Probabilistic models are also known as
a) Deterministic Models
b) Stochastic Models
c) Dynamic Models
d) Static Models
47. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ models assumes that the values of the variables do not change with time during a
particular period
a) Static Models
b) Dynamic Models
c) Both A and B
d) None of the above
48. A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ models considers time as one of the important variable
a) Static Models
b) Dynamic Models
c) Both A and B
d) None of the above
49. Replacement Model is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ model
a) Static Models
b) Dynamic Models
c) Both A and B
d) None of the above
50. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ may be defined as a method of determining an optimum programme inter
dependent activities in view of available resources
a) Goal Programming
b) Linear Programming
c) Decision Making
d) None of the above
51. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are expressed is n the form of inequities or equations
a) Constraints
b) Objective Functions
c) Both A and B
d) None of the above
52. The objective functions and constraints are linear relationship between ‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Variables
b) Constraints
c) Functions
d) All of the above
53. Assignment problem helps to find a maximum weight identical in nature in a weighted ‐‐‐‐‐‐‐‐‐‐‐‐
a) Tripartite graph
b) Bipartite graph
c) Partite graph
d) None of the above
54. All the parameters in the linear programming model are assumed to be ‐‐‐‐‐‐‐‐‐‐‐‐
a) Variables
b) Constraints
c) Functions
d) None of the above
55. The solution need not be in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ numbers
a) Prime Number
b) Whole Number
c) Complex Number
d) None of the above
56. Graphic method can be applied to solve a LPP when there are only ‐‐‐‐‐‐‐‐‐‐‐‐‐ variable
a) One
b) More than One
c) Two
d) Three
57. If the feasible region of a LPP is empty, the solution is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Infeasible
b) Unbounded
c) Alternative
d) None of the above
58. The variables whose coefficient vectors are unit vectors are called ‐‐‐‐‐‐‐‐‐‐‐‐
a) Unit Variables
 b) Basic Variables
c) Non basic Variables
d) None of the above

59. Any column or raw of a simplex table is called a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

a) Vector
b) Key column
c) Key Raw
d) None of the above
60. If there are ‘m’ original variables and ‘n’ introduced variables, then there will be ‐‐‐‐‐‐‐‐‐‐‐‐‐
columns in the simplex table
a) M + n
b) M – n
c) 3 +m + n
d) M + n – 1
61. A minimization problem can be converted into a maximization problem by changing the sign of
coefficients in the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Constraints
b) Objective Functions
c) Both A and B
d) None of the above
62. If in a LPP , the solution of a variable can be made infinity large without violating the constraints,
the solution is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Infeasible
b) Unbounded
c) Alternative
d) None of the above
63. In maximization cases , ‐‐‐‐‐‐‐‐‐‐‐‐‐ are assigned to the artificial variables as their coefficients in
the objective function
a) +m
b) –m
c) 0
d) None of the above
64. In simplex method , we add ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ variables in the case of ‘=’
a) Slack Variable
b) Surplus Variable
c) Artificial Variable
d) None of the above
65. In simplex method, if there is tie between a decision variable and a slack (or surplus) variable, ‐‐‐
‐‐‐‐‐‐‐‐‐‐‐‐‐‐ should be selected
a) Slack variable
 b) Surplus variable
c) Decision variable
d) None of the above

