Quantitative Techniques Notes for MBA, BCA, MCM, MCOM and Others Faculty

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Quantitative Techniques Notes for MBA, BCA, MCM, MCOM and Others Faculty

© All Rights Reserved

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1

Arithmetic Mean:-

Index

or

fx1+fx2+fx3+.......+ xn

fx

X =

=

N

N

(Note:- In continuous Series x is the mid-value of the class interval)

dividing the sum of the values by the number of items. Algebraically we can have the

formula as under:

a) For individual observations

x +x +x +.......+ xn

x

X = 1 2 3 N

=

N

P A Z A R E

P A

P A

N I L E S H

P A Z A R E

Ex (1) :- 21, 8, 31, 9, 18, 25

(Tip: write the values in increasing (ascending) order)

Ans :- 8 , 9 , 18 , 21 , 25 , 31

x

1 2

3

4

5

6

N

X =

N

8+9+18+21+25+31

6

x

N

= 112

= 18.6666

X =

solve all problem again for verfied the answers.

2. Missing frequency problem see the page number 5 & 13

3. See page number 25 & 26 for how the 5 types of problem can solved from one

example like mean, median, quartile deviation, mean deviation &

standard deviation.

4. See page number 74 & 75 for direct method to solve the NWM, LCM & VAM.

5. LPP : Assignment Problem - see page number 80 to 82

N I LImportant

ETip S H

Arithmetic Mean is the most widely used measurement which represents the

entire data. Generally it is temed as an Average to a layman. It is the quantity obtained by

dividing the sum of the values of the items in a variable by their number. It is denoted by a

symbol X. Arithmetic mean by be either:

(i) Simple Arithmetic Mean :- The simple arithmetic mean is the quotient obtained by

-- 01

-- 10

-- 15

-- 16

-- 19

-- 21

-- 27

-- 33

-- 35

-- 40

-- 48

-- 61

-- 76

Mean

Median

Mode

Mean Deviation

Quartile Deviation

Standard Devaition

Coefficient of Correlation

Rank Correlation Coefficient

Regression

Trend Value

Linear Programming : Graphic method

LPP : Transportation Method (NWM, LCM, VAM)

LPP : Assignment Problem

01)

02)

03)

04)

05)

06)

07)

08)

09)

10)

11)

12)

13)

E-mail :- nilesh_pazare@rediffmail.com

x

N

X = 1+2+3+6+8+9+12+14+16

9

x

N

= 71 =

9

N

X =

7.8888

Ans:1 2 3 6 8 9 12 14 16

1 2 3 4 5 6 7 8 9

Ex : Find out the Simple Arithmetic Mean For Discrete Series by direct method

Income

No. of Families

10

5

20

7

30

2

N = f

40

3

50

1

60

6

70

9

fx

10x5 = 50

20x7 = 140

30x2 = 60

40x3 = 120

50x1 = 50

60x6 = 360

70x9 = 630

fx = 1410

P A Z A R E

P A

d=x - A

27-37= -10

32-37 = -5

37-37= 0

42-37= 5

47-37 = 10

52 - 37 = 15

d = 15

X = A + d

N

X = 37 + 15

6

= 37 + 2.5

X = 39.5

Since A = 32

X = A + d

N

X = 32 + 45

6

= 32 + 7.5

X = 39.5

d=x - A

27-42= -15

32-42= -10

37-42 = -5

42-42= 0

47-42= 5

52-42= 10

d = -15

Since A = 42

X = A + d

N

X = A + (-15)

6

X = 42 - 2.5

X = 39.5

d=x - A

27-32= -5

32-32 = -0

37-32= 5

42-32= 10

47-32 = 15

52 - 32 = 20

d = 45

(Tip:- From above example, you observed that any value of assumed mean taken the

arithmetic mean answer is comes same. So did not confuse and assume any value as

assumed mean (A), i.e. from given example and solve the example.)

X =

x

27

32

37

42

47

52

f.Xm

82.5+58+50+84+42.5+26+9

352

=

= 32

= 11

N

5+4+4+8+5+4+2

Arithmetic Mean for Continous series by direct method (X) =11

f . Xm

16.5 x 5 = 82.5

14.5 x 4 = 58

12.5 x 4 = 50

10.5 x 8 = 84

8.5 x 5 = 42.5

6.5 x 4 = 26

4.5 x 2 = 9

f.Xm = 82.5+58+50+84+42.5+26+9 = 352

N I L E S H

Ans:x

direct method

x

27

27

32

32

X = x

37

N

37

42

237

42

X =

47

6

47

52

X = 39.5

52

x = 237

Xm

16.5

14.5

12.5

10.5

8.5

6.5

4.5

P A

P A Z A R E

Ex:- Find out the Simple Arithmetic Mean For Continous Series by direct method

f . Xm

X =

N

Here,

f = Frequency,

Xm = mid value,

N = f

f

5

4

4

8

5

4

2

N=32

fd

N

= 42.7272

C.I.

16 - 17

14 - 15

12 - 13

10 - 11

8-9

6-7

4-5

50+140+60+120+50+360+630

= 1410

5+7+2+3+1+6+9

33

A +

N I L E S H

X = fx =

X =

No. of Families

f

5

7

2

3

1

6

9

N = f = 33

Income

x

10

20

30

40

50

60

70

Ans :-

Ex:-

x = variable,

If the number of items is large and values of variable big in size, a short cut

method of computing x is adopted. This method is based on the following property of the

arithmetic average, The algebric sum of the devations of values of variable from their

mean is always to Zero.

Let us assume the difference figure A as assumed mean. Take deviations of

values of variable from the assumed mean denoted as d. Obtain the sum of these

devations denote as d. Substitute the values of these symbols in the short-cut formula

as under.

X =

A + d

............. for individual observations

N

f = Frequency,

Here,

fx

N

X =

E-mail :- nilesh_pazare@rediffmail.com

f.d

7 * -30= -210

11 * -20= -220

31 * -10= -310

17 * 0= 0

16 * 10= 160

5 * 20= 100

3 * 30= 90

fd = -210-220-310+0+160+100+90 = -390

(-390) = 40 + (-4.3333) = 40 - 4.3333 = 35.6667

90

N I L E S H

=

30

510

90

N I L E S H

X = A + fd x

c

N

(Note:- c the common factor or width of the class interval is used for dividing and

multiplying)

P A Z A R E

Ex (1):- 90-99

2

Xm

94.5

84.5

74.5

64.5

54.5

44.5

34.5

24.5

d = 94.5 - 54.5 = 40

10

10

60-69

17

d= (Xm-A)/c

(94.5-54.5)/10= 4

(84.5-54.5)/10= 3

(74.5-54.5)/10= 2

(64.5-54.5)/10= 1

(54.5-54.5)/10= 0

(44.5-54.5)/10= -1

(34.5-54.5)/10= -2

(24.5-54.5)/10= -3

=4 ,

d =

50-59

20

40-49

9

fd

2*4= 8

9*3= 27

12*2= 24

17*1= 17

20*0= 0

9*-1= -9

6*-2= -12

5*-3= -15

fd = 40

84.5 - 54.5

10

30-39

6

20-29

5

A: Range 90-99, the number

start from 0 to 9, it means

0,1,2,3,4,5,6,7,8,9 = 10 intervals

So the common factor (c)

value is 10

f

2

9

12

17

20

9

6

5

N=80

70-79

12

30

10

= 3

= 10.5 + 0.5 = 11

Same as remaining values of d are finds.

C.I.

90-99

80-89

70-79

60-69

50-59

40-49

30-39

20-29

80-89

9

16

32

10.5 +

f.d

5 * 6 = 30

4 * 4 = 16

4*2=8

8*0=0

5 * -2 = -10

4 * -4 = -16

2 * -6 = -12

fd = 16

d=Xm- A

16.5-10.5= 6

14.5-10.5= 4

12.5-10.5= 2

10.5-10.5= 0

8.5-10.5= -2

6.5-10.5= -4

4.5-10.5= -6

X = A + fd

N

Xm

(16+17)/2= 33/2 = 16.5

(14+15)/2= 29/2 = 14.5

(12+13)/2= 25/2 = 12.5

(10+11)/2= 21/2 = 10.5

(8+9)/2= 17/2 = 8.5

(6+7)/2= 13/2 = 6.5

(4+5)/2= 9/2 = 4.5

ment to the short cut method. Under this method, the devations are devided by a single

common factor to reduce the figures to the minimum size. It is, in a way, a deliberate error

and it is compensated by multiplying the quotient. The adjusted or reduced value of d in

now termed as d so the formula stands as under.

f

5

4

4

8

5

4

2

N=32

N

32

(Tip :- From above example, it observed that you will solve any taking assumed mean

from given example and solve it and answer comes as same.)

The Step Deviation Method:- The step deviation method is the only additional adjust-

(Tip :- From above example, it observed that you will solve any taking assumed mean

from given example and solve it and answer comes as same.)

Ex (3) :C.I.

16-17

14-15

12-13

10-11

8-9

6-7

4-5

f.d

5 * 4 = 20

4*2=8

4*0=0

8 * -2 = -16

5 * -4 = -20

4 * -6 = -24

2 * -8 = -16

fd = -48

P A

P A Z A R E

X = A + fd

N

d=Xm- A

16.5-12.5= 4

14.5-12.5= 2

12.5-12.5= 0

10.5-12.5= -2

8.5-12.5= -4

6.5-12.5= -6

4.5-12.5= -8

f.d

7 * -20= -140

11 * -10= -110

31 * 00= 0

17 * 10= 170

16 * 20= 320

5 * 30= 150

3 * 40= 120

fd = -140-110+0+170+320+150+120 = 510

OR

Xm

(16+17)/2= 33/2 = 16.5

(14+15)/2= 29/2 = 14.5

(12+13)/2= 25/2 = 12.5

(10+11)/2= 21/2 = 10.5

(8+9)/2= 17/2 = 8.5

(6+7)/2= 13/2 = 6.5

(4+5)/2= 9/2 = 4.5

d= x-A

10-30= -20

20-30= -10

30-30= 0

40-30= 10

50-30= 20

60-30= 30

70-30= 40

P A

f

7

11

31

17

16

5

3

N=90

x

10

20

30

40

50

60

70

OR

f

5

4

4

8

5

4

2

N=32

C.I.

16-17

14-15

12-13

10-11

8-9

6-7

4-5

40

70

3

60

5

X = A + fd

N

50

16

d= x-A

10-40= -30

20-40= -20

30-40= -10

40-40= 0

50-40= 10

60-40= 20

70-40= 30

40

17

x

10

20

30

40

50

60

70

f

7

11

31

17

16

5

3

N=90

30

31

20

11

E-mail :- nilesh_pazare@rediffmail.com

Ex (2):- 10

7

Since, N=80, A = 54.5, fd = 40, c = 10, then put the values on formula

54.5 + 5 =

59.5

27-31

8

32-36

7

37-41

2

59.5

42-46

4

A: Range 42-46, the number

start from 2 to 6, it means

2,3,4,5,6 = 5 intervals

Xm

14.5

12.5

10.5

8.5

6.5

4.5

d= (Xm-A)/c

(14.5-8.5)/2= 3

(12.5-8.5)/2= 2

(10.5-8.5)/2= 1

(8.5-8.5)/2= 0

(6.5-8.5)/2= -1

(4.5-8.5)/2= -2

fd

3*3=9

8 * 2 = 16

15 * 1 = 15

20 * 0 = 0

10 * -1 = -10

4 * -2 = -8

fd = 22

start from 4 to 5, it means

4, 5 = 2 intervals

So the common factor (c)

value is 2

P A Z A R E

22

60

x 2

OR

C.I.

14-15

12-13

10-11

8-9

6-7

4-5

f

3

8

15

20

10

4

N=60

Xm

14.5

12.5

10.5

8.5

6.5

4.5

d= (Xm-A)/c

(14.5-10.5)/2= 2

(12.5-10.5)/2= 1

(10.5-10.5)/2= 0

(8.5-10.5)/2= -1

(6.5-10.5)/2= -2

(4.5-10.5)/2= -3

X = 10.5 + (-38) x 2

60

fd

3*2=6

8*1=8

15 * 0 = 0

20 * -1 = -20

10 * -2 = -20

4 * -3 = -12

fd = -38

14-15

3

Q: How to find the value C

(-8) x 5

35

X = 29 +

fd

x c

N

= 29 + (-0.2286 * 5) = 29 - 1.1429 = 27.8571

12-13

8

-8

X = A+

f

3

8

15

20

10

4

N=60

X = 8.5 +

So the common factor (c)

value is 5

fd = 12 + 4 + 7 + 0 -4 - 10 - 9 - 8 =

fd

4 * 3 = 12

2*2=4

7*1=7

8*0=0

4 * -1 = -4

5 * -2 = -10

3 * -3 = -9

2 * -4 = -8

fd = -8

10-11

15

d= (Xm-A)/c

(44-29)/5= 3

(39-29)/5= 2

(34-29)/5= 1

(29-29)/5= 0

(24-29)/5= -1

(19-29)/5= -2

(14-29)/5= -3

(9-29)/5= -4

Xm

44

39

34

29

24

19

14

9

8-9

20

N I L E S H

f

4

2

7

8

4

5

3

2

N=35

C.I.

14-15

12-13

10-11

8-9

6-7

4-5

6-7

10

(Tip :- From above example, it observed that you will solve any taking assumed mean

from given example and solve it and answer comes as same.)

27.86

P A

P A Z A R E

Ex (3): - 4-5

4

22-26

4

27 x 5

= 24 + (0.7714 * 5) = 24 + 3.8571 = 27.8571= 27.86

35

(Tip :- From above example, it observed that you will solve any taking assumed mean

from given example and solve it and answer comes as same.)

X = 24 +

17-21

5

44.5 + 15 =

P A

C.I.

42-46

37-41

32-36

27-31

22-26

17-21

12-16

7-11

12-16

3

fd

4 * 4 = 16

2*3=6

7 * 2 = 14

8*1=8

4*0=0

5 * -1 = -5

3 * -2 = -6

2 * -3 = -6

fd = 27

Ex (2): - 7-11

2

= 44.5 + 1.5 * 10

N I L E S H

X = 44.5 + 120 x 10

80

d= (Xm-A)/c

(44-24)/5= 4

(39-24)/5= 3

(34-24)/5= 2

(29-24)/5= 1

(24-24)/5= 0

(19-24)/5= -1

(14-24)/5= -2

(9-24)/5= -3

fd

2 * 5 = 10

9 * 4 = 36

12 * 3 = 36

17 * 2 = 34

20 * 1 = 20

9*0=0

6 * -1 = -6

5 * -2 = -10

fd = 120

5

4

3

2

1

0

-1

-2

Xm

44

39

34

29

24

19

14

9

d= (Xm-A)/c

(94.5-44.5)/10=

(84.5-44.5)/10=

(74.5-44.5)/10=

(64.5-44.5)/10=

(54.5-44.5)/10=

(44.5-44.5)/10=

(34.5-44.5)/10=

(24.5-44.5)/10=

Xm

94.5

84.5

74.5

64.5

54.5

44.5

34.5

24.5

f

2

9

12

17

20

9

6

5

N=80

f

4

2

7

8

4

5

3

2

N=35

C.I.

90-99

80-89

70-79

60-69

50-59

40-49

30-39

20-29

C.I.

42-46

37-41

32-36

27-31

22-26

17-21

12-16

7-11

fd

X = A+

x c

N

X = 54.5 + 40 x 10 = 54.5 + 0.5 * 10

80

OR

E-mail :- nilesh_pazare@rediffmail.com

79.60

Ex (7):- You are given the following incomplete information and its mean 25. find out the

missing frequencies.

Class interval (x):

0-10

10-20 20-30 30-40 40-50

Total

Frequencies (f):

5

15

5

= 45

Soln:So,

Assume that the frequencies are A and B. Total frequencies are 45.

x

00-10

10-20

20-30

30-40

40-50

f

5

A

15

20-A

5

N=45

Xm

(10+0)/2=10/2=5

(10+20)/2=30/2=15

(20+30)/2=50/2=25

(30+40)/2=70/2=35

(40+50)/2=90/2=45

fx

5 * 5 = 25

A * 15 = 15A

15 * 25 = 375

(20-A)*35 = 700-35 A

5 * 45 = 225

fx = 1325 - 20 A

fx =25+15A+375+700-20A+225=1325-35A+15A = 1325-20A

5+A+15+B+5= 45

A + B + 25 = 45

A + B = 45 - 25

A + B = 20

B = 20 - A

79.60 * 25

1990

10A

10A

A = 50/10

A=5

2040 - 10A

25

= 2040 - 10A

= 2040 - 10A

= 2040 - 1990

= 50

= 5

=

fx

50*1 = 50

60*3 = 180

70*A = 70 A

80*(12-A) = 960-80 A

90*6 = 540

100*2 = 200

110*1 = 110

fx = 2040 - 10 A

f

1

3

(A)

12-A

6

2

1

N=25

P A Z A R E

9906 - 14A

100

115.86*100 = 9906 - 14A

11586 = 9906 - 14A

14A = 11586 - 9906

14A = 1680

A = 1680 = 120

14

A = 120

115.86

x

50

60

70

80

90

100

110

fx

N

N I L E S H

f

fx

25

110*25 = 2750

17

112*17 = 1904

13

113*13= 1469

15

117*15 = 1755

14

A*14 = 14A

8

125*8 = 1000

6

128*6 = 768

2

130*2 = 260

N=100

fx = 9906 + 14A

So, missing value is 120.

Assume that the missing frequencies are A and B . Total frequencies are 25.

1 + 3 + A + B + 6 + 2 + 1 = 25

13 + A + B = 25

fx

A + B = 25 - 13

X =

N

A + B = 12,

B = 12 - A

X =

P A

P A

Soln:So,

x

110

112

113

117

A

125

128

130

P A Z A R E

Ex (5):- If the average wages paid to 25 workers is Rs. 79.60, find the missing frequencies.

Wages(Rs.) (x):

50

60

70

80

90

100

110

No.of workers (f):

1

3

(?)

(?)

6

2

1

Soln:-

N I L E S H

Ex (6):- From the following data calcuate the missing value when the mean is 115.86.

Wages(Rs.) (x): 110

112

113

117

(?)

125

128

130

No.of workers (f): 25

17

13

15

14

8

6

2

678 + 14A

43 + A

(43+A)* 15.25 =

678 + 14A

655.75 + 15.25A =

678 + 14A

15.25A - 14A =

678 - 655.75

1.25A =

22.25

22.25

A =

= 17.8

1.25

Therefore, the missing frequency equal to 17.8 or 18 approximately.

15.25 =

79.60 * 25

1990

A + B = 12

10A

5 + B = 12

10A

B = 12 - 5

A = 50/10

B=7

A=5

So, missing frequencies are A = 5 and B = 7

2040 - 10A

25

= 2040 - 10A

= 2040 - 10A

= 2040 - 1990

= 50

= 5

=

fx

N

79.60

X =

fx

10*3 = 30

12*7 = 84

14*A = 14A

16*20 = 320

16*8 = 144

20*5 = 100

fx = 678+14A

f

3

7

(A)

20

8

5

N=43+A

x

10

12

14

16

18

20

Ex (4): - Find the missing frequency from the following distribution if its mean is 15.25.

x:

10

12

14

16

18

20

f:

3

7

(?)

20

8

5

Soln:Let us assume the missing frequency as A

E-mail :- nilesh_pazare@rediffmail.com

,

OR

N=5+A+15+B+5

45 = 25 + A + B

45 - 25 = A + B

A + B = 20 ----- (1)

(1)

A + B = 20

multiply by 35 to eqn (1)

(2) 15A +35B = 500

fx =305+1152+67A+70B+584=2041+67A+70B

2041+67A+70B

100

67.45 * 100 = 2041+67A+70B

6745

= 2041+67A+70B

6745 -2041 = 67A + 70 B

67A+70B = 4704 ------ (2)

70A + 70 B

_ 67A

70 B

3A

A = 126 / 3

=

=

=

=

4830

4704

126

42

P A Z A R E

A + B = 69,

42 + B = 69,

B = 69 - 42,

B = 27

Class interval (x): 60-69 50-59 40-49

Frequency (f):

2

4

5

Soln:C.I.

60-69

50-59

40-49

30-39

20-29

10-19

0-9

f

2

4

5

10

6

9

7

N=43

Xm

64.5

54.5

44.5

34.5

24.5

14.5

4.5

d= (Xm-A)/c

(64.5-34.5)/10= 3

(54.5-34.5)/10= 2

(44.5-34.5)/10= 1

(34.5-34.5)/10= 0

(24.5-34.5)/10= -1

(14.5-34.5)/10= -2

(4.5-34.5)/10= -3

30-39

10

20-29

6

fd

2*3=6

4*2=8

5*1=5

10 * 0 = 0

6 * -1 = -6

9 * -2 = -18

7 * -3 = -21

fd = -26

10-19

9

0-9

7

Total

= 43

A: Range 60-69, the number

start from 0 to 9, it means

0,1,2,3,4,5,6,7,8,9 = 10 intervals

So the common factor (c)

value is 10

N I L E S H

(Tip :- From above example, it observed that you will solve the example both method

and answer comes as same, so student can deside which method is easy to solve.)

(1)

A + B = 69

multiply by 70 to eqn (1)

(2) 67A +70B = 4704

N=5+18+A+B+8

100 = 31 + A + B

100 - 31 = A + B

A + B = 69 ----- (1)

A + B = 20,

10 + B = 20,

B = 20 - 10,

B = 10

= 700

= 500

= 200

= 10

35A + 35 B

_ 15A 35 B

20 A

A = 200 / 20

fx

5 * 61 = 305

18 * 64 = 1152

A * 67 = 67A

B * 70 = 70B

8 * 73 = 584

fx = 2041+67A+70B

P A

P A

fx =25+15A+375+35B+225=625+15A+35B

P A Z A R E

25 = 625+15A+35B

45

25 * 45 = 625+15A+35B

1125

= 625+15A+35B

15A+35B = 1125-625

15A+35B = 500 ------ (2)

A + B = 69 ------ (1)

67.45 =

fx

5 * 5 = 25

A * 15 = 15A

15 * 25 = 375

B*35 = 35 B

5 * 45 = 225

fx = 625+15A+35B

N I L E S H

A + B = 20 ------ (1)

Xm

(60+62)/2=122/2=61

(63+65)/2=128/2=64

(66+68)/2=134/2=67

(69+71)/2=140/2=70

(72+74)/2=146/2=73

Xm

(10+0)/2=10/2=5

(10+20)/2=30/2=15

(20+30)/2=50/2=25

(30+40)/2=70/2=35

(40+50)/2=90/2=45

f

5

18

A

B

8

N=100

f

5

A

15

B

5

N=45

C.I.

00-10

10-20

20-30

30-40

40-50

C.I.

60-62

63-65

66-68

69-71

72-74

Assume that the frequencies are A and B. Total frequencies are 100.

Soln:-

Put A = 10 on eqn A + B = 20

A + B = 20

10 + B = 20

B = 20 - 10

B = 10

25 * 45

1125

20 A

20 A

1325 - 20A

45

= 1325 - 20 A

= 1325 - 20 A

= 1325 - 1125

= 200

200

=

= 10

20

= 10

25 =

fx

N

Ex (8):- Find out the missing frequencies from the following data, if the Mean of it 67.45.

Height (x):

60-62 63-65 66-68 69-71 72-74

Total

No of Student (f):

5

18

8

= 100

X =

E-mail :- nilesh_pazare@rediffmail.com

Since, N=43, A = 34.5, fd = -26, c = 10, then put the values on formula

90-99

1

21-40

5

f.d

4* -15= -60

5* -10= -50

9* -5= -45

15* 0=0

10* 5=50

7* 10=70

fd = -35

P A Z A R E

fx

N

965

X =

50

X = 19.3

fd

N

-35

X = 20 +

50

X = 20 - 0.7 = 19.3

X =

X = A +

(Tip:- Observe the above example, by using both the method i.e. Direct as will as

Short cut method, the answer will be same i.e. 19.3 , So student can be solve the

example any method.)

c) x:

f:

Ans:-

80-84

2

75-79

0

70-74

10

65-59

17

60-64

24

55-59

19

50-54

7

45-49

4

40-44

1

Above example solve by both the methods i.e. direct as will as short cut method.

Since, N=50, A = 70.5, fd = -12, c = 20, then put the values on formula

fd

X = A+

x c

N

(-12)

X = 70.5 +

x 20 = 70.5 + (-0.24 * 20) = 70.5 - 4.8 = 65.70

50

f

d= x-A

4

5-20=-15

5

10-20=-10

9

15-20=-5

15

20-20=0

10

25-20=5

7

30-20=10

N=50

fd

4 * -3 = -12

5 * -2 = -10

8 * -1 = -8

20 * 0 = 0

9*1=9

3*2=6

1*3=3

fd = -12

1-20

4

x

5

10

15

20

25

30

d= (Xm-A)/c

(10.5-70.5)/20= -3

(30.5-70.5)/20= -2

(50.5-70.5)/20= -1

(70.5-70.5)/20= 0

(90.5-70.5)/20= 1

(110.5-70.5)/20= 2

(130.5-70.5)/20= 3

41-60

8

30

7

Xm

10.5

30.5

50.5

70.5

90.5

110.5

130.5

61-80

20

25

10

P A

f

4

5

8

20

9

3

1

N=50

81-100

9

C.I.

1-20

21-40

41-60

61-80

81-100

101-120

121-140

101-120

3

121-140

1

20

15

N I L E S H

Direct Method

f

fx

4

5*4=20

5

10*5=50

9

15*9=135

15

20*15=300

10

25*10=250

7

30*7=210

N=f =50

fx = 965

Ex (11): -

15

9

P A Z A R E

x

5

10

15

20

25

30

10

5

N I L E S H

5

4

(Tip:- Observe the above example, by using both the method i.e. Direct as will as

Short cut method, the answer will be same i.e. 89.33 , So student can be solve the

example any method.)

b) x:

f:

Ans:-

Since, N=50, A = 54.5, fd = -36, c = 10, then put the values on formula

fd

X = A+

x c

N

(-36)

X = 54.5 +

x 10 = 54.5 + (-0.72 * 10) = 54.5 - 7.2 = 47.30

50

fd

5 * -4 = -20

6 * -3 = -18

7 * -2 = -14

8 * -1 = -8

11 * 0 = 0

6*1=6

4*2=8

2*3=6

1*4=4

fd = -36

80-89

2

70-79

4

P A

-4

-3

-2

-1

0

1

2

3

4

60-69

6

a)

86, 70, 96, 93, 97, 94

Ans:Short cut Method

x

direct method

x

d=x - A

Assumed Mean (A) = 93

70

70

70-93 = -23

d

X = A +

86

x

86

86-93 = -7

N

X =

93

N

93

93-93 = 0

-22

X = 93 +

94

536

94

94-93 = 1

6

X =

96

6

96

96-93 = 3

= 93 - 3.6667

97

X = 89.33

97

97-93 = 4

X = 89.33

x = 536

d = 22

d= (Xm-A)/c

(14.5-54.5)/10=

(24.5-54.5)/10=

(34.5-54.5)/10=

(44.5-54.5)/10=

(54.5-54.5)/10=

(64.5-54.5)/10=

(74.5-54.5)/10=

(84.5-54.5)/10=

(94.5-54.5)/10=

50-59

11

Xm

14.5

24.5

34.5

44.5

54.5

64.5

74.5

84.5

94.5

40-49

8

f

5

6

7

8

11

6

4

2

1

N=50

30-39

7

C.I.

10-19

20-29

30-39

40-49

50-59

60-69

70-79

80-89

90-99

20-29

6

Ex (10): -10-19

5

fd

X = A+

x c

N

X = 34.5 + (-26) x 10 = 34.5 + (-0.6046 * 10) = 34.5 - 6.0465 =28.4534 = 28.45

43

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Direct Method

X =

P A Z A R E

Formula

fd

x c

N

Xm d=Xm- A

18.5

6

16.5

4

14.5

2

12.5 0

10.5

-2

8.5

-4

f.d

3*6 = 18

8*4 = 32

15*2 = 30

20*0 = 0

10* -2= -20

4 * -4 = -16

fd = 44

X =

X =

X =

fXm

N

794

60

13.2333

13.23

fd

N

44

X = 12.5 +

60

X

= 12.5 + 0.7333 = 13.2333

X

= 13.23

X = A+

P A Z A R E

C.I

18-19

16-17

14-15

12-13

10-11

8-9

f

3

8

15

20

10

4

N=60

d= (Xm-A)/c

(18.5-14.5)/2 = 2

(16.5-14.5)/2 = 1

(14.5-14.5)/2 = 0

(12.5-14.5)/2 = -1

(10.5-14.5)/2 = -2

(8.5-14.5)/2 = -3

fd

3*2=6

8*1=8

15 * 0 = 0

20 * -1 = -20

10 * -2 = -20

4 * -3 = -12

fd = -38

Formula

X = A+

fd

x c

N

(-38)

x 2 = 14.5 + (-0.6333 * 2) = 14.5 - 1.2666 = 13.2333 = 13.23

60

(Tip:- Observe the above example, by using Direct , Short cut as will as The Step

Deviation method, the answer will be same i.e. 61.76 , So student can be solve the

example any method.)

(Tip:- Observe the above example, by using Direct , Short cut as will as The Step

Deviation method, the answer will be same i.e. 13.23 , So student can be solve the

example any method.)

X = 14.5 +

Xm

18.5

16.5

14.5

12.5

10.5

8.5

f

3

8

15

20

10

4

N=60

X = A+

x

18-19

16-17

14-15

12-13

10-11

8-9

fd

2*4=8

0*3=0

10 * 2 = 20

17 * 1 = 17

24 * 0 = 0

19 * -1 = -19

7 * -2 = -14

4 * -3 = -12

1 * -4 = -4

fd = -4

f . Xm

55.5

132

217.5

250

105

34

fX m=794

N I L E S H

(-4)

x 5

84

d= (Xm-A)/c

(82-62)/5 = 4

(77-62)/5 = 3

(72-62)/5 = 2

(67-62)/5 = 1

(62-62)/5 = 0

(57-62)/5 = -1

(52-62)/5 = -2

(47-62)/5 = -3

(42-62)/5 = -4

X = 62 +

Xm

82

77

72

67

62

57

52

47

42

f

2

0

10

17

24

19

7

4

1

N=84

Xm

18.5

16.5

14.5

12.5

10.5

8.5

(Note: Above table the value of Xm, f.Xm and d = Xm- A are directly calculate due to compare

the both method. If any doubt to how the values are calculate, then see the before example

to check.)

X =

C.I.

80-84

75-79

70-74

65-69

60-64

55-59

50-54

45-49

40-44

f

3

8

15

20

10

4

N=60

P A

X

X

X

fd

N

(-20)

= 62 + 84

= 62 - 0.2380 = 61.7619

= 61.76

=A+

P A

X =

X =

fXm

N

5188

84

61.76

61.76

C.I.

18-19

16-17

14-15

12-13

10-11

8-9

X =

8-9

4

Direct Method

N I L E S H

10-11

10

(Note: Above table the value of Xm, f.Xm and d = Xm- A are directly calculate due to compare

the both method. If any doubt to how the values are calculate, then see the before example

to check.)

12-13

20

f.d

2*20=40

0*15=0

10*10=100

17*5=85

24*0=0

19 * -5= -95

7 * -10= -70

4 * -15= -60

1 * -20= -20

fd = -20

14-15

15

Xm d=Xm- A

82

20

77

15

72

10

67

5

62 0

57

-5

52

-10

47

-15

42

-20

16-17

8

f

2

0

10

17

24

19

7

4

1

N=84

18-19

3

x

80-84

75-79

70-74

65-69

60-64

55-59

50-54

45-49

40-44

f . Xm

164

0

720

1139

1488

1083

364

188

42

fX m=5188

Xm

82

77

72

67

62

57

52

47

42

f

2

0

10

17

24

19

7

4

1

N=84

d) x:

f:

Ans:-

C.I.

80-84

75-79

70-74

65-69

60-64

55-59

50-54

45-49

40-44

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firms, calculate the average salary paid in the whole industry.

5.5

P A Z A R E

Y average marks is

Wx

Xw =

W

616

Xw =

10

Xw = 61.60

Xw = 61.60

X average marks is

Wx

Xw =

W

626

Xw =

10

Xw = 62.60

Xw = 62.60

WY

1 * 80 = 80

2 * 64 = 128

3 * 56 = 168

4 * 60 = 240

WY = 616

The W eighted arithmetic mean for X Candidate is 62.60 and The W eighted arithmetic

mean for Y Candidate is 61.60

Subject

W eights

Marks of Candidates

X

Y

A

1

70

80

B

2

65

64

C

3

58

56

D

4

63

60

Find the Weighted average marks of each candidate.

Ans:Marks by

Subjects Weights(W)

X

Y

WX

A

1

70

80

1 * 70 = 70

B

2

65

64

2 * 65 = 130

C

3

58

56

3 * 58 = 174

D

4

63

60

4 * 63 = 252

W = 10

WX =626

Weight are numbers or percentages which stand for the relative importance of

items. Such a relative importance may be real or estimated, or actual or approximated.

These weights are assigned to each item under the following circumstance:

(i) When the results of the series are studied comparatively,

(ii) When the computation involves ratios or percentages i.e. Death Rates and Birth Rates.

(iii) When we compute the Index Numbers involving prices of essential commodities

having different importance to each one.

Thus weight of a variate is numerical multiplier assigned to it in order to indicate its

relative importance.

N I L E S H

P A

P A

P A Z A R E

In computing simple arithmetic mean, it is assumed that all the items are of

equal importance. This may not always be the case. When items vary in importance they

must be assigned some weights in proportion to their importance. The value of each item

is then multiplied by its weight. The products are summated and divided by the number of

weights, and not by the number of items. the quotient is the weighted arithmetic mean or

average.

Symbolically,

WX

XW =

,

WX = X * W

,

Where W = Weight

W

N I L E S H

So, the average salary paid in the whole industry is Rs. 113.15

113.1458

Wx

W

10072.50

Xw =

200

Xw = 50.3625

Xw = 50.36

Xw =

74450

=

658

f . Xm

160*62.5 = 10000

208*87.5 = 18200

132*125 = 16500

130*175 = 22750

28*250 = 7000

f.Xm= 74450

Xm

(50+75)/2=125/2=62.5

(75+100)/2=175/2=87.5

(100+150)/2=250/2=125

(150+200)/2=350/2=175

(200+300)/2=500/2=250

f.Xm

N

f

160

208

132

130

28

N=658

6.5

30*5

26*8

24*5.5

24*6.5

28*1

200-300

28

by an industry.

May

June

44.25 54.00

10

45

150-200

24

Month:

Jan

Feb

March April

Price per Ton (Rs)

42.50 51.25 50.00 52.00

Tons Purchased

25

30

40

50

Ans :Prices Per Tons

Ton (Rs)

Purchased

C.I.

W

Wx

42.50

25

42.50 * 25 = 1062.50

51.25

30

51.25 * 30 = 1537.50

50.00

40

50.00 * 40 = 2000.00

52.00

50

52.00 * 50 = 2600.00

44.25

10

44.25 * 10 = 0442.50

54.00

45

54.00 * 45 = 2430.00

W = 200

Wx = 10072.50

100-150

24

X =

75-100

26

Income

Group

C.I.

50-75

75-100

100-150

150-200

200-300

50-75

30

Income Group:

No. of Firms:

Average No. of

Workers :

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10

Median :- Median is the value of that item in a series which divides the array into two

In above example Me = 42.5th item, it means that find such c.f. value which is greater than

find th item i.e. c.f. value. Here, we find 42.5th item and from our table value 59 is greater

than value 42.5. So, it mean that the Median value is from 59 c.f. and thats value x = 75.

Therefor, the Median value is 75

71,

66,

78,

74,

60,

63,

69,

61,

75

4

5

6

7

4

3

2

3

1

the data in an array form with serial numbers (ascending order).

cf

4

N+1

Median is the size of th item

2

3+4 = 7

35 + 1 th = 18 th item

Me = )

3+7 = 10

2

5+10 = 15

It lies in 21 c.f.

2+15 = 17

Against 21 c.f. the value is 71

4+17 = 21

So, Median Marks is 71

7+21 = 28

(Note: Median value is identified by locating

1+28 = 29

N + 1 th item falls.)

the respective c.f. in which )

6+29 = 35

2

In above example Me = 18th item, it means that find such c.f. value which is greater than

find th item i.e. c.f. value. Here, we find 18th item and from our table value 21 is greater

than value 18. So, it mean that the Median value is from 21 c.f. and thats value x = 71.

Therefor, the Median value is 71

QDM notes for MBA

Ex (2) x :

f:

Ans: - Arrange

x

f

60

4

61

3

63

3

66

5

69

2

71 4

74

7

75

1

78

6

N=35

10

P A Z A R E

In discrete series, the value are already in the form of array and the frequencies

are recorded against each value.

N I L E S H

P A

N+1

2

84 + 1 th = 42.5 th item

Me = )

2

It lies in 59 c.f.

Against 59 c.f. the value is 75

So, Median Marks is 75

(Note: Median value is identified by locating

N + 1 th item falls.)

the respective c.f. in which )

39.5

cf

10

2+10 =12

17+12 = 29

4+29 = 33

7+33 = 40

19+40 = 59

24+59 = 83

1+83 = 84

x

f

60

10

62

2

66

17

67

4

72

7

75 19

78

24

80

1

N=84

79

2

x:

62,

60,

66,

78,

75,

72,

67,

80

f:

2

10

17

24

19

7

4

1

Ans:- Arrange the data in an array form with serial numbers (ascending order).

37 + 42

2

2

P A

th item

2

6 + 1 th item

7

Median (Me) =

= th item

= 3.5 th item

2

2

The Item lies between 4th & 5th item. So there are two values i.i. 37 & 42.

Then the median value will be mean of these two values i.e.

P A Z A R E

X:

52, 47, 37, 32, 42, 27 (Note: Arrange the data in ascending order)

Ans:27 32 37 42 47 52

X

1 2 3

4 5 6

N

N I L E S H

Median (Me) =

X:

7, 12, 37, 32, 17, 22, 27

(Note: Arrange the data in increasing

Ans:(ascending) order)

7 12 17 22 27 32 37

X

1 2 3 4 5 6 7

N

N

+

1

Median (Me) = th item

2

7

+ 1 th item =

8 th item = 4 th item = 22

Median (Me) =

2

2

Median (Me) = 22

N+1

Ex (1)

N the number

Median (Me) =

N + 1 th

item where Me represents the median and

for cumulative frequencies (cf). The median size is first located with reference to the

cumulative frequency (cf) which cover the size first. Then, against that cumulative frequency (cf) , the value will be located as the median value.

