Q. What do you mean by LPP?

-LPP stands for Linear Programming Problem. It is a mathematical optimization technique

used to find the best outcome in a mathematical model with linear relationships. Linear
programming involves optimizing (maximizing or minimizing) a linear objective function
subject to linear equality and inequality constraints.
Who developed lpp?
The development of LPP can be traced back to the work of mathematicians such as George
Dantzig, Leonid Kantorovich, and Tjalling Koopmans in the mid-20th century. However, it is
generally attributed to George Dantzig, who developed the simplex method for solving linear
programming problems in 1947.
Q. What do you mean by duality in an LPP?
Linear Programming Problems (LPP),
“duality” refers to a concept where every linear programming problem (called the
“primal” problem) can be associated with another linear programming problem (called the
“dual” problem). The solutions to these problems are closely related, and understanding
one can provide insights into the other.
Q. What do you mean by surplus variable in LPP?
A surplus variable is introduced to transform an inequality constraint into an
equation.Specifically, it is used in the context of constraints that have a "greater than or
equal to" (≥) form.
Q. Write the general mathematical model for LPP ?
A Linear Programming Problem (LPP) is a mathematical optimization model where the
objective is to maximize or minimize a linear objective function subject to a set of linear
constraints (equalities and inequalities). The general mathematical model for an LPP is
given as follows:
Components of LPP
1. Decision Variables: x_1, x_2, . ., x_n
2. Objective Function: A linear function to be maximized or minimized.
3. Constraints: A set of linear inequalities or equalities.
4. Non-negativity Restrictions: The decision variables are usually required to be non-
negative.
Q. Write the assumptions of an LPP?
Here are the key assumptions:
1. Proportionality: The relationship between decision variables and the objective function
coefficients and constraints is linear. This means that the contribution of each decision
variable to the objective function and constraints is directly proportional to its value. 2.
Additivity: The objective function and constraints are additive, meaning the total
contribution is the sum of the contributions from each variable.
3. Divisibility: Decision variables can take on any non-negative real value. This
assumption allows for fractional values of variables, which is practical in many real-world
applications.
4. Certainty: The coefficients of the objective function and the constraints are known
with certainty. There is no randomness or uncertainty involved in the values of coefficients.
5. Non-negativity of Variables: Decision variables are non-negative. Negative values
for decision variables are not allowed in an LPP.
Q. Discuss about the limitations of LPP?
Here are some of the key limitations of Linear Programming:
1. Linearity Assumption: LP assumes that the objective function and constraints are linear.
2. Divisibility of Variables: LP assumes that decision variables can take on any non-negative
real value.
3. Deterministic Model: LP assumes a deterministic model, meaning that all input
parameters (coefficients of the objective function and constraints) are known with
certainty.
4. Complexity of Real-World Problems: Real-world problems often involve multiple
objectives, constraints, and variables, which can lead to very large LP models.
5. Non-negativity Constraints: LP assumes that decision variables are non-negative.
Q. Discuss the uses of LPP?
Here are some key uses and applications of Linear Programming:
1. Production Planning and Management:• Resource Allocation: LP helps in efficiently
allocating resources such as labor, raw materials, and machinery to maximize production
output or minimize costs.
2. Operations Research:• Inventory Management: LP can be used to determine optimal
inventory levels, taking into account storage costs, ordering costs, and demand
variability.
3. Finance and Portfolio Management:
• Portfolio Optimization: LP can optimize investment portfolios by selecting the appropriate
mix of assets to maximize returns for a given level of risk.
4. Marketing and Advertising:• Media Selection: LP can optimize advertising campaigns by
allocating resources across different media channels to maximize reach or sales.
5. Resource Allocation in Agriculture:
• Farm Planning: LP can optimize crop selection and acreage allocation based on soil
quality, climate conditions, and market demand.
Q. Write the scope of LPP in solving business problem?
Linear Programming (LP) has a wide scope in solving business problems across various
industries. Its ability to optimize resources and maximize profits or minimize costs makes it
a valuable tool in decision-making. Here are some key areas where Linear Programming is
applied in business problem-solving: 1. Production Planning and Scheduling:
LP can optimize the allocation of resources such as raw materials, labor, and machine
hours to maximize production output.
2. Inventory Management:
LP can optimize inventory levels by balancing the costs of carrying inventory against the
costs of stockouts or backorders.