66. A BFS of a LPP is said to be ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ if at least one of the basic variable is zero
a) Degenerate
b) Non‐degenerate
c) Infeasible
d) Unbounded
67. In LPP, degeneracy occurs in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ stages
a) One
b) Two
c) Three
d) Four
68. Every LPP is associated with another LPP is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Primal
b) Dual
c) Non‐linear programming
d) None of the above
69. As for maximization in assignment problem, the objective is to maximize the ‐‐‐‐‐‐‐‐‐‐‐
a) Profit
b) optimization
c) cost
d) None of the above
70. If there are more than one optimum solution for the decision variable the solution is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Infeasible
b) Unbounded
c) Alternative
d) None of the above
71. Dual of the dual is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Primal
b) Dual
c) Alternative
d) None of the above
72. Operations Research approach is
a) Multi‐disciplinary
b) Scientific
c) Initiative
d) All of the above
73. For analyzing the problem , decision – makers should normally study
 a) Its qualitative aspects
b) Its quantitative aspects
c) Both A and B
d) Neither A and B
74. Decision variables are
a) Controllable
b) Uncontrollable
c) Parameters
d) None of the above
75. The issue of decision models
a) Is possible when the variable’s value is
b) Reduces the scope of judgment and intuition known with certainty in decision making
c) Requires the knowledge of computer software use
d) None of the above
76. ‐‐‐‐‐‐‐‐‐‐‐‐‐ is one of the fundamental combinatorial optimization problems.
a) Assignment problem
b) Transportation problem
c) Optimization Problem
d) None of the above
77. An optimization model
a) Mathematically provides the best decision
b) Provides decision within its limited context
c) Helps in evaluating various alternatives constantly
d) All of the above
78. The quantitative approach to decision analysis is a
a) Logical approach
b) Rational approach
c) Scientific approach
d) All of the above
79. Operations Research approach is typically based on the use of
a) Physical model
b) Mathematical model
c) Iconic model
d) Descriptive model
80. In a manufacturing process, who takes the decisions as to what quantities and which process or
processes are to be used so that the cost is minimum and profit is maximum?
a) Supervisor
b) Manufacturer
c) Producer
d) Production manager
81. Linear programming has been successfully applied in ‐‐‐‐‐‐‐‐‐‐‐
a) Agricultural
 b) Industrial applications
c) Both A and B
d) Manufacturing