Me is the size of

of items

N+1

However, for determining the size of

item, a separate column is to be prepared

equal parts, one condisting of all the values less than it and the other consisting of all the

values more than it. It means, when the values of variable are arranged in an array form (in

an ascending or descending order of their magnitude), the value of middle item of the

array is the median and it is denote as Me.

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11

E-mail :- nilesh_pazare@rediffmail.com

x c

50 +

Marks

No. of

C.I.

Student (f)

20-40

4

40-60

6

60-80

10

80-100

16

100-120

12

120-140

7

140-160

3

Marks

Less than 40

Less than 60

Less than 80

Less than 100

Less than 120

Less than 140

Less than 160

x 4

20 + 0.5555

x 5

= 20.5555

P A Z A R E

40-60

6

60-80

10

16

12

7

L.T. c.f.

4

4+6=10

10+10=20

16+20=36

12+36=48

7+48=55

3+55=58

Marks

More than

More than

More than

More than

More than

More than

More than

20

40

60

80

100

120

140

140-160

3

M.T. c.f

4+54=58

6+48=54

10+38=48

16+22=38

12+10=22

7+3=10

3

= 18

From above table, observe that, how the cumulative frequency (c.f) find when class interval

is in the form of Less than or More than.

11

20-40

4

19 )

17.5 + 0.5

x 5 =

18 )

- 24 )

25

9

17.5 +

Me = 20 +

P A

N I L E S H

Ex Marks C.I. :

No. of Student f:

19 - 18 x 4 =

Me = 17.5 +

8

Me = 17.5 + 0.125 x 4

=

Me = 18

Median of Class interval is 18

It is lies in 33 c.f. , and class interval is 20 - 25

L = 20, f = 9, c.f. = 24 and c = 5 (find it in note)

Put the values in formulas and find the Median.

Me = 20 + 0.1111 x 5

=

Me = 20.56

Median of Class interval is 20.56

It is lies in 26 c.f. , and class interval is 17.5 - 21.5

L = 17.5, f = 8, c.f. = 18 and c = 4 (find it in note)

Put the values in formulas and find the Median.

Upper interval (L2) = 15

c = L2 - L1

c = 15 - 10

c=5

x c

( N/2f- c.f. )

L +

P A

P A Z A R E

N I L E S H

Median (Me) =

Note:

Ex (1) 6-9 10-13 14-17 18-21 22-25 26-29 30-33 34-37 38-41 42-45

2

9

7

8

4

5

0

1

1

1

Ans:- Since there is an inclusive class interval distribution, we shall convert it into exclusive class interval series.

Note: How to identified the exclusive class

C.I.

f

c.f.

interval series.

41.5-45.5

1

37 + 1 = 38

=> Series always start from 0. i.e. 0-5, 0-10.

37.5-41.5

1

36 + 1 = 37

means when lower class sustract from up33.5-37.5

1

35 + 1 = 36

per class then find the class interval.

29.5-33.5

0

35 + 0 = 35

Our example series start from 6-9.

25.5-29.5

5

30 + 5 = 35

means 6,7,8,9 = 4. The class interval value

21.5-25.5

4

26 + 4 = 30

is 4, but when lower class substract from

17.5-21.5

8

18 + 8 = 26

upper class then it find the value 3 (9 - 6 = 3).

13.5-17.5

7

11 + 7 = 18

then this class is an inclusive.

9.5-13.5

9

2 + 9 = 11

So, convert an inclusive class into exclusive

5.5-9.5

2

2

class interval series. That is 5.5 - 9.5.

N=38

Then 9.5 - 5.5 = 4. It is correct class interval.

N/2 - c.f.

Median (Me) = L +

x c

f

c.f.

6

6 + 18 = 24

9 + 24 = 33

10 + 33 = 43

4 + 44 = 47

3 + 48 = 50

N - Total number of the frequencies,

c - Magnitude of the median class,

f - frequency of the median class,

c.f. - Cumulative frequency of the class precding the median class.

f

6

18

9

10

4

3

N=50

L +

C.I.

10-15

15-20

20-25

25-30

30-35

35-40

Median (Me) =

N/2 - c.f.

f

f:

6

18

9

10

4

3

Ans:- Above series is already exclusive class interval series.

A different procedure is adopted to find out the Median value under continous

series. The class intervals are already in the form of array and the frequencies are recorded against each class interval. For determining the size, we should take N/2th item

and median class is locaed accordingly with reference to the cumulative frequency, which

covers the size first. When the Median class is located, the median value is to be interpolated with the help of the following formula:

12

Median (Me) =

x 10

P A Z A R E

= 40.8333

= 45

N I L E S H

In problem

given

below 60

under 62.50

62.50 - 95

over 95

100 & over

Monthly

wages (Rs.)

Less than 60

Less than 62.50

62.50 - 95

More than 95

100 & over

C.I.

Note :-

100 - 30 = Diff

Diff = 70

0 - 60

60 - 62.5

62.5 - 95

95 - 100

100 & over

s.f.

F(%)

4%

15%

Diff

15%

5%

4%

15-4=11%

100-30=70%

15-5=10%

5%

40

110

700

100

50

P A Z A R E

For Less than and More than Class interval, see the before examples

Less than 60

Less than 62.50

0-60

60-62.50

4%

15-4=11%

More than 95

100 & over

15-5=10%

5%

f

40

110

700

100

50

N=1000

c.f.

40

40+110=150

110+150=850

850+100=950

950+50=1000

C.I.

0-60

60-62.50

62.5-95

95-100

100 & over

E

12

40 + 5

x 10

Ex (5):- In a group of 1000 wage earners, the monthly wages of 4% are below Rs. 60 and

those of 15% are under Rs. 62.50. 15% earned Rs. 95 over, and 5% got Rs. 100 and over.

Find the median wage.

Ans: Let us prepare the table showing different types of % frequencies and then convert it

into the original frequencies.

48)

Me = 40 + 0.5 x 10

=

Me = 45

Median of Class interval is 45

40 +

Less than : 10

20

30

40

50

60

70

frequency: 50

47

41

29

21

7

2

Ans:- Let us convert the data from more than frequency distribution into normal distribution.

C.I.

c.f.

C.I.

f

c.f.

10

50

More than 10

50-47=3

50

20

47

20 - 30

47-41=6

47

30

41

30 - 40

41-29=12

41

40

29 After Converting 40 - 50

29-21=8

29

50

21

50 - 60

21-7=14

21

60

7

60 - 70

7-2=5

7

70

2

70 - 80

2

2

N=50

x 10 =

P A

P A

- 21 x 10 = 40 + 0.5

Me = 40 + 21.5

6

6

Me = 40 + 0.08333 x 10

=

40 + 0.8333

Me = 40.83

Median of Class interval is 40.83

- 21 )

25

8

N I L E S H

It is lies in 27 c.f. , and class interval is 40 - 50

L = 40, f = 6, c.f. = 21 and c = 10

Put the values in formulas and find the Median.

Me = 40 +

x c

It is lies in 29 c.f. , and class interval is 40 - 50

L = 40, f = 8, c.f. = 21 and c = 10

Put the values in formulas and find the Median.

( N/2f- c.f.)

x c

L +

Median (Me) =

c.f.

2

6

11

21

27

36

43

( N/2f- c.f. )

f

2

6-2=4

11-6=5

21-11=10

27-21=6

36-27=9

43-36=7

N=43

c.f.

C.I.

2

Less than 10

6

10 - 20

11

20 - 30

21 After Converting 30 - 40

27

40 - 50

36

50 - 60

43

60 - 70

C.I.

10

20

30

40

50

60

70

L +

Less than : 10

20

30

40

50

60

70

frequency:

2

6

11

21

27

36

43

Ans:- Let us convert the data from less than frequency distribution into normal distribution.

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Median (Me) =

L +

13

( N/2f- c.f. )

Ex (7):- From the following data find out the missing frequency if the median is 50.

Class interval: 10-20

20-30

30-40

40-50

50-60 60-70

Frequencies:

2

8

6

--15

10

x c

50 =

50 +

( 41+A

)

2

- ( 16 + A )

15

x 10

N

L E( S ) H

(

) I

41+A

- ( 16 + A )

2

x 10

15

( 410 +2 10A )

- 160 - 10A

, 0 =

41*10 + 10A

2

15

- (16*10 + 10A )

, 0 =

15

0 * 15 = 205 + 5A - 160 - 10A

P A

P A Z A R E

15

0 = 45 - 5A

5A = 45 ,

A = 45 / 5

B.

229 = 12+30+A+65+B+25+18

229 = 150 + A + B

229 - 150 = A + B

79 = A + B

A + B = 79

---- (1)

13

70-80

18

= 16.995 = 17

C.I.

f

c.f.

10 - 20

12

12

20 - 30

30

30+12 = 42

30 - 40

A

A+42 = 42 + A

40 - 50

65

65+42+A = 107 + A

50 - 60

B

B+107+A = 107+A+B

60 - 70

25

25+107+A+B = 132+A+B

70-80

18

18+132+A+B = 150+A+B

N=229

60-70

25

x 5

Class interval: 10-20

20-30

30-40

40-50

50-60

Frequencies:

12

30

--65

--Complete the distribution, if its median is 46 and Total is 229.

Me =14.995+ 500-400

x 5 = 14.995 + 150

250

250

Me = 14.995 + 0.4 x 5

=

14.995 + 2

Median of Class interval is 17

x 10

15

Missing frequency is 9

C.I.

f

c.f.

4.995 - 9.995

100

100

9.995 - 14.995

300

100+300 = 400

14.995 - 19.995

250

250+400 = 650

19.995 & above

350

650+350 = 1000

N=1000

Here, N = 1000 then N/2 = 1000/2 = 500th item.

It is lies in 650 c.f. , and class interval is 14.995 - 19.995

L = 14.995, f = 250, c.f. = 400 and c = 19.995 - 14.995 = 5

Put the values in formulas and find the Median.

- ( 16 + A )

Class interval 50-60

L = 50, f = 15, c = 10 &

c.f. = 16 + A

Now put the values in formula

N/2 - c.f.

Median (Me) = L +

x c

f

P A Z A R E

0 =

( 41+A

)

2

c.f.

2

2+8 = 10

6+10 = 16

16+A = 16 + A

15+16+A = 31+A

10+31+A = 41+A

1000=100+300+250+Diff

1000=650+Diff

Diff=1000-650

Diff=350

f

100

300

250

(Diff)

N=1000

P A

No. of workers

10%

30%

250

(Diff)

f

2

8

6

A

15

10

N=41+A

50 +

50 - 50 =

5 - 9.99

10 - 14.99

15 - 19.99

20 & above

Me =

N I L E S H

C.I.

- 20

- 30

- 40

- 50

- 60

- 70

Ex (6):- 10 percent of the workers in a firm, employing a total of 1000 workers, earn

between Rs. 5 and 9.99, 30 percent between Rs. 10 and Rs. 14.99, 250 workers between

Rs. 15 and Rs. 19.99 and the rest Rs. 20 and above. What is the median wage?

Ans:- Since there is an inclusive class interval distribution, we shall convert it into exclusive class interval series.

10

20

30

40

50

60

= 78.75

62.5 + 16.25

x 32.5

=

Me = 78.75

Median of Class interval is 78.75

350

)

700

x 32.5 = 62.5 +

500-150

)

700

It is lies in 850 c.f. , and class interval is 62.5 - 95

So, L = 62.5, f = 700, c.f. = 150 and c = 95 - 62.5 = 32.5

Put the values in formulas and find the Median.

Me = 62.5 +

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14

(Tip :- Median is given and from defination of Median the c.f. value is less than N / 2 )

Since, Median = 46 (Given).

46 =

x c

40 +

6 =

x 10

x 10

Me = 50 + 1 x 10

Me = 50 + 10

Me = 60

N I L E S H

P A Z A R E

c.f.

1+49 = 50

5+44 = 49

12+32 = 44

15+17 = 32

10+7 = 17

4+3 = 7

3

N / 2 = 50 / 2 = 25

Me = 20 +

Me = 20 +

25-17

15

8

15

x 5

x 5

Me = 20 + 0.5333 x 5

Me = 20 + 2.6666

Me = 22.6666

Me = 8.05 +

Me = 8.05 + 0.48

( 12

)

25

,

x 1

(Note:- Above examples, class interval takes descreasing order and defination of median, the cumulative frequency (c.f.) is find from summation of frequency with increasing order of class interval. Thats why summation of frequency start from bottom of

table means increasing order of class interval.)

Me = 8.53

14

Me = 8.05 + 0.48 * 1

,

Median of Class interval is 8.53

x 1

f

1

5

12

15

10

4

3

N=50

Ans:

C.I.

35-40

30-35

25-30

20-25

15-20

10-15

5-10

5-10

3

P A

( 5025- 38 )

Me = 50 +

40-20

20

20

20

Me = 8.05 +

Me = 50 +

Height :

5.1-6.0

6.1-7.0

7.1-8.0 8.1-9.0

9.1-10

10.1-11

11.1-12

No.of Plants:

3

8

27

25

17

11

9

Ans:- Since there is an inclusive class interval distribution, we shall convert it into exclusive class interval series.

C.I.

C.I.

f

c.f.

5.1-6.0

5.05-6.05

3

3

6.1-7.0

6.05-7.05

8

8+3 = 11

7.1-8.0

7.05-8.05

27

27+11 = 38

After Converting

8.1-9.0

8.05-9.05

25

25+38 = 63

9.1-10.0

9.05-10.05

17

17+63 = 80

10.1-11.0

10.05-11.05

11

11+80 = 91

11.1-12.0

11.05-12.05

9

9+91 = 100

N=100

N / 2 = 100 / 2 = 50,

L = 8.05, f = 25, c.f. = 38 & c = 1, put th value on formula

C.I. :

35-40 30-35 25-30 20-25 15-20 10-15

f:

1

5

12

15

10

4

P A

P A Z A R E

N / 2 = 80 / 2 = 40

N I L E S H

6 * 65 = 725 - 10 A

Put, A = 33.5 on equation A + B = 79

390 = 725 - 10 A

33.5 + B = 79

10A = 725 - 390

B = 79 - 33.5

10 A = 335

B = 45.5

A = 335 / 10

A = 33.5

B = 45.5

Missing frequencies are A = 33.5 and B = 45.5

As the frequencies are interger, then A = 33 and B = 46 or A = 34 and B = 45.

c.f.

2+78 = 80

9+69 = 78

12+57 = 69

17+40 = 57

20+20 = 40

9+11 = 20

6+5 = 11

5

6 =

114.5 - 42 - A x 10

65

72.5 * 10 - 10 A

65

x 10

f

2

9

12

17

20

9

6

5

N=80

65

114.5 - (42+A)

46 - 40 =

x 10

65

72.5 - A x 10

6 =

65

- ( 42 + A )

20-30

5

( 229

2 )

Ans:

C.I.

90-100

80-90

70-80

60-70

50-60

40-50

30-40

20-30

30-40

6

L+

Me =

- c.f.

( N2 )

C.I. :

90-100 80-90 70-80 60-70 50-60 40-50

f:

2

9

12

17

20

9

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15

Mode :-

20 - 9

= 50 +

= 50 + 11 x 10

14

= 50 + 7.8571,

40-50

9

30-40

6

20-30

5

highest frequencies. i.e. 20 and modal class

is (50-60)

Z

x 10

(20 - 9) - (17-20)

50-60

20

f1 - f0

x c

(f1 - f0) - (f2 - f1)

L +

Z = 50 +

11

x 10

(11) - (-3)

Z = 57.8571,

Z = 57.86

Ex (4):- C.I. :

f:

Ans:

C.I.

5-10

10-15

15-20

20-25

25-30

30-35

35-40

30-35

5

25-30

12

20-25

15

15-20

10

10-15

4

5-10

3

P A Z A R E

f

3

4

10 f0

15 f1

12 f2

5

1

c.f.

3

4+3 = 7

10+7 = 17

15+17 = 32

12+32 = 44

5+44 = 49

1+49 = 50

15 - 10

Z

= 20 + 5

8

x 5

Z = 20 +

= 20 + 3.125

Z = 23.125

f1 - f0

x c

(f1 - f0) - (f2 - f1)

L +

Z = 20 +

5*5

8

,

,

x 5

(5) - (-3)

Z = 20 + 25

8

Z = 23.13

Mode ( Z ) = 23.13

X = Mean

15

= 20 +

x 5

highest frequencies. i.e. 15 and modal class

is (20-25)

Z = 3 Me - 2 X

35-40

1

Z = Mode,

Me = Medain

N I L E S H

Continous Series:- Under the continous series, the modal class is located with the help of

highest frequencies or grouping or inspection (maxium concentration of frequencies).

The same procdure is adopted as it is followed in case discret series. After locating the

modal class, we have to interpolate the value of the mode within the modal class by using

the following formulas:

f1 - f0

f1 - f0

Z = L +

x c or

Z = L+

x c

2f1 - f0 - f2

(f1 - f0) - (f2 - f1)

Z = 50 + 110

14

P A

P A

When the number of items increase, we may convert the data into a descrete

form. Then, the value having the maximum frequency will be treated as the Mode.

Z = Mode,

L = Lower limit of the modal class interval,

f0 = Frequency of the class interval preceding the modal class interval,

f1 = Fequency of the modal class interval,

f2 = Fequency of the class interval succeeding the modal class interval,

c = magnitude of the modal class interval

Mode ( Z ) = 57.86

P A Z A R E

Z = 50 + 11 * 10

14

N I L E S H

65, 63, 68, 66, 61, 62, 65, 63, 67

Ans:- Arrange the values in increasing (ascending) order

61, 62, 63, 63, 65, 65, 66, 67, 68

When the number of items increase, we may convert the data into a descrete

form. Then, the value having the maximum frequency will be treated as the Mode.

c.f.

2+78 = 80

9+69 = 78

12+57 = 69

17+40 = 57

20+20 = 40

9+11 = 20

6+5 = 11

5

60-70

17

f

2

9

12

17 f2

20 f1

9 f0

6

5

70-80

12

The mode is 13 as it occurs the highest number of times (i.e. 3 times) in the

series. So the mode is clearly defined.

90-100 80-90

2

9

13, 9, 8, 7, 13, 12, 15, 13

Ans:- Arrange the values in increasing (ascending) order

7, 8, 9, 12, 13, 13, 13, 15

Ex (3):- C.I. :

f:

Ans:

C.I.

90-100

80-90

70-80

60-70

50-60

40-50

30-40

20-30

It is the value which occurs with the maximum frequency. It is most typical or

common value that receives the highest frequency. The modal class of a frequency distribution is the class with the highest frequency. It is denoted b a symbol Z.

Mode is the value of variable which is repeated the greatest number of times in

the series.

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16

Quartilies:-

First Quartile (Lower Quartile) Q1 is the value below which there are one fourth of the items

and above which there are three fourth of the items.

Second Quartile (Median) Q2 divides the total distribution into two halves.

P A Z A R E

(III)

N I L E S H

P A Z A R E

means, the items below the lower quartile and the items above the upper quartile are not

at all included in the computation. Thus we are considering only the middle half portion of

the distribution. The range so obtained is divided by two as we are considering only half of

the data. Thus the Quartil deviation measures the difference between the value of Q1 and

Q3 . It is denoted symbolically by Q.D.

Q 3 - Q1

Quartile Deviation(QD) =

2

N/4 - F

f

)x c

Coefficient of C of Q.D.

&

Q3 = L +

Q 3 - Q1

Q 3 + Q1

3N/4 - F

f

)x c

(1):Ans:-

1

1

3

2

Q.D. =

9

3

Q 3 - Q1

2

( 7 4+ 1 )th item

Q1 =

8

4

)th item

19

4

23

5

27

6

31

7

Q1 =

(n 4+ 1 )th item

X

N

, Q3 =

( 3 (n 4+ 1) )th item

, Q3 =

, Q3 =

(3 4* 8 )th item

Q1 =

16

Q1 = L +

Series (III) is less uniform and more dispersed.

R=L-S

= 29 - 1

= 28

L-S

C.R. =

L+ S

C.R. = 29 - 1

29+ 1

C.R. = 28

30

= 0.933

R=L-S

= 21 - 9

= 12

L-S

C.R. =

L+ S

C.R. = 21 - 9

21+9

C.R. = 12

30

= 0.4

Q3 =

(I)

Range R = L - S

= 17 - 13

=4

L-S

Coeff. of R. =

L+ S

Coeff. of R. = 17 - 13

17+ 13

4

Coeff. of R. =

30

= 0.1333

17

21

29

13,

9,

1,

Values of variables

14,

15,

16,

12,

15,

18,

8,

15,

22,

(II)

Quartile Deviation:-

P A

Ex (1):- Compute the range and the Coefficient of Range of the series, and state which one

is more dispersed and which one is more uniform.

Q2 =

P A

L - R

(ii) Coefficient of Range (R) = Largest Value + Smallest Value = L + R

(n 4+ 1 )th item

N I L E S H

R = L - S

Q1 =

Range repersents the difference between the values of the etremes-- the larges

value and the smallest value. The value in between the two extremes are not at all taken

into consideration. It is denoted symbolically by R.

Range:-

Third Quartile (Upper Quartile) Q3 is the value below which there are three fourth of the

items and above which there are one fourth of the items.

The Quartiles are also positional averages like the median. As the median value

divides the entire distribution into two equal parts, the quartiles (Q1 , Q2 and Q3 ) divide the

entire distribution into four equal parts.

Mode (Z) = 3 x Me - 2 * X

= 3 x 48.67 - 2 x 48.40

= 146.01 - 96.8 = 49.21

Mode (Z) = 49.21

Mode (Z) = 3 x Me - 2 * X

= 3 x 48.37 - 2 x 49.2

= 145.11 - 98.4 = 46.71

Mode (Z) = 46.71

Series

i.

ii

iii

Ans:

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=

Q3 =

24

2

Ans:-

24

30

0.8

4

1

7

2

13

3

17

4

24

5

30

6

32

7

39

8

X

N

Q1 =

Q 3 - Q1

2

Q1 =

n+1

4

( 8 4+ 1)th item

th

item

, Q3 =

, Q3 =

3 (n + 1)

4

th

item

th

item

31.5 - 8.25

31.5+ 8.25

23.25

39.75

N I L E S H

Q 3 - Q1

2

11.5 - 3.5

2

8

2

= 11.625

Q 3 - Q1

Q3 + Q1

11.5 - 3.5

11.5+ 3.5

8

15

0.5333

0.5849

17

(4):Ans:-

1

1

3

2

Q.D. =

10

3

15

4

27

5

Q 3 - Q1

2

Q1 =

3

6

42

7

46

8

49

9

(n 4+ 1 )th item

50

10

, Q3 =

Q1 =

12

4

)th item

, Q3 =

( 3 *4 12 )th item

Q1 =

12

4

)th item

, Q3 =

, Q3 = 3 ( 11 + 1)

4

36

4

X

N

( 3 (n 4+ 1) )th item

Q1 =

55

11

)th item

Q 3 - Q1

Q3 + Q1

Coffiecient of Q.D. =

(3 4* 5 )th item

23.25

= 11.625

2

, Q3 =

31.5 - 8.25

=

2

Coffiecient of Q.D. =

P A Z A R E

Q 3 - Q1

2

, Q3 =

Q.D. =

)th item

( 3 (n 4+ 1) )th item

P A

item

9 th

27 th

item

, Q3 = 4

item

4

th

( 2.25 ) item

,

Q3 = ( 6.75 )th item

nd item

rd item

nd item

(2)

+ 0.25 x (3

-2

),

Q3 = ( 6 )th item + 0.75 x (7th item - 6th item)

7 + 0.25 x ( 13 - 7 )

,

Q3 = 30 + 0.75 x ( 32 - 30 )

7 + 0.25 x ( 6 )

,

Q3 = 30 + 0.75 x ( 2 )

7 + 1.25

,

Q3 = 30 + 1.5

8.25

,

Q3 = 31.5

Q1 =

Q1 =

Q1 =

Q1 =

Q1 =

Q1 =

Q1 =

th

P A

Q1 =

3* 9

, Q3 =

4

5

4

, Q3 =

5

15

th

th

item

, Q3 =

item

4

4

th

th

( 1.25 ) item

,

Q3 = ( 3.75 ) item

( 1 )st item + 0.25 x (2nd item - 1st item) ,

Q3 = ( 3 )rd item + 0.75 x (4th item - 3rd item)

3 + 0.25 x ( 5 - 3 )

,

Q3 = 10 + 0.75 x ( 12 - 10 )

3 + 0.25 x ( 2 )

,

Q3 = 10 + 0.75 x ( 2 )

3 + 0.25

,

Q3 = 10 + 1.5

3.5

,

Q3 = 11.5

Q.D. =

)

P( A

Z A( ) R E

9

4

( n 4+ 1 )th item

Q.D. =

Q1 =

Q1 =

Q1 =

Q1 =

Q1 =

Q1 =

N I L( ) E S( H

)

Q1 =

Q1 =

Ans:-

Q 3 - Q1

,

2

X

N

12

4

( 4 4+ 1 )th item

Q1 =

(2):-

10

3

27 - 3

27+ 3

5

2

Q1 =

Q 3 - Q1

Q3 + Q1

3

1

Q.D. =

= 12

Coffiecient of Q.D. =

3, 10, 12, 5

27 - 3

2

Q 3 - Q1

2

(3):-

24 th

item

4

th

Q3 = ( 6 ) item

Q3 = 27

Q.D. =

E-mail :- nilesh_pazare@rediffmail.com

8

th

item

4

th

Q1 = ( 2 ) item

Q1 = 3

Q1

17

)th item

Second Edition 2013 - 2014

18

Q1 = ( 3 )th item

Q1 = 10

39

2

Coffiecient of Q.D. =

= 19.5

Q 3 - Q1

Q3 + Q1

40 - 13.67

40 + 13.67

26.33

53.67

0.49

49 - 10

2

Q 3 - Q1

Q.D. =

2

Q3 = ( 9 )th item

Q3 = 49

,

,

E-mail :- nilesh_pazare@rediffmail.com

39

59

0.6666

Q3 - Q1

Quartile Deviation(QD) =

2

N/4-cf

f

Q1 = L +

N/4 -

cf x c

f

N = 35,

N

35

=

4

4 = 8.75

L = 16.5, cf = 5, f = 5,

c=5

3N/4- cf

f

3N

3 x 35 129

=

4 =

4

4 = 26.25

L = 31.5,cf = 22, f = 7,

c=5

8.75-5

5

3.75

Q1 = 16.5 + x 5

5

= 16.5 + 0.75 x 5

= 16.5 + 3.75

= 20.25

Q1 = 20.25

26.25 - 22

x 5

7

4.25

Q3 = 31.5 + x 5

7

= 31.5 + 0.6071 x 5

= 31.5 + 3.0357

= 34.5357

Q3 = 34.54

Q1 = L +

Q3 = L + x c

P A Z A R E

Q1 = 16.5 + x 5

Q 3 - Q1

2

Q3 = 31.5 +

34.54-20.25

=

2

14.29

2

= 7.145

Q.D. =

Coffiecient of Q.D. =

= 13.16

26.33

2

40 - 13.67

2

Q 3 - Q1

Q.D. =

2

Q3 = 39.5 +

32.25 - 32

x 10

5

0.25

Q3 = 39.5 + x 10

5

= 39.5 + 0.05 x 10

= 39.5 + 0.5

= 40

Q3 = 40

Q1 = 9.5 + x 10

10.75-7

9

3.75

Q1 = 9.5 +

x 10

9

= 9.5 + 0.41666 x 10

= 9.5 + 4.1666

= 13.6666

Q1 = 13.67

Q3 = L + x c

3N/4- cf

f

3N

3 x 43 129

=

4 =

4

4 = 32.25

L = 39.5,cf = 32, f = 5,

c = 10

Q1 = L +

x c

N/4 - cf

x c

f

N = 43,

N

43

=

4

4 = 10.75

L = 9.5, cf = 7, f = 9,

c = 10

x c &

3N/4-cf

Q3 = L +

f

Q 3 - Q1

Q3 + Q1

34.54 -20.25

34.54+20.25

14.29

54.79

0.2608

18

P A

P A Z ( A) R (E )

P A

N I L E S H

N I L E S H

Ex (5):- 0-9

10-19 20-29 30-39 40-49 50-59 60-69

7

9

6

10

5

4

2

Ans:- Since there is an inclusive class interval distribution, we shall convert it into exclusive class interval series.

C.I.

C.I.

f

c.f.

60-69

59.5-69.5

2

2+41= 43

50-59

49.5-59.5

4

4+37 = 41

40-49

39.5-49.5

5

5+32 = 37

After Converting

30-39

29.5-39.5

10

10+22 = 32

20-29

19.5-29.5

6

6+16 = 22

10-19

9.5-19.5

9

9+7 = 16

0-9

0.5-9.5

7

7

N=43

Ex (6):- 7-11

12-16 17-21 22-26 27-31 32-36 37-41 42-46

2

3

5

4

8

7

2

4

Ans:- Since there is an inclusive class interval distribution, we shall convert it into exclusive class interval series.

C.I.

C.I.

f

c.f.

7-11

6.5-11.5

2

2

12-16

11.5-16.5

3

3+2 = 5

17-21

16.5-21.5

5

5+5 = 10

22-26

21.5-26.5

4

4+10 = 14

After Converting

27-31

26.5-31.5

8

8+14 = 22

32-36

31.5-36.5

7

7+22 = 29

37-41

36.5-41.5

2

2+29 = 31

42-46

41.5-46.5

4

4+31 = 35

N=35

Q3 - Q1

3N/4-cf

QD =

Q1 = L + N/4-cf x c & Q3 = L +

x c

2

49 - 10

49 + 10

Q 3 - Q1

Q3 + Q1

Coffiecient of Q.D. =

19

Mean Deviation:-

or

fd

n

n

N I L E S H

A=3 xA = 9+10+18=37

A

Ex (2):- From the following variables find the Mean Deviation and Coefficient of Mean

Deviation from the mean. ====> 15, 4, 3, 10, 12, 5, 1, 2, 6, 12

Ans: Arrange the data in an ascending order to have the short cut method applicable.

x

=

n

d

=

=

n

X =

70

= 7

10

42

= 4.2

10

Coefficient of =

4.2

7

= 0.6

Coefficient of = 0.6

(Tip: the devations (d) are treated as positive

ignoring the negative sign.)

Second Edition 2013 - 2014

d=x-X

1-7= 6

2-7= 5

3-7= 4

4-7= 3

5-7= 2

6-7= 1

10-7= 3

12-7= 5

12-7= 5

15-7= 8

d = 42

R

19

x

1

2

3

4

5

6

10

12

12

15

x=70,n=10

(i) Make two sections in the entire distribution, as A and B, so that all the items greater than

average (including average) should fall in A section and all the items smaller than average should fall in the B section.

(ii) Terms used in the formula:

xA :

the sum of the values greater than average.

xB :

the sum of the values smaller than average.

A

:

the total number of items greater than average.

B

:

the total number ot items smaller than average.

n

:

the total number of items.

fxA :

the sum of the fx greater than the average.

fxB :

the sum of the fx smaller than the average.

fA :

the sum of the frequencies greater than average

fB :

the sum of the frequencies smaller than average

P A Z A R E

problem both the formula, but use easy one.

Steps to be followed in the short cut method:

xA -xB - (A - B) X

n

37 - 13 - (3 - 3) * 8.34

6

24 - ( 0 ) * 8.34

6

24

= 4

6

P A

P A Z A R E

B=3 xB = 3+4+6=13

B

n=6,

X = 8.34

P A

When the averages are in fractions, the calculation of mean deviation becomes a tedious

job. So, to make the things more simplified, a shor-cut method or formula is used as

under:

xA - xB - (A - B) Me*

(A) Individual Observations: =

n

9

10

18

N I L E S H

(Note: d is the sum of the deviations and fd is the sum of the products f and d).

x

3

4

6

Coefficient of = 0.48

50

= 8.3333 = 8.34

6

24

= 4

6

4

Coefficient of =

=

= 0.4796

x

8.34

x

=

n

d

=

=

n

X =

or

Me

d=x-X

3-8.34= 5.34

4-8.34= 4.34

6-8.34= 2.34

9-8.34= 0.66

10-8.34= 1.66

18-8.34= 9.66

d = 24

x

3

4

6

9

10

18

x=50,n=6

Coefficient of

Ex (1):- From the following variables find the Mean Deviation and Coefficient of Mean

Deviation from the mean. ====> 10, 18, 3, 9, 6, 4

Ans: Arrange the data in an ascending order to have the short cut method applicable.

Mean Devaiation is the average difference among the items in a series from the

mean itself or median or mode of that series. It is concerned with the extent to which the

values are despersed about the mean or the median or the mode. It is found by the

averaging all the deviations from the central tendency. These deviations are taken into

computations with regard to negative sign (i.e. all the deviations assumed as possitive).

In aggregating the devations, the algebraic negative signs are not taken into

account. It means all the devations are treated as positive ignoring the negative sign.

Mean deviation or average deviation is denoted symbolically by the Greak small

alphabet (delta)

d

(A) Individual Observations: =

............. Absolute Measure

n

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*

fuysk ;ks- ik>kjs 09766134400

20

4) Ans: Arrange the data in an descending order.

28.69

120

P A Z A R E

16.1538

16.15

C.I.

16-17

14-15

12-13

10-11

8-9

6-7

4-5

f

5

4

4

8

5

4

2

N=32

Xm

16.5

14.5

12.5

10.5

8.5

6.5

4.5

f.Xm

5*16.5=82.5

4*14.5=58

4*12.5=50

8*10.5=4

5*8.5=42.5

4*6.5=26

2*4.5=9

f.Xm=352

fd

n

X = f.Xm/ n

352

32

=11

d=Xm - X

16.5-11=5.5

14.5-11=3.5

12.5-11=1.5

10.5-11=0.5

8.5-11=2.5

6.5-11=4.5

4.5-11=6.5

f.d

5*5.5= 27.5

4*3.5= 14

4*1.5= 6

8*0.5= 4

5*2= 12.5

4*4.5= 18

2*6.5= 13

fd = 95

P A Z A R E

95

32

2.9687

2.97

(Tip: the devations (d) are treated as positive ignoring the negative sign.)

5):-

4-5

2

70-79

14

6-7

4

16

20

16

14

8-9

5

120-129

8

130-139

4

4

8

From above observation, the value of Mean Deviation = 28.69, So student can solve the

problem both the formula, but use easy one.

N I L E S H

120*83= 9960

140*55=7700

160*20=3200

180*9=1620

1680

104

10 - 11 12 - 13 14 - 15 16 - 17

8

4

4

5

20

P A

83

55

20

9

A=83+55+20+9=167

xA = 9960+7700+3200+1620=22480

Put all these values in formula

xA -xB - (A - B) z

=

n

22480-11620-(167-153) * 120

=

320

10860 - (14*120)

10860 - 1680

=

=

320

320

9180

=

= 28.6875 = 28.69

320

120

140

160

180

B=6+19+40+23+65=153

xB = 120+760+2400+1840+6500=11620

P A

fx

20*6=120

40*19=760

60*40=2400

80*23=1840

100*65=6500

f

6

19

40

23

65

fd

n

Coefficient of = 0.2390

N I L E S H

x

20

40

60

80

100

f.d

4*40=160

8*30=240

14*20=280

16v10=160

20*0=0

16*10=160

14*20=280

8*30=240

4*40=160

fd = 1680

d=Xm - X

134.5-94.5=40

124.5-94.5=30

114.5-94.5=20

104.5-94.5=10

94.5-94.5=0

84.5-94.5=10

74.5-94.5=20

64.5-94.5=30

54.5-94.5=40

Coefficient of =

f.Xm

X = f.Xm/ n

4*134.5=538

8*124.5=996

14*114.5=1603

16*104.5=1672

9828

20*94.5=1890

104

16*84.5=1352

=94.5

14*74.5=1043

8*64.5=516

4*54.5=218

f.Xm=9828

= 28.69

Xm

134.5

124.5

114.5

104.5

94.5

84.5

74.5

64.5

54.5

The highest frequency is 83

z = 120

= fd = 9180 = 28.6875

n

320

fd

6*100=600

19*80=1520

40*60=2400

23*40=920

65*20=1300

83*0= 0

55*20=1100

20*40=800

9*60=540

fd = 9180

d=x-z

20-120=100

40-120=80

60-120=60

80-120=40

100-120=20

120-120= 0

140-120=20

160-120=40

180-120=60

f

6

19

40

23

65

83

55

20

9

n=6

C.I.

f

130-139 4

120-129 8

110-119 14

100-109 16

90-99

20

80-89

16

70-79

14

60-69

8

50-59

4

N=104

Ex (3):- Following are the runs scored by the btsmen in different innings of cricket tests.

Runs:

20

40

60

80

100

120

140

160

180

No of Batsmen:

6

19

40

23

65

83

55

20

9

Compute the Mean Deviation from mode and its Coefficient.

Ans: Arrange the data in an ascending order to have the short cut method applicable.

x

20

40

60

80

100

120

140

160

180

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21

Coefficient of Variation

(x - X)2

n

* 100

or

N I L E S H

Coefficient of Variation

* 100

A: Individual Observation

d2

n -

(n)

fd2

n

fd

n

d

n fd2

n

d

n

(fd

)

n

x c

2

x c

c - Common factor

21

1105.34

= 184.22 = 13.57

6

= 203 - ( -4.33)2 =

203 - 18.77

13.57

c.v. =

* 100 =

* 100 = 0.3107*100

= 184.23 = 13.57

X

43.67

c.v. = 31.07%

d

n

N I L E S H

From above observation, it seen than example solve by any method the answer is come

same. So student solve easy method, which they are suitable to solve the problems.

P A Z A R E

Ex (2):- From the following variables find the Standard Deviation and Coefficient of

variation(c.v.)