3. Supply Chain Management:
LP can optimize transportation routes, distribution network design, and inventory placement
to minimize transportation costs while meeting customer demand.
4. Financial Planning and Management:
LP can optimize investment portfolios by selecting the mix of assets to maximize returns
while considering risk.
5. Marketing and Advertising:
LP can optimize advertising spending across different media channels to maximize reach or
sales.
6. Human Resource Management:
LP can optimize workforce scheduling and assignment to minimize labor costs while
meeting production requirements.
Benefits of Using LP in Business Problem Solving:
• Optimization: LP provides optimal solutions to complex business problems, helping
to maximize profits, minimize costs, or achieve other objectives.
• Efficiency: LP improves resource utilization and operational efficiency, leading to
cost savings and improved productivity.
• Decision Support: LP provides quantitative data and insights to support decision-
making, allowing businesses to make informed choices based on data-driven analysis.
• Competitive Advantage: Businesses using LP can gain a competitive edge by
optimizing their operations and making better strategic decisions.
Q. Define matrix ?
A matrix is a rectangular array of numbers, symbols, or expressions arranged in rows and
columns. The individual items in a matrix are called its elements or entries.
Q. Write the differences between a matrix and a determinant ?
1. Definition:
• Matrix: A matrix is a rectangular array of numbers, symbols, or expressions arranged
in rows and columns. It is used to represent linear transformations, systems of linear
equations, and other mathematical structures.
• Determinant: A determinant is a scalar value that is computed from a square matrix
(a matrix with the same number of rows and columns). It provides important properties of
the matrix, such as whether the matrix is invertible.
2. Notation:
• Matrix: Usually denoted by a capital letter (e.g., A), with its elements represented as aij for
the element in the i-th row and j-th column.
• Determinant: Denoted by det(A) or |A| for a matrix A.
3. Dimensions:
• Matrix: Can have any dimensions m \times n, where m is the number of rows and n is
the number of
columns.
• Determinant: Defined only for square matrices (n \times n).
4. Purpose and Usage:
• Matrix: Used to perform various operations such as addition, subtraction,
multiplication, and to represent linear transformations, systems of equations, and other
structures in different fields.
• Determinant: Provides a single number that summarizes certain properties of a
matrix.
5. Properties:
• Matrix:• Can be added, subtracted, and multiplied (under specific conditions).
• Transposition is possible (swapping rows and columns).
• Inverse exists if the matrix is square and has a non-zero determinant.
• Determinant:
• Determinants can be computed recursively using minors and cofactors. • The determinant
of the product of two matrices is the product of their determinants: det(AB) = det(A) det(B).
Q. What are the conditions for the existence of the limit of a function at a point ?
The limit of a function f(x) as x approaches a point c exists if the following conditions are
met-
1. Finite Left-Hand Limit: The left-hand limit of f(x) as x approaches c from the left, denoted
by limx —>c- f(x) , must exist and be finite.
2. Finite Right-Hand Limit: The right-hand limit of f(x) as x approaches c from the right,
denoted by limx—>c+ f(x) , must exist and be finite.
3. Equality of Left-Hand and Right-Hand Limits: The left-hand limit and the right-hand
limit must be equal. That is, lim f(x) = lim f(x)x—>c- x—>c+
Q. Define homogeneous function?
A homogeneous function is a function that exhibits a particular type of scaling
behavior. More precisely, a function f(x1, x2, ..xn) of n variables is called
homogeneous of degree k if, for any scalar λ, the following condition holds:f(λx1,
λx2,…., λxn) = λkf (x1,x2,…xn)Here, k is a real number known as the degree of the
homogeneous function.
Q. Define perpetuity and deferred annuity ?
Perpetuity:A perpetuity is a type of financial instrument that provides an infinite series of
periodic payments. In other words, it is an annuity that continues indefinitely. The key
characteristics of a perpetuity are:
1. Infinite Payments: Payments continue forever.
2. Fixed Payment Amount: Each payment is usually of a fixed amount.
3. Fixed Intervals: Payments are made at regular, fixed intervals (e.g., annually). Deferred
Annuity:A deferred annuity is a type of annuity contract that delays payments until a
specified time in the future. Unlike immediate annuities, where payments start almost
immediately, deferred annuities accumulate interest and/or investment returns over a
period before the annuity payments begin.