82. The term linearity implies ‐‐‐‐‐‐‐‐‐‐‐ among the relevant variables:
a) Straight line
b) Proportional relationships
c) Linear lines
d) Both A and B
83. Process refers to the combination of ‐‐‐‐‐‐‐‐‐‐‐‐ inputs to produce a particular output.
a) one or more
b) two or more
c) one
d) None of the above
84. What has always been very important in the business and industrial world, particularly with
regard to problems concerning productions of commodities?
a) Linear Programming
b) Production
c) Decision – making
d) None of the above
85. What are the main questions before a production manager?
a) Which commodity/ commodities to produce
b) In what quantities
c) By which process or processes
d) All of the above
86. Who pointed out that the businessman always studies his production function and his input
prices and substitutes one input for another till his costs become the minimum possible?
a) Alan Marshall
b) Alfred Marsh
c) Alfred Marshall
d) None of the above
87. Who invented a method of formal calculations often termed as ?
a) A.V. Kantorovich
b) L.V. Kantorovich
c) T.S. Kantorovich
d) Alfred Marshall
88. Who developed Linear Programming for the purpose of scheduling the complicated
procurement activities of the United States Air Force?
a) George B. Dantzig
b) James B. Dantzig
c) George B. Dante
d) George V. Dantzig
89. This method of formal calculations often termed as Linear Programming was developed later in
which year?
a) 1947
b) 1988
c) 1957
d) 1944
90. What is being considered as one of the most versatile management tools?
a) Electronic Computers
b) Linear Programming
c) Computer Programming
d) None of the above
91. LP is a major innovation since ‐‐‐‐‐‐‐‐‐‐‐‐ in the field of business decision – making, particularly
under conditions of certainty.
a) Industrial Revolution
b) World War I
c) World War II
d) French Revolution
92. The world ‘Linear’ means that the relationships are represented by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Diagonal lines
b) Curved lines
c) Straight lines
d) Slanting lines
93. The world ‘ programming’ means taking decisions ‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Systematically
b) Rapidly
c) Slowly
d) Instantly
94. Who originally called it ‘ Programming of interdependent activities in a linear structure’ but later
shortened it to ‘ Linear Programming’ ?
a) Dantzig
b) Kantorovich
c) Marshall
d) None of the above
95. LP can be applied in farm management problems is relates to the allocation of resources such as
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ , in such a way that is maximizes net revenue
a) Acreage
b) Labour
c) Water supply or working capital
d) All of the above
96. LP model is based on the assumptions of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Proportionality
b) Additivity
c) Certainty
d) All of the above
97. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ assumption means the prior knowledge of all the coefficients in the objective
function, the coefficients of the constraints and the resource values.
a) Proportionality
b) Certainty
c) Finite choices
d) Continuity
98. Simple linear programming problem with ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ variables can be easily solved by the
graphical method.
a) One decision
b) Four decisions
c) Three decisions
d) Two decisions
99. Any solution to a LPP which satisfies the non‐ negativity restrictions of the LPP is called its ‐‐‐‐‐‐‐‐
a) Unbounded solution
b) Optimal solution
c) Feasible solution
d) Both A and B
100. Any feasible solution which optimizes (minimizes or maximizes) the objective function of the
LPP is called its ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Optimal solution
b) Non‐basic variables
c) Solution
d) Basic feasible solution
101. A non – degenerate basic feasible solution is the basic feasible solution which has exactly m
positive Xi (i=1,2,…,m), i.e., none of the basic variable is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Infinity
b) One
c) Zero
d) X
102. What is also defined as the non‐negative variables which are added in the LHS of the constraint
to convert the inequality ‘< ‘ into an equation?
a) Slack variables
b) Simplex algorithm
c) Key element
d) None of the above
103. Which method is an iterative procedure for solving LPP in a finite number of steps ?
a) Simplex algorithm
b) Slack variable
c) M method
d) Simplex method
104. In simplex algorithm , which method is used to deal with the situation where an infeasible
starting basic solution is given?
a) Slack variable
b) Simplex method
c) M‐ method
d) None of the above
105. How many methods are there to solve LPP?
a) Three
b) Two
c) Four
d) None of the above
106. ‐‐‐‐‐‐‐‐‐‐‐‐ is another method to solve a given LPP involving some artificial variable ?
a) Big M method
b) Method of penalties
c) Two‐phase simplex method
d) None of the above
107. Which variables are fictitious and cannot have any physical meaning ?
a) Optimal variable
b) Decision variable
c) Artificial variable
d) None of the above
108. An objective function which states the determinants of the quantity to be either maximized or
minimized is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Feasible function
b) Optimal function
c) Criterion function
d) None of the above
109. An assumption that implies that finite numbers of choices are available to a decision – maker
and the decision variables do not assume negative values is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Certainty
b) Continuity
c) Finite choices
d) None of the above
110. A set of values X1, X2,…Xn which satisfies the constraints of the LPP is called ‐‐‐‐‐‐‐‐‐‐‐‐
a) Solution
b) Variable
c) Linearity
d) None of the above
111. A basic solution which also satisfies the condition in which all basic variables are non ‐negative
is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Basic feasible solution
b) Feasible solution
c) Optimal solution
d) None of the above
112. All the constraints are expressed as equations and the right hand side of each constraint and all
variables are non‐negative is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Canonical variable
b) Canonical form
c) Canonical solution
d) Both A and B
113. An objective function is maximized when it is a ‐‐‐‐‐‐‐‐‐‐‐ function
a) Passive
b) Profit
c) Cost
d) None of the above
114. LPP is exactly used in solving what kind of resource allocation problems?
a) Production planning and scheduling
b) Transportation
c) Sales and advertising
d) All of the above
115. Currently, LPP is used in solving a wide range of practical ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Business problems
b) Agricultural problems
c) Manufacturing problems
d) None of the above
116. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ refers to the combination of one or more inputs to produce a particular output.
a) Solution
b) variable
c) Process
d) None of the above
117. An optimum solution is considered the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ among feasible solutions.
a) Worst
b) Best
 c) Ineffective
d) None of the above
118. Please state which statement is true.
(i) All linear programming problems may not have unique solutions
(ii) The artificial variable technique is not a device that does not get the starting basic feasible
solution.
a) Both (i) and( ii)
b) (ii) only
c) (i) only
d) Both are incorrect
119. Please state which statement is incorrect.
(i) Linear programming was first formulated by an English economist L.V. Kantorovich
(ii) LP is generally used in solving maximization or minimization problems subject to certain
assumptions.
a) (ii) only
b) (i) only
c) Both (i) and( ii)
d) Both are correct
120. ‐‐‐‐‐‐‐‐‐‐‐‐ which is a subclass of a linear programming problem (LPP)
a) Programming problem
b) Transportation problem
c) Computer problem
d) Both are incorrect
121. The solution of any transportation problem is obtained in how many stages?
a) Five
b) Four
c) Three
d) Two
122. An optimal solution is the ‐‐‐‐‐‐‐‐‐‐‐ stage of a solution obtained by improving the initial solution
a) Third
b) First
c) Second
d) Final
123. MODI method is used to obtain ‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Optimal solutions
b) Optimality test
c) Both A and B
d) Optimization
124. For solving an assignment problem, which method is used?
a) Hungarian
b) American
c) German
 d) Both are incorrect