====> 50, 26, 37, 35, 34

Ans: Arrange the data in an ascending order

x

d=x-X

26

26-36.40 = -10.4

34

34-36.40 = -2.4

35

35-36.40 = -1.4

37

37-36.40 = 0.6

50

50-36.40 = 13.6

x=182

d2

(-10.4)2=108.16

(-2.4)2=5.76

(-1.4)2=1.96

(0.6)2=0.36

(13.6)2=184.96

d2 = 301.20

x

182

X = n = 5 = 36.40

d2

n

301.20

= 60.24 = 7.76

5

7.76

c.v. = X * 100 = 36.4 * 100 = 0.2131*100

c.v. = 21.31%

d2

(-9)2 = 81

(-1)2 = 1

(0)2 = 0

(2)2 = 4

(15)2 = 225

d2 = 311

d=(x- A)

26-35= -9

34-35= -1

35-35= 0

37-35= 2

50-35= 15

d = 7

d2

d

n - n

( )

= 62.2 - ( 1.4)2

=

60.24

311

5

( 75 )

62.2 - 1.96

7.76

( )

A: Individual Observation

1218

-26

- 6

6

Step-deviation Method:The deviations are further divided by the common factor in case of assumed

mean. This deliberate error is compensated by multiplying the entire formula by the same

factor. The formula works as under.

( )

P A

P A Z A R E

P A

Short Cut Method:Sometimes the mean will be a fractional figure. Then we should take the deviations from the assumed mean and the direct method formula will be having some adjustment.. As the deviations are not taken from the actual mean we get the d as some value

instead zero. The short cut formula works as under.

d2

d

n - n

f(x - X)2

n

fd 2

n

x

262

X = n = 6 = 43.6666 = 43.67

d2

(-25)2= 625

(-18)2= 324

(-5)2= 25

(0)2= 0

(10)2= 100

(12)2= 144

d2 = 1218

d=(x- A)

23-48= -25

30-48= -18

43-48= -5

48-48= 0

58-48= 10

60-48= 12

d = -26

or

d 2

n

d2

(-20.67) =427.25

(-13.67)2=186.87

(-0.67)2=0.45

(4.33)2=18.75

(14.33)2=205.35

(16.33)2=266.67

d2 = 1105.34

2

x

d=x-X

23

23-43.67= -20.67

30

30-43.67= -13.67

43

43-43.67= -0.67

48

48-43.67= 4.33

58

58-43.67= 14.33

60

60-43.67= 16.33

x=262

A: Individual Observations:

Ex (1):- From the following variables find the Standard Deviation and Coefficient of

variation(c.v.)

====> 43, 48, 60, 30, 58, 23

Ans: Arrange the data in an ascending order

Standard Deviation is the root of the sum of the squares of the deviations devided

by their number. it is also called Mean Error Deviation, Mean Square Deviation or Root

Mean Square Deviation. It is a second moment of a dispersion. Since the sum of the

square of the deviation from the mean is minimum, the deviations are taken only from

mean (but not from median or mode).

Standard Deviation is the root-mean-square average of all the deviations from

the mean and it is denoted by (sigma).

E-mail :- nilesh_pazare@rediffmail.com

22

Ans: Arrange the data in an ascending order.

* 100

X

38.50

= 0.8436 * 100 = 84.36%

CV =

CV

* 100 =

X

43.10

= 0.8271 * 100 = 82.71%

= 8.6168 = 8.62

8.62

CV

CV

74.25

B is better in studies and he should get a prize also as his average is more and variance

is less.

P A Z A R E

Ex (5):- Prices of particular commodity in five yearsin two cities are given below.

Tests:

1

2

3

4

5

City A :

20

22

19

23

16

City B :

10

20

18

12

15

Find from the table which city had more stable prices.

Ans:

City A

City B

x

d=x - X

d2 = d*d

x

d=x-X

d2 = d*d

2

16

16-20= -4 (-4) =16

10

10-15 = -5

( -5 )2 = 25

2

19

19-20= -1 (-1) = 1

12

12-15 = -3

( -3 )2 = 9

20

20-20= 0 (0)2 = 0

15

15-15 = 0

( 0 )2 = 0

2

22

22-20= 2 (2) = 4

18

18-15 = 3

( 3 )2 = 9

2

23

23-20= 3 (3) = 9

20

20-15 = 5

( 5 )2 = 25

x=100

d2 = 30

x=75

d2 = 68

x

100

x

75

X =

=

= 20

X =

=

= 15

n

5

n

5

dn = 305

= 2.45

dn = 685

13.6

= 3.6878 = 3.69

Second Edition 2013 - 2014

E

22

* 100 =

* 100

X

61.5

= 0.1401 * 100 = 14.01%

R

6

7

8

9

10

72

72

51

60

54

69

72

51

57

66

is the criterion for awarding a prize, who

CV =

* 100 =

* 100

X

60.90

= 0.2022 * 100 = 20.22%

(Tip:- The word-> more consistent, more stable, more uniform then check the coefficient of

variation value and if coefficient value (cv) is less, then that group is more consistent,

more stable and more uniform.)

4

5

48

52

60

63

if consistency

N I L E S H

DECO is a better run scorer and more consistent player than NEKO. (because his average is more and variation is less)

marks each.

Tests:

1

2

3

A:

44

80

76

B:

48

75

54

Find who is better in studies and

should get the prize.

742.50

10

= 12.3162 = 12.32

12.32

1270.69

* 100

d 2 =

n

P A

* 100 =

151.69

CV =

P A Z A R E

= 35.647 = 35.65

35.65

615

= 61.5

10

1516.90

10

x

=

n

12706.90

10

d 2 =

n

X =

d2 = d*d

(-13.5)2=182.25

(-10.5)2=110.25

(-7.5)2=56.25

(-4.5)2=20.25

(-1.5)2=2.25

(1.5)2=2.25

(4.5)2=20.25

(7.5)2=56.25

(10.5)2=110.25

(13.5)2=182.25

d2 = 742.50

d 2 =

n

609

= 60.90

10

-13.5

-10.5

-7.5

-4.5

-1.5

1.5

4.5

7.5

10.5

13.5

CV =

x

=

n

(B) x

d=x-X

48 48-61.5=

51 51-61.5=

54 54-61.5=

57 57-61.5=

60 60-61.5=

63 63-61.5=

66 66-61.5=

69 69-61.5=

72 72-61.5=

75 75-61.5=

x=615

1054.65

431

= 43.1

10

X =

P A

10546.50 =

10

x

=

n

d 2 =

n

X =

385

= 38.5

10

d2 = d*d

(-35.1)2=1232.01

(-35.1)2=1232.01

(-31.1)2=967.21

(-30.1)2=906.01

(-27.1)2=734.41

(-3.1)2=9.61

(12.1)2=166.41

(41.9)2=1755.61

(52.9)2=2798.41

(53.9)2=2905.21

d2 = 12706.90

x

=

n

= 32.475 = 32.48

32.48

CV

DECO

x

d=x-X

8

8-43.1= -35.1

8

8-43.1= -35.1

12 12-43.1= -31.1

13 13-43.1= -30.1

16 16-43.1= -27.1

40 40-43.1= -3.1

56 56-43.1= 12.9

85 85-43.1= 41.9

96 96-43.1= 52.9

97 97-43.1= 53.9

x=431

N I L E S H

X =

d2 = d*d

(-38.5)2=1482.25

(-31.5)2=992.25

(-25.5)2=650.25

(-24.5)2=600.25

(-16.5)2=272.25

(-2.5)2=6.25

(6.5)2=42.25

(26.5)2=702.25

(43.5)2=1892.25

(62.5)2=3906.25

d2 = 10546.50

NECO

x

d=x - X

0

0-38.5= -38.5

7

7-38.5= -31.5

13 13-38.5= -25.5

14 14-38.5= -24.5

22 22-38.5= -16.5

36 36-38.5= -2.5

45 45-38.5= 6.5

65 65-38.5= 26.5

82 82-38.5= 43.5

101 101-38.5= 62.5

x=385

d2 = d*d

(-16.9)2=285.61

(-12.9)2=166.41

(-9.9)2=98.01

(-8.9)2=79.21

(-6.9)2=47.61

(-0.9)2=0.81

(11.1)2=123.21

(11.1)2=123.21

(15.1)2=228.01

(19.1)2=364.81

d2 = 1516.90

(A) x

d=x - X

44 44-60.9= -16.9

48 48-60.9= -12.9

51 51-60.9= -9.9

52 52-60.9= -8.9

54 54-60.9= -6.9

60 60-60.9= -0.9

72 72-60.9= 11.1

72 72-60.9= 11.1

76 76-60.9= 15.1

80 80-60.9= 19.1

x=609

Ex (3):- Following are the runs scored by the two batsmen named NEKO and DECO in ten

innings. Find who is better scorer and who is more consistent.

NEKO:

101

22

0

36

82

45

7

13

65

14

DECO:

97

12

40

96

13

8

85

8

56

16

Ans: Arrange the data in an ascending order.

E-mail :- nilesh_pazare@rediffmail.com

23

3.69

*100 =

* 100

X

15

= 0.246 * 100 = 24.60%

CV =

CV

Coefficient of variation is less in prices of City A: the prices of City A are more stable than

the City B.

2.66 - ( -0.925)

2.66 - 0.8556

1.08

94

40

-32

X = 1.2

( 40 )

2.35 - ( -0.8)

* 100

- 0.64

23

1.6

- 0.3136

= 1.1341 = 1.134

fx

13*13=169

14*10=140

15*12=180

16*2=32

17*1=17

x=538

Girls

d=x-A

-2

-1

0

1

2

fd

13* -2 = -26

10* -1 = -10

12* 0 = 0

2* 1 = 2

1* 2 = 2

fd= -32

= 7.85%

fd 2

-2 * -26 = 52

-1* -10 = 10

0*0=0

1*2=2

2*2=4

fd2 =68

P A Z A R E

= 1.0804

fd 2

n -

(n)

68

38

-32

fx

=

n

X =

538

38

X = 14.1578 = 14.16

( 38 ) =

1.7895 - ( -0.8421) 2 =

1.7895- 0.7091

= 1.0394 = 1.04

X

14.16

Ex (8):- An agent obtained samles of bulbs

durability and got the followig results.

Durability in 00 hr: 17-19

19-21

Company A:

100

160

Company B:

30

420

Which company bulbs are more uniform?

QDM notes for MBA

21-23

260

120

23-25

80

30

Second Edition 2013 - 2014

= 1.3076 = 1.31

CV = * 100 = 1.31

X

1.2

2.35

f

13

10

12

2

1

n=38

48

40

1.6 - ( -0.56)

(n)

fx

=

n

14.44

= 1.71

X =

fd 2

-2 * -34 = 68

-1* -9 = 9

0*0=0

1*5=5

2 * 6 = 12

fd2 =94

fd

n

fx

0*17=0

1*9=9

2*6=12

3*5=15

4*3=12

x=48

-28

50

N I L E S H

f

17

9

6

5

3

n=40

Match B

d=x-A

fd

-2

17* -2 = -34

-1

9* -1 = -9

0

6* 0 = 0

1

5* 1 = 5

2

3* 2 = 6

fd= -32

P A

P A Z A R E

80

50

x

0

1

2

3

4

= 1.3432 = 1.34

x

13

14

15

16

17

( 53 )

CV =

-49

P A

1.8044

141

53

= 1.2864

CV =

(n)

(n)

fd 2

N I L E S H

fd

n

Ex (6):- The goals scored by two teams A and B in the football matches were as follows.

Goals:

0

1

2

3

4

Matches A:

27

9

8

4

5

B:

17

9

6

5

3

Find the team which is more consistent.

Ans:

Match A

x

f

fx

d=x-A

fd

fd 2

0

27

0*27=0

-2

27* -2 = -54

-2 * -54 = 108

1

9

1*9=9

-1

9* -1 = -9

-1* -9 = 9

fx

57

X =

=

2

8

2*8=16

0

8* 0 = 0

0*0=0

n

53

3

4

3*4=12

1

4* 1 = 4

1*4=4

X = 1.0755 = 1.08

4

5

4*5=20

2

5* 2 = 10

2 * 10 = 20

n=53

x=57

fd= -49

fd2 =141

Ex (7):- The following table gives the age distribution of boys and girls in a high school.

Find which of the tow groups is more variable in age.

Age in Years:

13

14

15

16

17

No.of Stu (boys):

12

15

15

5

3

(girls):

13

10

12

2

1

Ans:

Boys

x

f

fx

d=x-A

fd

fd 2

13 12

13*12=156

-2

12* -2 = -24

-2 * -24 = 48

14 15

14*15=210

-1

15* -1 = -15

-1* -15 = 15

fx

722

X =

=

15 15

15*15=225

0

15* 0 = 0

0*0=0

n

50

16 5

16*5=80

1

5* 1 = 5

1*5=5

X = 14.44

17 3

17*3=51

2

3* 2 = 6

2 * 6 = 12

n=50

x=722

fd= -28

fd2 =80

2.45

* 100 =

* 100

X

20

CV = 0.1225 * 100 = 12.25%

CV =

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Ans:

24

A Company

fd

f

-1* -100=100 30

0*0 = 0

420

1*260=260

120

2*160=320

30

fd2=680

n=600

fd

-1*30=-30

0*420=0

1*120=120

2*30=60

fd=150

= -1

CI

500-700

700-900

900-1100

1100-1300

CV =

* 100

XB =

A =

( 150

)

600

0.45 - (0.25)2 * 2

- 0.2844 * 2

B =

0.45 - 0.0625 * 2

* 2 = 0.9213 * 2

0.3875

* 100 =

1.85

21.07

B =

* 100

CVB =

* 2 = 0.6225 * 2

1.2449 = 1.25

B

XB

= -200 = -1

200

* 100 =

1.25

20.5

fd

fd2 fd 2

* c ,

=

* c

n

n

n

Put the values from above table and

A = 800, c = 200

* 100

24

CV =

* 100

XB = 800 + 17

* 200

61

= 800 + 0.2787 * 200

= 800 + 55.7377 = 855.7377

XB = 855.74

N I L E S H

A =

A =

A =

72

64

( 36

)

64

* 200

B =

CVA =

( 17

)

61

* 200

P A Z A R E

2

1.125 - 0.31641 * 200

0.8086 * 200 = 0.8992 * 200

A =

31

61

179.8432

A

XA

= 179.84

B =

B =

B =

B =

0.43043

179.84

* 100 =

912.5

* 100

CVB =

131.2143 = 131.22

B

XB

131.22

* 100 =

855.74

* 100

B Suppliers lamps are more Uniform as their variation is less than the A Suppliers

lamps.

Ex (10):- An analysis of the monthly wages paid to workers in two firms A and B belonging to the same industries givs the following results:

Firm A

Firm B

No. of wage earners

Average monthly wage

Variance of the distribution

QDM notes for MBA

586.00

Rs. 52.50

Rs. 100.00

648.00

Rs. 47.50

Rs. 121.00

Second Edition 2013 - 2014

Ex (9):- A purchasing agent obtained samples of lamps from two suppliers A and B with

the following information.

Length of the Life hr: 500-700 700-900 900-1100

1100-1300

Supplier A:

10

16

30

8

Supplier B:

3

42

12

4

W hich Suppliers lamps are more uniform?

The Bulbs of B company are more Uniform and durable than the bulbs of A company

as the variation in B bulbs is less.

XA = 800 + 36

* 200

64

= 800 + 0.5625 * 200

= 800 + 112.5 = 912.5

XA = 912.5

CVA =

XA

B =

= 1.85

-1*-3=3

0*0 = 0

1*12=12

2*8=16

fd2=31

1.8426

- (0.5333)2 * 2

200

200

d =

X = A+

A =

*2

CVA =

270

600

CVA =

B =

P A Z A R E

1.1333

1.1333

0.8489

A =

*2

fd2

fd

-1*3=-3

0*42=0

1*12=12

2*4=8

fd=17

P A

A =

( 320

)

600

P A

A =

680

600

f

3

42

12

4

n=61

A =

N I L E S H

XB

-1* -10=10

0*0 = 0

1*30=30

2*16=32

fd2=72

20 + 150 * 2

600

= 20 + 0.25 * 2

= 20 + 0.5 = 20.5

= 20.5

XA = 20 + 320 * 2

600

= 20 + 0.5333 * 2

= 20 + 1.0667 = 21.0667

XA = 21.07

fd

-1*10= -10

0*16= 0

1*30=30

2*8=16

fd=36

fd

10

16

30

8

n=64

-1

0

1

2

fd

fd2 fd 2

* c ,

=

* c

n

n

n

Put the values from above table and

A = 20, c = 2

2

2

X = A+

Xm

600

800

1000

1200

d = Xm- 20 = 18-20 = -2

2

2

2

= 18

fd

-1*-30=30

0*0 = 0

1*120=120

2*60=120

fd2=270

17+19 = 36

2

2

Xm =

fd

-1*100= -100

0*160= 0

1*260=260

2*80=160

fd=320

B Supplier

2

f

100

160

260

80

n=600

A Supplier

d

-1

0

1

2

Xm

18

20

22

24

Ans:

2

CI

17-19

19-21

21-23

23-25

B Company

2

E-mail :- nilesh_pazare@rediffmail.com

25

E-mail :- nilesh_pazare@rediffmail.com

Ans:-

x

n

X =

* 100

X

11

CV = 47.50 * 100

CV = 0.23147 * 100

CV = 23.15%

Ex (11):- A study of large number of workers revealed an average pulse rate of 81 beats er

minute and standard deviation 12.2 beats. Measurement of heights gave averages 66.9

inches and standard deviation 2.7 inches. Are the industrial workers more variable in

respect of pulse rate?

P A

CV = 15.06%

CV = 4.04%

P A Z A R E

1)

Skp =

X - z

X - Mean,

Me - Median,

or

2)

z - Mode,

Skp =

3( X - Me)

( N 2+1 )

Median ( Me )

th item

( 7+1

)

2

( 82 )

= ( 4 ) th item = 56

56

3)

Quartile Deivation

th item

Q 3 - Q1

2

Q1 =

N+1

4

th item

& Q3 =

3( N + 1 )

4

Q1 =

I L E

H

(N)

(

)S

Q1 =

( 7 4+ 1 )

th item

N+1

4

Q3 = 3( N+1)

4

th item

( 84 )

th item

Q1 =

( 3(74+ 1))

th item

th item

( 3 4* 8 )

th item

th item

P A Z A R E

Q1 = ( 2 ) th item =

53

Q1 = 56

Q 3 - Q1

64 - 53

Q. D. =

=

2

2

Quartile Deviation (Q.D.) = 5.6

4) Mean Deviation

x

d=x-X

46

46-61= -15

x

427

X=

=

53

53-61= -8

N

7

X = 61

54

54-61= -7

56

56-61= -5

= d = 72

60

60-61= -1

N

7

= 10.2857

64

64-61= 3

94

94-61= 33

= 10.29

x=427 d = 72

Mean Deviation ( ) = 10.29

and

Q3 = ( 5 ) th item

Q3 = 64

11

=

2

th item

( 24

4 )

64

5.6

5) Standard Deviation

d2

(-15)2= 225

d 2

1462

(-8)2= 64

=

=

N

7

(-7)2= 49

2

(-5) = 25

= 208.8571

(-1)2= 1

= 14.4519

(3)2= 9

= 14.45

(33)2= 1089

d2 = 1462

Standard Deviation () = 14.45

(Tip:- All the Methods can solve from only one example, so student practise all the

types from only one example for better understand and easy to solve any methods.)

- Standard deviation

25

Karl Person has stated a formula for relative measure of skewness. That is why, the

formula is known as Karl Persons Coefficient of Skewness. It is based on the difference between the Mean and Mode of the distribution which is divided by the standard

deviation. It is denoted by symbolically by Skp.

th item

Median (Me) =

427

= 61

7

Yes the industrial workers are more variable in pulse rate. Pulse rate variable is more

than the Height in inches.

x

=

N

N

46 + 53 + 54 + 56 + 60 + 64 + 94

X =

7

Arithmetic Mean X = 61

X

94

7

Height in inches

X = 66.9, = 2.7

2.7

CV =

* 100

=

* 100

X

66.9

CV = 0.04035 * 100 = 4.035%

64

6

P A

Pulse Rate

X = 81, = 12.2

12.2

CV =

* 100 =

* 100

X

81

CV = 0.15061 * 100 = 15.06%

Ans:-

60

5

Factory B pays out more wages than factory A, and at the same it has greater variability

also.

N I L E S H

2)

56

4

x = X * n

x = 47.50 * 648

x = 30780 Rs.

1)

x = X * n

x = 52.50 * 586

x = 30765 Rs.

= 11

CV =

54

3

variance

=

121

x

n

X =

53

2

10

* 100

X

10

CV = 52.50 * 100

CV = 0.190476 * 100

CV = 19.05%

46

1

CV =

X:

N:

variance

= 100

Firm B

Firm A

Ex (12):- Find out the Arithmetic Mean, Median, Quartile Deviation, Mean Deviation ,

Standard Deviation from following given data.

53, 56, 64, 54, 46, 60, 94.

i) Which firm pays out the larger amount as monthly wages? and

ii) In which firm is there greater variability in individual wage?

26

Q.D. = Q3 - Q1

2

L = 18.5 , cf = 9 , f = 2 , c = 3

=

64.5 - 42.46

22.04

P A Z A R E

fd = 31 , fd2 = 123 , n = 22 , c = 3

d

- (

)

fd

n

n

x c =

31

- ( )

123

22

22

5.5909 - (1.40909) x 3

=

=

1.8988

3.6054 x 3

x 3

5.5909

x 3

- 1.9855

x 3

5.6963 =

5.70

5.5 - 3

Q1 = 15.5 + x 3

6

16.5 - 14

Q3 = 24.5 + x 3

4

CV =

* 100 =

5.70

X

21.23

Coefficient of Variance (CV) = 26.83%

= 26.83%

3N/4- cf

Q3 = L + x c

f

3N

3 x 22

66

=

=

= 16.5

4

4

4

L = 24.5,cf = 14, f = 4,

c=3

)x c

Q1 = L +

3N/4-cf

N/4-cf

x c & Q3 = L +

f

f

N/4 - cf

Q1 = L +

x c

f

N = 22,

N

22

=

= 5.5

4

4

L = 15.5, cf = 3, f = 6,

c=3

6) Standard Deviation ( )

Q3 - Q1

4) Quartile Deviation (QD) =

2

fd = 31 , n = 22 , c = 3

= 3 * 21.5 - 2 * 21.23

z = 3 Me - 2 X

fd

x c

n

= 31 x 3

22

3) Mode (z)

0.2232

N I L E S H

( N / 2 - cf)

11 - 9

2

x c = 18.5 +

x 3 = 18.5 +

x 3 = 18.5 + (1 x 3)

f

2

2

Me = 18.5 + 3 = 21.5

Me = L +

= 11

P A

P A Z A R E

N / 2 = 22 / 2

9.63

43.13

17 + (1.40909) * 3

2) Median (Me)

26.38-16.75

26.38+16.75

5) Mean Deviation ()

P A

31 * 3

22

17 +

Q 3 - Q1

Q3 + Q1

Coffiecient of Q.D. =

d = Xm - A = 11 - 17 = -6 = -2

c

3

3

=

= 4.815

N I L E S H

fd * c

n

9.63

2

1) Mean

X = A +

26.38-16.75 =

2

c = 12.5 - 9.5

c=3

fd2

-2 * -4 = 8

-1 * -1 = 1

0*0=0

1*2=2

2 * 6 = 12

3 * 12 = 36

4 * 16 = 64

fd2 = 123

f.d

2* -2= -4

1* -1= -1

6*0 = 0

2*1 = 2

3*2 = 6

4*3 = 12

4*4 = 16

fd= 31

21 = 11

2

d

-2

-1

0

1

2

3

4

cf

2

1+2=3

6+3=9

2+9=11

3+11=14

4+14=18

4+18=22

f

2

1

6

2

3

4

4

N=22

10+12

2

Xm =

Xm

11

14

17

20

23

26

29

C.I.

9.5-12.5

12.5-15.5

15.5-18.5

18.5-21.5

21.5-24.5

24.5-27.5

27.5-30.5

C.I.

10-12

13-15

16-18

19-21

22-24

25-27

28-30

2.5

Q3 = 24.5 + x 3

4

= 24.5 + 0.625 x 3

= 24.5 + 1.875

= 26.375

Q3 = 26.38

2.5

Q1 = 15.5 + x 3

6

= 15.5 + 0.4166 x 3

= 15.5 + 1.25

= 16.75

Q1 = 16.75

Ex (13):- Find out the Mean, Median, Mode, Quartile Deviation, Coefficient of QD, Mean

Deviation, Standard Deviation and coefficient of variation from following given data.

C.I. :

10-12 13-15 16-18 19-21 22-24 25-27 28-30

f:

2

1

6

2

3

4

4

Ans:- Since there is an inclusive class interval distribution, we shall convert it into

exclusive class interval series.

E-mail :- nilesh_pazare@rediffmail.com

(Tip:- All the Methods can solve from only one example, so student practise all the

types of problems from only one example for better understand and easy to solve any

methods.)

26

27

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dxdy

r

dxdy

2

dx dy

0.6745

1 - r2

n

Ex (1):- From the following table calculate the coefficient of correlation by Karl Pearsons

method. Arithmetic mean of X and Y variables are 6 and 8 respectively. Comment on the

result through the Probeable Error.

X: 6

2

10

8

Y: 9

11

8

7

27

When the X and Y of the variables are fractional figures, the computation

will be a tedious job. Under such circumstances, we can take the deviations from the

assumed means for the two variables (the next nearest whole number to the

actual mean preferably). Then we have the Short cut formula as under.

Reason for taking the factor 0.6745 is that in a normal distribution 50% of the observation lie in the range 0.6745 where is the mean and is the standard deviation.

These above formula are quite conveniently applied, if the X and Y of the variables are

integer or whole numbers.

P.E. =

P A Z A R E

P A

N I L E S H

population. It is not possible to consider the entire population (census method) in statistical analysis and arrive true or actual results. So there lies error in the sampling result as

compared to the actual result obtained in the census method.

Probable Error is a measure (a single fractional figure) which when added to and

substracted from , gives us the two limits, within these two limits, it is probable that all

the results or answers (coefficient of correlation) of the sample pairs, selected from the

same population, will fail. Thus the probable error is a statistical measure which provied

for two limits within which all the answers, obtained from different sample pairs of the

population, will fail.

It is based on the standard errors multiplied by the probable factor. It is obtained by the

formula:

n dx xdy

n

n

dxdy

n

x y

=

2

covariance

x y

dxdy

n

Actual Mean of y

Assumed Mean of y

P A

dxdy

Covariance

Y Ay -

Probable Error:

r =

dy)2

n

Actual Mean of x

Assumed Mean of x

(c) Refer....

P A Z A R E

dxdy

n x y

dx ) ( dy )

= n ( X - Ax ) ( Y - Ay )

n

(b) Refer....

r =

X Ax -

N I L E S H

The formula may be presented as under.

dy

(a) Refer....

dy - Deviation of x values of variable from there Y i.e. (y - Y).

x - Standard Deviation of X varable.

y - Standard Deviation of Y varable.

n - Number of items paired.

dx)2

n

(Note: Though the formula seems to be lengthy, the calculations are amazingly simplified.

r =

dx

Where, x = ( x - X ) = dx

y = ( y - Y ) = dy

xy

n x y

dx ) ( dy )

n

The formula is based on arithmetic mean and standard deviation and it is most

widely used. The formula indicates whether the correlation is positive or negative. The

answer lies between +1 and -1 (Perfect Positive and Negative correlation respectively).

Zero represents the absence of correlation.

Karl Pearsons coefficient of correlation is also known as the Product Moment

Coeficient. It is denoted by r which is the symbol of the degree of correlation between

the two variables. Coefficient of Correlation is the numberical measure of the amount

of correlation existing between the two variables X and Y, the subject and the relative

respectively. The variable which is used as the standard is called the subect, and the

variable which is compared with the subject is called the relative. The Coefficient is

calculated by dividing the product of all the deviations of each pair of observations from

their respective means by the product of the standard deviations of the two variables

multiplied by the number of items.

28

X variable

Y variable

N I L E S H

dxdy

r =

800

-26

= -0.9192

1 - r2

1 - (-0.9192)2

1 - 0.8449

0.1550

= 0.6745

= 0.6745

= 0.6745

n

2.2360

5

5

0.6745 x 0.06932

=

0.046756

= 0.04676

0.04676

6

36

12

dx

(-1)2= 1

(4)2= 16

(-1)2= 1

(y-24)/6

dy

(6-24)/6= -3

(36-24)/6= 2

(12-24)/6= -2

dy

(-3)2= 9

(2)2= 4

(-2)2= 4

N I L E S H

dxdy

-1 x -3 = 3

4 x2 = 8

-1 x -2 = 2

28

0.143

The two limits, within which all the rs of different samples fall are,

P A Z A R E

0.575

+ 0.143

0.718

0.575

- 0.143

0.432

(Positive Range)

Ex (3):- Calculate the coefficient of corelation between income and weight from the following data.

Income (Rs) X: 100

200

300

400

500

600

Weight (lbs) Y: 120

130

140

150

160

170

Ans:Computation of Coefficient of Correlation

x

(x-350)/50

dx

100

120 (100-350)/50= -5

200

130 (200-350)/50= -3

300

140 (300-350)/50= -1

400

150 (400-350)/50= 1

500

160 (500-350)/50= 3

600

170 (600-350)/50= 5

x=2100 y=870 dx=0

QDM notes for MBA

dx2

(y-145)/5

dy

(-5)2= 25 (120-145)/5=

(-3)2= 9 (130-145)/5=

(-1)2= 1 (140-145)/5=

(1)2= 1

(150-145)/5=

(3)2= 9

(160-145)/5=

(5)2= 25 (170-145)/5=

dx2=70

dy=0

dy2

-5

-3

-1

1

3

5

dxdy

(-5)2= 25

(-3)2= 9

(-1)2= 1

(1)2= 1

(3)2= 9

(5)2= 25

dy2=70

-5 x -5 = 25

-3 x -3 = 9

-1 x -1 = 1

1 x1 = 1

3 x3 = 9

5 x 5 = 25

dxdy= 70

30

60

30

(x-36)/6

dx

(30-36)/6= -1

(60-36)/6= 4

(30-36)/6= -1

1 - r2

1 - (0.575)2

1 - 0.3306

0.6693

= 0.6745

= 0.6745

= 0.6745

n

10

10

3.1623

0.6745 x 0.21164

=

0.1428 =

0.1428

= 0.575

83.4745

Ex (2):- Calculate the coefficient of corelation from the following data and calculate its

Probeable Error.

Marks in

Statistics(X):

30, 60, 30, 66, 72, 24, 18, 12, 42, 06

Account(Y):

06, 36, 12, 48, 30, 06, 24, 36, 30, 12

Ans:Computation of Coefficient of Correlation

6968

48

134 x 52

P.E. = 0.6745

P.E. =

x dy

48

= 24

P.E. = 0.6745

P.E. =

28.2842

P A Z A R E

r = -0.92

dx

48

=

2

240

10

y =

n

P A

40 x 20

-26

r = 0.575

P A

dx2 x dy2

-26

dxdy

r =

Y =

5 x 4 = 20

6 x1 = 6

-2 x -3 = 6

-3 x 0 = 0

-4 x -2 = 8

1 x -1 = 1

-5 x -2 = 10

dxdy= 48

dxdy

0 x1 = 0

-4 x 3 = -12

4 x -3 = -12

-2 x 0 = 0

2 x -1 = -2

dxdy= -26

= 36

(4)2= 16

(1)2= 1

(-3)2= 9

(0)2= 0

(2)2= 4

(1)2= 1

(-2)2= 4

dy2=52

dy2

(1)2= 1

(3)2= 9

(-3)2= 9

(0)2= 0

(-1)2= 1

dy2=20

360

10

dxdy

dy=(y-8)

9-8= 1

11-8= 3

5-8= -3

8-8= 0

7-8= -1

dy=0

dx2

(0)2= 0

(-4)2= 16

(4)2= 16

(-2)2= 4

(2)2= 4

dx2=40

dx=(x-6)

6-6= 0

2-6= -4

10-6= 4

4-6= -2

8-6= 2

dx=0

x =

n

X =

y

9

11

5

8

7

y=40

x

6

2

10

4

8

x=30

66

72

24

18

12

42

06

x=360

dy2

(y-24)/6

dy

(5)2= 25 (48-24)/6= 4

(6)2= 36 (30-24)/6= 1

(-2)2= 4

(6-24)/6= -3

(-3)2= 9

(24-24)/6= 0

(-4)2= 16 (36-24)/6= 2

(1)2= 1

(30-24)/6= 1

(-5)2= 25 (12-24)/6= -2

dx2=134

dy=0

(x-36)/6

dx

48

(66-36)/6= 5

30

(72-36)/6= 6

06

(24-36)/6= -2

24

(18-36)/6= -3

36

(12-36)/6= -4

30

(42-36)/6= 1

12

(6-36)/6= -5

y=240 dx=0

9+11+B+8+7

Y = y =

n

5

35

+

B

8 =

5

8 x 5 = 35 + B

40 = 35 + B

B = 40 - 35 = 5

B = 5

dx2

X = x = 6+2+10+A+8

n

5

26

+

A

6 =

5

6 x 5 = 26 + A

30 = 26 + A

A = 30 - 26 = 4

A = 4

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x

=

n

X =

29

2100

= 350

6

870

6

y

=

n

Y =

= 145

490

= 1

70

dx)2

n

2

dx ) ( dy )

n

dy2 -

dx2

(5) = 25

(-15)2= 225

(-15)2= 225

(15)2= 225

(25)2= 625

(10)2= 100

dx2=1425

1425 -

29

15)2

6

dxdy

-5 x 0 = 0

-15 x 10=-150

-15 x 10=-150

15 x -20=-300

15 x -30=-750

10 x -15=-150

dxdy=-1500

( 15 ) ( -45 )

6

2

1725 - -45)

6

-1500

dy)2

n

P A Z A R E

-1500

dy2

(0) = 0

(10)2= 100

(10)2= 100

(-20)2= 400

(-300)2= 900

(-15)2= 225

dy2=1725

dy=(y-40)

(40-40)= 0

(50-40)= 10

(50-40)= 10

(20-40)= -20

(10-40)= -30

(25-40)= -15

dy=-45

1425 - 2256

-675

6

1725 - 2025

6

-1500 - ( -112.5)

r

-1500 + 112.5

1425 - 37.5

1725 - 337.5

-1387.5

=

37.25 x 37.25

-1387.5

1387.5

1387.5

1387.5

-1

Put

y

dx=(x-65)

40

(60-65)= -5

50

(50-65)= -15

50

(50-65)= -15

20

(80-65)= 15

10

(90-65)= 25

25

(75-65)= 10

y=195 dx=15

x

60

50

50

80

90

75

x=405

dx

N I L E S H

-1

= 32.5

dxdy

1387.5

(Note: 67.5 - 2.5 = 65 & 32.5 + 7.5 = 40, put the assumed mean 65 & 40 and solve it, the

answer is come same.)

(Note: Deviation are taken from the assumed means and the short cut formula is used.

Because actual means 67.5 and 32.5 are in fractions. 67.5 - 7.5 = 60 & 32.5 + 2.5 = 35)

1387.5

P A

195

6

-1387.5

1387.5

-1500 + 112.5

y =

n

-1387.5

=

37.25 x 37.25

Y =

dxdy

0 x5 = 0

-10 x 15=-150

-10 x 15=-150

20 x -15=-300

30 x -25=-750

15 x -10=-150

dxdy=-1500

405 = 67.5

6

dy2

(5)2= 25

(15)2= 225

(15)2= 225

(-15)2= 225

(-25)2= 625

(-10)2= 100

dy2=1425

-1500 - ( -112.5)

x =

n

dy=(y-35)

(40-35)= 5

(50-35)= 15

(50-35)= 15

(20-35)= -15

(10-35)= -25

(25-35)= -10

dy=-15

P A

X =

dx2

(0)2= 0

(-10)2= 100

(-10)2= 100

(20)2= 400

(30)2= 900

(15)2= 225

dx2=1725

r = -1

1425 - 225

6

y

dx=(x-60)

40

(60-60)= 0

50

(50-60)= -10

50

(50-60)= -10

20

(80-60)= 20

10

(90-60)= 30

25

(75-60)= 15

y=195 dx=45

-675

6

1725 - 2025

6

(Like that find others)

how to find % -->

(480 / 800) * 100 = 60%

(320 / 800) * 100 = 40%

P A Z A R E

1425 - -15)

6

L

Ex (4):- Calculate Karl Persons coefficient of corelation between percentages of pass

and failure from the following data.

No. of Student: 800

600

900

700

500

400

No. of Passed: 480

300

450

560

450

300

Ans:- Let us convert the data into the number of students passed and failed.

No. of Student:

800

600

900

700

500

400

No. of Passed (X):

480

300

450

560

450

300

No. of Failed (Y):

320

300

450

140

050

100

Pass % (X) :

060

050

050

080

090

075

Fail % (Y):

040

050

050

020

010

025

N I L E S H

45)2

6

-1500

x

60

50

50

80

90

75

x=405

1725 -

r = 1

70 x 70

70

( 45 ) ( -15 )

6

dx2 x dy2

70

70

dxdy

-1500

r

The deviation are divided by common factor and short cut method adopted.

r =

E-mail :- nilesh_pazare@rediffmail.com

30

dxdy

Average Profit =

Profit

No. of shops

&

Average Profit =

7200

= 600

12

&

dx

dx)2

n

46

36

6

-22 - 3

r

19 - 1.5

-25

=

4.1833 x 6.3245

-25

=

46 - 6

-25

26.4575

17.5

(x-320)/10

dx2

(y-140)/10

dy2

dx

dy

600

100 (600-320)/10=28 784

(100-140)/10= -4

16

300

200 (300-320)/10= -2 4

(200-140)/10= 6

36

400

300 (400-320)/10= 8

64

(300-140)/10= 16

256

150

50

(150-320)/10= -17 289

(50-140)/10= -9

81

180

60

(180-320)/10= -14 196

(60-140)/10= -8

64

x=1630 y=710

dx= 3

dx2=1337

dy= 1

dy2=453

x

P A Z A R E

x

=

n

X =

1630

= 326

5

1337 -

-0.94491

30

Y =

y

=

n

710

5

28 x -4 = -112

-2 x 6=-12

8 x 16=128

-17 x -9=153

-14 x -8=112

dxdy=269

= 142

(Note: Deviations are taken from the assumed means. i.e. 326-6 = 320 & 142-2 = 140)

dx ) ( dy )

dxdy n

r

=

2

dx)

dy)2

2

dx2 dy

n

n

269

40

dxdy

3)2

5

(3)(1)

5

453

1)2

5

Second Edition 2013 - 2014

9

6

19

N I L E S H

18

6

-6)2

6

46 -

- 25

dy)2

n

( -3 ) ( -6 )

6

-3)2

6

19 -

1200

= 100

12

dy

-25

r

dx ) ( dy )

n

Advert. Expenses

No. of Shops

P A

P A

dxdy

Average A.E. =

We are taking assumed means. In Y varaible we are dividing the deviation by the common

factor. So a short cut formula is used.