1. Deferral Period: There is a period during which no payments are made, and the
annuity accumulates value.
2. Payment Period: After the deferral period, the annuity begins to make regular
payments to the annuitant.
Q. What do you mean by present worth of annuities?
The present worth, or present value, of annuities refers to the current value of a series of
future annuity payments, discounted back to the present time using a specific interest rate.
This concept is crucial in finance and actuarial science as it helps in determining how much
a series of future payments is worth in today’s dollars.
Types of Annuities
1. Ordinary Annuity: Payments are made at the end of each period.
2. Annuity Due: Payments are made at the beginning of each period.
Q. Write the difference between nominal rate of interest and effective rate of interest?
Nominal Rate of Interest
1. Definition: The nominal rate of interest is the annual rate of interest agreed upon or stated
without taking into account the effects ofcompounding within the year. It is also known as
the stated or quoted rate.
2. Expression: It is usually expressed as an annual percentage rate (APR).
3. Compounding Frequency: It does not reflect the actual number of compounding periods
per year.
4. Formula: If the nominal annual rate is r and the interest is compounded m times per year,
the nominal rate per period is:Nominal rate per period = r/m
Effective Rate of Interest
1. Definition: The effective rate of interest, also known as the annual effective rate
(AER) or annual equivalent rate (AER), is the interest rate on an investment or loan restated
from the nominal rate as an interest rate with annual compound interest. It takes into
account the effects of compounding within the year.
2. Expression: It represents the actual return on an investment or the true cost of a
loan when the effects of compounding are considered.
3. Compounding Frequency: The effective rate of interest accounts for the
compounding frequency and gives a true measure of the interest that will be earned or paid
over a year.
4. Formula: The effective annual rate (EAR) can be calculated using the nominal
annual rate r and the number of compounding periods per year m : Effective annual rate
(EAR)= (1 + r/m)m- 1.
Q. Write a short note on unbounded solution?
An unbounded solution in the context of Linear Programming (LP) refers to a situation
where the objective function can be made infinitely large (in the case of maximization) or
infinitely small (in the case of minimization) without violating any of the constraints of the LP
problem.This typically occurs when the feasible region is not bounded and extends infinitely
in one or more directions.
Q. What do you mean by total differential ?
Total differential refers to the full differential of a function of several variables. It captures
the total derivative of a function f(x1, x2, …, x_n) with respect to changes in each of its
variables.
Q. What is the difference between simple interest and compound interest?
1. Definition: Simple interest is calculated only on the initial principal amount (P) that
you invest or borrow.
2. Formula: The formula for calculating simple interest is:Simple Interest (SI) = P*r*t
where:
• P is the principal amount (initial amount).
• r is the rate of interest per period.
• t is the time duration for which the interest is calculated.
3. Interest Amount: Simple interest does not include any interest earned on interest, so the
interest amount remains the same for each period.
4. Total Amount: The total amount A after t years is:A = P + SI = P (1 + r*t)
5. Usage: Simple interest is commonly used for short-term loans and for financial
instruments like savings accounts where the interest is not reinvested.
Compound Interest
1. Definition: Compound interest takes into account the initial principal amount and also
the interest that accumulates on it over time.
2. Formula: The formula for compound interest is:
Compound Interest (CI) = P (1 + r/n)nt - P…where:• P is the principal amount (initial
amount).
• r is the annual interest rate (decimal).
• n is the number of times that interest is compounded per year.
• t is the time the money is invested for in years.
3. Interest Amount: Compound interest includes interest on interest, so the interest amount
increases over time.
4. Total Amount: The future value A after t years is:A = P (1 + r/n)nt
5. Usage: Compound interest is widely used in investments like savings accounts,
certificates of deposit (CDs), bonds, and loans.
Q. Write in detail about various types of annuities?
An annuity is a financial product that provides a series of payments at regular intervals
(typically monthly, quarterly, semi-annually, or annually) in exchange for a lump sum
payment or a series of payments. Annuities are commonly used to provide a steady income
stream during retirement or to achieve other financial goals. There are several types of
annuities, each with its own features and benefits. The various types of annuities:
1. Fixed Annuities: Fixed annuities provide a guaranteed, fixed payment amount at
regular intervals for a specified period or for the annuitant’s lifetime.