125. To make an unbalanced assignment problem balanced, what are added with all entries as
zeroes?
a) Dummy rows
b) Dummy columns
c) Both A and B
d) Dummy entries
126. Any set of non‐negative allocations (Xij>0) which satisfies the raw and column sum (rim
requirement )is called a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Linear programming
b) Basic feasible solution
c) Feasible solution
d) None of the above
127. A feasible solution is called a basic feasible solution if the number of non‐negative allocations is
equal to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) m‐n+1
b) m‐n‐1
c) m+n‐1
d) None of the above
128. Any feasible solution to a transportation problem containing m origins and n destinations is
said to be ‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Independent
b) Degenerate
c) Non‐degenerate
d) Both A and B
129. A path formed by allowing horizontal and vertical lines and the entire corner cells of which are
occupied is called a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Occupied path
b) Open path
c) Closed path
d) None of the above
130. Transportation algorithm can be used for minimizing the transportation cost of ‐‐‐‐‐‐‐‐‐‐‐‐ from
O origins and D destinations
a) Goods
b) Products
c) Items
d) None of the above
131. If demand is lesser than supply then dummy demand node is added to make it a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Simple problem
 b) Balanced problem
c) Transportation problem
d) None of the above
132. Basic cells indicate positive values and non‐ basic cells have ‐‐‐‐‐‐‐‐‐‐‐ value for flow
a) Negative
b) Positive
c) One
d) zero
133. According to transportation problem number of basic cells will be exactly ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) m+n‐0
b) n+m‐1
c) m+n‐1
d) None of the above
134. Before starting to solve the problem, it should be balanced. If not then make it balanced by ‐‐‐‐‐
‐‐‐‐‐‐ column incase demand is less than supply or by adding ‐‐‐‐‐‐‐‐‐‐‐‐ raw incase supply is less
than the demand
a) O,D
b) m,n
c) Horizontal, Vertical
d) Unshipped supply, Shortage
135. In which phase is optimization done and how does that phase also checks for optimality
conditions?
a) Phase II
b) Phase I
c) Phase II
d) None of the above
136. Optimality conditions are expressed as ‐‐‐‐‐‐‐‐‐‐‐‐‐ incase all non‐basic cells?
a) Negligent costs
b) Advanced costs
c) Reduced costs
d) None of the above
137. A ‐‐‐‐‐‐‐‐‐ has rows / column having non‐ basic cells for holding compensating (+ )or (‐) sign.
a) Cycle
b) Dead – end
c) Back track
d) None of the above
138. After determining every basic cell with in this cycle, adjustment is obtained as minimum value
in basic cells . this is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Adjustment amount
b) aa
c) Both A and B
d) Alternatives
139. Optimal solution is a feasible solution (not necessarily basic ) which minimizes the ‐‐‐‐‐‐‐‐‐‐
a) Time taken
b) Partial cost
c) Total cost
d) None of the above
140. State which of the two statements is correct
(i) the cells in the transportation table can be classified in to occupied cells and unoccupied
cells
(ii) optimal solution is a feasible solution (not necessarily basic ) which maximizes the total cost
a) both (i) and (ii) are correct
b) Two only
c) One only
d) Both (i) and (ii) are incorrect
141. The allocated cells in the transportation table are called ‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Occupied cells
b) Empty cells
c) Both A and B
d) Unoccupied cells
142. VAM stands for ‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Vogeal’s Approximation Method
b) Vogel’s Approximate Method
c) Vangel’s Approximation Method
d) Vogel’s Approximation Method
143. Once the initial basic feasible solution has been computed , what is the next step in the
problem
a) VAM
b) Modified distribution method
c) Optimality test
d) None of the above
144. One can find the initial basic feasible solution by using ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ?
a) VAM
b) MODI
c) Optimality test
d) None of the above
145. What do we apply in order to determine the optimum solution ?
a) LPP
b) VAM
c) MODI Method
d) None of the above
146. In a TP , if the number of non‐negative independent allocation is ‐‐‐‐‐‐‐‐‐‐‐‐ than m+n‐1.
 a) Equivalent
b) Greater
c) Less
d) None of the above
147. A given TP is said to be unbalanced, if the total supply is not equal to the total ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Optimization
b) Demand
c) Cost
d) None of the above
148. If the total supply is less than the total demand, a dummy source (row) is included in the cost
matrix with ‐‐‐‐‐‐‐‐‐‐‐‐‐
a) Dummy Demand
b) Dummy Supply
c) Zero Cost
d) Both A and B
149. To find the optimal solution, we apply ‐‐‐‐‐‐‐‐‐‐
a) LPP
b) VAM
c) MODI Method
d) Rim
150. For maximization in TP , the objective is to maximize the total ‐‐‐‐‐‐‐‐‐‐
a) Solution
b) Profit Matrix
c) Profit
d) None of the above
 ANSWERS