P A Z A R E

N I L E S H

Ex (6):- Find Pearsonian coefficient of correlation between average profits and average

advertisement expenditure per shop and interpret. calculate its Probeable Error.

No. of shops:

12

18

25

20

10

Total Profit (Rs):

7200

5400

10000 3000

1800

Total Advertisement Exp(Rs): 1200

3600

7500

1000

600

Ans:- Let us obtain the average profits and average advertisement expenses X & Y.

-3 x 2= -6

-2 x 1= -2

-1 x 0=0

0 x -1= 0

1 x -2= -2

2 x -6= -12

dxdy=-22

0.014

(y-50)/5

dy2

dy

(60-50)/5= 2

4

(55-50)/5= 1

1

(50-50)/5= 0

0

(45-50)/5= -1

1

(40-50)/5= -2

4

(20-50)/5= -6

9

dy=-6

dy2=46

% of

y

60

55

50

45

40

20

(x-23.5)

dx2

dx

20.5-23.5=-3

9

21.5-23.5=-2

4

22.5-23.5=-1

1

23.5-23.5=0

0

24.5-23.5=1

1

25.5-23.5=2

4

dx=-3

dx2=19

P.E. =

M.V.

x

20.5

21.5

22.5

23.5

24.5

25.5

Age

C.I.

20-21

21-22

22-23

23-24

24-25

25-26

1 - r2

1 - (-0.95)2

1 - 0.9025

0.04975

= 0.6745

= 0.6745

= 0.6745

n

2.44948

6

6

0.6745 x 0.02031

=

0.01369

= 0.014

P.E. = 0.6745

how to find mid value --> (20+21) / 2 = 41 / 2 = 20.5 (Like that find others)

how to find % -->

(72 / 120) * 100 = 60%

(55 / 100) * 100 = 55%

r = -0.95

Ex (5):- Following are the results of B.Com. examination in a college. Compute coefficient

of correlation between age and sucess in the examination and interpret the result. calculate its Probeable Error.

Age of Candidates: 20-21 21-22 22-23 23-24 24-25 25-26

Candi. Appeared:

120

100

70

40

10

5

Successful Cand:

72

55

35

18

4

1

Ans:- Let us obtain the Mid-value of age group and convert the successful candidates into

percentages.

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31

269

r

=

9

5

453

1

5

269 - ( 0.6 )

268.4

=

36.54 x 21.279

r = 0.3451

0.3451

0.2659

0.2659

0.3451

- 0.2659

0.0792

(Positive Range)

100

X =

P A Z A R E

x

n

320

8

= 40

Y =

dxdy

dx

dx)2

n

y

=

n

1482.78

= 185.35

8

dx ) ( dy )

n

dy

dxdy

-5 x -5 = 25

1 x 1= 1

-1 x -1= 1

5 x 5= 25

3 x 2= 6

-3 x -2= 6

dxdy=64

(y-185)

dy2

dxdy

dy

55-185= 130

16900 910

66.67-185= 118.33 14002 591.65

100-185= 85

7225 255

111.11-185= -73.89 5460 73.89

150-185= -35

1225 -35

200-185= 15

225

45

300-185= 115

13225 575

500-185= 315

99225 2205

dy

dy2

dxdy

2.78

157487 4620.54

dy)2

n

on above formula

31

dy2

25

1

1

25

4

4

dy2=60

dy = (y-15)

(10-15) = -5

(16-15) = 1

(14-15) = -1

(20-15) = 5

(17-15) = 2

(13-15) = -2

dy= 0

dx=(x-450)/50

dx2

(200-450)/50= -5

25

(500-450)/50= 1

1

(400-450)/50= -1

1

(700-450)/50= 5

25

(600-450)/50= 3

9

(300-450)/50= -3

9

dx= 0

dx2=70

(x-40)/5

dx2

P.Lakh

dx

y

(5-40)/5 = -7

49

55.00

(15-40)/5 = -5 25

66.67

(25-40)/5 = -3 9

100

(35-40)/5 = -1 1

111.11

(45-40)/5 =1

1

150

(55-40)/5 =3

9

200

(65-40)/5 =5

25

300

(75-40)/5 =7

49

500

dx

dx2

y

0

168 1482.78

M.V.

x

05

15

25

35

45

55

65

75

x

320

300

30 = 10

Age

C.I.

0-10

10-20

20-30

30-40

40-50

50-60

60-70

70-80

x

y

200

10

500

16

400

14

700

20

600

17

300

13

x=2700 y=90

No. of Deaths

Population

Blind

x 100

No. of persons

P A

P A

P A Z A R E

=

N I L E S H

Ex (7):- With the following data in six cities calculate the coefficient of correlation by pearsons

method between the density of population and death rate.

City:

A

B

C

D

E

F

Density of population:

200

500

400

700

600

300

Population (in 000):

30

90

40

42

72

24

No. of Deaths:

300

1440

560

840

1224

312

Ans:- Let us obtain the death rate as under.

Death Rate

Ex (8):- The following table gives the distribution of the total population and those who are

totally or partially blind among them. Find out if there is any relation between age and

blindness. Calculate its Probeable Error.

Age in years:

0-10

10-20 20-30 30-40 40-50 50-60 60-70 70-80

No. of persons

(000s):

100

60

40

36

24

11

6

3

Blind:

55

40

40

40

36

22

18

15

Ans:- Let us obtain the Mid values of age groups and blind men per one lakh persons.

N I L E S H

The two limits, within which all the rs of different samples fall are,

0.3451

+ 0.2659

0.6110

0.2659 =

= 15

1 - r2

1 - (0.3451)2

1 - 0.1192

0.8808

= 0.6745

= 0.6745

= 0.6745

n

5

5

2.2361

0.6745 x 0.3939 =

r = 0.9875

P.E. =

452.8

P.E. = 0.6745

268.4

777.5429

1335.2

90

6

453 - 0.2

y

=

n

1337 - 1.8

268.4

=

Y =

2700

= 450

6

(Note:- When dx = 0 and dy = 0 then use the following formula to find the value of r

dxdy

64

64

64

r =

=

=

=

= 0.98754

2

2

dx x dy

70 x 60

4200

64.8074

x

n

X =

1337

3

5

E-mail :- nilesh_pazare@rediffmail.com

32

4620.54 r

-1500

4620.54 - 0

4620.54

=

12.96148 x 396.8451

4620.54

5154.70

4620.54

168

=

157486.04

0.8964

0.04685=

368

122

164.30

556

- 13924

30

309

8649

30

P A Z A R E

368 - 365.8

2.2

9.5849 x 4.5498

2.2

43.609

2.2

91.87 20.7

=

0.0505

0.0505

Ex (12):- Coefficient of correlation between two variates x and y is 0.8. Their covariance is

20. The variance of x is 16. Find the standard deviation of y series.

Ans:- r = xy

1

= xy x

n x y

n

x y

0.8 = 20 x

0.8 = 20 x

16 x y

1

4 x y

0.8 x 4 = 20 x

QDM notes for MBA

3.2 = 20

y

y =

E

32

10974

30

Ex (10):- Calculate the coefficient of correlation between the X and Y series from the

following data:

Series A

Series B

Arithmetic Mean

74.5

125.5

Assumed Mean ( A )

69.0

112.0

Standard Deviation ()

13.07

15.85

Sum of the products of deviation of X and Y from their assumed means +2176 and no. of

pairs of observation is 8.

93)2

30

122

=

15 x 3.162 x 3.464

309

556 -

P A

122

15 x 10 x 12

118)2

30

N I L E S H

r

0.7425

( 118 ) (93 )

30

0.0469

dxdy

n x y

368 -

P A

0.9546

0.0469

P A Z A R E

r

Ex (11):- Calculate the correlation coeficient between the variables X and Y from the

following data.

x = 118

y = 93 x2 = 556

y2 = 309

xy = 368

n = 30

x ) ( y )

Ans:

xy n

r

=

2

x)

y)2

x2 y2 n

n

Ex (9):- Calculate the coefficient of correlation between X and Y series from the following

data:

Series A

Series B

No. of Pairs (n)

15

15

Variance ( )

10

12

Summation of products of deviation of x and y series from their respective mean is 122.

Ans:-

1582

1657.276

N I L E S H

=

= 0.9546

1 - r2

1 - (0.8964)2

1 - 0.80353

0.19647

= 0.6745

= 0.6745

= 0.6745

n

2.82842

8

8

0.6745 x 0.06946

2176 - 594

1657.276

P.E. = 0.6745

1657.276

r = 0.8964

8 x 13.07 x 15.85

n x y

- 7.7284

8

0

8

157487

0

6

2.78)2

8

168

P.E. =

157487

0)2

8

168 -

( 0 ) (2.78 )

8

E-mail :- nilesh_pazare@rediffmail.com

20

3.2

y =

6.25

Standard deviation of y series is 6.25

Second Edition 2013 - 2014

33

6 d2

n3 - n

rs

6 x 119

10 x (100 - 1)

714

990

P A Z A R E

rs

rs

rs

=

=

1 0.28

1 -

1 -

0.7212 = 0.2788

( Very Low Degree of Positive Correlation )

as same.

33

K L

49 43

11 12

11 12

Ex (2): Find the Spearmans Rank Correlation Coefficient from following data.

Student Hindi(X) English(Y) Rx

Ry

D=Rx - Ry

D2 = D x D

A

5

7

5

5.5

5 - 5.5= -0.5

-0.5 x -0.5= 0.25

B

9

5

1

7

1 - 7 = -6

-6 x -6 = 36

C

7

7

2.5

5.5

2.5 - 5.5= -3

-3 x -3 = 9

D

4

8

7

3.5

7 - 3.5= 3.5

3.5 x 3.5 = 12.25

E

4

9

7

2

7-2=5

5 x 5 = 25

F

7

2

2.5

9

2.5 - 9 = -6.5

-6.5 x -6.5= 42.25

G

1

0

10

10

10 - 10 = 0

0 x0 = 0

H

3

8

9

3.5

9 - 3.5 = 5.5

5.5 x 5.5= 30.25

I

6

4

4

8

4 - 8 = -4

-4 x -4 = 16

J

4

10

7

1

7-1=6

6 x 6 = 36

N=10

D = 0

D2 = 207

F G H

I

J

52 52 52 52

50

6 7 8 9

10

7.5 7.5 7.5 7.5

10

6+7+8+9 =30 = 7.5

4

4

more than value comes

6 D2

N(N2 - 1)

6 x 119

1 10 x (102 - 1)

6 x 119

1 10 x 99

1 -

A

B

C D E

58

58

55 55 55

1

2

3 4 5

1.5

1.5

4 4 4

1+2 = 3 =1.5 3+4+5 =12 = 4

Method -->

2

2

3

3

From above method to find the actual Rank, when 2 or

This method is same as find the value of mean.

Student

Marks(X)

Rough Rank

Correct Rank

L

43

12

In above example, the value 58 come 2 time and its rank give 1.5. How to give the rank 1.5,

we see the following example.

Ex (3)

K

49

11

P A

G H

I J

55 35 39 28

3 8

7 10

J

50

10

A

B C D E F

58 53 33 51 58 48

1.5 4

9 5 1.5 6

I

52

7.5

D2 = 119

Student

Mraks(X)

Rank(R)

H

52

7.5

N I L E S H

N=10,

Student

A B C D E F

G H

I J

Marks(X)

60 43 35 62 25 38 19 27 23 41

Rank(R)

2 3

6 1 8 5

10 7

9 4

In above example, the ranks taken in descending order mean rank started from biggest

value and every marks come only one time so it is simple to find the rank

Ex (2)

G

52

7.5

Note:- The value of D is always come zero ( 0 ), then your finding rank is correct. If the

value of D is not come zero ( 0 ), then you finding rank is wrong.

P A

P A Z A R E

F

52

7.5

Ex (1): Find the Spearmans Rank Correlation Coefficient from following data.

Student Mark(X) Mark(Y)

Rx

Ry

D=Rx - Ry

D2 = D x D

A

32

58

6

3

6-3=3

3 x3 = 9

B

19

28

9.5

10

9.5 - 10= -0.5

-0.5 x -0.5= 0.25

C

71

32

3

8.5

3 - 8.5= -5.5

-5.5 x -5.5= 30.25

D

43

32

5

8.5

5 - 8.5= -3.5

-3.5 x -3.5= 12.25

E

80

34

2

7

2-7=5

5 x 5 =25

F

19

40

9.5

6

9.5 - 6= 3.5

3.5 x 3.5= 12.25

G

31

50

7

5

7-5=2

2 x2 = 4

H

24

52

8

4

8-4=4

4 x 4 = 16

I

97

60

1

2

1 - 2 = -1

-1 x -1 = 1

J

54

64

4

1

4-1=3

3 x3 = 9

N=10

D = 0

D2 = 119

In the ranking systems, the biggest item gets the first rank, the next to it gets the

second rank and so on.

Ex (1)

E

55

4

N I L E S H

D

55

4

number six

numerical difference between corresponding paris of ranks

number of pairs

sum of squares of d

The

The

The

The

or

6 d2

n (n2 - 1)

C

55

4

Where,

6

d

n

d 2

1 -

B

58

1.5

A

58

1.5

rs

Student

Marks(X)

Rank

The formula is based on the ranks of the variables according to their sizes.

Following are the circumstances when the Rank Correlation coefficient is used.

(i) In a beauty contest, cooking contest, flower show contest and interview involving selections, we can use the rank correlation coefficient.

(ii) If the data are irregular or extreme items are erratic or inaccurate, we can use the rank

correlation coefficient.

Under this method of rank correlation coefficient, the individual items of variables

(x and y) are arranged in order of their ranks. We can apply this method only to individual

observations, but not to frequency distributions. In the process of ranking, the original

vaues are not taken into account, but only the ranks are assigned on the basis of original

values. The Ranks Correlation Coefficient is denoted symbolically rs.

E-mail :- nilesh_pazare@rediffmail.com

N=10,

34

D2 = 119

Ex (4): Find the Spearmans Rank Correlation Coefficient from following data.

rs

=

=

1 -

6 x 207

10 x (100 - 1)

1620

990

1 1.6364 = - 0.6364

- 0.6364

( Moderate Degree of Negative Correlation )

1 0.3864 = 0.6136

0.6136

( Moderate Degree of Positive Correlation )

1 -

0.7818

0.21818 =

0.7818

P A Z A R E

histry(X) Geog.(Y)

98

60

85

40

102

75

112

84

120

98

102

75

106

85

108

84

95

54

103

75

106

83

Note:- The value of D is always come zero ( 0 ), then your finding rank is correct. If the

value of D is not come zero ( 0 ), then you finding rank is wrong.

34

Ry

9

11

7

3.5

1

7

2

3.5

10

7

5

D2 = D x D

0x0=0

0x0=0

0.5 x 0.5 = 0.25

-1.5 x -1.5 = 2.25

0x0=0

0.5 x 0.5 = 0.25

2.5 x 2.5 = 6.25

-0.5 x -0.5 = 0.25

0x0=0

-1 x -1 = 1

-0.5 x -0.5 = 0.25

D2 = 10.5

D=Rx - Ry

0

0

0.5

-1.5

0

0.5

2.5

-0.5

0

-1

-0.5

D = 0

6 D2

N(N2 - 1)

6 x 10.5

11 x (112 - 1)

6 x 10.5

11 x 120

1 -

1 -

0.95228

rs

1 -

rs

1 -

rs

1 -

0.9522

rs

QDM notes for MBA

Rx

9

11

7.5

2

1

7.5

4.5

3

10

6

4.5

0.0.4772 =

6 x 10.5

11 x (121 - 1)

63

1320

Second Edition 2013 - 2014

=

=

1 -

1 -

6 x 36

10 x (100 - 1)

216

990

rs

6 x 207

12 x (144 - 1)

663

1716

1 -

1 -

rs

rs

1 -

P A

Student

A

B

C

D

E

F

G

H

I

J

K

N=11

Ex (5): Find the Spearmans Rank Correlation Coefficient from following data.

rs

6 D2

N(N2 - 1)

1 - 6 x 110.50

12 x (122 - 1)

6 x 110.50

1 12 x 143

1 -

rs

6 D2

N(N2 - 1)

6 x 36

10 x (102 - 1)

6 x 36

10 x 99

N I L E S H

1 -

rs

D2 = 119

rs

D2 = D x D

-2 x -2 = 4

1x1=1

0.5 x 0.5 = 0.25

-3 x -3 = 9

0x0=0

3.5 x 3.5 = 12.25

-2.5 x -2.5 = 6.25

1.5 x 1.5 = 2.25

1x1=1

0x0=0

D2 = 36

D=Rx - Ry

1 - 3 = -2

2-1=1

3.5 - 3 = 0.5

3.5 - 6.5= -3

5 - 5= 0

6.5 - 3 = 3.5

6.5 - 9 = -2.5

8 - 6.5 = 1.5

9-8=1

10 - 10 = 0

D = 0

N=10,

rs

Ry

3

1

3

6.5

5

3

9

6.5

8

10

P A Z A R E

Rx

1

2

3.5

3.5

5

6.5

6.5

8

9

10

N I L E S H

D2 = D x D

-0.5 x -0.5= 0.25

-1.5 x -1.5= 2.25

-0.5 x -0.5 = 0.25

1 x1 = 1

-5.5 x -5.5 = 30.25

-1 x -1 = 1

2 x2 = 4

5 x 5 = 25

-2 x -2 = 4

1.5 x 1.5 = 2.25

-2 x -2 = 4

5.5 x 5.5 = 30.25

-2.5 x -2.5 = 6.25

D2 = 110.50

P A

D=Rx - Ry

5 - 5.5= -0.5

9.5 - 11= -1.5

11.5 - 12= -0.5

2-1=1

3.5 - 9 = -5.5

7 - 8 = -1

7-5=2

7-2=5

1 - 3 = -2

11.5 - 10 = 1.5

5 - 7 = -2

9.5 - 4 = 5.5

6 - 3.5 = -2.5

D = 0

Ry

5.5

11

12

1

9

8

5

2

3

10

7

4

6

Rx

5

9.5

11.5

2

3.5

7

7

7

1

11.5

5

9.5

3.5

Chem(Y)

7

11

12

1

9

8

5

2

3

10

7

4

6

Test(Y)

16

19

16

12

14

16

8

12

11

6

1 -

Test(X)

22

21

19

19

17

16

16

15

13

12

rs

Student

A

B

C

D

E

F

G

H

I

J

N=10

rs

rs

6 D2

1 N(N2 - 1)

6 x 207

1 10 x (102 - 1)

6 x 207

1 10 x 99

Ex (3): Find the Spearmans Rank Correlation Coefficient from following data.

Student Phy(X)

A

5

A

45

B

40

C

62

D

60

E

48

F

48

G

48

H

65

I

40

J

55

K

45

L

60

N=12

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35

Regression:-

E-mail :- nilesh_pazare@rediffmail.com

We can use x for ( x - x ) = dx

x =

( x - x )

n

dxn

and

y for ( y - y ) = dy

y =

( y -ny )

dyn

I

Correlation Measure (Karl Pearsons Coefficient of Correlation):

(Basic Equation)

(Secondary Eq.)

X=a+bY

x = na + b y

xy = a y + b y2

= byx * bxy

The product of the both regression coefficient and root of it the resultant will always be

Correlation. The value of byx and bxy individually both cannot be more than 1. If one is

more than 1, the other must be less than 1. Both the regression coefficients will have the

same algebric signs. Either both of them would be positive or both of them would be

negative. It is not possible that one has a positive sign and the other is a negative sign.

The reason is that the standard deviations are always positive. Only the Coefficient of

Correlation can be either positive or negative.

P A Z A R E

Sometimes we find the means are in fractions. This makes the deviations and their

squares are also in fractions. To avoid the tedious calculations, we can have the assumed

means in round figures. Then, to find regression coefficients we can use the following

procedure.

byx =

ndxdy - ( dx )( dy )

2

ndx

- ( dx )

bxy =

ndxdy - ( dx )( dy )

ndy2 - ( dy )2

x=(x-x )

x

( x - x ) = r y

(y-y )

35

( x - x ) = bxy ( y - y )

and

byx * bxy

y

( y - y ) = r x ( x - x )

= r2

y=(y-y )

r x r

x

xy

=

y

y2

N I L E S H

( y - y ) = byx ( x - x )

y

x

x r

=

x

y

bxy = r

x= a+ by

and

y= a+ bx

xy

x2

x on y

r2

In the above mathematical simplication, the constant a disappears from the calculations

and the basic formulas are changed to,

y on x

xy = a y + b y2

xy = a (0) + b y2

xy = b y2

xy

bxy =

y2

x

bxy = r

y

dy

P A

P A Z A R E

xy = a x + b x2

xy = a (0) + b x2

xy = b x2

xy

byx =

x2

y

byx = r

x

byx * bxy = r

P A

Regression Coefficient: Deviations are taken from actual mean. In case of secondary

equation, x and y stand for zero and the equation are reduced to small size as under.

dx

N I L E S H

Y=a+bX

y = na + b x

xy = a x + b x2

dy

xy

Regression Equation of X on Y :-

y

x

byx = r

Regression Equation of Y on X :-

dx

With the help of regression coefficient, to find the Coefficient of Correlation as under:

dxdy

(i) x on y .............. x = a + by

(i) y on x .............. y = a + bx

Regression means returning or stepping back to the average value. With the

help of values of one variable (indepedent) we can establish most likely values of other

variable (dependent). On the basis of two available correlated variables, we can forecast

the future data or events or values.

In statistics, the term Regression means simply the Average Relationship.

We can predict or estimate the values of dependent variable from the given related values

of independent variable with the help of a Regression Technique. The Measure of Regression studes the nature of correlationship to estimate the most probable values. Its establishes a functional relationship between the Independent and Dependent variables.

36

Observe the both the method the value of y is come same i.e. 20.6

140

5

= 28

y on x

( y - y ) = bxy ( x - x )

( y - 16) = 0.8696( x - 28)

( y - 16) = 0.8696x - 24.3478

y = 0.8696x - 24.9478 + 16

y = 0.8696x - 8.3478

Y =y = 80 = 16

n

5

x 184

y = 0.8696x - 8.3478

y = 0.8696 * 52 - 8.3478

y = 45.2192 -8.3478

y = 36.8714

Observe the both the method the value of y is come same i.e. 36.8714

36

y = 1.3x + 1.1

y = 1.3 * 15 + 1.1

y = 19.5 + 1.1

y = 20.6

x =

n

X =

y=(y - y )

x2

xy

10-16= -6

64

36

12-16= -4

16

16

14-16= -2

4

4

18-16= 2

36

4

26-16= 10

64

100

y = 0x2=184 xy=160

x

10

x = (x - x )

20-28= -8

24-28= -4

26-28= -2

34-28= 6

36-28= 8

x = 0

25 = 5

5

x

y

20

10

24

12

26

14

34

18

36

26

x=140 y=80

P A

y =

n

( y - y ) = bxy ( x - x )

( y - 5 ) = 1.3 ( x - 3)

( y - 5 ) = 1.3x - 3.9

y = 1.3x - 3.9 + 5

y = 1.3x + 1.1

Y =

y on x

= 3

15

5

P A Z A R E

Other Alternative

Method

x =

n

y=(y - y )

x

xy

2-5 = -3

4

6

5-5 = 0

1

0

3-5 = -2

0

0

8-5 = 3

1

3

7-5 = 2

4

4

y = 0 x2=10 xy=13

2400 = 140a+4104b

- 2240= 140a+ 3920b

160=

184b

b = 160 / 184 = 0.8696

X =

x = (x - x )

1-3= -2

2-3= -1

3-3= 0

4-3=1

5-3= 2

x = 0

N I L E S H

Other Alternative

Method

x

y

1

2

2

5

3

3

4

8

5

7

x=15 y=25

80 = 5a + 140b

80 = 5a + 140 x 0.8696

80 = 5a + 121.74

80 - 121.74 = 5a

- 41.74 = 5a

a = - 41.74 / 5 = - 8.3478

y = a + bx

y = -8.3478+ 0.8696x

put x = 52

y = -8.3478+ 0.8696 * 52

y = -8.3478 +45.2192 = 36.8714

y = 36.8714

P A Z A R E

P A

88 = 15a + 55b

( - )75 = 15a + 45b

13 =

10b

b = 13 / 10 = 1.3

y = na + b x

xy = a x + b x2

put the values from table

80 = 5a + 140b

.... (1) x 28

2400 =140a +4104b .... (2)

N I L E S H

25 = 5a + 15b

25 = 5a + 15 x 1.3

25 = 5a + 19.5

25 - 19.5 = 5a

5.5 = 5a

a = 5.5 / 5 = 1.1

y = a + bx

y = 1.1 + 1.3x

put x = 15

y = 1.1 + 1.3 * 15

y = 1.1 + 19.5 = 20.6

y = 20.6

y = na + b x

xy = a x + b x2

put the values from table

25 = 5a + 15b .... (1) x 3

88 = 15a + 55b .... (2)

y on x

y on x

Ex (2):- By using the simultaneous equations method, find out the most probable value of

y, when x = 52.

x:

20

24

26

34

36

y:

10

12

14

18

26

Ans:x

y

x2

xy

20

10

400

200

24

12

576

288

26

14

676

364

34

18

1156

612

36

26

1296

936

x=140 y=80 x2=4104 xy=2400

Ex (1):- By using the simultaneous equations method, find out the most probable value of

y, when x = 15.

x:

1

2

3

4

5

y:

2

5

3

8

7

Ans:x

y

x2

xy

1

2

1

2

2

5

4

10

3

3

9

9

4

8

16

24

5

7

25

35

x=15 y=25 x2=55

xy=88

E-mail :- nilesh_pazare@rediffmail.com

37

y on x

y = bx

290

10

y

=

n

xy ( y - y )

y2

y - 29 = 0.7624 ( x - 36 )

y - 29 = 0.7624x - 27.4464

y = 0.7624x - 27.4464 + 29

y = 0.7624x + 1.5536

x - 36 = 0.8261 ( y - 29 )

x - 36 = 0.8261y - 23.9569

x = 0.8261y -23.9569 + 36

x = 0.8261y + 12.0431

21 ( y - 5 )

28

P A Z A R E

y - 5 = 0.75 ( x - 8 )

y - 5 = 0.75x - 6

y = 0.75x - 6 + 5

y = 0.75x - 1

b) When x = 12

y = 0.75x - 1

y = 0.75 * 12 - 1

y= 9 - 1

y= 8

x - 8 = 0.75 ( y - 5 )

x - 8 = 0.75y - 3.75

x = 0.75y -3.75 + 8

x = 0.75y + 4.25

c)

byx =

xy

=

x2

21

,

28

byx = 0.75

bxy =

&

xy 21

=

y2 28

bxy = 0.75

byx * bxy

0.75 x 0.75

0.5625

0.75

When x = 12 then y = 8

byx * bxy

0.7624 x 0.8261

8 months 12 days

0.6298

0.7936

37

xy

494

xy

494

byx = 2 =

, bxy = 2 =

x

648

y

594

byx = 0.7624

& bxy = 0.8261

(x- 8 )=

c)

x on y

x = by

( x - x ) = xy2 ( y - y )

y

21 ( x - 8 )

28

x = 0.8261 x 25 + 12.0431

x = 20.6525 + 12.04131

x = 32.69956

x = 32.7 years

= 5

( x - 36 ) = 494 ( y - 29 )

598

(y- 5 )=

( y - 29 ) = 494 ( x - 36 )

648

35

7

P A

(x- x )=

P A

xy ( x - x )

x2

y =

n

N I L E S H

y on x

y = bx

( y - y ) = xy2 ( x - x )

x

x on y

x = by

P A Z A R E

(y- y )=

a)

= 29

Y =

Y =

= 36

= 8

360

10

56

7

x

=

n

x =

n

a)

N I L E S H

X =

X =

Ex (4):- Find the Regression equations for the following data and determine the value of

coefficient of correleation through reqression equation and also predict the average of

value of Y when X is 12

X: 11 7 9

5 8

6 10

Y: 7

5 3

2 6

4 8

Ans:x

y

x = (x- x )

y = (y- y )

x2

y2

xy

2

2

11

7

11-8 = 3

7-5= 2

(3) = 9

(2) = 4

3 x 2= 6

7

5

7-8 = -1

5-5= 0

(-1)2 = 1

(0)2 = 0

-1 x 0= 0

9

3

9-8 = 1

3-5= -2

(1)2 = 1

(-2)2 = 4

1 x -2= -2

5

2

5-8 = -3

2-5= -3

(-3)2 = 9

(-3)2 = 9

-3 x -3= 9

8

6

8-8 = 0

6-5= 1

(0)2 = 0

(1)2 = 1

1 x 0= 0

6

4

6-8 = -2

4-5= -1

(-2)2 = 4

(-1)2 = 1

-2 x -1= 2

10

8

10-8 = 2

8-5= 3

(2)2 = 4

(3)2 = 9

2 x 3= 6

x=56 y=35

x= 0

y= 0

x2=28

y2=28

xy=21

Ex (3):- The following data relate to the ages of husbands and wife.

Age of Husband x:

25 28 30 32 35 36 38 39 42 55

Age of Wife y:

20 26 29 30 25 18 26 35 35 46

Obtain the two regression equation and Determine the value of coefficient of correlation

and estimate the age of husband for the age ow wife 25 years.

Ans:x

y

x = (x- x )

y = (y- y )

x2

y2

xy

2

2

25

20

25-36 = -11

20-29= -9

(-11) =121 (-9) =81

-11 x -9= 99

28

26

28-36 = -8

26-29= -3

(-8)2 =64

(-3)2 =9

-8 x 3= 24

30

29

30-36 = -6

29-29= 0

(-6)2 =36

(0)2 =0

-6 x 0= 0

32

30

32-36 = -4

30-29= 1

(-4)2 =16

(1)2 =1

-4 x 1= -4

35

25

35-36 = -1

25-29= -4

(-1)2 =1

(-4)2 =16

-1 x -4= 4

36

18

36-36 = 0

18-29= -11 (0)2 = 0

(-11)2 =121 0 x 11= 0

38

26

38-36 = 2

26-29= -3

(2)2 =4

(-3)2 =9

2 x -3= -6

2

39

35

39-36 = 3

35-29= 6

(3) =9

(6)2 =36

3 x 6= 18

42

35

42-36 = 6

35-29= 6

(6)2 =36

(6)2 =36

6 x 6= 36

55

46

55-36 = 19

46-29= 17 (19)2 =361

(17)2 =289 19 x 17= 323

x=360 y=290 x= 0

y= 0

x2=648

y2=598

xy=494

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2.66747

P A Z A R E

b)

bxy =

y on x

y = bx

0.34518

x on y

x = by

= 0.9208

0.9595

nxy - (x)(y)

ny2 - y)2

9(56) - (0)(1)

bxy =

9(59) - (1)2

504 - 0

504

bxy =

=

531 - 1

530

bxy =

byx =

0.9333

bxy =

y on x

y = bx

0.9509

x on y

x = by

( y - y ) = byx ( x - x )

( y - 5.1111) = 0.9333 ( x - 5)

y - 5.1111 = 0.9333x - 4.665

y = 0.9333x - 4.665 + 5.1111

y = 0.9333x + 0.4461

( x - x ) = bxy ( y - y )

( x - 5) = 0.9509 ( y - 5.1111)

x - 5 = 0.9509y - 4.860

x = 0.9509y - 4.860 + 5

x = 0.9509y + 0.14

y = 0.9333x + 0.4461

x = 0.9509y + 0.14

c)

byx * bxy

0.9333 x 0.9509

= 0.8875

r

=

0.9421

( High Degree of Positive Correlation )

38

d)

y = 0.9333x + 0.4461

y = 0.9333 * 10 + 0.4461

y = 9.333 + 0.4461 = 9.7791 tonnes

Second Edition 2013 - 2014

byx * bxy

2.6675 x 0.3452

nxy - (x)(y)

nx2 - x)2

9(56) - (0)(1)

9(60) - (0)2

504 - 0

504

=

540 - 0

540

= 5.1111

P A Z A R E

byx =

b)

46

9

c)

y =

n

x = 0.3452y + 6.9306

byx =

y = 2.6675x - 17.4678

byx =

( x - x ) = bxy ( y - y )

( x - 11.375) = 0.3452 ( y - 12.875)

x - 11.375 = 0.3452y - 4.4445

x = 0.3452y - 4.4445 + 11.375

x = 0.3452y + 6.9306

Y =

N I L E S H

a)

( y - y ) = byx ( x - x )

( y - 12.875) = 2.6675 ( x - 11.375)

y - 12.875 = 2.6675x - 30.3428

y = 2.6675x - 30.3428 + 12.875

y = 2.6675x - 17.4678

45 = 5

9

P A

byx =

byx =

ndxdy - (dx)(dy)

ndy2 - dy)2

8(141) - (3)(7)

bxy = 8(407) - (7)2

1128 - 21

1107

bxy = 3256-49 = 3207

bxy =

P A

byx =

ndxdy - (dx)(dy)

ndx2 - dx)2

8(141) - (3)(7)

8(53) - (3)2

1128 - 21

1107

424 - 9 = 415

x =

n

N I L E S H

byx =

X =

= 12.875

103

8

y =

n

Ex (6):- Find the two regression equations from following data and estimate the yield for

10 inches rainfall and Determine the value of coefficient of correlation.

Raninfall (in inches) X:

1

2 3

4 5

6 7 8 9

Yield (tons) Y:

1

3 2

5 5

7 6 9 8

Ans:x

y

x=(x- x )

y=(y- 5)

x2

y2

xy

1

1

1-5 = -4

1-5= -4

(-4)2 = 16

(-4)2 = 16

-4 x -4= 16

2

3

2-5 = -3

3-5= -2

(-3)2 = 9

(-2)2 = 4

-3 x -2= 6

2

3

2

3-5 = -2

2-5= -3

(-2) = 4

(-3)2 = 9

-2 x -3= 6

4

5

4-5 = -1

5-5= 0

(-1)2 = 1

(0)2 = 0

-1 x 0= 0

5

5

5-5 = 0

5-5= 0

(0)2 = 0

(0)2 = 0

0 x 0= 0

6

7

6-5 = 1

7-5= 1

(1)2 = 4

(2)2 = 4

1 x 2= 2

7

6

7-5 = 2

6-5= 2

(2)2 = 1

(1)2 = 1

2 x 1= 2

8

9

8-5 = 3

9-5= 4

(3)2 = 9

(4)2 = 16

3 x 4= 12

9

8

9-5= 4

8-5= 3

(4)2 = 16

(3)2 = 9

4 x 3= 12

x=45 y=46

x= 0

y= 1

dx2=60

dy2=59

xy=56

Y =

dxdy

-3 x -8= 24

-2 x -6= 12

-1 x -4= 4

-1 x 0= 0

0 x 1= 0

2 x 3= 6

3 x 5= 15

5 x 16= 80

xy=141

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91 = 11.375

8

dy2

(-8)2 = 64

(-6)2 = 36

(-4)2 = 16

(0)2 = 0

(1)2 = 1

(3)2 = 9

(5)2 = 25

(16)2 = 256

dy2=407

x =

n

dx2

(-3)2 = 9

(-2)2 = 4

(-1)2 = 1

(-1)2 = 1

(0)2 = 0

(2)2 = 4

(3)2 = 9

(5)2 = 25

dx2=53

dy=(y- 12)

4-12= -8

6-12= -6

8-12= -4

12-12= 0

13-12= 1

15-12= 3

17-12= 5

28-12= 16

y= 7

dx=(x- 11)

8-11 = -3

9-11 = -2

10-11 = -1

10-11 = -1

11-11 = 0

13-11 = 2

14-11 = 3

16-11 = 5

dx= 3

a)

y

4

6

8

12

13

15

17

28

y=103

X =

From following data, Calculate the two regression equations and Determine the

coefficient of correlation through regression coefficients.

8

9 10 10 11 13 14 16

4

6 8

12 13 15 17 28

Ex (5):value of

X:

Y:

Ans:x

8

9

10

10

11

13

14

16

x=91

38

39

( y - 90 ) = 0.8 12

3

( x - 10 ) = 0.8 3 ( y - 90 )

12

P A

P A Z A R E

sales would be

y = 3.2 * (20) + 58

y = 64 + 58 = 122

Sales = Rs. 122 lakhs

Advertising expenses would be

x = 0.2 * (140) - 8

x = 28 - 8

=

20

Advertising expenses = Rs. 20 lakhs

If expected sales are Rs. 190,

Advertising expenses would be

x = 0.2 * (190) - 8

x = 38 - 8

=

30

Advertising expenses = Rs. 30 lakhs

R

39

Ex (9):- The following data based on 450 students, are given for marks in Statistics and

Economics at a certain examination:

Statistics (x)

Economics (y)

Mean Marks

40

48

Standard Deviation

12

16

Sum of the products of Deviation of marks from their respective means is 42075.

(a) give the equations to the two lines of regressions.

(b) Estimate the average marks in Economics of the candidate who obtained 50 marks in

statistics.

Ans:

42075

r

= dxdy

=

= 42075 = 0.48698

n x y

450 x 12 x 16

86400

Ex (8):- You are given below the information about advertising and sales of a company:

Advertising expenses (x)

Sales (y)

(Rs. in lakhs)

(Rs. in lakhs)

Mean

10

90

Variance

9

144

Correlation

0.8

(a) Calculate the two regression lines.

(b) Find the likely sales when advertising expenses are Rs. 15 and Rs. 20.

(c) What should be the advertising expenses when the company wants to attain a sales

target of Rs. 140 lakhs and Rs. 190 lakhs.

sisters age is 12

= 0.64y + 10.92

= 0.64 * 12 + 10.92

= 7.68 + 10.92

= 18.6 (Brothers age)

sales would be

y = 3.2 * (15) + 58

y = 48 + 58 = 106

Sales = Rs. 106 lakhs

When

x

x

x

x

N I L E S H

P A

P A Z A R E

y = x-3

y = 33 - 3

y = 30

y = 30 (Sisters age)

x - 25 = 0.8* 0.8 ( y - 22 )

x - 25 = 0.64 ( y - 22 )

x - 25 = 0.64y - 14.08

x = 0.64y - 14.08 + 25

x = 0.64y + 10.92

x = 0.64y + 10.92

x - 10 = 0.8* 0.25 ( y - 90 )

x - 10 = 0.2 ( y - 90 )

x - 10 = 0.2y - 18

x = 0.2y - 18 + 10

x = 0.2y - 8

x = 0.2y - 8

N I L E S H

y - 22 = 0.8 * 1.25 ( x - 25 )

y - 22 = 1 ( x - 25 )

y - 22 = 1x - 25

y = 1x - 25 + 22

y = x-3

y =x-3

y - 90 = 0.8 * 4 ( x - 10 )

y - 90 = 3.2 ( x - 10 )

y - 90 = 3.2x - 32

y = 3.2x - 32 + 90

y = 3.2x + 58

y = 3.2x + 58

( y - 22 )

( x - 10 )

( x - 25 ) = 0.8 4

5

( x - 25 )

( y - 22 ) = 0.8 5

4

x on y

x = by

( x - x ) = r x ( y - y )

y

( x - x ) = r x ( y - y )

y

144 = 12

( y - y ) = r y ( x - x )

x

( y - y ) = r y ( x - x )

x

y on x

y = bx

y = variance =

x on y

x = by

x = variance = 9 = 3

y on x

y = bx

Ex (7):- Karl Pearsons Coefficient of Correlation between the ages of brothers and sisters in a community was found to be 0.8.