2. Variable Annuities: Variable annuities allow the annuitant to invest in a variety of
sub-accounts that function similarly to mutual funds.
3. Immediate Annuities: Immediate annuities are purchased with a lump sum and begin
to pay out income immediately or soon after purchase.
4. Deferred Annuities: Deferred annuities are purchased with a lump sum and
payments begin at a later date, often during retirement.
5. Fixed Index Annuities: Fixed index annuities are a type of fixed annuity that earns
interest based on the performance of a market index, such as the S&P 500.
6. Qualified Longevity Annuity Contracts (QLACs): QLACs are a special type of annuity
that is designed to help address concerns about outliving one’s assets.
Q. What do you mean by present worth of annuities?
The present worth of annuities refers to the current value of a series of future cash flows or
payments that are received or paid at equal intervals. It represents the total amount of
money that would need to be invested today at a given interest rate to generate the same
series of cash flows.
What do you mean by transportation problem?
Transportation problem is a type of linear programming problem that involves finding the
optimal way to transport goods from sources to destinations, while minimizing the total cost
of transportation. The problem can be represented as a matrix, where each row represents
a source, each column represents a destination, and each element in the matrix represents
the cost of transporting one unit of goods from a source to a destination. The objective is to
find the minimum cost of transporting all the goods, while meeting the demand at
eachdestination and the supply at each source.The transportation problem hasapplications
in logistics,supply chain management,
A null matrix is a matrix in which all the elements are zero. It is also known as the zero
matrix. The null matrix can have any number of rows and columns, but all of its elements
will be zero. It is denoted by the symbol O or 0. The null matrix is an important concept in
linear algebra and is used in various applications such as solving systems of linear
equations, finding eigenvalues and eigenvectors, and calculating determinants.
Write the first principle of derivative?
The first principle of derivative, also known as the definition of derivative, states that the
derivative of a function f(x) at a point x=a is equal to the limit of the difference quotient as h
approaches 0, where h is the change in x. Mathematically, this can be expressed as:f'(a) =
lim(h->0) [f(a+h) - f(a)] / h
This principle is used to calculate the instantaneous rate of change of a function at a specific
point, which is important in many fields such as physics, engineering, and economics.
Multiple optimal solution short note?
In optimization problems, multiple optimal solutions refer to situations where there is more
than one solution that satisfies the objective function and constraints. These solutions have
the same optimal value and are equally good in terms of meeting the optimization criteria.
Multiple optimal solutions can occur when the objective function is not unique or when there
are redundant constraints in the problem. In such cases, it is important to identify all optimal
solutions to fully understand the problem and make informed decisions. Techniques such as
sensitivity analysis and shadow prices can be used to analyze multiple optimal solutions
and their implications.
Write the three therom of LPP
The three fundamental theorems of linear programming:
1. Theorem of the Alternative: Either the optimal solution is attained at a corner point of
the feasible region or there are alternative optimal solutions.
2. Extreme Point Theorem: Any feasible solution of a linear program is a convex
combination of its extreme points.
3. Duality Theorem: Every linear programming problem has a dual problem, and the
optimal value of the primal problem is equal to the optimal value of the dual problem.
Write the general form of LPP
The general form of a linear programming problem (LPP) is as follows:
Maximize or Minimize: c1x1 + c2x2 + ... + cnxn Subject to:
a11x1 + a12x2 + ... + a1nxn ≤ b1 a21x1
+ a22x2 + ... + a2nxn ≤ b2 am1x1 +
am2x2 + ... + amnxn ≤ bm
where x1, x2, ..., xn are the decision variables, c1, c2, ..., cn are the objective function
coefficients, a11, a12, ..., a1n, a21, a22, ..., a2n, ..., am1, am2, ..., amn are the constraint
coefficients, and b1, b2, ..., bm are the constraint values. The objective can be either to
maximize or minimize the linear function.
What do you mean by arithmetic progression?
An arithmetic progression is a sequence of numbers in which each term is obtained by
adding a fixed value to the preceding term. For example, 1, 3, 5, 7, 9 is an arithmetic
progression with a common difference of 2. The formula for the nth term of an arithmetic
progression is given by:
a_n = a_1 + (n-1)d, where a_n is the nth term, a_1 is the first term, and d is the common
difference.