1. b 2. d 3. b 4. c 5. d 6. a 7. c 8. a 9. a 10. d 11. d 12. c

13. a 14. c 15. b 16. c 17. c 18. d 19. c 20. d 21. c 22. b 23. c 24.b
25. a 26. b 27. c 28. c 29. c 30. d 31. a 32. b 33. c 34. a 35. b 36. a
37. a 38. b 39. b 40. a 41. a 42. c 43. c 44. a 45. c 46. b 47. a 48. b
49. b 50. b 51. a 52. a 53.b 54. b 55. b 56. c 57. a 58. b 59. a
60. 61. b 62. b 63. a 64. c 65. c 66. a 67. b 68. b 69. a 70. c 71.a
72. c 73. a 74. d 75. d 76. a 77. d 78. c 79. b 80. d 81. c 82. d 83.a
84. c 85. d 86. c 87. d 88. a 89. a 90. b 91. c 92. c 93. a 94. a 95.d
96. d 97. b 98. d 99. c 100. a 101. c 102. a 103. d 104. c 105. b 106. c 107.c
108. c 109. c 110. a 111. a 112. b 113. b 114. d 115. a 116. c 117. b 118. c 119.b
120. b 121. d 122.c 123. c 124. a 125. c 126. c 127. c 128. c 129. c 130. a 131.b
132. d 133. c 134. d 135. c 136. c 137. a 138. c 139. c 140. c 141. c 142. d 143.c
144. a 145. c 146. c 147. b 148. c 149. c 150. c
 “MCQ on Linear Programming Problem”
1. Operation research approach is
A) Multi-disciplinary B) Artificial C) Intuitive D) All of the above

2. Operation research analysis does not

A) Predict future operation B) Build more than one model

C) Collect the relevant data D) Recommended decision and accept

3. Mathematical model of Linear Programming is important because

A) It helps in converting the verbal description and numerical data into

mathematical expression
B) decision makers prefer to work with formal models.

C) it captures the relevant relationship among decision factors.

D) it enables the use of algebraic techniques.