Average of the brothers ages was 25 years and theat of sisters was 22 years. Their

standard deviations were 4 and 5 respectively. Find

(a) The expected age of brother when the sisters age is 12 years and

(b) The expected age of sister when the brothers age is 33 years.

Ans:Brothers (x)

Sisters (y)

Mean Age or Average Age

25

22

Standard Deviation

4

5

Coefficient of Correlation

0.8

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40

y on x

y = bx

y ( x - x )

x

x ( y - y )

y

54.48

N I L E S H

P A Z A R E

1) Simple Semi-Average Method.

2) Annual Increment Semi - Average Method.

3) Annual Growth Rate Semi - Average Method.

1) Simple Semi-Average Method:- Divide the series into two equal halves (parts). If the

items are odd in number, the middle item is left out and kept isolated. If the items are even,

we well have two equal parts with no middle item. For example

Year

2001

2002

2003

2004

2005

x

10

20

25

30

35

Part - I

15

>

32.5

Left out

Part - II

Year

2001

2002

2003

2004

2005

2006

x

10

20

25

30

35

45

18.34

>

Part - I

No Middle Item

36.67

Part - II

The Total of the values in each part is devided by the total number of the items of that

part. This gives us the mean value for each part. Each average is then cenred in the period

of time from which we have to plot the two points on the graph i.e. Two Average Values

are plotted. Then both these two points are joined by a straight line which gives the

simple semi-average trend.

10+20 30

10+20+25

55

x1 =

=

= 15

x1 =

=

= 18.34

2

2

3

3

30+35 65

30+35+45

110

x2 =

=

= 32.5

x2 =

=

= 36.67

2

2

3

3

E

40

P A Z A R E

b) Semi - Average Method:- Under this method there are three procedures to be

220 = 10a + 130 x 1.00167

220 = 10a + 130.2171

220 - 130.2171 = 10a

89.7829 = 10a

a = 89.7829 / 10 = 8.97829 = 8.978

Regrression equation y on x

y = a + bx

Where a = 8.978 and b = 1.0017

y = 8.978 + 1.0017x

-2860 = 130a + 1690b

599 =

598b

b = 599 / 598 = 1.00167

y = na + b x

xy = a x + b x2

put the values from given

220 = 10a + 130b

.... (1) x 13

3459 = 130a + 2288b .... (2)

P A

Ex (10):- Find the Regression Equation y on x from the following information: x = 130,

y = 220, x2 = 2288, xy = 3459 and n = 10. ( x and y denote variables but not derivation).

Ans:y on x

N I L E S H

P A

32.45 + 22.03

points on a graph sheet. Observe the up and down movements of the points. Smooth out

the irregulatrties by drawing a freehand curve or line through the scatter points. The curve

so drawn would give a general notion of the direction of the change. Such a freehand

smoothed curve eliminaes the short time swings and shows the long perod general

tendency of the changes in the datat. To overcome these limitations, we can use the Semi

- Average Method of measuring the Trend.

0.649 * 50 - 22.03

y = 0.649x - 22.03

x - 40 = 0.487 * 0.75 ( y - 48 )

x - 40 = 0.3653 ( y - 48 )

x - 40 = 0.3653y - 17.534

x = 0.3653y - 17.534 + 40

x = 0.3653y + 22.465

x = 0.3653y + 22.465

y - 48 = 0.487 * 1.333 ( x - 40 )

y - 48 = 0.649 ( x - 40 )

y - 48 = 0.649x - 25.97

y = 0.649x - 25.97 + 48

y = 0.649x - 22.03

y = 0.649x - 22.03

( x - 40) = 0.487 12 ( y - 48 )

16

( x - 40 )

( y - 48) = 0.487 16

12

(x- x )=r

The collected data is vast and comple. It is the composition of several forces, which

ma be pulling together the rend in different directions. The problem is solved by statisticians by decomposing the time series to understand the historical past and to give insight

in to the future. There are four methods commonly used in measuring the Trend Value.

a) Graphic (Freehand Curve Fitting) Method.

b) Method of Semi-Average.

c) Method of Moving Averages and

d) Least - Squares Method.

( x - x ) = bxy ( y - y )

(y- y )=r

x on y

x = by

( y - y ) = byx ( x - x )

E-mail :- nilesh_pazare@rediffmail.com

41

>

>

N I L E S H

<

A

P A

Z

R E

40

x1

27.34

P A

Z A R E

10

9

Actual Line

<

Trend Line

<

Actual Line

15

Scale

x-axis - 1 cm = 1 year

y-axis - 1 cm = 5 unit

20

x2

7.5

10

2004

2003

2002

2001

2000

1999

y - axis

Years

1998

<

1997

<

2004

2003

2002

2001

2000

1999

1998

x - axis

>

x - axis

Years

41

y - axis

>

<

<

1997

Scale

x-axis - 1 cm = 1 year

y-axis - 1 cm = 1 Rs.

<

Prices

25

x1

10

11

Trend Line

P A

x2

41.67

P A

The value 10 is plotted against the middle of the first 2 years. i.e. 1997 to 1998.

The value 7.5 is plotted aginst the middle of the last 2 years i.e. 2000 to 2001. The year

1999 and the price 5 are left out. Then both the points are joined by a straight line as under.

45

30

x2 = 7.5

50

35

x1 = 10

N I L E S H

9

(9+11) / 2 = 20 / 2 = 10

11

5 (left out)

8

7

(8+7) / 2 = 15/2 = 7.5

Graph showing sugar production (in 000 tonnes) with Trend line

1997

1998

1999

2000

2001

The value 27.34 is plotted against the middle of the first 3 years. i.e. 1997 to 1999.

The value 41.67 is plotted aginst the middle of the last 3 years i.e. 2000 to 2002. Then both

the points are joined by a straight line as under.

Ex (2):- Using the method of simple semi-average determine the trend of the following

data.

Year:

1997

1998

1999

2000

2001

Prices:

9

11

5

8

7

Ans:Year

Actual

2 yearly total

Semi-Average

value

average

Ex (1):- Using the method of simple semi-average determine the trend of the following

data.

Year:

1997

1998

1999

2000

2001

2002

Sugar Product:

40

38

4

45

37

43

Ans:Year

Actual

3 yearly total

Semi-Average

value

average

1997

40

1998

38

(40+38+4) / 3 =82 / 3 = 27.34

x1 = 27.34

1999

4

2000

45

2001

37

(45+37+43) / 3 =125/3 = 41.67

x2 = 41.67

2002

43

E-mail :- nilesh_pazare@rediffmail.com

42

28

<

>

<

96

Actual Line

Scale

x-axis - 1 cm = 1 year

y-axis - 1 cm = 2 Unit

2013

2012

y - axis

2011

<

x - axis

2010

90

2009

>

92

2008

1984

1983

1982

1981

1980

1979

1978

98

2007

Scale

x-axis - 1 cm = 1 year

y-axis - 1 cm = 1 Rs.

x1

22.5

1977

1976

1975

<

y - axis

>

x - axis

Years

Years

42

21

100

22

x1

104.67

94

23

104

2006

24

x2

26

Trend Line

25

<

>

<

x2

107.33

106

102

P A Z A R E

Trend Line

Prices

26

108

Actual Line

112

27

2.66

= 0.665

4

N I L E S H

<

>

0.875

= 0.4375

2

P A

107.33 - 104.67

4

102+108+112

322

=

= 107.33

3

3

110

3.5

= 0.875

4

P A Z A R E

A. I.

2

x2 =

26 - 22.5

=

4

25+26+27+26

104

=

= 26

4

4

P A

Annual Increament

x2 =

Annual Increament

N I L E S H

21+22+23+24 90

=

= 22.5

4

4

100+105+109 314

=

= 104.67

3

3

x2 =26

104

x1 =

Product

x2 =22.5

Trend Value

21.1875

22.0625

22.9375

23.8125

24.6875

25.5625

26.4375

27.3125

x=194

Adjustment

22.0625 - 0.875

22.50 - 0.4375

22.50 + 0.4375

22.9375 + 0.875

25.5625 - 0.875

26.00 - 0.4375

26.00 + 0.4375

26.4375 + 0.875

90

Semi Avg

Semi Total

x1 =

Actual Value

21

22

23

24

25

26

27

26

x=194

Year

1975

1976

1977

1978

1979

1980

1981

1982

The means will be placed against, the respective years with the adjustment by the

Annual Increament. Let us consider the example for finding the Trend values as under.

Ex (2):- Using the method of annual increament semi-average determine the trend of the

following data.

Year:

2006

2007

2008

2009

2010

2011

2012

Product:

100

105

109

96

102

108

112

Ans:Year

Actual Value

Semi Total Semi Avg

Adjustment

Trend Value

2006

100

104.67- 0.665

104.005

2007

105

314

x1=104.67 104.67

104.67

2008

109

104.67 + 0.665

105.335

2009

96

(left out)

105.335 + 0.665

106

2010

102

106 + 0.665

106.665

2011

108

322

x2=107.33 106.665 + 0.665

107.33

2012

112

107.33 + 0.665

107.995

2) Annual Increament Semi-Average Method:- Under this method, the data are divided

into the two equal halves. For each half, a simple srithmetic mean is obtained i.e. x1 and x2

The difference between the two means is divided by the number of items in each part

(i.e. items in one section). This ives us the Annual Increament.

x1 - x2

Annual Increament =

n

E-mail :- nilesh_pazare@rediffmail.com

43

>

350

x1

268.75

x2

340.25

Trend Line

Scale

x-axis - 1 cm = 1 year

y-axis - 1 cm = 50 Unit

2013

2012

2011

y - axis

2010

<

>

x - axis

Years

QDM notes for MBA

150

200

<

250

(Note:- The Trend vales are computed and presented in graph by three ways

- Simple, Annual Increment and Annual Growth Methods - by semi average

method. All the ways are giveing the same results. So solve the problem any

one method from giving three methods of semi average. )

43

Actual Line

400

300

Note:- How to x find? ---> First data are divided into two part, if the number is even then

first take Half Year Increament (H.Y.I.) value and then add & substract the value of Annual

increament (A.I.). See the above table.

<

n

8

n (n-n )

4(8-4)

16

500

450

= 2 = 1

2

550

2009

Half Y.I. =

A. I.

2

P A Z A R E

2008

21.5 - 13.5 = 8 = 2

4

4

= 21.5

2007

Annual Increament

x2 = 19+23+21+23 = 86

4

4

2006

P A Z A R E

x1 = 12+13+13+16 = 54 = 13.5

4

4

N I L E S H

P A

+ 1=18.5

+ 3=20.5

+ 5=22.5

+ 7=24.5

yc =140

<

y2=86

17.5

17.5

17.5

17.5

P A

19

23

21

23

y=140

y

3060

y2 - y1

1361-1075

286

=

= 340 & Annual Growth Rate(a) =

=

=

= 14.3

n

9

n(n-n )

4(9-4)

20

N I L E S H

y=

yc = y - xa

17.5 - 7=10.5

17.5 - 5=12.5

17.5 - 3=14.5

17.5 - 1=16.5

x

a

xa

-5-2=-7

2

-7 x 2 = -14

-3-2=-5

2

-5 x 2 = -10

-1-2=-3

2

-3 x 2 = -6

-1

2

-1 x 2 = -2

0

(Centrend 17.5)

1

2

1 x2 = 2

1+2=3

2

3 x2 = 6

3+2=5

2

5 x 2 = 10

5+2=7

2

7 x 2 = 14

1989

1990

1991

1992

12

13

y1=54

13

16

Year

1985

1986

1987

1988

Then y will be centred and below it the negative signs and above it the positive signs

for x are considered for deviations of serial number of years. Then the product of the

deviation dx and annual growth are adjusted to the y . Let us consider the example for

finding the trend values as under.

Product

number of items in the series as a whole.

=

=

n

n

Ex (2):- Using the method of annual growth rate semi-average determine the trend of the

following data.

Year:

2006

2007 2008

2009 2010 2011 2012

2013

2014

Product: 190

200

325

360

345

310

335

475

520

Ans:Year

Actual Value (y)

x

a

xa

yc = y - xa

2006

190

-3-1=-4

14.3

-4 x 14.3= -57.2

340-57.2=282.8

2007

200

-2-1=-3

14.3

-3 x 14.3= -42.9

340-42.9=297.1

y1=1075

2008

325

-1-1=-2

14.3

-2 x 14.3= -28.6

340-28.6=311.4

2009

360

0-1= -1

14.3

-1 x 14.3= -14.3

340-14.3=325.7

2010

345 (left out)

0

14.3

0 x 14.3= 0

340 - 0= 340

2011

310

0+1= 1

14.3

1 x 14.3= 14.3

340+14.3=354.3

2012

335

1+1=2

14.3

2 x 14.3= 28.6

340-28.6=368.6

y2=1361

2013

475

2+1=3

14.3

3 x 14.3= 42.9

340+42.9= 382.9

2014

520

3+1=4

14.3

4 x 14.3= 57.2

340+57.2=397.2

y=3060

yc =3060

3) Annual Growth Rate Semi-Average Method:- Under this method, the data are divided

into the two equal halves. For each half, a simple arithmetic mean is obtained i.e. x1 and x2

The average of the whole series is centred and annual growth rate is calculated with

the help of the following formula

y = y and

Annual growth Rate = y2 - y1

n

n (n - n )

E-mail :- nilesh_pazare@rediffmail.com

2014

44

>

<

y - axis

1973

12

1965

59.250

62.335

<

57.83

60.67

64

>

x - axis

347

364

384

Trend Line

56

59

62.8

65.8

280

295

314

329

54

57

61.25

64.75

67.5

Scale

x-axis - 1 cm = 1 year

y-axis - 1 cm = 2 Unit

16

14

216

228

245

259

270

>

1972

6 y. Centered A.

18

1971

6 y. A.

20

1970

6 y. T.

22

1969

5 y. A.

Actual Line

24

1968

5 y. T

26

1967

4 y. A.

P A Z A< R E

Years

4 y.T. means addition of first 4 year value and 4 y. A. mean 4 y.T. / 4 , like that for 5 year and

6 year calculated. 6 y.Centered A. means addition of first two 6 y.A divided by 2.

44

4 y. T.

Values

52

50

55

59

64

67

69

70

28

Ex (2):Year

1991

1992

1993

1994

1995

1996

1997

1998

N I L E S H

P A

P A

P A Z A R E

(Note:- The two items in the opening and the two items in the ending are left out in the

5 yearly moving average. )

N I L E S H

(348+349)=697/2=348.5

(349+350)=699/2=349.5

(350+351)=701/2=350.5

(351+356)=707/2=353.5

(356+357)=713/2=356.5

(357+358)=715/2=357.5

(358+362)=720/2=360

(362+364)=726/2=363

(364+367)=731/2=365.5

(367+369)=736/2=368

(369+373)=742/2=371

(373+377)=750/2=375

1044/3=348

1047/3=349

1050/3=350

1053/3=351

1068/3=356

1071/3=357

1074/3=358

1086/3=362

1092/3=364

1101/3=367

1107/3=369

1119/3=373

1131/3=377

330+340+374=1044

340+374+333=1047

374+333+343=1050

333+343+377=1053

343+377+348=1068

377+348+346=1071

348+346+380=1074

346+380+360=1086

380+360+352=1092

360+352+389=1101

352+389+366=1107

389+366+364=1119

366+364+401=1131

3 yr centered avrg

1966

Consumption

Year

------1967

1968

1969

1970

1971

-------

Values

330

340

374

333

343

377

348

346

380

360

352

389

366

364

401

5 year Moving Average

12

------14

------18

12+14+18+24+22=90

90/5=18

24

14+18+24+22+20=98

98/5=19.6

22

18+24+22+20+16=100

100/5=20

20

24+22+20+16+25=107

107/5=21.4

16

22+20+16+25+26=109

109/5=21.8

25

------26

-------

Year

1976

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

Year

1965

1966

1967

1968

1969

1970

1971

1972

1973

Ex (1):-

Ex (3):- Calculate the trend values by five yearly moving average method and plot the same

on a graph from the following:

Year:

1965 1966 1967 1968 1969 1970 1971 1972

1973

Consumption: 12

14

18

24

22

20

16

25

26

Under this method, the trend values can be obtained by employing arithmetic means

of the series except at the two ends of the series. We can have the moving averges for 3,

4, 5, 6, 7, 8, or 9 years depending upoin the size of the items. The procedure of veraging the

3 itmes or 4 items or different items simplifies the analysis and removes variations in the

values for a period concerned. The moving averages may form a straight line trend or a

curve. The process of averaging works as under.

We should decide first the period of the moving average. If it is 3 years or months or

weeks or days, the problem of centering the averages will not arise at all. But if we take 6

years or months or weeks or days, the averages are placed first in between th two middle

items and the arithmetic mean will be applied to center the items.

E-mail :- nilesh_pazare@rediffmail.com

1974

From the following data calculate 3,5 and 7 yearly moving averages.

1

2 3 4 5 6

7 8 9

10 11 12 13 14 15

4

2 0 -4 -2 4

2 0 -4 -2 4

2 0

-4 -2

N I L E S < H

>

N I L E S H

4

5

6

7

8

9

10

11

12

+0.8571

+0.2857

-0.5714

-0.8571

+0.2857

+0.8571

+0.2857

-0.5714

-0.8571

+6

+2

-4

-6

+2

+6

+2

-4

-6

56

Actual Line

54

52

P A

P A Z A

R

E

50

48

42

38

34

45

1978

1977

1976

1975

1974

1973

1972

1971

1970

1969

y - axis

1968

<

<

like other values also find directly on above table.

1967

30

Scale

x-axis - 1 cm = 1 year

y-axis - 1 cm = 2 Unit

>

x - axis

Years

32

Trend Line

36

40

>

44

Prices

46

P A

Ex (5):- Calculate the trend values by the method of moving averages assuming a four

yearly cycle from the following data relating to sugar production in India.

Year:

1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988

Product: 75

62

76

78

94

84

96 128 116 76

102 168

Ans:Year

Values 4 year moving total

4 year Moving Average

Centred

Year

1977

75

1978

62

75+62+76+78=291

291/4=072.75

1979

76

75.225

1979

62+76+78+94=310

310/4=077.70

1980

78

80.350

1980

76+78+94+84=332

332/4=083.00

1981

94

85.500

1981

78+94+84+96=352

352/4=088.00

1982

84

94.250

1982

94+84+96+128=402

402/4=100.50

1983

96

103.25

1983

84+96+128+116=424

424/4=106.00

1984

128

105.00

1984

96+128+116+76=416

416/4=104.00

1985

116

104.75

1985

128+116+76+102=422

422/4=105.50

1986

76

110.50

1986

116+76+102+168=462

462/4=115.50

1987

102

1988

168

P A Z A R E

0

0

0

0

0

0

0

0

0

0

0

Year

+2.000

-0.667

-2.000

-0.667

+1.333

+2.000

-0.667

-2.000

-0.667

+1.333

+2.000

-0.667

-2.000

7 y. A.

6

-2

-6

-2

4

6

-2

-6

-2

4

6

-2

-6

7 y. T.

5 y. T

3 y. A.

3 y. T.

Ex (6):- Calculate the trend values from the following data using 6 yearly moving averages

and plot the actual and trend values on a graph.

Year:

1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978

Prices:

30

45

35

41

42

47

48

46

40

50

55

52

Ans:Year Values

6 year moving total

6 yr Mv Average Centred

Year

1967

30

--------1968

45

--------1969

35

---30+45+35+41+42+47=240

240/6=40

1970

41

40+43=83/2=41.5 1970

45+35+41+42+47+48=258

258/6=43

1971

42

86.17/2=43.085 1971

35+41+42+47+48+46=259

259/6=43.17

1972

47

87.17/2=43.585 1972

41+42+47+48+46+40=264

262/6=44

1973

48

89.5/2=44.75

1973

42+47+48+46+40+50=273

273/6=45.5

1974

46

93.17/2=46.585 1974

47+48+46+40+50+55=286

286/6=47.67

1975

40

96.17/2=48.085 1975

48+46+40+50+55+52=291

291/6=48.5

1976

50

---1977

55

--------1978

52

---------

Prices

4

2

0

-4

-2

4

2

0

-4

-2

4

2

0

-4

-2

E-mail :- nilesh_pazare@rediffmail.com

Ex (4):Year:

Prices:

Ans:Year

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

45

46

P A Z A R E

Yc = a + bx

Yc= 19.5+ 0.8096 (-7) = 19.5 + ( -5.6672) = 19.5 - 5.6672 = 13.8328

Yc= 19.5+ 0.8096 (-5) = 19.5 + ( -4.048) = 19.5 - 4.048 = 15.4520

Yc= 19.5+ 0.8096 (-3) = 19.5 + ( -2.4288) = 19.5 - 2.4288 = 17.0712

Yc= 19.5+ 0.8096 (-1) = 19.5 + ( -0.8096) = 19.5 - 0.8096 = 18.6904

Yc= 19.5+ 0.8096 (1) = 19.5 + 0.8096 = 20.3096

Yc= 19.5+ 0.8096 (3) = 19.5 + 2.4288 = 21.9288

Yc= 19.5+ 0.8096 (5) = 19.5 + 4.048 = 23.5480

Yc= 19.5+ 0.8096 (7) = 19.5 + 5.6672 = 25.1672

N I L E S H

P A Z A R E

Ex (2):- Let us obtain the straight line trend increasing one more observation in the series

making the whole observation odd number of items.

Ans:Year Values(y)

x

x2

xy

Trend values (Yc= a + bx)

1990

16

-4

(-4)2= 16

16 x -4= -64

Yc= 19.5+ 1.3 (-4)= 14.3

1991

14

-3

(-3)2= 9

14 x -3= -42

Yc= 19.5+ 1.3 (-3)= 15.6

1992

20

-2

(-2)2= 4

20 x -2= -40

Yc= 19.5+ 1.3 (-2)= 16.9

1993

18

-1

(-1)2= 1

18 x -1= -18

Yc= 19.5+ 1.3 (-1)= 18.2

1994

19.5

0

(0)2= 0

19.5 x 0= 0

Yc= 19.5+ 1.3 (0)= 19.5

1995

12

+1

(1)2= 1

12 x 1= 12

Yc= 19.5+ 1.3 (1)= 20.8

1996

23

+2

(2)2= 4

23 x 2= 46

Yc= 19.5+ 1.3 (2)= 22.1

1997

28

+3

(3)2= 9

28 x 3= 84

Yc= 19.5+ 1.3 (3)= 23.4

1998

25

+4

(4)2= 16

25 x 4= 100

Yc= 19.5+ 1.3 (4)= 24.7

y=175.5 x=0

x2 =60

xy= 78

Yc= 175.5

a

y

n

= 175.5 = 19.5

9

46

= 0.8096

xy =

x2

78

60

= 1.3

Second Edition 2013 - 2014

dx

-7

-5

-3

-1

+1

+3

+5

+7

136

168

dx= (x - X )

-3.5

-2.5

-1.5

-0.5

or

+0.5

+1.5

+2.5

+3.5

1991

1992

1993

1994

1995

1996

1997

1998

dx = (x - X )

-3

-2

-1

0

+1

+2

+3

xy =

x2

1991

1992

1993

1994

1995

1996

1997

x

-7

-5

-3

-1

+1

+3

+5

+7

In the time series, the variable x can be measured from any point of origin period as

first year or starting point. It is always better to select the point of origin in the middle of the

x series (i.e. x = 0). this brings balance between the negative and positive values. The

period indicating the higher values can be reduced to the minimum sysmbolically as

under.

P A

The sum of deviations of the Y (actual values) from the Yc (cmputed values) is equal

to zero.

Y = actual values

Yc = Trend values

(Y - Yc ) = 0

P A

(i)

156 = 19.5

8

the least squares method of finding the trend line. It satisfies the following two conditions.

N I L E S H

y

n

y = Sum of y values

x = Sum of x values

n = Number of Observation

x2 = Sum of the squares of x

xy = Sum of the products of x and y.

x = Independent variable

y = Dependent variable on x

a = The y intercept or catch constant

b = Indicate slope & signifies the

changes in x constant

Y on X ---------Y = a + bX

To obtain the values of a and b constants, we have the following two secondary

equations.

y = na + b x

xy = a x + b x2

A linear trend values are obtained by the y on x equation which form a series in

arithmetic progression, the constant difference being the value of b representing the

slope. Following are the notations.

Ex (1):- Let us obtain the straight line trend for the values given below:

Ans:Year Values(y)

x

x2

xy

Trend values (Yc= a + bx)

1990

16

-7

(-7)2=49

16 x -7= -112 Yc= 19.5+ 0.8096 (-7)= 13.8328

1991

14

-5

(-5)2=25

14 x -5= -70

Yc= 19.5+ 0.8096 (-5)= 15.4520

1992

20

-3

(-3)2=9

20 x -3= -60

Yc= 19.5+ 0.8096 (-3)= 17.0712

1993

18

-1

(-1)2=1

18 x -1= -18

Yc= 19.5+ 0.8096 (-1)= 18.6904

1994

12

+1

(1)2=1

12 x 1= 12

Yc= 19.5+ 0.8096 (1)= 20.3096

1995

23

+3

(3)2=9

23 x 3= 69

Yc= 19.5+ 0.8096 (3)= 21.9288

1996

28

+5

(5)2=25

28 x 5= 140

Yc= 19.5+ 0.8096 (5)= 23.5480

1997

25

+7

(7)2=49

25 x 7= 175

Yc= 19.5+ 0.8096 (7)= 25.1672

y=156 x=0

x2 =168

xy=136

Yc= 156

This is the most accurate method of finding the trend values with the help of a mathematical technique, which gives us a straight line trend. A line of the Best Fit can be

obtained by the regression equation Y and X. It is a line from which the actual values

deviated on either sides. The sum of the deviations taken from the arithmetic mean will be

zero. Consequently, the sum of squares of devitations will be leas, as compared to the

other alternatives. That is why this method is called the Method of Least Squares.

E-mail :- nilesh_pazare@rediffmail.com

47

= 70.5

N I L E S H

P A Z A R E

= xy2 =

x

8

20

= 0.4

47

Year

1988

1989

1990

1991

1992

x

+7

+9

+11

+13

+15

Yc=

Yc=

Yc=

Yc=

Yc=

Yc= a + bx

65.75+ 3.6667 (7) = 65.75+ 25.6669 = 91.4169

65.75+ 3.6667 (9) = 65.75+ 33.0003 = 98.7503

65.75+ 3.6667 (11) = 65.75+ 40.3337 = 106.0837

65.75+ 3.6667 (13) = 65.75+ 47.6671 = 113.4171

65.75+ 3.6667 (15) = 65.75+ 55.0005 = 120.755

P A Z A R E

Predicted earning for the year 1990 = 106.0837 lakhs and year 1992 = 120.755 lakhs.

Ex (6):- Apply the method of least squares and determine the sales for the year 1975, 1977

and 1978.

Year:

1968

1969

1970

1971

1972

1973

1974

Sales:

100

110

130

125

170

168

191

Ans:Year Values(y)

x

x2

xy

Trend values (Yc= a + bx)

1968

100

-3

(-3)2= 9

100 x -3= -300

Yc= 142+ 15.3214 (-3)= 96.0358

1969

110

-2

(-2)2= 4

110 x -2= -220

Yc= 142+ 15.3214 (-2)= 111.3572

1970

130

-1

(-1)2= 1

130 x -1= -130

Yc= 142+ 15.3214 (-1)= 126.6786

1971

125

0

(0)2= 0

125 x 0= 0

Yc= 142+ 15.3214 (0)= 142

1972

170

+1 (1)2= 1

170 x 1= 170

Yc= 142+ 15.3214 (1)= 157.3214

1973

168

+2 (2)2= 4

168 x 2= 336

Yc= 142+ 15.3214 (2)= 172.6428

1974

191

+3 (3)2= 9

191 x 3= 573

Yc= 142+ 15.3214 (3)= 187.9642

y=994 x=0 x2 =28

xy=429

Yc= 994

QDM notes for MBA

= 12.5

= 3.667

50

4

616

168

= xy =

x2

= y

n

N I L E S H

Ex (4):- Let us obtain the straight line trend increasing one more observation in the series

making the whole observation odd number of items.

Ans:Year Values(y)

x

x2

xy

Trend values (Yc= a + bx)

1982

10

-3

(-3)2= 9

10 x -3= -30

Yc= 12.5+ 0.4 (-3)= 11.3

1983

13

-1

(-1)2= 1

13 x -1= -13

Yc= 12.5+ 0.4 (-1)= 12.1

1984

15

+1

(1)2= 1

15 x 1= 15

Yc= 12.5+ 0.4 (1)= 12.9

1985

12

+3

(3)2= 9

12 x 3= 36

Yc= 12.5+ 0.4 (3)= 13.7

y=50

x=0

x2 =20

xy=8

Yc= 50

a

= 526 = 65.75

8

P A

(-3) = 680 - 211.5 = 468.5

(-2) = 680 - 141 = 539

(-1) = 680 - 70.5 = 609.5

(0) = 680 + 0 = 680

(1) = 680 + 70.5 = 750.5

(2) = 680 + 141 = 821

(3) = 680 + 211.5 = 891.5

(4) = 680 + 282 = 962

P A

Yc = a + bx

Yc= 680+ 70.5

Yc= 680+ 70.5

Yc= 680+ 70.5

Yc= 680+ 70.5

Yc= 680+ 70.5

Yc= 680+ 70.5

Yc= 680+ 70.5

Yc= 680+ 70.5

Yc= 680+ 70.5

= y

n

4230

60

x

-4

-3

-2

-1

0

+1

+2

+3

+4

= xy2 =

x

= 6120 = 680

9

= y

n

Ex (5):- Fit a straight line tren d by the least squares method to the following data. Assuming that same rate of change continues, state what would be the predicted earning for the

year 1990 and 1992.

Year:

1981

1982

1983

1984

1985

1986

1987

1988

Earning: 38

40

65

72

69

60

87

95

Ans:Year Values(y)

x

x2

xy

Trend values (Yc= a + bx)

1981

38

-7

(-7)2=49

38 x -7= -266

Yc= 65.75+ 3.6667 (-7)= 40.0831

1982

40

-5

(-5)2=25

40 x -5= -200

Yc= 65.75+ 3.6667 (-5)= 47.4165

1983

65

-3

(-3)2=9

65 x -3= -195

Yc= 65.75+ 3.6667 (-3)= 54.7499

1984

72

-1

(-1)2=1

72 x -1= -72

Yc= 65.75+ 3.6667 (-1)= 62.0833

1985

69

+1

(1)2=1

69 x 1= 69

Yc= 65.75+ 3.6667 (1)= 69.4167

1986

60

+3

(3)2=9

60 x 3= 180

Yc= 65.75+ 3.6667 (3)= 76.7501

1987

87

+5

(5)2=25

87 x 5= 435

Yc= 65.75+ 3.6667 (5)= 84.0835

1988

95

+7

(7)2=49

95 x 7= 665

Yc= 65.75+ 3.6667 (7)= 91.4169

y=526 x=0 x2 =168

xy=616

Yc= 526

Ex (3):- Obtain the straight line trend equation and tabulate against each year the trend

values:

Ans:Year Values(y)

x

x2

xy

Trend values (Yc= a + bx)

1972

380

-4

(-4)2= 16

380 x -4= -1520 Yc= 680+ 70.5 (-4)= 398

1973

400

-3

(-3)2= 9

400 x -3= -1200 Yc= 680+ 70.5 (-3)= 468.5

1974

650

-2

(-2)2= 4

650 x -2= -1350 Yc= 680+ 70.5 (-2)= 539

1975

720

-1

(-1)2= 1

720 x -1= -720

Yc= 680+ 70.5 (-1)= 609.5

1976

690

0

(0)2= 0

690 x 0= 0

Yc= 680+ 70.5 (0)= 680

1977

620

+1

(1)2= 1

620 x 1= 620

Yc= 680+ 70.5 (1)= 750.5

1978

670

+2

(2)2= 4

670 x 2= 1340

Yc= 680+ 70.5 (2)= 821

1979

950

+3

(3)2= 9

950 x 3= 2850

Yc= 680+ 70.5 (3)= 891.5

1980

1040

+4

(4)2= 16

1040 x 4= 4160 Yc= 680+ 70.5 (4)= 962

y=6120 x=0

x2 =60

xy=4230

Yc= 6120

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= y

n

48

= 994 = 142

7

1)

For this problem, the decision variables are x1 and x2, the number of units of the products

A and B respectively. The objective function and the constraints are reproduced as :

Z = 40x1 + 35x2

profit

Subject to

2x1 + 3x2 60

4x1 + 3x2 96

x1 , x2 0

Sales for the year 1985 = 7 tons and year 1986 = 7.75 tons and year 1988 = 8.5 tons

48

Maximise

Yc= a + bx

Yc= 13 + 0.75 (-8) = 13 - 6 = 7

Yc= 13 + 0.75 (-7) = 13 - 5.25 = 7.75

Yc= 13 + 0.75 (-6) = 13 - 4.5 = 8.5

Yc= 13 + 0.75 (-5) = 13 - 3.75 = 9.25

Yc= 13 + 0.75 (-4) = 13 - 3 = 10

Yc= 13 + 0.75 (-3) = 13 - 2.25 = 10.75

We shall demostrate the graphical approach first in respect of the maximisations and

then for the minimisation problems.

= 0.75

x

-8

-7

-6

-5

-4

-3

21

28

Year

1985

1986

1987

1988

1989

1990

= xy2 =

x

P A Z A R E

Yc= a + bx = 13 + 0.75x

The use the graphic method for solving linear programming problems, the following

steps are required:(a) Identify the problem-the decision variables, the objective functions,and the constraint

restrictions.

(b) Draw a graph that includes all the constrainsts/ restrictions and identify the feasible

region.

(c) Obtain the point on the feasible region that optimises the objective function-the optimal solution.

(d) Interpret the results.

P A

= 13

= 91

7

= y

n

N I L E S H

P A

P A Z A R E

N I L E S H

Ex (7):- Apply the method of least squares and determine the sales for the year 1985, 1986

and 1988.

Year:

1990

1991

1992

1993

1994

1995

1996

Production:

12

10

14

11

13

15

16

Ans:Year Values(y)

x

x2

xy

Trend values (Yc= a + bx)

1968

12

-3

(-3)2= 9

12 x -3= -36

Yc= 13 + 0.75 (-3) = 10.75

1969

10

-2

(-2)2= 4

10 x -2= -20

Yc= 13 + 0.75 (-2) = 11.50

1970

14

-1

(-1)2= 1

14 x -1= -14

Yc= 13 + 0.75 (-1) = 12.25

1971

11

0

(0)2= 0

11 x 0= 0

Yc= 13 + 0.75 (0) = 13

1972

13

+1 (1)2= 1

13 x 1= 13

Yc= 13 + 0.75 (1) = 13.75

1973

15

+2 (2)2= 4

15 x 2= 30

Yc= 13 + 0.75 (2) = 14.50

1974

16

+3 (3)2= 9

16 x 3= 48

Yc= 13 + 0.75 (3) = 15.25

y=91

x=0 x2 =28

xy=21

Yc= 91

Sales for the year 1975 = 203.2856 units and year 1977 = 233.9284 units and

for year 1978 = 249.2498 units.

(a) There should be an objective which should be clearly identifiable and measurable in

quantitative terms. It could be, for example, maximisation of sales, of profit, minimisation

of cost, and so on.

(b) The acitivites to be included should be distinctly identifiable and measureable in

quantitative terms, for instance, the products encluded in a production planning problem.

(c) The resources of the system, which are to be allocated for the attainment of the goal,

should also be identifiable and measureable quantitatively. They must be in limited supply. The technique would involve allocation of these resources in a manner that would

made off the returns on the investment of the resources for the attainment of the objective.

(d) The relationships representing the objective as also the resource limitation considerations, represented by the objective function and the constraint equations or inequalities, respectively, must be linear in nature.

(e) There should be a series of feasible alternative courses of action availbale to the

decision maker which are determined by the resource constraints.

Yc= a + bx

+ 15.3214 (3) = 142 + 45.9642 = 187.9642

+ 15.3214 (4) = 142 + 61.2856 = 203.2856

+ 15.3214 (5) = 142 + 76.607 = 218.607

+ 15.3214 (6) = 142 + 91.9284 = 233.9284

+ 15.3214 (7) = 142 + 107.2498 = 249.2498

142

142

142

142

142

The linear programming method is a technique for choosing the best alternative from

a set of feasible alternationves, in situations in which the objective function as wll as the

contraints can be expressed as linear mathematical functions. In order to apply linear

programming, certain requirements have to be met. These are discussed here.

Yc=

Yc=

Yc=

Yc=

Yc=

x

+3

+4

+5

+6

+7

= 15.3214

Year

1974

1975

1976

1977

1978

429

28

= xy =

x2

E-mail :- nilesh_pazare@rediffmail.com

Ans:-

49

Objective variable

Subject to contraint-->

2x1 + 3x2 60

4x1 + 3x2 96

x1 , x2 0

2x1 + 3x2 = 60

( 0 , 20 )

( 30 , 0 )

x2 = 96 / 3 = 32

x1 = 96 / 2 = 24

( 0 , 32 )

( 24 , 0 )

( 0 , 20 ) ( 30 , 0 )

Since, x1=0

Since, x2=0

( 0 , 32 ) ( 24 , 0 )

>

96

N< I L E S H

26

<

2x

P A Z A R E

1

3x

18

comman intersect region.

i.e. sign then <-- direction

and sign then --> direction

60

<

16

12

Q

2)

Now we shall consider the graphical solution to the linear programming problems of the

minimisation nature.