4. A constraint in an LP model restricts

A) value of the objective function B) value of the decision variable

C) use of the available resourses D) all of the above

5. In graphical method of linear programming problem if the ios-cost line coincide

with a side of region of basic feasible solutions we get

A) Unique optimum solution B) unbounded optimum solution

C) no feasible solution D) Infinite number of optimum solutions

6. A feasible solution of LPP

A) Must satisfy all the constraints simultaneously

B) Need not satisfy all the constraints, only some of them

 C) Must be a corner point of the feasible region

D) all of the above

7. The objective function for a L.P model is 3𝑥1 + 2𝑥2, if 𝑥1 = 20 and 𝑥2 = 30,

what is the value of the objective function?

A) 0 B) 50 C) 60 D) 120

8. Maximization of objective function in LPP means

A) Value occurs at allowable set decision

B) highest value is chosen among allowable decision

C) none of the above

D) all of the above

9. Alternative solution exist in a linear programming problem when

A) one of the constraint is redundant

B) objective function is parallel to one of the constraints

C) two constraints are parallel

D) all of the above

10. The linear function of the variables which is to be maximize or minimize is

called

A) Constraints B) Objective function C) Decision variable D)

None of the above

12. A physical model is an example of

A) An iconic model B) An analogue model C) A verbal model D) A

mathematical model

13. If the value of the objective function 𝑥 can be increased or decreased

indefinitely, such solution is called
 A) Bounded solution B) Unbounded solution C) Solution D)
None of the above

14. A model is

A) An essence of reality B) An approximation C) An idealization D)

All of the above

15. The first step in formulating a linear programming problem is

A) Identify any upper or lower bound on the decision variables

B) State the constraints as linear combinations of the decision variables

C) Understand the problem

D) Identify the decision variables

16. Constraints in an LP model represents

A) Limititations B) Requirements

C) balancing, limitations and requirements D) all of above

17. The best use of linear programming is to find optimal use of

A) money B) Manpower C) Machine D) All the above

18. Which of the following is assumption of an LP model

A) divisibility B) proportionality C) additivity D) all of the

above

19. Before formulating a formal LP model, it is better to

A) Express each constraints in words B) Express the objective function in

words

C) verbally identify decision variables D) all of the above

20. Non-negative condition in an LP model implies

A) a positive coefficient of variables in objective function

 B) a positive coefficient of variables in any constraint

C) non-negative value of resourse

D) none of the above

21. For the constraint of a linear optimizing function z=x1+x2 given by

x1+x2≤1, 3x1+x2≥3 and x1, x2≥0
A) There are two feasible regions
B) There are infinite feasible regions
C) There is no feasible region
D) None of these
22. Which of the following is not a vertex of the positive region bounded by the
inequalities?
2x+3y≤6, 5x+3y≤15 and x, y≥0
A) (0,2) B (0,0) C) (3,0) D None of the above
23. The intermediate solutions of constraints must be checked by substituting them
back into
A) Objective function B) Constraint equations C) Not required D)
None of the above
24. A basic solution is called non-degenerate, if
A. All the basic variables are zero B. None of the basic variables is zero
C. At least one of the basic variables is zero D. None of these
25. If the number of available constraints is 3 and the number of parameters to be
optimized is 4, then
A. The objective function can be optimized
B. The constraints are short in number
C. The solution is problem oriented
D. None of these
26. The graph of x≤2 and y≥2 will be situated in the
A. First and second quadrant B. Second and third quadrant
C. First and third quadrant D. Third and fourth quadrant
27. The feasible solution of a L.P.P. belongs to
 A. First and second quadrant
B. First and third quadrant
C. Second quadrant
D. Only in the first quadrant
28. ) The true statement for the graph of inequations 3x+2y≤6 and 6x+4y≥20 , is
A. Both graphs are disjoint
B. Both do not contain origin
C. Both contain point (1, 1)
D. None of these
29. The vertex of common graph of inequalities 2x+y≥2 and x−y≤3 , is
4
A. (0,0) B.(𝑥 , − 𝑥) C .(5 , 4 ) D. .(− 5 , )
𝑥 𝑥 3 3 3 3