Minimise

Z = 40x1 + 24x2

Total Cost

Subject to

Phosphate Requirment

x1 , x2 0

Zmin = 40x1 + 24x2

Nitrogen Requirment

P A Z A R E

Ans:-

Feasible Region

Subject to contraint-->

> x1

32

30

28

26

24

22

20

18

16

14

12

10

<

20x1 + 50x2 = 4800

Since, x1=0

Since, x2=0

49

x1 , x2 0

<

20x1+ 0 = 4800, x1 = 4800/20 = 240

<

2

x - axis <

O

y - axis

Objective variable

<

Since, Z is higesht at point Q, the optimal solution is to produce 18 units of product A and

8 units of product B every week, to get the profit of Rs. 1000. No other product mix under the

given condition could yield more profit than this.

Thus, maximum profit of Rs.1000 can be achieved when x1 = 18 and x2 = 8 at point Q.

10

(Maximum)

14

Z = 40x1 + 35x2

Z= 0+0=0

Z= 0 + 35 x 20 = 700

Z= 40x18 + 35x8 = 720 + 280 = 1000

Z= 40 x 24 + 0 = 960

P A

22

P

20

x2

0

20

8

0

N I L E S H

P A

24

x1

0

0

18

24

=

3x 2

28

Points

O

P

Q

R

+

4x 1

30

Scale

x-axis - 1 cm = 2 Unit

y-axis - 1 cm = 2 Unit

32

x2

From the graph we find the various points i.e. OPQR and its values.

The Z-values corresponding to the various points in respect of the given problem are

shown here.

4x1 + 3x2 = 96

0 + 3x2 = 96,

4x1+ 0 = 96,

x2 = 60 / 3 = 20

x1 = 60 / 2 = 30

4x1 + 3x2 = 96

4x1 + 3x2 = 96

0 + 3x2 = 60,

2x1+ 0 = 60,

Since, x1=0

Since, x2=0

2x1 + 3x2 = 60

2x1 + 3x2 = 60

From the graph, the line that would yield the maximum profit that passes through the Point

Q. This point give the maximum contribution and thus represents the optimal solution i.e.

18 units of Product A and 8 units of product B. This production of 18 units of A and 8 units

of B will consume

2 x 18 + 3 x 8 = 36 + 24 = 60 kg of raw material and

4 x 18 + 3 x 8 = 72 + 24 = 96 labour hours.

Hence, both the resources shall be fully utilised by this production plan.

In our example, the feasible region is given by the polygon OPQR, so we shall obtain the

ordinates of each of these points (giving the values x1 and x2 ) and caluculate the objective

function value by subsituting them into the objective function. The values of x1 and x2 at

each point can be ready directly from the graph. Also, in respect of those points which lie

on the intersection of tow lines, we can get the values by solving simultaneously the

equation representing those lines.

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( 0 , 96 )

(240 , 0 )

( 0 , 96 ) ( 240 , 0 )

80x1 + 50x2 =7200

80x1 + 50x2 =7200

50

Since, x1=0

Since, x2=0

( 90 , 0 )

>

>

96

Feasible Region

84

20

=4

80

Phosp hate

Requirement

Nitrogen Requirement

260

220

200

180

160

140

120

100

80

60

40

x1

80x1 + 50x2 = 7200

+ 50x2 =_4800

_ 20x1 _

N I L E S H

60x1 + 0

= 2400

20x1 + 50x2 = 4800,

20 x 40 + 50x2 = 4800,

800 + 50x2 = 4800

50x2 = 4800 - 800,

50x2 = 4000,

x2 = 4800 / 50 = 80

x1 = 2400 / 60 = 40

correct points from graph then

cross check the answer by

solving those equation which

two line intersect each other

P A Z A R E

Some Special Cases:In each of the two examples discussed so far, we have obtained a unique optimal

soution. We now consider three types of linear programming problems which do not have

unique optimal solutions. These are problems having multiple optimal solutions, having

no feasible solution, and having unbounded solutions.

1. Multiple Optimal Solutions: As stated above, in each of the three examples that we

have considered, we have observed that the optimal solution is given by an extreme point

of the feasible region and the solution is unique. The uniquesness implies that no other

solution to the given problem shall yield the same value of the objective function as given

by that solution. It is, of course, possible that in a given problem there may be more than

one optimal solution. Each of the multiple optima would naturally yield the same objective

funciton value.

The solution (if it exists) to a linear programming problem shall always be unique if

the slope of the objective function (represented by the iso-profit lines) is different from the

R

50

Joining the two points (0,96) & (240,0) , we get the striaght line corresponding to the above

equation. The area beyond this line represents the feasible area in respect of theis contraint

any point on the straight line or in the region above this line would satisfy the contraint.

Similarly, the second contraint can be depicated by plotting the straight line corresponding

to the equation 80x1 + 50x2 =7200. The points falling on this line and in the area beyond it

indicate the feasible values of x1 & x2 in respect of this contraint.

Since both the requirements are to be met, the feasible region in respect of the problem is

as represented by the shaded area. The feasible region here represents a convex set.

The region is unbounded on the upper side because one of the restrications in the

problem places an upper limit on the value of either of the decision variables. Obviously, if

such limits are placed, the feasible region would be a bounded one.

OR

How to find the correct points of interset point of feasible reasiong.

20x1 + 50x2 = 4800

---- eqn (1)

&

80x1 + 50x2 = 7200

20

<

>

y - axis

240

>R

x - axis <

Since, the total cost is minimum at point P, the optimal solution to the problem is to buy 144

bags of mixture of B only and none of mixture of A. This would entail a total cost of Rs 3456

Thus, miximum cost of Rs.3456 can be achieved when x1 = 0 and x2 = 144 at point P.

P A

>

P A> Z A

R E

P A

2 00

12

+5

0x

=7

36

24

0x 2

48

Minimum

N I L E S H

+5

60

72

Z = 40x1 + 24x2

Z= 0 + 24 x 144 = 3456 <

Z= 40x40 + 24x80 = 1600 + 1920 = 3520

Z= 40 x 240 + 0 = 9600

>

x2

144

80

0

108

Scale

x-axis - 1 cm = 20 Unit

y-axis - 1 cm = 12 Unit

120

8 0x 1

132

144

x1

0

40

240

comman intersect region.

i.e. sign then <-- direction

and sign then --> direction

156

Points

P

Q

R

x2

Alternately, the optimal soulution to the problem may be seen to be located at an extreme

point at point P, Q, R. in our example. We can evaluate the ordinates at each of these points

as follows:

( 0 , 144 )

( 0 , 144 )

( 90 , 0 )

80x1+ 0 = 7200, x1 = 7200/80 = 90

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51

Objective variable

x1 , x2

x2 125 ,

( 0 , 200 )

(200, 0 )

N I L E S H

x1 + x2 = 200

( 0 , 200 )

x2 = 125

( 200 , 0 )

x2 = 125,

3x1 + 6x2 = 900

( 0 , 125)

Since, x1=0

Since, x2=0

0 + 6x2 = 900,

3x1+ 0 = 900,

x2 = 900/6 = 150

x1 = 900/3 = 300

( 0 , 150 )

(300, 0 )

P A Z A R E

x2

( 0 , 150 )

( 300 , 0 )

>

200

C

+

6x

Subject to contraint-->

> x1

400

350

300

250

200

150

50

100

<

x - axis <

O

y - axis

90

Scale

x-axis - 1 cm = 50 Unit

y-axis - 1 cm = 25 Unit

2x1 + x2 40 ,

4x1 - x2 20 , x1 30 ,

x1 , x2 0

2x1 + x2 = 40

2x1 + x2 = 40

2x1 + x2 = 40

51

Since, x1=0

Since, x2=0

0 + x2 = 40,

2x1+ 0 = 40,

x2 = 40

x1 = 40 / 2 = 20

( 0 , 40 )

(20, 0 )

( 0 , 40 ) ( 20 , 0 )

Second Edition 2013 - 2014

25

Objective variable

Ans:-

x1 , x2 0

Feasible

Region

50

3x

75

Maximise

Z = 20x1 + 30x2

Subject to

2x1 + x2 40 ,

4x1 - x2 20 , x1 30 ,

x2=125

200

125

A

100

comman intersect region.

i.e. sign then <-- direction

and sign then --> direction

P A Z A R E

2. Infeasibilty: It has already been stated that a solution is called feasible if it satisfies all

the constraints and the non-negativity conditions. Sometimes it is possible that the constraints may be inconsistent so that there is no feasible solution to the problem. Such a

situtaion is called infeasibility.

In the graphic approach to the solution to an LPP, the infeaisbility is evident if its

feasible region is empty so that there is no feasible region in which all the constraints may

be satisfied simultanieously.

x 2=

150

N I L E S H

x 1+

175

In this example, the constraint to which the objective function was paralle, was the one

which formed a side of the boundary of the space of the feasible region. As mentioned in

condition (a), if such a constraint (to which the objective function is parallel) does not form

an edge or boundary of the feasible region, then multiple solutions would not exist. An

optimal solution that is unique and there are no multiple solutions, but in this problem,

there are two optima, which are multiple solutions, So it is called as Multiple Optima

solution problems.

P A

x2 = 200

x1 = 200

0 + x2 = 200,

x1+ 0 = 200,

P A

Since, x1=0

Since, x2=0

(Maximum)

(Maximum)

x1 + x2 = 200

x1 + x2 = 200

Z = 8x1 + 16x2

Z= 0+0=0

Z= 0 + 16 x 125 = 2000

Z= 8x50 + 16x125 = 400+2000 = 2400

Z= 8x100+16X100 = 800+1600 = 2400

Z = 8 X 200 + 0 = 1600

x1 + x2 200 ,

Subject to contraint-->

x2

0

125

125

100

0

x2 125 ,

Ans:-

x1 + x2 200 ,

x1

0

0

50

100

200

Subject to

Points

O

A

B

C

D

Maximise

Z = 8x1 + 16x2

We observe that iso-profit lines are parallel to the equation for third constraint 3x1 + 6x2 =

900. As we move the iso-profit line farther from the origin, it coincides with the portion BC

of the constraint line that forms the boundary of the feasible region. It implies that there are

an infiinite number of optimal solutions represented by all points lying on the line segment

BC, including the extreme points represented by B(50,125) and C(100,100). Since the

extreme points are also included in the solutions, we may disregard all other solutions

and consider only these, to establish that the solution to a linear programming problem

shall always lie at an extreme point of the feasible region.

The extreme points of the feasible region are given and evaluated here.

slope of the constraints. In case the objective function has slope which is same as that of

a constraint, then multiple optimal solutions might exist. There are two conditions that

should be satisfied in order that multipleoptimal solutions exist.

(a) The objective function should be parallel to a constraint that forms an edge or boundary on the feasible region and

(b) The constraint should form a boundary on the feasible region in the direction of

optimal movement of the objective functions. In other words, the constraint must be a

binding constraint.

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x1 , x2 0

Ans:-

x - axis

<

y - axis

30

25

20

15

10

-20

2x1 + 4x2 16

x1 + 5x2 15

x1 , x2 0

52

2x

P A Z A R E

1

+4

x=

2

x - axis <

O

y - axis

x+

1

16

5x

=1

> x1

Scale

x-axis - 1 cm = 2 Unit

y-axis - 1 cm = 1 Unit

From the graph, we find the points of B i.e. ( 2.33, 2.57 ), which are not bounded to the

feasible region. Clearly, here the objective function is not bound over the feasible region

and we can move the iso-profit line upward witout any limit. The problem has, therefor,

unbounded solution.

For a minimisation LPP, unboundedness occurs when htere are points in the feasible region with arbitrarily small values. To conclude, a maximisation LPP is unbounded

if, moving parallel to the original iso-profit line in the direction of increasing Z, we never

entirely leave the feasible region and, on the other hand, a minimisation problem is

unbounded if we never leave the feasible region while moving in the direction of decreasing Z.

Subject to

Feasible

Region

Z = 10x1 + 20x2

Maximise

3. Unboundedness: For a maximisation type of linear programming problem unboundedness occurs when there is no constraint on the solution so that one or more of the

decision variables can be increased indefinitely without violating any of the restrications

(constraints). Thus, an unbouned LPP occurs if it is possible to find points in the feasible

region with arbitrarily large Z-values (may be profit or revenue). this sugests that practically

if we find the solution to be unbounded of a profit-maximising linear programming problem, it may be concluded that the problem has not been correctly formulated.

P A

P A

It is represented graphically in above figure. The feasible region corresponding to the first

two constrants is bound by the convex set OABC, while the feasible region in respect of the

third constraint is also shown shaded separately. We can easily observe that there is no

common point in the areas shaded.

Therefore, all the constraints cannot be satisfied and as such, there is no feasible solution to the given problem.

Ex :-

N I L E S H

6

5

Feasible

Region

P A Z A R E

( 15 , 0 )

16

>

> x1

N I L E S H

O

-10

(0,3)

( 15, 0 )

comman intersect region.

i.e. sign then <-- direction

and sign then --> direction

x2

0 + 5x2 = 15,

x1+ 0 = 15,

(0,3)

x2 = 15 / 5 = 3

x1 = 15

(8,0)

<

=4

x1 + 5x2 = 15

-x

1

4x

>

Since, x1=0

Since, x2=0

(0,4)

(8,0)

10

x1=30

2x

(0,4)

x2 = 16 / 4 = 4

x1 = 16 / 2 = 4

20

30

Scale

x-axis - 1 cm = 5 Unit

y-axis - 1 cm = 10 Unit

x1 + 5x2 = 15

x1 + 5x2 = 15

0 + 4x2 = 16,

2x1+ 0 = 16,

>

=2

>

A

40

Since, x1=0

Since, x2=0

2x1+ 4x2 = 16

x2

2x1+ 4x2 = 16

2x1+ 4x2 = 16

14

( 30 , 0 )

x1 , x2

12

x1 = 30

(5,0)

x1 + 5x2 15 ,

( 0 , -20 )

( 0 , -20 )

(5, 0 )

4x1 - x2 = 20

x2 = - 20

x1 = 20 / 4 = 5

10

0 - x2 = 20,

4x1 - 0 = 20,

Since, x1=0

Since, x2=0

Subject to contraint-->

4x1 - x2 = 20

4x1 - x2 = 20

Objective variable

4x1 - x2 20 , x1 30 ,

2x1 + x2 40 ,

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<

Subject to contraint-->

52

Ex (1):- Minimise

Z = 6x1 + 14x2

Subject to

3x1 + 7x2 84 ,

x1 + 2x2 18,

x1 , x2 0

( 0 , 15 ) ( 12 , 0 )

( 0 , 12 )

( 28, 0 )

x2 = 18 / 2 = 9

x1 = 18

(0,9)

( 18, 0 )

Since, x1=0

Since, x2=0

0 + 2x2 = 18,

x1+ 0 = 18,

(0,9)

( 18 , 0 )

x 2=

60

12

2x

3x

18

7x

2

84

Subject to

> x1

30

24

18

12

<

x - axis <

O

y - axis

Note:- if you are unable to find correct points from graph then cross check the answer by

solving those equation which two line intersect each other.

53

Maximise

Z = 10x1 + 15x2

2x1 + x2 26

2x1 + 4x2 56

x1 - x2 -5

x1 , x2 0

Second Edition 2013 - 2014

Feasible

Region

Scale

x-axis - 2 cm = 6 Unit

y-axis - 2 cm = 3 Unit

5x1 + 4x2 = 60,

5x1 + 4 x 10.43 = 60,

5x1 + 41.72 = 60,

5x1 = 60 - 41.72,

5x1 = 18.28

x1 = 18.28 / 5 = 3.65

P A Z A R E

x1 + 2x2 = 18,

x1 + 2 x 5 = 18,

x1 + 10 = 18

x1 = 18 - 10,

x1 = 8,

0 + 23x2 = 240

x2 = 240 / 23 = 10.43

0 + 6x2 = 30

x2 = 30 / 6 = 5

P A

+4

comman intersect region.

i.e. sign then <-- direction

and sign then --> direction

P A

5x 1

P A Z A R E

mult by 3 on eqn (1) & mult by 5 on eqn (2)

& Substract eqn (1) from eqn (2)

15x1 + 35x2 = 420

_ 12x2 = _ 180

_15x1 +

N I L E S H

>

x1 + 2x2 = 18

15

multiply by 5 on eqn (3) &

Substract eqn (1) from eqn (3)

5x1 + 10x2 = 90

_ 4x2 = _ 60

_ 5x1 +

( 0 , 12 ) ( 28 , 0 )

N I L E S H

x2

OR

How to find the correct points of interset point of feasible reasiong.

5x1 + 4x2 = 60---- eqn (1), 3x1 + 7x2 = 84---- eqn (2), &

x1 + 2x2 = 18---- eqn (3)

x2 = 84 / 7 = 12

x1 = 84 / 3 = 28

3x1 + 7x2 = 84

0 + 7x2 = 84,

3x1+ 0 = 84,

It may be observed here that although the iso-cost line is parallel to the second constraint

line prepresentd by 3x1 + 7x2 = 84, and this constraint does provide a side of the area of

feasible solutions, yet the problem has a unique optimal solution, given by the point D.

Since, x1=0

Since, x2=0

x1 + 2x2 = 18

x1 + 2x2 = 18

( 0 , 15 )

( 12 , 0 )

3x1 + 7x2 = 84

3x1 + 7x2 = 84

x2 = 60 / 4 = 15

x1 = 60 / 5 = 12

Z = 6x1 + 14x2

Z= 6x8 + 14 x 5 = 48 + 70 = 118

Z= 6x3.65 + 14x10.43 = 21.9 + 146.09=167.99=168

Z= 6 x 28 + 0 = 148

Z= 6 x 18 + 0 = 108

Minimum

5x1 + 4x2 = 60

0 + 4x2 = 60,

5x1+ 0 = 60,

x2

5

10.43

0

0

Since, x1=0

Since, x2=0

5x1 + 4x2 = 60

5x1 + 4x2 = 60

x1

8

3.65

28

18

Subject to contraint-->

Points

A

B

C

D

5x1 + 4x2 60

3x1 + 7x2 84

x1 + 2x2 18

x1 , x2 0

Zmin = Z = 6x1 + 14x2

Objective variable

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Alternately, the optimal soulution to the problem may be seen to be located at an extreme

point at point A, B, C, D in our example. We can evaluate the ordinates at each of these

points as follows:

Ans:-

53

Ans:-

54

Objective variable

Subject to contraint-->

2x1 + x2 26,

2x1 + 4x2 56 ,

x1 - x2 -5,

x1 , x2 0

x2 = 56 / 4 = 14

x1 = 56 / 2 = 28

( 0 , 14 )

( 28, 0 )

( 0 , 14 ) ( 28 , 0 )

x2 = 5

(0,5)

( -5, 0 )

2x1 + x2 = 26---- eqn (1),

2x1 + 4x2 = 56---- eqn (2), &

x1 - x2 = -5---- eqn (3)

OR

N I L E S H

multiply by 2 on eqn (3) &

Substract eqn (3) from eqn (2)

2x1 + 4x2 = 56

N I L E S H

0 + 6x2 = 66

x2 = 66 / 6 = 11

36

28

2x 1

=2

+ x2

24

20

=

-x2

-5

x1

36

32

28

20

12

<

-4

-8

Minimise

Z = 3x1 + 5x2

Subject to

-3x1 + 4x2 12 ;

2x1 - x2 -2 ;

2x1 + 3x2 12 ;

x1 4 ; x2 2 & x1 , x2

Ans:- Objective variable

Zmin = Z = 3x1 + 5x2

x1 , x2 0

> x1

x - axis

y-axis

56

Note:- if you are unable to find correct points from graph then cross check the answer by

solving those equation which two line intersect each other.

<

16

24

A

4

>

P A Z A R E

Feasible

Region

2x

1 +

4x

=

2x1 + x2 = 26,

2x1 + 10 = 26,

2x1 = 26 - 10,

2x1 = 16

2x1 = 16 / 2 = 8

12

x1 - x2 = -5,

x1 - 11 = -5,

x1 = -5 + 11

x1 = 6,

Scale

x-axis - 1 cm = 4 Unit

y-axis - 1 cm = 4 Unit

16

0 + 3x2 = 30

x2 = 30 / 3 = 10

Put the value of x2 = 10 on eqn (1)

P A

P A Z A R E

P A

comman intersect region.

i.e. sign then <-- direction

and sign then --> direction

32

Substract eqn (1) from eqn (2)

2x1 + 4x2 = 56

+ x2 = _ 26

_ 2x1 _

>

( -5 , 0 )

(0,5)

-x2 = -5

x1 = -5

Maximum

x1 - x2 = -5

0 - x2 = -5,

x1 - 0 = -5,

Z = 10x1 + 15x2

Z= 10 x 0 + 15 x 5 = 0 + 75 = 75

Z= 10 x 6 + 15 x 11 = 60 + 165 = 225

Z= 10 x 8 + 15 x 10 = 80 + 150 = 230

Z= 10 x 13 + 15 x 0 = 130 + 0 = 130

Since, x1=0

Since, x2=0

x2

5

11

10

0

0 + 4x2 = 56,

2x1+ 0 = 56,

x1

0

6

8

13

2x1 + 4x2 = 56

x2

Points

A

B

C

D

( 0 , 26 ) ( 13 , 0 )

Since, x1=0

Since, x2=0

x1 - x2 = -5

x1 - x2 = -5

( 0 , 26 )

( 13 , 0 )

2x1 + 4x2 = 56

2x1 + 4x2 = 56

x2 = 26

x1 = 26 / 2 = 13

2x1 + x2 = 26

0 + x2 = 26,

2x1+ 0 = 26,

Since, x1=0

Since, x2=0

2x1 + x2 = 26

2x1 + x2 = 26

Alternately, the optimal soulution to the problem may be seen to be located at an extreme

point at point A, B, C, D in our example. We can evaluate the ordinates at each of these

points as follows:

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This problem is exhibited graphically in above figure. The feasible region is shaded. This

is significant to note here that have not considered the area below the line corresponding

to x1 - x2 = -5 for the negative values of x1 . This is because of the non negativity condition

x1 0, which implies that negative values of x1 should not be considered.

-3x1+4x2 = 12

Since, x1=0

-3x1 + 4x2 = 12

Since, x2=0

-3x1 + 4x2 = 12

54

0 + 4x2 = 12,

x2 = 12 / 4 = 3

-3x1+ 0 = 12,

x1 = - 12 / 3 = -4

( 0 , 3 ) ( -4 , 0 )

(0,3)

( -4 , 0 )

Second Edition 2013 - 2014

2x1- x2 = -2

2x1- x2 = -2

Since, x1=0

Since, x2=0

(0,2)

Since, x1=0

Since, x2=0

( -1 , 0 )

0 + 3x2 = 12,

2x1+ 0 = 12,

(6,0)

;

x2 = 2

>

=2

-x

2x

12

2

1

x2 = 2

P A Z A R>E

x1

x - axis

<

-1

-2

-3

-4

-5

<

y-axis

Note:- if you are unable to find correct points from graph then cross check the answer by

solving those equation which two line intersect each other.

Ans:- Let x1 & x2 be the amount invested in Bonds A and B, respectively. Using the given

data, we may state the problem as follows:

Maximise: Z = 0.07x1 + 0.10x2

Subject to x1 + x2 30000, x1 6000 , x2 12000, x1- x2 0,

x1 , x2 0

55

Ex (4):- A retired person wants to invest upto an amount of Rs 30,000 in fixed income

securities. His broker recommends investing in two bonds: Bond A yielding 7% and Bond

B yielding 10%. After some condideration, he decides to invest at most Rs 12,000 in Bond

B and at least Rs 6,000 in Bond A. He also wants the amount invested in Bond A to be at

least equal to the amount invested in Bond B. What should the broker recommend if the

investor wants to maximise his return on investment? Solve graphically.

On the next page, check the correct points from calculation of two intersect lines

OR

P A Z A R E

Z = 3x1 + 5x2

Z= 3 x 0.75 + 5 x 3.5 = 2.25 + 17.5 = 19.75

Z= 3 x 0.8 + 5 x 3.6 = 18 + 18 = 20.40

Z= 3 x 4 + 5 x 6 = 12 + 30 = 42

Z= 3 x 4 + 5 x 2 = 12 + 10 = 22

Z= 3 x 3 + 5 x 2 = 9 + 10 = 19

minimise

Put the value of x2=2 on eqn (3)

2x1 + 3x2 = 12,

2x1 + 3 x 2 = 12,

2x1 + 6 = 12,

2x1 = 12 - 6 = 6,

x1 = 6 / 2

x1 = 3

x2

3.5

3.6

6.0

2.0

2.0

Put the value of x1=4 on eqn (1)

-3x1 + 4x2 = 12,

-3 x 4 + 4x2 = 12,

-12 + 4x2 = 12,

4x2 = 12 + 12 = 24,

x2 = 24 / 4,

x2 = 6

x1

0.75

0.8

4.0

4.0

3.0

Alternately, the optimal soulution to the problem may be seen to be located at an extreme

point at point A, B, C, D, E in our example. We can evaluate the ordinates at each of these

points as follows:

Points

A

B

C

D

E

N I L E S H

n

P A

-3

x 1+

=

4x 2

Feasible

Region

2x

E D

1 +

3x

2 =

12

P A

N I L E S H

2x1 - x2 = -2,

2x1 - 3.6 = -2,

2x1 = -2 + 3.6,

2x1 = 1.6,

x1 = 1.6 / 2

x1 = 0.8

x1 = 4

2x1 - x2 = -2,

2x1 - 3.5 = -2,

2x1 = -2 + 3.5

2x1 = 1.5 ,

x1 = 1.5 / 2,

x1 = 0.75

0 + 5x2 = 18

x2 = 18 / 5 = 3.6

selecting comman intersect region.

i.e. sign then <-- direction

and sign then --> direction

x2

7

( 0, 2 )

mult by 2 on eqn (1) & mult by 3 on eqn (2)

& Addition of eqn (1) to eqn (2)

-6x1 + 8x2 = 24

6x1 - 3x2 = -6

(4,0)

Scale

x-axis - 1 cm = 1 Unit

y-axis - 1 cm = 1 Unit

(0,4)

( 6, 0 )

At point A, eqn (2) & eqn (3) intersect

Substract eqn (2) from eqn (3)

2x1 + 3x2 = 12

- x2 = -2

_ 2x1 +

+

0 + 4x2 = 14

x2 = 14 / 4 = 3.5

(0,4)

x2 = 12 / 3 = 4

x1 = 12 / 2 = 6

-3x1+4x2 = 12---- eqn (1), 2x1- x2 = -2---- eqn (2), & 2x1 + 3x2 = 12---- eqn (3)

x1 = 4

(0,2)

( -1 , 0 )

2x1 + 3x2 = 12

-x2 = -2,

x2 = 2

x1 = -2 / 2 = -1

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2x1 + 3x2 = 12

2x1 + 3x2 = 12

0 - x2 = -2,

2x1+ 0 = -2,

2x1- x2 = -2

55

Ans:-

56

Objective variable

Subject to contraint-->

x2 12000,

( 0, 1 ) ( 1 , 0 )

x2

( in 000 Rs. )

x=

30

=0

- x2

N I L E S H

2

18

00

12

x2 = 12000

x1

x - axis

30

27

24

21

18

15

<

12

P A Z A R >E

<

( in 000 Rs. )

y-axis

Ans:- Let x1 & x2 be the number of dresses of types A and B respectively. Using the given

information, the linear programming problem may be stated as follows:

Maximise: Z = 160x1 + 180x2 Total profit

OR

50

x1

x1

x2

20

x2

Man-Hrs

Cloth material

x2

x2

24

x1

36

x2

24

Machine-Hrs

x1 , x2 0

x2

50 + 20 = 1

x1 x2

+

= 1

50 20

36

56

+

30 30

x1

On the next page, check the correct points from calculation of two intersect lines

x1

= 1

Since x1 = 0 , 0 + 20 = 1 ,

x1

Since x2 = 0 ,

+0 = 1,

50

Since x1 = 0 , 0 +

x2

24

= 1,

x2 = 20 x 1 = 20

( 0 , 20 )

x1 = 50 x 1 = 50

( 50 , 0 )

x2 = 24 x 1 = 24

( 0 , 24 )

Second Edition 2013 - 2014

The Z - value is maximum at point D. Accordingly, the optimal solution is invest Rs. 1800 in

Bond A and Rs. 1200 in Bond B. It would yield a return of Rs. 2460.

Subject to

Z = 0.07x1 + 0.10x2

Z= 0.07x6000 + 0.10x 0 = 420 + 0 = 420

Z= 0.07x6000 + 0.10x6000 = 420 + 600 = 1020

Z= 0.07x12000 + 0.10x12000 = 840 + 1200 = 2040

Z= 0.07x18000 + 0.10x12000 = 1260 + 1200 = 2460

Z= 0.07x30000 + 0.10x 0 = 2100 + 0 = 2100

P A Z A R E

x2

0

6000

12000

12000

0

Ex (5):- A manufacturer employs three inputs: man hours, machine-hours and cloth material to manufacture to types of dresses. Type A dress fetches him a profit of Rs 160 per

piece, while type B, that of Rs 180 per piece. The manufacturer has enough man-hours to

manufacture 50 pieces of type A or 20 pieces of type B dresses per day while the machinehours he possesses suffice only ofr 36 pieces of type A or for 24 pieces for type B dresses.

Cloth material available per day is limited but sufficient enough for 30 pieces of either type

of dress. formulate the linear programming model and solve it graphically.

x1

6000

6000

12000

18000

30000

N I L E S H

Points

A

B

C

D

E

solving those equation which two line intersect each other.

Alternately, the optimal soulution to the problem may be seen to be located at an extreme

point at point A, B, C, D, E in our example. We can evaluate the ordinates at each of these

points as follows:

P A

Scale

x-axis - 1 cm = 6 Unit

y-axis - 1 cm = 6 Unit

P A

Feasible

Region

x1

At point C, eqn (2) & eqn (4) intersect & Put the value of x2=12000 on eqn (2)

x1 - x2 = 0 ;

x1 - 12000 = 0 ;

x1 = 12000

x+

24

x1 = 6000

30

selecting comman intersect region.

i.e. sign then <-- direction

and sign then --> direction

>

x1 - x2 = 0

( 6000 , 0 ) ;

( 12000 , 0 )

(30000 , 0 )

x1 = 6000

x2 = 12000

( 0 ,30000)

(30000 , 0 )

Put the value of x2 = 12000 on eqn (1)

x1 + x2 = 30000

x1 + 12000 = 30000

x1 = 30000 - 12000 = 18000

x1 = 18000

( 0 ,30000)

x2 = 30000

x1 = 30000

x1 + x2 = 30000

0 + x2= 30000,

x1+ 0 = 30000,

Put the value of x1 = 6000 on eqn (2)

x1 - x2 = 0

6000 - x2 = 0

x2 = 6000

x2 = 6000

Since, x1=0

Since, x2=0

x1 + x2 = 30000

x1 + x2 = 30000

x1 + x2 = 30000---- eqn (1), x1 = 6000---- eqn (2), & x2 = 12000---- eqn (3)

x1 - x2 = 0---- eqn (4)

x1 + x2 30000, x1 6000 ,

x1- x2 0,

x1 , x2 0

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x1

36

x2

24

x1

x2

= 1

x1

Since x2 = 0 ,

= 1,

30

30

+0 = 1,

x1 = 30 x 1 = 30

( 30 , 0 )

x2

x1

x2

= 1

Scale

x-axis - 1 cm = 5 Unit

y-axis - 1 cm = 5 Unit

N I L E S H

B

x1

Feasible

Region

50

x2

20

= 1

55

50

45

40

35

30

25

20

15

10

<

y-axis

N I L E S H

solving those equation which two line intersect each other.

Ans:- Let

x1 : Investment in Portfolio 1

The LPP may be expressed as under:

Maximise:

Z = 0.10x1 + 0.20x2

Total Return

Subject to

-2x1 + 3x2 0,

-2x1 + 8x2 0,

x1 , x2 0

Risk Requirment

Return Requirment

Non-negativity

OR

On the next page, check the correct points from calculation of two intersect lines

57

The Z - value is maximum at point C. Accordingly, the optimal solution calls for producing

18 units of type A dress and 12 units of type B dress. Total profit is Rs. 5040.

x2 : Investment in Portfolio 2

Z = 160x1 + 180x2

Z=0+0=0

Z= 160 x 0 + 180 x 20 = 0 + 360 = 3600

Z= 160 x 14 + 180 x 15 = 2400 + 2520 = 4920

Z= 160 x 18 + 180 x 12 = 2880 + 2160 = 5040

Z= 160 x 30 + 180 x 0 = 4800 + 0 = 4800

x2

0

20

14

12

0

x1

0

0

15

18

30

Points

O

A

B

C

D

Ex (6):- Let us assume that you have inherited Rs 100000 from your father-in-law that can

be invested in a combination of only two stock protfolios, with the maximum investment

allowed in either portfolio set at Rs 75000. The first portfolio has an average return of 10%,

whereas the second has 20 & In terms of risk factors associated with these portfolios, the

first has a risk rating of 4 (on a scale from 0 to 10), and the second has 9. since you want

to maximise your return, you will not accept an average rate of return below 12% or a risk

factor above 6. Hence, you then face the important question. How much should you invest

in each portfolio? Formulate has this as a linear programming problem and solve it by

graphic method.

Alternately, the optimal soulution to the problem may be seen to be located at an extreme

point at point O, A, B, C, D in our example. We can evaluate the ordinates at each of these

points as follows:

P A Z A R E

P A

x - axis

P A

> x1

P A Z A R E

30x1 + 30x2 = 900,

30x1 + 30 x 12 = 900,

30x1 + 360 = 900,

30x1 = 900 - 360,

30x1 = 540

x1 = 540 / 30 = 18

24

0 + 60x2 = 720

x2 = 720 / 60 = 12

20x1 + 50x2 = 1000,

20x1 + 50 x 14 = 1000

20x1 + 700 = 1000

20x1 = 1000 - 700,

20x1 = 300,

x1 = 300 / 20 = 15

36

0 + 120x2 = 1860

x2 = 1860 / 120 = 14

mult by 5 on eqn (2) & mult by 4 on eqn (3)

& Substract eqn (3) from eqn (2)

120x1 + 180x2 = 4320

120x1 + 120x2 = 3600

= 1

30

15

<

mult by 6 on eqn (1) & mult by 5 on eqn (2)

& Substract eqn (2) from eqn (1)

120x1 + 300x2 = 6000

120x1 + 180x2 = 4320

>

30

10

20

( 0 , 30 )

x1

x2

x1

x2

x1

x2

+

= 1

;

+

= 1

;

+

= 1

50 20

36 24

30 30

x1

25

x2 = 30 x 1 = 30

selecting comman intersect region.

i.e. sign then <-- direction

and sign then --> direction

35

30

( 36 , 0 )

x2

30

x2

>

30

Since x1 = 0 , 0 +

x1 = 36 x 1 = 36

30

= 1

36

+0 = 1,

30

Since x2 = 0 ,

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x2

x1

= 1

x1

57

58

( 0 , 0.67)

( 1.5 , 0 )

( in 000 Rs. )

Since, x1=1

Since, x2=1

( 0 , 0.25)

110

90

80

70

60

50

40

0 + 5x2 = 200000

x2 = 200000 / 5 = 40000

Put the value of x2 = 40000 on eqn (1)

x2 = 100000 - 75000

x2 = 25000

we get the points x1 = 75000, x2 = 25000

x1 + x2 = 100000,

x1 + 40000 = 100000

x1 = 100000 - 40000

x1 = 60000,

we get the points x1=60000, x2=40000

for point A

Put the value of x1 = 75000 on eqn (3)

-2x1 + 8x2 = 0,

-2 x 75000+ 8x2 = 0,

8x2 = 150000 ,

x2 = 150000 / 8 = 18750

we get the points x1 = 75000, x2 = 18750 for B

Evidently, Rs. 60000 should be invested in Portfolio 1 and Rs. 40000 in Portfolio 2. It would

yield a maximum return of Rs. 14000, while meeting all the given requirments.

solving those equation which two line intersect each other.