30. A vertex of bounded region of inequalities 𝑥 ≥ 0 , 𝑥 + 2𝑥 ≥ 0 and 2𝑥 + 𝑥 ≤

4, is
A. (1,1) B (0,1) C (3, 0) D (0,0)
31. In which quadrant, the bounded region for the
inequations 𝑥 + 𝑥 ≤ 1 and 𝑥 − 𝑥 ≤ 1 is situated
A. I, II B. I, III, C. II,III D. All the four quadrant

32. The necessary condition for third quadrant region in xy-plane, is

A. x>0, y<0 B. x<0, y<0 C. x<0, y>0 D. x<0, y=0
33. The value of objective function is maximum under linear constraints
A. At the center of feasible region B. At (0,0)
C. At any vertex of feasible region D. The vertex which is at maximum
distance from (0, 0)
34. The region represented by 2x+3y−5≤0 and 4x−3y+2≤0 , is
A. Not in first quadrant B. Unbounded in first quadrant
C. Bounded in first quadrant D. None of these
35. Objective function of a L.P.P. is
A. A constraint B. A function to be optimized
 C. A relation between the variables D. None of these
36. The optimal value of the objective function is attained at the points
A. Given by intersection of inequations with axes only
B. Given by intersection of inequations with x-axis only
C. Given by corner points of the feasible region
D. None of these

37. If the constraints in a linear programming problem are changed

A. The problem is to be re-evaluated
B. Solution is not defined
C. The objective function has to be modified
D. The change in constraints is ignored.
38. The constraints −𝑥1 + 𝑥2 ≤ 1, − 𝑥1 + 3𝑥2 ≤ 9 and 𝑥1, 𝑥2 ≥ 0 defined
on
A. Bounded feasible space
B. Unbounded feasible space
C. Both bounded and unbounded feasible space
D. None of these
39. Which of the terms is not used in a linear programming problem
A. Slack variables B. Objective function C. Concave region D. Feasible
solution
40. The area of the feasible region for the following
constraints 3𝑥 + 𝑥 ≥ 3, 𝑥 ≥ 0, 𝑥 ≥ 0 will be
A. Bounded B. Unbounded C. Convex D. Concave
41. For the L.P.problem
𝑥𝑥𝑥 𝑥 = 𝑥1 + 𝑥2 𝑥𝑥𝑥ℎ 𝑥ℎ 𝑥𝑥 5𝑥1 + 10𝑥2 ≤ 0, 𝑥1 + 𝑥2 ≥ 1, 𝑥2 ≤ 4 𝑥𝑥𝑥 𝑥1, 𝑥2 ≥ 0

A. There is a bounded solution

B. There is no solution
C. There are infinite solutions
D. None of these
42. In. L.P.P----
A. objective function is linear
B. constraints are linear
C. Both objective function and constraints are linear
D. None of the above
43. Constraints means----
A. limitations are expressed in mathematical equalities ( or inequalities)
B. Assumption
C. goal is to be achieved
D. None of the above.
44. In XY-plane, X and Y values are in first quadrant is always----
A. Both are positive B. Both are Negative
C. X is positive and Y is negative D. X is Negative and Y is positive
45. The region which satisfies all the constrains of the L.P.P. is called as----
A. phisible region B. Feasible region
C. convex region D. Concave region
46.In .L.P.P., while drawing the graph, on the X-axis Y values always-----
A. 0 B.1 C. 2 D. None of the above
47. In .L.P.P., while drawing the graph, on the Y-axis X values always-----
A. 0 B.1 C. 2 D. None of the above
48.The set of decision variable which satisfies all the constraints of the LPP is
called as-----
A. Solution B. Basic Solution C. Feasible solution D. None of the above
49. A solution which satisfies non-negative conditions also is called as-----
A. Solution B. Basic Solution C. Feasible solution D. None of the above
50. A solution which optimizes the objective function is called as ------
A. Solution B. Basic Solution C. Feasible solution D. Optimal solution