58

Put the value of x1 = 75000 on eqn (1)

x1 + x2 = 100000

75000 + x2 = 100000

Z = 0.10x1 + 0.20x2

Z=0+0=0

Z= 0.10x60000 + 0.20x40000=6000 + 8000 = 14000

Z= 0.10x75000 + 0.20x25000=7500 + 5000 = 12500

Z= 0.10x75000 + 0.20x18750=7500 + 3750 = 11250

30

P A Z A R E

mult by 2 on eqn (1) & add to eqn (2)

2x1 + 2x2 = 200000

-2x1 + 3x2 = 0

Points

x1

x2

O

0

0

A

60000 40000

B

75000 25000

C

75000 18750

( in 000 Rs. )

x1+ x2=100000-- eqn (1), -2x1+ 3x2 = 0-- eqn (2), -2x1+ 8x2 = 0-- eqn (3) & x1= 75000 -- eqn (4)

Alternately, the optimal soulution to the problem may be seen to be located at an extreme

point at point O, A,B,C in our example. We can evaluate the ordinates at each of these

points as follows:

x - axis

20

<

(4,0)

x1

-2x1 + 8x2 = 0 ,

Since, x2=1

-2x1 + 8 x 1= 0 ,

-2x1 + 8 = 0

2x1 = 8 ;

x1 = 8 / 2 = 4

10

<

N

I L E S >H

y-axis

-2x1 + 8x2 = 0 ,

Since, x1=1

-2 x 1 + 8x2 = 0, -2 + 8x2 = 0,

8x2 = 2 ;

x2 = 2 / 8 = 0.25

0C

x2

P A

Since, x2=1

P A Z A R E

Scale

x-axis - 1 cm = 10 Unit

y-axis - 1 cm = 10 Unit

Since, x1=1

8

-2x 1 +

P A

-2x1 + 3x2 = 0 ,

Since, x2=1

-2x1 + 3 x 1= 0 ,

-2x1 + 3 = 0

2x1 = 3 ;

x1 = 3 / 2 = 1.5

10

( 75000 , 0 )

-2x1 + 3x2 = 0 ,

Since, x1=1

-2 x 1 + 3x2 = 0, -2 + 3x2 = 0,

3x2 = 2 ;

x2 = 2 / 3 = 0.67

-2

x 1+

3x 2

>Region

x2 = 75000

Feasible

20

( 0 , 100000) (100000 , 0 )

( 75000 , 0 ) ;

40

x1 = 75000

x1 + x2 = 100000

N I L E S H

( 0 ,100000)

(100000 , 0 )

x1 75000

x2 = 100000

x1 = 100000

50

00

0 + x2= 100000,

x1+ 0 = 100000,

60

30

x1 + x2 = 100000 Since, x2=0

x2 75000

0

00

1

x2

70

+

x1

x2 75000,

x1 , x2 0

x1 75000 ;

-2x1 + 8x2 0 ;

x1 + x2 100000 ;

-2x1 + 3x2 0 ;

80

Ans:Maximise: Zmax = 0.10x1 + 0.20x2

90

0.10x1 + 0.20x2 0.12 (x1 + x2 ) ;

0.10x1 + 0.20x2 0.12 x1 + 0.12x2

0.10x1 + 0.20x2 - 0.12x1 - 0.12 x2 0 ;

- 0.02x1 + 0.08x2 0

Subject to

100

- 2x1 + 3x2 0

Tip :Take opposite direction of sign for selecting comman intersect region.

i.e. sign then <-- direction

and sign then --> direction

>

x2

4x1 + 9x2

x1 + x2 6

4x1 + 9x2 6 (x1 + x2 ) ;

4x1 + 9x2 - 6x1 - 6x2 0 ;

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100

59

Accordingly, the LPP can be stated as follows:

Maximise: Z = 2250x1 + 2300x2 + 2400x3 - 200000

Subject to : 20 x1 60 ;

70 x2 140 ;

x1 + x2 120 ;

x1 + x2 + x3 = 200 ;

Subject to:

20 x1 60 ;

x1 + x2 120 ;

x1 = 60

x1 = 20

>

100

E

C

x

1

60

40

=1

80

+x

=1

40

20

180

+x

160

140

20

<

Scale

x-axis - 1 cm = 20 Unit

y-axis - 1 cm = 20 Unit

120

60

x2 = 70

100

80

20

Condition (ii)

Condition (iv)

Feasible

>Region

Condition (i)

x2 70 and x2 140

Condition (iii)

x1 60

Condition (v)

and

x1 + x2 + x3 = 200

40

x1 20

x3 60

x1 + x2 120

120

selecting comman intersect region.

i.e. sign then <-- direction

and sign then --> direction

> x1

x - axis

y-axis

59

140

160

Maximise:

P A Z A R E

With a hiring free of Rs. 200000 , the objective function can be expressed as:

x2

N I L E S H

<

P A Z A R E

P A

The travel agent wishes to determine the number of packages to offer in each type so as

to maximise the total profit.

a) Formulate this as a linear programming problem

b) Restate the above LPP in terms of two decision variables, taking advantage of the fact

that 200 packages will be sold.

c) Find the optimal solution using graphical method for the restated problem and

interpret your results.

Ans:a) Let x1 , x2 & x2 be the number of packages of Deluxe, Standard & Economy types,

respectively. From the given information, unit profit for each of the 3 types can be

obtained as under:

Deluxe Package

:

10000 - (3000 + 4750 ) = 2250

Standard Package

:

7000 - ( 2200 + 2500 ) = 2300

Economy Package :

6500 - ( 1900 + 2200 ) = 2400

x1 + x2 = 120

Since, x1=0 0 + x2= 120,

x2 = 120

( 0 ,120)

x1 + x2 = 120

Since, x2=0 x1+ 0 = 120,

x1 = 120

(120 , 0 )

x1 + x2 = 120

( 0 , 120) (120, 0 )

x1 + x2 = 140

Since, x1=0 0 + x2= 140,

x2 = 140

( 0 ,140)

x1 + x2 = 140

Since, x2=0 x1+ 0 = 140,

x1 = 140

(140 , 0 )

x1 + x2 = 140

( 0 , 140) (140, 0 )

P A

4750

2500

2200

x3 60

Hotel Costs

3000

2200

1900

N I L E S H

Price

10000

7000

6500

70 x2 140 ;

x1 , x2 , x3 0

Maximise:

now, put x3 = 200 - x1 - x2

Z = 2250x1 + 2300x2 + 2400 (200 - x1 - x2 ) - 200000

Z = 2250x1 + 2300x2 + 480000 - 2400x1 - 2400x2 - 200000

Z = 2250x1 - 2400x1 + 2300x2 - 2400x2 +480000 - 200000

Z = -150x1 - 100x2 + 280000

the LPP can be re-expressed as follows:

Tour Plan

Deluxe

Standard

Economy

x3 60

x1 , x2 , x3 0

Ex (7) :- A local travel agent is planning a charter trip to a major sea prot. The eight day and

seven night package includes the fare for rount trip, surface trasportation, board and

lodging and seleced tour options. The charter trip is restricted to 200 persons and past

experienc indicates that there will not be any problem for getting 200 clients. the problem

for the travel agent is to determine the number of Deluxe, Standard and Economy tour

packages to offer for this charter. These three plans differ according to seating and service

for the flight, quality of accommodations, meal plans and tour options. The following table

summarises the estimated prices for the tree packages and the corresponding expenses

for the travel agent. The travel agent has hired an aircraft for the flat fee of Rs. 200000 for

the entire tips. In planning the trip, the following considerations must be taken into account

i) At least 10% of the packages must be of the Deluxe type.

ii) At least 35% but not more than 70% must be of the Standard type.

iii) At least 30% must be of the Economy type.

iv) The miximum number of Deluxe packages available in any aircraft is restricted to 60

v) The hotel desires that at least 120 of the tourists should be on the Deluxe and the

Standard packages taken together.

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60

Subject to contraint-->

6x1 + 3x2 = 18

Since, x1=0

6x1 + 3x2 = 18

Since, x2=0

6x1 + 3x2 = 18

4x1 + 5x2 = 30

Since, x1=0 0 + 5x2= 30, x2 = 30 / 5 = 6

4x1 + 5x2 = 30

Since, x2=0 4x1+ 0 = 30, x1 = 30 / 4 = 7.5

4x1 + 5x2 = 30

( 0 , 6 ) ( 7.5, 0 )

(0,6)

( 7.5 , 0 )

x2

5x

2

Feasible

> Region

> x1

x - axis

<

Scale

x-axis - 1 cm = 1 Unit

y-axis - 1 cm = 1 Unit

30

x2

0

6

2

0

Z = 28x1 + 30x2

Z=0+0=0

Z= 28 x 0 + 30 x 6 = 0 + 180 = 180

Z= 28 x 2 + 30 x 2 = 56 + 60 = 116

Z= 28 x 2.67 + 30 x 0 = 74.76 + 0 = 74.76

maximum

Thus, the solution is optimal at point A. The maximum is 180 can be achieved when

x1 = 0 and x2 = 6.

60

x1

0

0

2

2.67

Alternately, the optimal soulution to the problem may be seen to be located at an extreme

point at point O,A,B,C in our example.

Points

O

A

B

C

P A

18

3x1 + x2 8,

x1 , x2 0

x 2=

4x1 + 5x2 30,

Subject to

4x

Z = 28x1 + 30x2

8

x =

3

2

solving those equation which two line intersect each other.

Ex (8):- Maximise:

P A Z A R E

Put the value of x1 = 20 on eqn (4)

x1 + x2 = 120,

20 + x2 = 120,

x2 = 120 - 20,

x2 = 100,

we get the points x1=20, x2=100 for E

Put the value of x1 = 20 on eqn (3)

x1 + x2 = 140,

20 + x2 = 140

x2 = 140 - 20

x2 = 120,

we get the points x1=20, x2=120 for D

+3

6x 1

P A Z A R E

7

6

selecting comman intersect region.

i.e. sign then <-- direction

and sign then --> direction

Put the value of x1 = 60 on eqn (3)

x1 + x2 = 140,

60 + x2 = 140,

x2 = 140 - 60,

x2 = 80,

we get the points x1=60, x2=80 for C

N I L E S H

P A

Put the value of x2 = 70 on eqn (2)

x1 + x2 = 120,

x1 + 70 = 120

x1 = 120 - 70

x1 = 50,

we get the points x1=50, x2=70 for A

<

y-axis

3x 1 +

N I L E S H

x1+x2=140--eq (3),

>

(0,8)

( 2.67 , 0 )

x1+x2=120--eq (2),

(0,6)

(3,0)

x2=70--eq (1),

0 + 3x2= 18, x2 = 18 / 3 = 6

6x1+ 0 = 18, x1 = 18 / 6 = 3

(0,6) (3,0)

3x1 + x2 = 8

Since, x1=0 0 + x2= 8,

x2 = 8

3x1 + x2 = 8

Since, x2=0 3x1+ 0 = 8, x1 = 8 / 3 = 2.67

3x1 + x2 = 8

( 0 , 8 ) ( 2.67 , 0 )

n

3x1 + x2 8,

x1 , x2 0

Thus, maximum profit of Rs. 267000 can be achieved when x1= 20 , x3 = 100 and x3 = 80

Since x1+ x2 + x3 = 200

So, Put x1 = 20 & x2= 100 on eqn

20 + 100 + x3= 200 ;

120 + x3 = 200

x3 = 200 - 120

x3 = 80

4x1 + 5x2 30,

Z= -150x50 - 100x70 + 280000= -7500-7000+280000=265500

Z= -150x60 - 100x70 + 280000= -9000-7000+280000=264000

Z= -150x60 - 100x80 + 280000= -9000-8000+280000=263000

Z= -150x20 - 100x120 + 280000= -3000-12000+280000=265000

Z= -150x20 - 100x100 + 280000= -3000-10000+280000=267000

x2

70

70

80

120

100

x1

50

60

60

20

20

Objective variable

Points

A

B

C

D

E

Ans:-

Alternately, the optimal soulution to the problem may be seen to be located at an extreme

point at point A,B,C,D,E in our example. We can evaluate the ordinates at each of these

points as follows:

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61

12

07

C

Demand

500

007

013

008

014

300

006

016

011

007

200

Demand

180

150

350

320

1000

220

016

011

007

200

00

150

350

320

820

670

From / To

12

Supply

013

170

N I L E S H

180

10

150

012

170

07

13

008

014

300

06

16

011

007

200

00

00

350

320

670

00

P A Z A R E

Demand

180

500

820

61

12

07

13

008

06

16

Demand

00

00

Q

180

10

R

150

Supply

013

000

014

300

011

007

200

180 00

320

500 320

012

170

180

00

120

Step 1:- Start the north west corner and above table, AP cell, Find out which value is small

i.e. demand value or supply value. And from observation, it found that the demand

value is small, so put the demand value in AP cell and substract the demand

value from demand & supply cell.

i.e., after substracting the value of demand & supply, we get

demand = 180 - 180 = 0 & supply = 500 - 180 = 220.

Repeat the same step till the Demand & Supply value become zero ( 0 ).

From / To

013

06

012

300

010

014

Step 3:- Start the north west corner and above table, AR cell, Find out which value is small

i.e. demand value or supply value. And from observation, it found that the supply

value is small, so put the supply value in AR cell and substract the supply

value from demand & supply cell.

i.e., after substracting the value of demand & supply, we get

demand = 350 - 170 = 180 & supply = 170 - 170 = 0.

Repeat the same step till the Demand & Supply value become zero ( 0 ).

Supply

180

008

012

013

170

220

150

P A

P A

From / To

013

010

012

180

Step 2:- Start the north west corner and above table, AQ cell, Find out which value is small

i.e. demand value or supply value. And from observation, it found that the demand

value is small, so put the demand value in AQ cell and substract the demand

value from demand & supply cell.

i.e., after substracting the value of demand & supply, we get

demand = 150 - 150 = 0 & supply = 220 - 150 = 170.

Repeat the same step till the Demand & Supply value become zero ( 0 ).

The North-West-Corner rule (N-W Corner rule) may be stated as follows.

Start with the north-west corner of the transprotation tableau and consider the cell in the

first column and the first row. Corresponding to this cell are the values a1 and b1 respectively in row 1 and column 1.

P A Z A R E

Supply

N I L E S H

Obtaining the initial Feasible Solution: The first step in using the transportation method is

to obtain a feasible solution, namely, the one that satisfies the rim requirements (i.e. the

requirments of demand and supply). The initial feasible solution can be obtained by

several methods. The commonly used are the Nort-West Corner (NWC) Rule, Least Cost

Method (LCM) and the Vogels Appoximation Method (VAM).

algorithm, it does not require any artificial variables to introduce for obtaining an initial

solution to the problem.

Broadly, the transportation method involves the following three steps:

(1) Obtaining an initial solution, that is to say making an initial assignment in such a way

that a basic fesible solution is obtained.

(2) Ascertaining whether it is optimal or not, by determining opportunity costs associated

with the empty cells. If the solution is optimal then exit, and if it is not optimal, proceed

to step (3)

(3) Revise the solution unitl an optimal solution is reached.

From / To

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62

12 180

10 150

013

07

13

012 170

008 180

014 120

170 00

120 00

06

16

011

007

200

Demand

00

00

000 00

320 200

320 200

N I L E S H

07

13

08 180

06

16

11

Demand

00

00

00

10

150

12

170

00

Supply

013

000

014 120

007 200

000 00

200 00

200

00

200

00

00

D2

D3

D4

Demand

S1

010

006

018

023

300

S2

004

009

013

010

200

S3

007

013

015

005

400

Supply

150

200

200

350

900

Repeat the same step till the Demand & Supply value become zero ( 0 ).

Total Cost = 2160 + 1500 + 2040 + 1440 + 1680 + 1400 = Rs. 10220

62

Step 1:- From above table, first find the least value from whole table and assign that least

value from demand & supply value and above table the cell S2D1 value is least

value i.e. 4. Now allocate the lower value from supply & demand i.e. 150 in S2D1

cell Now the column is satisfied by this allocation, the row total revised.

i.e. substracting the lower value from supply & demand, we get

Step 6:- Start the north west corner and above table, CS cell, Find out which value is small

i.e. demand value or supply value. And from observation, it found that the supply

& demand value are both small, so put the value in CS cell and substract the

value from demand & supply cell.

i.e., after substracting the value of demand & supply, we get

demand = 200 - 200 = 0 & supply = 200 - 200 = 0.

12

D1

180

P A Z A R E

From / To

P A

From / To

P A

P A Z A R E

N I L E S H

Step 5:- Start the north west corner and above table, BS cell, Find out which value is small

i.e. demand value or supply value. And from observation, it found that the supply

value is small, so put the supply value in BS cell and substract the supply

value from demand & supply cell.

i.e., after substracting the value of demand & supply, we get

demand = 320 - 120 = 200 & supply = 120 - 120 = 0.

Repeat the same step till the Demand & Supply value become zero ( 0 ).

Supply

From / To

Leas Cost Method (LCM) :As the name suggests, this method entails making allocation at each step by selecting from the routes (that is, combinations of soures and destinations) available, the one

with the minimum cost. To begin, we choose the cell which has the minimum cost,

consider the supply available at the source (ai) and the demand at the destination (b j)

corresponding to that, and allocate the lower of the two (ai or bj) to the cell. After this, we

delete the row or column (or both if ai = bj ) whichever is satisfied by this allocation. If the

row is deleted, then the column value (bj) is revised by subtracting the quantity assigned.

Similarly, if the column is deleted, then the row total is revised. After this, we consider the

routes remaining and again choose the one with the least cost, make assignment and

adjust the row/column total. We continue in this manner until all the units are assigned.

It may be mentioned that at any stage, if there is a tie in the minimum cost, so that two

or more routes have the same least cost of shipping, then, conceptually, either of them

may be selected. However, a better initial solution is obtained if the route chosen is the

one where larges quantity can be assigned. Thus, if there are three cells for which the

(least) cost value is equal, then consider all of these one by one and determine the

quantity (by reference to the demand and supply quantities given) which can be despatched, and choose the cell with the largest quantity. If there is still a tie, then either of

them may be selected.

Step 4:- Start the north west corner and above table, BR cell, Find out which value is small

i.e. demand value or supply value. And from observation, it found that the demand

value is small, so put the demand value in BR cell and substract the demand

value from demand & supply cell.

i.e., after substracting the value of demand & supply, we get

demand = 180 - 180 = 0 & supply = 300 - 180 = 120.

Repeat the same step till the Demand & Supply value become zero ( 0 ).

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S1

010

Supply

150

006

018

023

300

009

013

010

200

013

015

005

400

200

200

350

900

50

Step 4:- From above table, first find the least value from whole table and assign that least

value from demand & supply value and above table the cell S2D2 value is least

value i.e. 13. Now allocate the lower value from supply & demand i.e. 50 in S2D2

cell Now the column is satisfied by this allocation, the row total revised.

i.e. substracting the lower value from supply & demand, we get

Repeat the same step till the Demand & Supply value become zero ( 0 ).

750

D3

D4

Demand

S1

10

006

018

023

300

S2

04 150

009

013

010

050

P A Z A R E

Supply

07

00

013

015

200

200

005 350

350 00

400 50

750 400

10

006

018

23

300

S2

04 150

009

013

10

050

S3

07

013

015

05

Supply

00

200 00

200

00

200

350

100

050

050

013

07

13

015

00

00

00

150

50

05

50

350

00

00

050

150

100

N I L E S H

P A Z A R E

Repeat the same step till the Demand & Supply value become zero ( 0 ).

From / To

D1

D2

D3

D4

Demand

S1

10

06

018

23

100

S2

04 150

09

013 50

10

000

S3

07

13

015 50

05

Supply

00

00 00

100 50

00

200

350

050 00

100 50

Step 5:- From above table, first find the least value from whole table and assign that least

value from demand & supply value and above table the cell S1D3 value is least

value i.e. 18. Now allocate the lower value from supply & demand i.e. 100 in S1D3

cell Now the column is satisfied by this allocation, the row total revised.

i.e. substracting the lower value from supply & demand, we we get

supply= 100 - 100 = 00 & demand = 100 - 100 = 00.

400 200

63

S1

10

09

Demand

Supply

100

D4

D3

S3

150

23

D2

04

018

D1

S2

200

Demand

Step 5:- From above table, first find the least value from whole table and assign that least

value from demand & supply value and above table the cell S3D3 value is least

value i.e. 15. Now allocate the lower value from supply & demand i.e. 50 in S3D3

cell Now the column is satisfied by this allocation, the row total revised.

i.e. substracting the lower value from supply & demand, we we get

Step 3:- From above table, first find the least value from whole table and assign that least

value from demand & supply value and above table the cell S1D2 value is least

value i.e. 6. Now allocate the lower value from supply & demand i.e. 200 in S1D2

cell Now the column is satisfied by this allocation, the row total revised.

i.e. substracting the lower value from supply & demand, we get

supply= 200 - 200 = 0 & demand = 300 - 200 = 100.

From / To

06

D4

P A

D2

10

P A

D1

S1

D3

N I L E S H

From / To

D2

Repeat the same step till the Demand & Supply value become zero ( 0 ).

D1

From / To

Step 2:- From above table, first find the least value from whole table and assign that least

value from demand & supply value and above table the cell S3D4 value is least

value i.e. 5. Now allocate the lower value from supply & demand i.e. 350 in S3D4

cell Now the column is satisfied by this allocation, the row total revised.

i.e. substracting the lower value from supply & demand, we get

S3

007

Demand

S3

D4

004

D3

S2

150

D2

D1

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From / To

63

S1

10

06

S2

04 150

09

D3

200

018

100

013 50

015

Supply

00

00 00

100 00

10

05

000

350

00

00

000

10000

Repeat the same step till the Demand & Supply value become zero ( 0 ).

06

60

04

02

05

10

100

02

06

05

01

40

Supply

20

50

50

80

200

08

06

60

6-3=3

04

02

05

10

100

4-2=2

02

06

05

01 40

40 00

2-1=1

Demand

20

50

50

80 40

200 160

Iteration

4-2=2

3-2=1

5-5=0

6-1=5

N I L E S H

P A Z A R E

Repeat the same step till the Demand & Supply value become zero ( 0 ).

From / To

Supply

Iteration

10

03

08

06

60

6-3=3

04

02

05

10

80

4-2=2

02

06

05

01

00

----

Demand

20

50

50

40

Iteration

10-4=6

3-2=1

8-5=3

10-6=4

20

00

40

160

140

Step 3:- To begin with, the cost differences between the pairs of least cost cell are taken

for each row & column. The largest of these being 4 ( =10 -6), the column designat-ed 4 is selected. In the lowest cost cell of this column, A4, a value 40 assigned

and the column 4 is deleted. The requirment at warehouse A is revised at 20

supply= 60 - 40 = 20 & demand = 40 - 40 = 00.

64

08

03

03

10

10

Iteration

Supply

Supply

Step 2:- To begin with, the cost differences between the pairs of least cost cell are taken

for each row & column. The largest of these being 6 ( =10 -4), the column designat-ed 1 is selected. In the lowest cost cell of this column, B1, a value 20 assigned

and the column 1 is deleted. The requirment at warehouse B is revised at 80

P A

From / To

1

2

3

P A

P A Z A R E

N I L E S H

Vogels Approximation Method (VAM) :The Vogels Approximation Method, commonly known as VAM, is another cost-based

method used for obtaining initial solution to a transportation problem. Actually, it user cost

differentials rather than absolute costs, to select the appropriate cell to make allocations.

First, consider every row of the cost matrix individually and find the difference between

two least cost cells in it. Then, repeat the exercise for every column. Consider all cost

difference and identify the row or column with the largest value. Now, focus on the cell with

the smallest cost in the row or column so chosen and make allocation in that. The number

of units allocated would be lower of the corresponding supply and demand values. In

case of a tie in the larges cost difference, although either of them may be chosen, it is

preferable to choosen the cost difference corresponding to which the larges number of

units may be assigned or corresponding to which the cell chosen has minmum cost. To

illustrate, suppose the larges cost difference is found to be tied for a row and a column. In

applying the first of the rules, determine the quantity (condidering the available supply and

demand) which can be assigned in each case and select the one where larger quantity

can be assigned. In the other case, unit cost values of the two least cost cells, in the row

and column and choose the one which has a lower value.

Delete the row or column which has been satisfied by the allocation and adjust the

quantity of demand/supply. Recalculate the cost difference for the reduced matrix and

proceed in the same manner as discussed above para. Continue with the process until

all units have been assigned.

From / To

Total Cost = 1200 + 1800 + 600 + 650 + 750 + 1750 = Rs. 6750

13

00

100

07

23

Step 1:- To begin with, the cost differences between the pairs of least cost cell are taken

for each row & column. The largest of these being 5 ( =6 -1), the column designat-ed 4 is selected. In the lowest cost cell of this column, C4, a value 40 assigned

and the row C is deleted. The requirment at warehouse 4 is revised at 40

S3

Demand

50

D4

D2

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D1

From / To

64

From / To

04

20

Supply

03

08

06

02

05

10

40

80

01

Demand

00

50

50

40

3-2=1

8-5=3

10-6=4

140

---100

Supply

008

004

010

100

009

007

009

800

006

005

008

150

004

003

003

400

Demand

750

200

500

1450

10

03

Supply

08

06

40

20

00

8-3=5

P A Z A R E

Demand

04

02

02

06

00

50

3-2=1

05

01

50

00

8-5=3

40

00

80

5-2=3

40

----

100

80

Supply

008 100

004

010

100 /0

009

007

009

800

006

005

008

150

004

003

003

400

200

500

1450

C

D

P A Z A R E

Demand 750

/650

/1350

----

04

20

02

30

08

05

06

50

40

10

Supply

00

00

80

40

02

06

05

01

Demand

00

50 30

50

00 00

00

40

Iteration

---5-2=3

03

----

80 0

Supply

004

010

007

009

800

008

009

006

005

008

150

004

003

003

400

200

500

1350

Demand 650

65

100

650

/0

/150

10

3

20

From / To

From / To X

Step 5:- Finally, only one row is left and therefore, no cost differences need to be recalculated. The allocations for each of the cells remaining are made having reference to the

requirments: 30 to B2, and 50 to B3.

supply= 30 - 30 = 00 & demand = 80 - 30 = 50 and finally demand = 50 - 50 = 0

Step 2:- Start the north west corner i.e. BX cell, Find out which value is small i.e. demand

value or supply value. And from observation, it found that the supply & demand

value is small are both same, put the value in BX cell and substract the supply

value from demand & supply cell. Repeat the same step.

----

30

10

Iteration

05

N I L E S H

From / To X

Iteration

P A

20

P A

20

From / To

Repeat the same step till the Demand & Supply value become zero ( 0 ).

N I L E S H

Step 1:- Start the north west corner i.e. AX cell, Find out which value is small i.e. demand

value or supply value. And from observation, it found that the supply value is small

so put the supply value in AX cell and substract the supply value from demand &

supply cell. Repeat the same step till the Demand & Supply value become zero.

Step 4:- To begin with, the cost differences between the pairs of least cost cell are taken

for each row & column. The largest of these being 5 ( =8 -3), the column designat-ed 2 is selected. In the lowest cost cell of this column, A2, a value 20 assigned

and the row 1 is deleted. The requirment at warehouse 2 is revised at 30

----

00

40

From / To

05

5-2=3

06

6-3=3

02

Total Cost = 3 x 20 + 6 x 40 + 4 x 20 + 2 x 30 + 5 x 50 + 1 x 40

Total Cost = 60 + 240 + 80 + 60 + 250 + 40 = Rs. 730

Iteration

40

Iteration

60

20

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10

65

/700

Second Edition 2013 - 2014

66

From / To X

04

06

05

009

150

005

008

150

003

003

400

04

03

003

Demand 00

00

500

500

700

/550

650

04

06

05

04

03

/0

000

008

150

003

400

500

550

/400/0

P A Z A R E

Repeat the same step till the Demand & Supply value become zero ( 0 ).

/100

/500

500

/0

From / To X

Supply

008

004

010

100

009

007

009

800

006

005

008

150

003

400

500

/1250

1450

200

D

004

003

Demand 750

200

/0

/200

50

50

009

/400/0

400

/0

N I L E S H

Demand 00

07

000

400

100

09

010

100

Step 1:- In LCM, the least cost is find from table but here 3 is come twice, so find least

value from DY & DZ. And here DY is least value. Now allocate the lower value from

supply & demand in DY cell. Now the column is satisfied by this allocation,

the row total revised. Substracting the lower value from supply & demand.

150

008

Repeat the same step till the Demand & Supply value become zero ( 0 ).

66

Step 2:- From above table, find the least value from whole table and assign that least

value from demand & supply value and above table the cell DZ value is least

value i.e. 3. Now allocate the lower value from supply & demand i.e. 200 in DZ

cell Now the row is satisfied by this allocation, the column total revised.

i.e. substracting the lower value from supply & demand, we get

Step 5:- Finally, Z column is remains and start the north west corner i.e. CZ and put the

small value in that CZ cell i.e. 100 and remaing value put on the DZ cell i.e. 400.

And finally, the total cost value is calculate.

P A

08

50

Supply

P A Z A R E

100

150

Total Cost = 800 + 5850 + 1050 + 250 + 800 + 1200 = Rs. 9950

P A

07

N I L E S H

Step 4:- Start the north west corner i.e. CY cell, Find out which value is small i.e. demand

value or supply value. And from observation, it found that the demand value is

small so put the demand value in CY cell and substract the demand value from

demand & supply cell. Repeat the same step till the Demand & Supply value

become zero ( 0 ).

From / To X

650

200

/50

/0

Demand 00

/0

000

09

06

000

150

009

Supply

010

007

000

650

010

09

04

08

004

Supply

08

100

From / To X

100

Step 3:- Start the north west corner i.e. BY cell, Find out which value is small i.e. demand

value or supply value. And from observation, it found that the supply value is small

so put the supply value in BY cell and substract the supply value from demand &

supply cell. Repeat the same step till the Demand & Supply value become zero.

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67

008

04

010

100

009

07

009

800

006

05

008

150

004

03

Demand 750

00

003

/300

200

/0

/1050

1250

From / To X

500

200

Supply

008

04

10

100

009

07

09

800

006

05

08

150

03 200

03

00

300

Supply

04

10

000

/0

008

009500

006150

07

09 300

800 /500/0

05

08

000

004

03 200

03 200

000

00

300 /0

800 /500/0

C

D

Demand 500/0

Total Cost = 800 + 4500 + 2700 + 900 + 600 + 600 = Rs. 10100

N I L E S H

N I L E S H

100

Step 3:- From above table, first find the least value from whole table and assign that least

value from demand & supply value and above table the cell CX value is least

value i.e. 6. Now allocate the lower value from supply & demand i.e. 150 in CX

cell. Now the column is satisfied by this allocation, the row total revised. Substracting the lower value from supply & demand. Repeat the same step again.

From / To X

supply= 800 - 300 = 500 & demand = 300 - 300 = 0 for BZ cell allocate 300

and finally supply= 500 - 500 = 0 & demand 500 - 500 = 0 for BX cell allocate 500

200

Step 5:- Finally, only one row is left and therefore, assign the least value from that row and

The allocations for each of the cells remaining are made having reference to the

requirments: 300 to BZ, and 500 to BX.

Supply

From / To X

E-mail :- nilesh_pazare@rediffmail.com

P A Z A R E

004

200

000

1050/900

Step 1:- To begin with, the cost differences between the pairs of least cost cell are taken

for each row & column. The largest of these being 5 ( =8 -3), the column designat-ed 3 is selected. In the lowest cost cell of this column, DZ, a value 400 assigned

and the row D is deleted. The requirment at column Z is revised 100

P A Z A R E

100

009

07

09

800

006 150

05

08

000

004

03 200

03

00

300

Supply

Iteration

004

010

100

8-4=4

009

007

009

800

9-7=2

006

005

008

150

400

004

003

003

Demand

750

200

500

Iteration

6-4=2

4-3=1

8-3=5

000

6-5=1

/0

400

/100

4-3=1

/1050

1450

200

008

10

04

/0

Supply

008

100

From / To

Repeat the same step till the Demand & Supply value become zero ( 0 ).

900 /800

67

Step 4:- From above table, first find the least value from whole table and assign that least

value from demand & supply value and above table the cell AX value is least

value i.e. 8. Now allocate the lower value from supply & demand i.e. 100 in AXcell.

Now the row is satisfied by this allocation, the column total revised. Substracting

the lower value from supply & demand. Repeat the same step again.

From / To X

P A

/0

P A

150

68

E-mail :- nilesh_pazare@rediffmail.com

Iteration

008

004 100

010

100 /0

8-4=4

009

007

009

800

9-7=2

006

005

008

150

6-5=1

400

003

003

/100

200

Iteration

8-6=2

5-4=1

100

1050

9-8=1

N I L E S H

Repeat the same step till the Demand & Supply value become zero ( 0 ).

Supply

008

004 100

010

000

----

009

007

009

800

9-7=2

006

005

008

150

/150

750

Iteration

9-6=3

/600

100

/100

7-5=2

100

9-8=1

000

950

004

Demand

600

/0

009

005

008

003

003

100

/0

100

100

800

/700/600/0

000

400

/0

000

800

/700/600/0

Total Cost = 400 + 5400 + 700 + 900 + 900 + 1200 = Rs. 9500

N I L E S H

From / To

C1

C2

C3

Capacity

10

B

C

P A Z A R E

Requirment

15

11

13

80

15

75

20

50

Iteration

6-5=1

----

/800

150

100

Note:-

In above table, the requirment total is 145 and Capacity total is 105. So table is not

balanced. Thats why in Dummy Row taken in table with the difference value of

Capacity & Requirment i.e. 145 - 105 = 40. So 40 value taken in Dummy row

Now the table are as follows, after taking the Dummy.

From / To

C1

C2

C3

Capacity

10

15

11

13

80

15

Dummy

40

Requirment

75

20

50

Step 4:- Finally, only one row is left and therefore, no cost differences need to be recalcu-lated. The allocations for each of the cells remaining are made having reference

to the requirments: 100 to BY, 100 To BZ and 60 to BX.

68

Demand

003

006

007

003

600

004

009

400

/0

Now find out the feasible solution using various method i.e. NWC, LCM and VAM.

QDM notes for MBA

000

010

From / To

008

P A

P A

Step 3:- To begin with, the cost differences between the pairs of least cost cell are taken

for each row & column. The largest of these being 3 ( =9 -6), the column designat-ed 6 is selected. In the lowest cost cell of this column, CY, a value 150 assigned

and the row C is deleted. The requirment at column X is revised 600

P A Z A R E

750

---/950

Supply

Demand

000

004 100

004

Supply

From / To

From / To

Repeat the same step till the Demand & Supply value become zero ( 0 ).

supply= 800 - 100 = 700 & demand = 100 - 100 = 0 for BY cell allocate 100 ,

supply= 700 - 100 = 600 & demand = 100 - 100 = 0 for BZ cell allocate 100 ,

and finally supply= 600 - 600 = 0 & demand = 600 - 600 = 0 for BX cell allocate 600

Step 2:- To begin with, the cost differences between the pairs of least cost cell are taken

for each row & column. The largest of these being 4 ( =8 -4), the column designat-ed 4 is selected. In the lowest cost cell of this column, AY, a value 100 assigned

and the row A is deleted. The requirment at column Y is revised 100

69

10

15

11

13

80

06

05

04

15

00

00

40

Requirment

75 /65

20

50

145 /135

13

00

5 5

04

15 /10

Dummy

00

40

Requirment

0 /0

5 /0

50

55 /50

05 10

C2

03

C3

08

Capacity

00

P A Z A R E

13

80

06

05

04

15

Dummy

00

00

00

40

Requirment

65 /0

20

50

135 /70

/15

C3

Capacity

03

08

00

11 15

05 5

13

00

04 /10

00 /40

10 /0

40 /0

50 /40/0

50 /40/0

P A Z A R E

Dummy

Requirment

06

00

0 /0

00

0

/0

Total Cost = 5 x 10 + 15 x 65 + 11 x 15 + 5 x 5 + 4 x 10 + 0 x 40

Total Cost = 50 + 975 + 165 + 25 + 40 + 0 = Rs. 1255

Capacity

03

08

00

05 10

15 65

11 15

13

15

06

05

04

15

Dummy

00

00

00

40

Requirment

00 /0

20 /5

50

70

/0

From / To

C1

C2

C3

Capacity

10

15

11

13

80

15

40

Requirment

75

20

50

/55

69

C3

C2

C1

From / To

Step 3:- Start the north west corner i.e. BC2 cell, Find out which value is small i.e. capacity

value or requirment value. And from observation, it found that the capcity value is

small so put the capacity value in BC2 cell and substract the capacity value from

Capacity & requirment cell. Repeat the same step.

11

10

05

1565

C2

15 65

C1

P A

C1

P A

From / To

N I L E S H

From / To

N I L E S H

Step 2:- Start the north west corner i.e. BC1 cell, Find out which value is small i.e. capacity

value or requirment value. And from observation, it found that the requirment

value is small so put the requirment value in BC1 cell and substract the requirment

value from Capacity & requirment cell. Repeat the same step.

Step 5:- Finally, only one column is left and therefore Start the north west corner i.e. CC3

cell, Find out which value is small i.e. capacity value or requirment value. And

from observation, it found that the capcity value is small so put the capcity value in

CC3 cell and substracted the capcity value and balance the table.

00

00

Dummy

08

03

11 15

/0

10

05

1565

08

Capacity

Capacity

03

C3

C3

05 10

C2

C2

C1

C1

From / To

From / To

Step 4:- Start the north west corner i.e. CC2 cell, Find out which value is small i.e. capacity

value or requirment value. And from observation, it found that the requirment

value is small so put the requirment value in CC2 cell and substract the requirment

value from Capacity & requirment cell. Repeat the same step.

Step 1:- Start the north west corner i.e. AC1 cell, Find out which value is small i.e. capacity

value or requirment value. And from observation, it found that the capacity value is

small so put the capacity value in AC1 cell and substract the capactiy value from

Capacity & requirment cell. Repeat the same step.

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70

05

03

08

10

15

11

13

80

06

05

04

15

00

00 20

Requirment

75

20

50

145

/125

40

/0

00

/20

05 10

03

08

10 /0

15

11

13

80

06

04 15

00

00

0 20

00 20

00

Requirment

60 /50

30

90 /80

From / To

A

C1

05

C2

C3

Capacity

05

03

08

10

06

P A Z A R E

13

80

05

04

15

00

00 20

00 20

20

00

50 /30

125 /105

75

/0

03

08

00

11

80 /50/0

13 30

04 15

20

20

00

P A Z A R E

Requirment

00

50

/50

00

30

00

80

/50/0

Total Cost = 5 x 10 + 15 x 50 + 13 x 30 + 4 x 15 + 0 x 20 + 0 x 20

Total Cost = 50 + 750 + 390 + 60 + 0 + 0 = Rs. 1250

Ans c) Find the feasible solution by using VAM method.

Capacity

05

03

08

10

15

11

13

80

06

05

04 /15

15 /0

00

D

Requirment

00

75

00

/60

00

20

00

30

20

105

/90

70

05

03

08

10

15

11

13

80

06

04

15

00

00 40

40

Requirment

75

20

50 /10

145 /105

C3

C2

C1

From / To

Step 1:- To begin with, the cost differences betn the pairs of least cost cell are taken for

each row & column. The largest of these being 13 (=13 -0), the column designated 0 is

selected. In the lowest cost cell of this column, DC3, a value 40 assigned and the row D is

deleted. The requirment at column C3 is revised 10

From / To

C1

C2

C3

Capacity

Step 3:- From table, first find the least value from whole table and from table the cell CC3

value is least value i.e. 4. Now allocate the lower value from Capacity i.e.15 in CC3

cell. Now the row is satisfied by this allocation, the column total revised. Repeat

the same step till the Capacity & Requirment value become zero ( 0 ).

11

06

Capacity

Requirment

15

C3

P A

C1

P A

From / To

15 50

C2

N I L E S H

10

N I L E S H

Capacity

Step 5:- Finally, only one row is left and therefore, assign the least value from that row and

The allocations for each of the cells remaining are made having reference to the

requirments: 50 to BC1, and 30 to BC3.

Step 2:- From table, first find the least value from whole table and from table the cell DC3

value is least value i.e. 0. Now allocate the lower value from Capacity i.e. 20 in DC3

cell. Now the row is satisfied by this allocation, the column total revised. Repeat

the same step till the Capacity & Requirment value become zero ( 0 ).

C3

C2

Capacity

C1

C3

From / To

C2

C1

From / To

Step 4:- From table, first find the least value from whole table and from table the cell AC1

value is least value i.e. 5. Now allocate the lower value from Capacity i.e.10 in AC1 cell.

Now the row is satisfied by this allocation, the column total revised. Repeat thesame step

till the Capacity & Requirment value become zero ( 0 ).

Step 1:- From table, first find the least value from whole table and from table the cell DC2

value is least value i.e. 0. Now allocate the lower value from Requirment i.e. 20 in

DC2 cell. Now the column is satisfied by this allocation, the row total revised.

Repeat the same step till the Capacity & Requirment value become zero ( 0 ).

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/40

71

Capacity

Iteration

05

03

08

10

5-3=2

15

11

13

80

05

04 10

15

00

105 /95

Requirment

75

20

10 /0

Iteration

6-5=1

5-3=2

8-4=4

----

C2

05

03

Capacity

Iteration

08

10

5-3=2

P A Z A R E

15

11

13

80

05

00

00

00

00 40

Requirment

75

20 /0

00

Iteration

6-5=1

5-3=2

---

95

6-5=1

----

/75

C2

10

15

06 5

05

00

Requirment

75

60

03

/0

08

10

13

60

05 /0

00

04 10

00 40

00 /0

00

75 /65/60/0

11

20

/0

Janata(J)

Red Lamp(R)

Capacity

---

010

005

090

012

009

004

050

007

003

011

080

009

005

007

060

Dummy

000

000

000

050

Demand

120

100

110

330

05

Capacity

C3

Bharat(Bh)

C1

From / To

From / To

Step 4:- Finally, only one row is left and therefore, no cost differences need to be recalcu-lated. The allocations for each of the cells remaining are made having reference

to the requirments: 10 to AC1 , 60 To BC1 and 05 to CC1.

P A Z A R E

Ans:Note:- In above exmple the Demand total is 320 and Capacity total is 280. So table is not

balanced. Thats why in Dummy Row taken in table with the difference value of

Capacity & Demand i.e. 330 - 280 = 50. So 50 value taken in Dummy row.

Now the table are as follows, after taking the Dummy.

Note:- When the NWC method use to solve the above table, then first find which value is

small from Capacity & Demand. Then start north west corner of that row or column. In

above table Capacity value is small i.e. 90 then start to solve the problem from AJ cell

00

71

05

15-11=4

06

04 10

/60

20

C3

P A

C1

P A

From / To

N I L E S H

N I L E S H

Step 3:- To begin with, the cost differences betn the pairs of least cost cell are taken for

each row & column. The largest of these being 4 (=15 - 11), the column designated 11 is

selected. In the lowest cost cell of this column, BC2, a value 20 assigned and the column

C2 is deleted. The requirment at row B is revised 20

00

00

5-4=1

00 40

06

13-11=2

/5

Ex (3):- The XYZ Tobacco Company purchases tobacco and stores in warehouses located in the following cities:

W arehouse Location

Capacity (Tonnes)

City A

90

City B

50

City C

80

City D

60

The warehouses supply tobacco to cigarette companies in three cities that have the

following demand:

Cigarette Company

Demand (Tonnes)

Bharat

120

Janata

100

Red Lamp

110

The following railroad shipping costs per tonne(in hundred rupees)have been determined

From / To

Bharat (Bh)

Janata ( J )

Red Lamp ( R )

A

--10

05

B

12

09

04

C

07

03

11

D

09

05

07

C3

C2

C1

From / To

Total Cost = 5 x 10 + 15 x 60 + 11 x 20 + 6 x 5 + 4 x 10 + 0 x 40

Total Cost = 50 + 900 + 220 + 30 + 40 + 0 = Rs. 1240

Step 2:- To begin with, the cost differences betn the pairs of least cost cell are taken for

each row & column. The largest of these being 4 (=8 - 4), the column designated 4 is

selected. In the lowest cost cell of this column, CC3, a value 10 assigned and the column

C3 is deleted. The requirment at row C is revised 5

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72

From / To

003

011

080

009

005

007

060

Dm

000

000

000

050

Demand

120

100

110

330

/240

/10

Capacity

P A Z A R E

---

010

90

005

000

50

/0

050

007

003

011

080

009

005

007

060

Dm

000

000

000

050

10

110

240

Demand

120

/70

/10

09

005

007

060

Dm

00

000

000

050

Demand

70 /0

10

110

190 /120

Bh

R

90

Capacity

N I L E S H

---

10

005

000

12

70

09

004

000

011

010

07

09

05

007

060

00

00

000

050

00

00

110

120

Dm

03

10

/0

P A Z A R E

Demand

/0

/110

Step 5:- Finally, one column is left i.e. R and therefore Start the north west corner i.e. DR

cell, Find out which value is small The allocations for each of the cells remaining are

made having reference to the requirments and balance the table:

i.e. Capacity = 60 - 60 = 0 & Demand = 110 - 60 = 50 and

Finally, Capacity = 50 - 50 = 0 & Demand = 50 - 50 = 0

/190

Bh

---

10

90

Capacity

005

000

004

000

50

B

C

12

07

09

70

03

10

011

000

60

09

05

007

Repeat the same step till the Demand & Supply value become zero ( 0 ).

Dm

00

00

000 50

Demand

00

00

110

72

/0

From / To

Step 3:- Start the north west corner i.e. CBh cell, Find out which value is small i.e. capacity

value or demand value. And from observation, it found that the demand value is

small so put the demand value in CBh cell and substract the demand value from

Capacity & demand cell. Repeat the same step.

/50/0

060

/0

050 /0

110

004

080

009

011

50

012

003

07

000

P A

004

P A

009

Bh

70

Step 4:- Start the north west corner i.e. CJ cell, Find out which value is small i.e. capacity

value or demand value. And from observation, it found that the both the value are same so

put any value in CJ cell and substract any value from Capacity & demand cell. Repeat the

same step.

Step 2:- Start the north west corner i.e. BBh cell, Find out which value is small i.e. capacity

value or demand value. And from observation, it found that the capacity value is

small so put the capacity value in BBh cell and substract the capactiy value from

Capacity & demand cell. Repeat the same step.

From / To

12

From / To

N I L E S H

000

007

012

005

010

050

Capacity

004

010

009

---

005

Capacity

/0

090

R

90

---

R

90

J

50

Bh

Bh

Step 1:- Start the north west corner i.e. AJ cell, Find out which value is small i.e. capacity

value or demand value. And from observation, it found that the capacity value is

small so put the capacity value in AJ cell and substract the capactiy value from

Capacity & demand cell. Repeat the same step.

From / To

E-mail :- nilesh_pazare@rediffmail.com

/50/0

Second Edition 2013 - 2014

73

From / To

---

J

10

R

05

Capacity

90

20

04

07

03

11

080

7-3=4

09

05

07

060

9-5=4

Dm

00 50

00

00

000

---

190 /170

Demand

70

100

20 /0

---

10

005

090

10-5=5

Iteration

9-7=2

5-3=2

7-4=3

12

09

004

050

9-4=5

07

03

011

080

7-3=4

09

05

007

060

7-5=2

Dm

00 50

000

050 /0

0-0=0

100

110

7-0=7

3-0=0

4-0=4

Iteration

120 /70

330 /280

005

12

09

9-4=5

07

09

03

011

080

7-3=4

05

007

060

7-5=2

Dm

00 50

00

000

000

---

Demand

70

100

110 /20

280 /190

Iteration

9-7=2

5-3=2

7-4=3

09

07

03 80

09

05

00 50

Demand

Iteration

73

04

20

000

---

030

12-9=3

11

080 /0

7-3=4

07

060

9-5=4

00

00

000

---

70

100 /20

00

170 /90

9-7=2

5-3=2

7-4=3

Step 5:- To begin with, the cost differences betn the pairs of least cost cell are taken for

each row & column. The largest of these being 4 (=9-5), the column designated J is

selected. In the lowest cost cell of this column, DJ, a value 20 assigned and the column J

is deleted. The requirment at row D is revised 20

A

B

05

P A Z A R E

From / To

Step 3:- To begin with, the cost differences betn the pairs of least cost cell are taken for

each row & column. The largest of these being 5 (=9 -4), the column designated 4 is

selected. In the lowest cost cell of this column, BR, a value 20 assigned and the column

R is deleted. The requirment at row B is revised 20

10

Bh

---

J

10

R

05

12

09

04

07

09

03 80

05 20

Dm

00 50

Demand

70

Capacity

90

20

000

Iteration

---

030

12-9=3

11

080

7-3=4

07

060 /40

9-5=4

00

00

000

20 /0

00

90

050

10-5=5

Iteration

004

90

10

Capacity

90

---

---

12

Dm

Iteration

Capacity

/0

090

P A

Bh

P A

P A Z A R E

Bh

N I L E S H

Step 2:- To begin with, the cost differences betn the pairs of least cost cell are taken for

each row & column. The largest of these being 5 (=10-5), the column designated 5 is

selected. In the lowest cost cell of this column, AR, a value 90 assigned and the row A is

deleted. The requirment at column R is revised 90

From / To

From / To

N I L E S H

Demand

Step 4:- To begin with, the cost differences betn the pairs of least cost cell are taken for

each row & column. The largest of these being 4 (=7-3), the column designated J is

selected. In the lowest cost cell of this column, CJ, a value 80 assigned and the row C is

deleted. The requirment at column J is revised 80

Iteration

Capacity

9-4=5

09

12

Bh

050

--/30

From / To

00

000

Iteration

Step 1:- To begin with, the cost differences betn the pairs of least cost cell are taken for

each row & column. The largest of these being 7 (=7 -0), the column designated 0 is

selected. In the lowest cost cell of this column, DmBh, a value 50 assigned and the row

Dm is deleted. The requirment at column Bh is revised 50

Bh

Total Cost = 10 x 90 + 12 x 50 + 7 x 70 + 3 x 10 + 7 x 60 + 0 x 50

Total Cost = 900 + 600 + 490 + 30 + 420 + 0 = 2440 (in hundred)

Total Cost is 2440 x 100 = Rs. 24400

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--/70

Second Edition 2013 - 2014

74

J

10

30

D

Dm

09 40

00 50

Demand

70 /30/0

04

03 80

05 20

11

00

07

40 /0

00

00

00

00

70 /30/0

00 /0

From / To

Supply

10

20

70

25

50

35

60

B

C

P A Z A R E

Demand

08

10

09 50

06

05

09 5

08 25

070 /20/5/0

025 /0

04

05

06 30

Demand

50 /0

35 /15/0

60

030 /0

145 /125/75/60/55/30/0

N I L E S H

Total Cost = 4 x 20 + 9 x 50 + 7 x 15 + 9 x 5 + 8 x 25

Total Cost = 80 + 450 + 105 + 45 + 200 = 880

and

and

Penalty = 6 x 30

Penalty = 180

By using the NWC method, The total cost is Rs. 880 and Penalty is Rs. 180

P A Z A R E

First find the least value from whole table and from table the cell A2 value is least value

09

is Rs. 145 units while aggregate supply available is 105 units. to solve, the problem is first

balanced by adding dummy plant T with supply value of 145-105=40 units & cost elements to the given penalty value 4, 5, 6 in column headed (1), (2), (3) respectively.

06

04

Demand

50

3

10

9

8

6

60

Supply

20

70

25

40

145

04

10

10

30

/20/10

07

05

05

35

10

09

15

/15/0

Supply

/0

020

60

070

08

025

06

030

60

145

Total Cost = 4 x 20 + 9 x 10 + 9 x 60 + 6 x 10 + 5 x 15

Total Cost = 80 + 90 + 540 + 60 + 75 = 845

and

and

/10/0

/0

/125/95/80/70/60/0

Penalty = 4 x 30

Penalty = 120

By using the LCM method, The total cost is Rs. 845 and Penalty is Rs. 120

74

2

4

7

5

5

35

08

03

20

1

8

9

6

4

50

02

From / To

A

B

C

T

Demand

01

From / To

Since there is not enough supply, some of the demands at the three destinations may not

be satisfied. For the unsatisfied demands let the penalty cost be rupees 4, 5 6 for destinations (1) , (2) and (3) respectively. Find the optimal allocation that the transportation and

penalty costs.

P A

Supply

020 /0

03

04 20

07 15

P A

02

From / To

01

N I L E S H

Start to solve the problem by the north west corner i.e. A1 cell

Total Cost = 5 x 90 + 12 x 30 + 4 x 20 + 3 x 80 + 9 x 40 + 5 x 20 + 0 x 50

Total Cost = 450 + 360 + 80 + 240 + 100 + 0 = 1590 (in hundred rupees)

Total Cost is 1590 x 100 = Rs. 159000

07

30

/0

09

00

12

20

05

Capacity

90

---

Bh

This type, student can solve in exam paper. If any doubt or confuse to under-standing the example, then student can see the befores example steps to

understand procedure, how to solve the problem.

From / To

Step 6:- Finally, only one column is left and therefore, no cost differences need to be

recalculated. The allocations for each of the cells remaining are made having reference to

the requirments: 40 to DBh and 30 To BBh

E-mail :- nilesh_pazare@rediffmail.com

75

E-mail :- nilesh_pazare@rediffmail.com

From/To

08

10

020

--

--

09

04 20

07 10

09 60

070

06 20

05 5

08

025

04 30

05

06

030

--

Demand

50

35

60

145

Iteration

--

S1

012

S2

006

S3

009

Demand

200

008

011

50

015

015

/0

250

020

017

/50/0

350

025

250

012

100

007

/100/0

400

400

/0

Supply

/200/0

400

/250/0

300

/400/0

500

1200

Total Cost = 2400 + 1600 + 550 + 3750 + 1700 + 2800 = 12800

Iteration

D4

Supply

D3

200

03

D2

200

02

01

From / To

D1

To begin with, the cost differences bet the pairs of least cost cell are taken for each row &

column. The largest of these being start to solve the problem.

D2

S1

012

008

S2

006

Demand

P A Z A R E

By using the VAM method, The total cost is Rs. 835 and Penalty is Rs. 120

020

150

100

Supply

025

400

/150/0

009

200

/0

011

015

015

017

250

/0

012

100

007

350

400

300

/0

400

/0

500

/100/0

1200

P A

Total Cost = 4 x 20 + 7 x 10 + 9 x 60 + 6 x 20 + 5 x 5

Total Cost = 80 + 70 + 540 + 120 + 25 = 835

P A

S3

Penalty = 4 x 30

Penalty = 120

250

D4

N I L E S H

and

and

200

D3

D1

N I L E S H

From/To

P A Z A R E

Total Cost = 1600 + 3000 + 1200 + 1500 + 1700 + 2800 = 11800

S1

012

008

020

025

400

S2

006

011

015

012

300

S3

009

015

017

007

500

Demand

200

250

350

400

1200

This type, student can solve in exam paper. If any doubt or confuse to under-standing the example, then student can see the befores example steps to

understand procedure, how to solve the problem.

D4

Supply

Iteration

S1

012

S2

006 100

011

015 200

025

400

12

S3

009 100

017

300

400

007

500

015

--

--

Demand 200

250

350

400

Iteration

--

--

--

--

012

1200

D3

Supply

D2

Total Cost = 2000 + 3000 + 600 + 3000 + 900 + 2800 = 12300

75

D4

D1

D3

D2

D1

From / To

From/To

76

E-mail :- nilesh_pazare@rediffmail.com

c)

d)

e)

turn, is a special type of linear programming problem. Accordingly, an assignment problem can be formulated as a linear programming problem and solved using a modified

simplex method or otherwise. It may noted that its formulation requires that the decision

variables take only one of the two vales 1or 0 accordingly as an assignment is made or not

If ther is no row or column with only a single Zero element left, then select a row/

column arbitrarily and choose one of the jobs (or persons) and make the assign-ment. Now cross the remaining zeros in the column and row in respet of which the

assignment is made.

Repeat steps ( a ) through ( c ) until all assignment are made.

Determine the total cost with reference to the original cost table.

I

Ex (1) :- Solve the assignment problem for optimal solution using HAM.

A

10

2

0

8

B

9

3

5

6

C

15

5

2

6

D

8

4

1

7

E

S

Ans:- Step 1 : Row minimization - The minimum value of each row is subtracted from all

elements in the row. It is shown in following table.

Step 3 : Draw the minimum number of horizontal and vertical lines (not the diagonal

ones) that are required to cover all the Zero elements. If the number of lines drawn is

equal to n (the number of rows/columns) the solution is optimal, and proceed to steps 6.

If the number of lines drawn in smaller than n, go to step 4.

D

8-8=0

4-1=3

1-0=1

7-6=1

N I L E S H

P A Z A R E

Worker / Job

1

2

3

4

A

2-0=2

0-0=0

0-0=0

2-0=2

Step 3 :

B

1-0=1

1-0=1

5-0=5

0-0=0

C

7-0=7

3-0=3

2-0=2

0-0=0

D

0-0=0

3-0=3

1-0=1

1-0=1

Job Assignment

Worker / Job

B 02

A 01

A 07

B 0

B0

A 01

A 03

B 03

B0

A 05

A 02

B 01

C 02

B0

B0

C 01

Tip:- 1) First find the single Zero from row, if Zero find in row then cut the column

2) Then find the single Zero from column, if Zero find in column then cut the row

This step repeat till there are Zero not left in given table and optimal solution is satisfied.

In above example table, optimal solution is not satisfied, then Use ABC Analysis.

76

Step 6 : Given the optimal solution, make the job assignment as indicated by the Zero

elements. This is done as follows:

a) Locate a row which contains only one Zero element. Assign the job corresponding

to this element to its corresponding person. Cross out the zeros, if any, in the col-umn corresponding to the element, which is indicative of the fact that the particular

job and person are no more available.

b) Repeat ( a ) for each of such rows which contain only one zero. Similarly, perform

the same operation in respect of each column containing only one Zero element,

crossing out the zero(s), if any, in the row in which the element lies.

C

15-8=7

5-2=3

2-0=2

6-6=0

Step 4 : Select the smallest uncovered (by the lines) cost element. Subtract this element

from all uncovered elements including itself and add this element to each value located at

the intersection of any two lines. The cost elements through which only one line passes

remain unaltered.

B

9-8=1

3-2=1

5-0=5

6-6=0

P A

P A Z A R E

A

10-8=2

2-2=0

0-0=0

8-6=2

Step 2 : Column minimization - The minimum value of each column is subtracted from all

elements in the column. It is shown in following table.

P A

Step 2 : In the reduced cost table obtained, consider each column and locate the smallest element in it. Subtract the smallest value from every other entry in the column. As a

consequence of this action, there would be at least one zero in each of the row and

columns of the second reduced cost table.

Worker / Job

1

2

3

4

N I L E S H

Step 1: Locate the smallest cost element in each row of the cost table. Now subtract this

smallest element from each element in that row. As a result, there shall be at least one

zero in each row of this new table, called the Reduced Cost Table.

It may observed that none of the three working methods discussed earlieer to solve

an assigment is efficient. A method, designed specially to handle the assignment problems in an efficient way called the Hungarian Assignment Method, is available, which is

based on the concepts of opportunity cost. For a typical balanced assignment problem

involving a certain number of person and an equal number of jobs, and with an objective

function of the minimisation type, the method is applied as listed in the following steps:

Worker / Job

1

2

3

4

Step 4 :

77

1-1=0

7-1=6

1-1=0

3-1=2

03

5-1=4

2-1=1

01

2+1=3

1+1=2

N I L E S H

Step 3 :

After ABC Analysis, The optimal assignments can be made as the least number of lines

covering all zeros.

P A Z A R E

Cost

08

03

00

06

17

05

11

14

N I L E S H

2

17

21

01

04

03

04

19

01

Tip:- 1) First find the single Zero from row, if Zero find in row then cut the column

2) Then find the single Zero from column, if Zero find in column then cut the row

P A Z A R E

This step repeat till there are Zero not left in given table and optimal solution is satisfied.

In above example table, optimal solution is satisfied. The assignment are made after

scanning the rows and column for unit Zeros. Assignments mad are shown with circle.

( Zmin = 17 )

Ex (2) :- Solve the assignment problem for optimal solution using HAM.

Step 4 :

Worker

1

2

3

4

Jobs

B1

D2

C3

A4

Total =

Cost

40

55

48

41

184

E

77

Worker / Job

A

B

C

D

1

45

40

51

67

2

57

42

63

55

3

49

52

48

64

4

41

45

60

55

Ans:Step 1 : Row minimization - The minimum value of each row is subtracted from all

elements in the row. It is shown in following table.

Assignment are mad in the following order. Rows 1, 3, and 4 contain only one zero each.

So assign 1-B, 3-C and 4-A. Since worker 1 has been assigned job B, we cross the zero

in the second column of the second row. After making these assignment only worker 2 and

job D are left for assignment. The final pattern of assignments is 1-B, 2-D, 3-C and 4-A,

involving a total time of 40 + 55 + 48 + 41 = 184 minutes.

Jobs

D1

B2

A1

C4

Total =

Worker

1

2

3

4

P A

D

27-13=14

13-13=0

16-13=3

14-13=1

Job Assignment

Worker / Job

P A

Step 5 :

C

11-0=11

21-0=21

0-0=0

19-0=19

02

B

0-0=0

0-0=0

4-0=4

4-0=4

A

5-0=5

17-0=17

1-0=1

0-0=0

Worker / Job

1

2

3

4

Worker / Job

D

67-40=27

55-42=13

64-48=16

55-41=14

Step 2 : Column minimization - The minimum value of each column is subtracted from all

elements in the column. It is shown in following table.

Note:- This step 4 means ABC Analysis & Job Assignment is same for all problems for

assigning and after ABC classified & ABC Treament, to draw the reduced cost table.

Here, Key element is 1, after ABC Treatment, the following table appears

C

51-40=11

63-42=21

48-48=0

60-41=19

2) No change in B

B

40-40=0

42-42=0

52-48=4

45-41=4

3) Add key element to all C

A

45-40=5

57-40=17

49-48=1

41-41=0

ABC Treatment :-

Worker / Job

1

2

3

4

ABC Classified

A - Uncrossed B- Single Crossed

C-Double Crossed

Key element = minimum key of all A

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78

Ex (3) :- Using the following cost matrix, determine a) optimal job assignment & b) cost.

E-mail :- nilesh_pazare@rediffmail.com

Step 4 :

Key element = minimum key of all A

3) Add key element to all C

2) No change in B

ABC Treatment :-

ABC Classified

C-Double Crossed

4

2-2=0

2-2=0

2-2=0

2-2=0

6-6=0

5

8-2=6

7-2=5

4-2=2

4-2=2

10-6=4

Here, Key element is 2, after ABC Treatment, the following table appears

Machinist / Job

2

1-1=0

5-1=4

3-1=2

3-1=2

4-1=3

3

1-1=0

6-1=5

4-1=3

6-1=5

3-1=2

4

0-0=0

0-0=0

0-0=0

0-0=0

0-0=0

5

6-2=4

5-2=3

2-2=0

2-2=0

4-2=2

P A Z A R E

Step 3 :

0+2=2

4+2=6

06

4-2=2

5-2=3

03

04

2-2=0

3-2=1

2-2=0

5-3=2

02

3-2=1

2-2=0

02

N I L E S H

After ABC Analysis, The optimal assignments can be made as the least number of lines

covering all zeros.

Step 5 :

P A Z A R E

Total Cost Calculation ( takes actual tables values )

C 07

B 0

B 0

C 0

C 04

B 06

A 04

A 05

B 0

B 03

B 04

A 02

A 03

B 0

B 0

B0

A 02

A 05

B 0

B 0

B 02

A 03

A 02

B 0

B 02

( Zmin = 21 )

The total cost associated with the optimal machinist-job assignment is 121.

Cost

02

04

03

09

03

21

Jobs

B4

C5

D1

E3

A2

Total =

Machinist

A

B

C

D

E

7+2=9

Job Assignment

Machinist / Job

P A

1

8-1=7

7-1=6

5-1=4

1-1=0

3-1=2

P A

Machinist / Job

A

B

C

D

E

N I L E S H

Step 2 : Column minimization - The minimum value of each column is subtracted from all

elements in the column. It is shown in following table.

3

3-2=1

8-2=6

6-2=4

8-2=6

9-6=3

2

3-2=1

7-2=5

5-2=3

5-2=3

10-6=4

1

10-2=8

9-2=7

7-2=5

3-2=1

9-6=3

Machinist / Job

A

B

C

D

E

Note:- This step 4 means ABC Analysis & Job Assignment is same for all problems for

assigning and after ABC classified & ABC Treament, to draw the reduced cost table.

Machinist / Job

1

2

3

4

5

A

10

3

3

2

8

B

9

7

8

2

7

C

7

5

6

2

4

D

3

5

8

2

4

E

9

10

9

6

10

Ans:Step 1 : Row minimization - The minimum value of each row is subtracted from all

elements in the row. It is shown in following table.

Ex (4) :- Using the following cost matrix, determine a) optimal job assignment & b) cost.

This step repeat till there are Zero not left in given table and optimal solution is satisfied.

In above example table, optimal solution is not satisfied, then Use ABC Analysis.

78

Person/ Job

J1

J2

J3

J4

J5

P1

P2

P3

P4

27

31

20

22

18

24

17

28

--21

20

20

20

12

--16

21

17

16

27

Tip:- 1) First find the single Zero from row, if Zero find in row then cut the column

2) Then find the single Zero from column, if Zero find in column then cut the row

79

Ans:- Since the number of lines covering all zeros is less than n, we select the lowest

uncovered cell, which equals 2. So, assign the dummy row.

E-mail :- nilesh_pazare@rediffmail.com

P1

9-4=5

---

02

03

P2

19-4=15

12

9-4=5

05

P3

4-4=0

01

4-4=0

---

P4

6-4=2

12

4-4= 0

11

P5

0+4=4

0+4=4

0+4=4

Step 1 : Row minimization - The minimum value of each row is subtracted from all

elements in the row. It is shown in following table.

Person/ Job

J3

27-18=9

31-12=19

20-16=4

22-16=6

0-0=0

18-18=0

24-12=12

17-16=1

28-16=12

0-0=0

J4

--21-12=9

20-16=4

20-16=4

0-0=0

20-18=2

12-12=0

--16-16=0

0-0=0

J5

21-18=3

17-12=5

16-16=0

27-16=11

0-0=0

J2

P1

P2

P3

P4

P 5(Dummy)

J1

J3

J4

J5

J3

J4

J5

B0

A ---

B 02

B 03

P2

A 19

B 12

A 09

B 0

B 05

P3

A 04

B 01

A 04

B ---

B0

P4

A 06

B 12

A 04

B 0

B 11

P A Z A R E

B 0

P5

C0

B 0

C 0

C0

P A Z A R E

Z

A

R

2) No change in B

Note:- This step 4 means ABC Analysis & Job Assignment is same for all problems for

assigning and after ABC classified & ABC Treament, to draw the reduced cost table.

Here, Key element is 4, after ABC Treatment, the following table appears

Ex (1):- A company plans to assign 5 salesman to 5 districts in which it operates. Estimates of sales revenue in thousands of rupees for each salesman in differents districts

are given in the following table. In your opinion. What should be the placement of the

salesmen if the objective is to maximise the expected sales revenue?

Ans:-

79

3) Add key element to all C

ABC Treatment :-

ABC Classified

C-Double Crossed

In some situations, the assignment problem may call for maximisation of profit,

revenue, etc. as the objective. For dealing with a maximisation problem, we first change

it into an equivalent minimisation problem. This is achieved by subtracting each of the

elements of the given pay-off matrix from a constant (value) K. Thus, we may simply put a

negative sign before each of the pay-off values (which is equivalent to subtracting each

value from zero). Usually, the largest of all values in the given marix is located and then

each one of the values is subtract from it (the larges value is taken so as to avoid the

apperarance of negative signs). Then the problem is solved the same way as a

minimisation problem is.

Key element = minimum key of all A

Maximisation Case

( Zmin = 66 )

The total cost associated with the optimal Person-job assignment is 66 in the aggregate.

This step repeat till there are Zero not left in given table and optimal solution is satisfied.

Step 4 :

Cost

18

12

16

20

00

66

N I L E S H

Tip:- 1) First find the single Zero from row, if Zero find in row then cut the column

2) Then find the single Zero from column, if Zero find in column then cut the row

In above example table, optimal solution is not satisfied, then Use ABC Analysis.

Jobs

P1J 2

P2J 4

P3J 5

P4J 3

P5J 1

Total =

P A

A 09

P A

P1

N I L E S H

Machinist

P1

P2

P3

P4

P5

J2

J1

Job Assignment

Person/ Job

Step 5 :

Step 3 :

After ABC Analysis, The optimal assignments can be made as the least number of lines

covering all zeros.

Step 2 : Column minimization - The minimum value of each column is subtracted from all

elements in the coln. Every Column has one Zero is present So, table is same as above

J2

J1

Person/ Job

Salesmen/District

D4

D5

40

48

49

30

37

46

32

35

46

41

48

36

41

49

48

36

29

38

44

43

48

44

45

44

47

Note:- When the multi Zeros come in table, then first locate a row/column which

Step 4 :

ABC Treatment :-

D3

1-1=0

13-1=12

8-0=8

0-0=0

1-1=0

D4

13-1=12

20-1=19

11-0=11

5-0=5

6-1=5

D5

1-1=0

5-1=4

4-0=4

5-0=5

2-1=1

P A Z A R E

N I L E S H

Salesmen/District

Job Assignment

D2

D3

D4

D5

B0

B0

B 07

B0

S2

B 0

A 14

A 12

A 14

A 04

S3

B 0

A 12

A 08

A 06

A 04

S4

C 19

B 01

B0

B 0

B 05

S5

C 11

B 05

B0

B 0

B 01

07

00

S2

14-4=10

12-4=8

14-4=10

4-4=0

S3

000

12-4=8

8-4=4

6-4=2

4-4= 0

S4

19+4=23

01

00

05

S5

11+4=15

05

00

01

After ABC Analysis, The optimal assignments can be made as the least number of lines

covering all zeros.

Step 5 :

There are more than one optimal assignments possible in this case because of the

existence of multiple Zeros in different rows and columns. The assignments possible

are:

S1 D 2 , S2 D 1 , S3 D 5 , S4 D 3 , S5 D 4

= 46 + 48 + 45 + 49 + 43 = 231 or

S1 D 2 , S2 D 5 , S3 D 1 , S4 D 3 , S5 D 4

= 46 + 44 + 49 + 49 + 43 = 231 or

S1 D 2 , S2 D 5 , S3 D 1 , S4 D 4 , S5 D 3

= 46 + 44 + 49 + 44 + 48 = 231 or

S1 D 2 , S2 D 1 , S3 D 5 , S4 D 4 , S5 D 3

= 46 + 48 + 45 + 44 + 48 = 231

Each of these assignment patterns would lead to an expected aggregated sales equal to

231 thousand rupees.

80

C 08

00

S1

D1

8+4=12

Salesmen/District

D5

0-0=0

4-0=4

4-0=4

5-0=5

1-0=1

S1

D4

12-5=7

19-5=14

11-5=6

5-5=0

5-5=0

D5

D3

0-0=0

12-0=12

8-0=8

0-0=0

0-0=0

D4

Step 3 :

D2

2-2=0

16-2=14

14-2=12

3-2=1

7-2=5

D3

D1

8-0=8

0-0=0

0-0=0

19-0=19

11-0=11

D2

P A Z A R E

Step 2 : Column minimization - The minimum value of each column is subtracted from all

elements in the column. It is shown in following table.

Salesmen/District

S1

S2

S3

S4

S5

D1

P A

D2

3-1=2

17-1=16

14-0=14

3-0=3

8-1=7

P A

D1

9-1=8

1-1=0

0-0=0

19-0=19

12-1=11

Here, Key element is 4, after ABC Treatment, the following table appears

N I L E S H

2) No change in B

Note:- This step 4 means ABC Analysis & Job Assignment is same for all problems for

assigning and after ABC classified & ABC Treament, to draw the reduced cost table.

Step 1 : Row minimization - The minimum value of each row is subtracted from all

elements in the row. It is shown in following table.

Salesmen/District

S1

S2

S3

S4

S5

3) Add key element to all C

D5

49-48=1

49-44=5

49-45=4

49-44=5

49-47=2

D4

49-36=13

49-29=20

49-38=11

49-44=5

49-43=6

D3

49-48=1

49-36=13

49-41=8

49-49=0

49-48=1

ABC Classified

C-Double Crossed

D2

49-46=3

49-32=17

49-35=14

49-46=3

49-41=8

Key element = minimum key of all A

D1

49-40=9

49-48=1

49-49=0

49-30=19

49-37=12

Ans:- Since, it is a maximisation problem, we would first subtract each of the entries in the

table from the largest one, which equals 49 here. The resultant data are given below.

Salesmen/District

S1

S2

S3

S4

S5

contains only one Zero element. There is least element is only Zero present, that

time, locate a row / column which contains two Zero element, cross out the Zero(s).

D3

D2

E-mail :- nilesh_pazare@rediffmail.com

D1

S1

S2

S3

S4

S5

80

81

Ex (2) :- Suggest optimal assignment of the four salesmen to the four sale-territories.

Given the estimated sales (in lakhs of rupees) as follows:

Datala

12

16

19

13

Salesmen/Territories

Ghugus

Ballarpur

Datala

Yogesh

02

1-1=0

7-1=6

Nilesh

1-1=0

3-1=2

Mangesh

5-1=4

2-1=1

Dinesh

2+1=3

1+1=2

Datala

20-12=8

20-16=4

20-19=1

20-13=7

After ABC Analysis, The optimal assignments can be made as the least number of lines

covering all zeros.

Step 5 :

Ballarpur

15-8=7

5-2=3

2-0=2

6-6=0

Datala

8-8=0

4-2=2

1-0=1

7-6=1

P A Z A R E

Job Assignment

Salesmen/Territories

Chanda

Ghugus

Ballarpur

Nilesh

B0

A 01

A 03

B 02

Mangesh

B0

A 05

A 02

B 01

Dinesh

C 02

B0

B0

C 01

Salesmen/Territories

Aakash

Nilesh

Naresh

Girish

Naginabag

220-200=20

220-160=60

220-190=30

220-180=40

Jatpura

220-150=70

220-120=100

220-195=25

220-175=45

Tukum

220-170=50

220-150=70

220-190=30

220-160=60

Ghutkala

220-202=0

220-140=80

220-200=20

220-190=30

Step 1 : Row minimization - The minimum value of each row is subtracted from all

elements in the row. It is shown in following table.

2) No change in B

81

3) Add key element to all C

ABC Treatment :-

Ghutkala

220

140

200

190

ABC Classified

A - Uncrossed B- Single Crossed

C-Double Crossed

Key element = minimum key of all A

Tukum

170

150

190

160

Ans:- Since, it is a maximisation problem, we would first subtract each of the entries in the

table from the largest one, which equals 220 here. The resultant data are given below.

Tip:- 1) First find the single Zero from row, if Zero find in row then cut the column

2) Then find the single Zero from column, if Zero find in column then cut the row

Step 4 :

Naginabag Jatpura

200

150

160

120

190

195

180

175

B0

P A Z A R E

Salesmen/Territories

Aakash

Nilesh

Naresh

Girish

A 07

( Zmax = 63 )

A 01

B 02

N I L E S H

Ex (3) :- Suggest optimal assignment of the four salesmen to the four sale-territories.

Given the estimated sales (in lakhs of rupees) as follows:

Datala

Yogesh

Cost

12

17

20

14

63

The total cost associated with the optimal Salemen-Territories assignment is 63.

Step 2 : Column minimization - The minimum value of each column is subtracted from all

elements in the column. In all the column has present the Zero, so table same as above.

Step 3 :

Sale Territories

Datala

Ghugs

Chanda

Ballarpur

Total =

P A

Ghugus

9-8=1

3-2=1

5-0=5

6-6=0

P A

Chanda

10-8=2

2-2=0

0-0=0

8-6=2

Salesmen

Yogesh

Nilesh

Mangesh

Dinesh

N I L E S H

Salesmen/Territories

Yogesh

Nilesh

Mangesh

Dinesh

Step 1 : Row minimization - The minimum value of each row is subtracted from all

elements in the row. It is shown in following table.

Ballarpur

20-05=15

20-15=5

20-18=2

20-14=6

Ghugus

20-11=9

20-17=3

20-15=5

20-14=6

Chanda

20-10=10

20-18=2

20-20=0

20-12=8

Salesmen/Territories

Yogesh

Nilesh

Mangesh

Dinesh

Ans:- Since, it is a maximisation problem, we would first subtract each of the entries in the

table from the largest one, which equals 20 here. The resultant data are given below.

Chanda

Ballarpur

05

15

18

14

Ghugus

11

17

15

14

Chanda

10

18

20

12

Here, Key element is 2, after ABC Treatment, the following table appears

Salesmen/Territories

Yogesh

Nilesh

Mangesh

Dinesh

E-mail :- nilesh_pazare@rediffmail.com

Jatpura

70-0=70

100-60=40

25-20=5

45-30=15

Tukum

50-0=50

70-60=10

30-20=10

60-30=30

Ghutkala

0-0=0

80-60=20

20-20=0

30-30=0

Step 5 :

Ghutkala

Cost

220

150

195

180

745

( Zmax = 745 )

The total Total Sales Revenue associated with the optimal Salemen-Territories assignment is 745.

Job Assignment

Jatpura

A 40

B0

N I L E S H

Nilesh

B0

B 35

B0

C 20

Naresh

B 10

B 0

B0

C0

Girish

A 10

A 10

A 20

B0

Note:Ans:-

maximisation

N I L E S H

P A Z A R E

P A

A 65

A 20

Aakash

P A

P A Z A R E

ABC Treatment :-

ABC Classified

C-Double Crossed

3) Add key element to all C

2) No change in B

these are com in maximisation

Marks and Productions

Key element = minimum key of all A

Naginabag

Salesmen/Territories

Step 4 :

Sale Territories

Ghutkala

Tukum

Jatpura

Naginabag

=

Tukum

Cost

220

160

190

175

745

Ghutkala

0-0=0

20-0=20

0-0=0

0-0=0

Sale Territories

Ghutkala

Naginabag

Jatpura

Tukum

Total =

Tukum

50-10=40

10-10=0

10-10=0

30-10=20

Jatpura

70-5=65

40-5=35

5-5=0

15-5=10

Salesmen

Aakash

Nilesh

Naresh

Girish

Step 3 :

Naginabag

20-0=20

0-0=0

10-0=10

10-0=10

There are more than one optimal assignments possible in this case because of the

existence of multiple Zeros in different rows and columns. However, the problem has an

alternative optimal solution as well. Both of these are given below:

Step 2 : Column minimization - The minimum value of each column is subtracted from all

elements in the column. It is shown in following table.

Salesmen/Territories

Aakash

Nilesh

Naresh

Girish

E-mail :- nilesh_pazare@rediffmail.com

Naginabag

20-0=20

60-60=0

30-20=10

40-30=10

Salesmen/Territories

Aakash

Nilesh

Naresh

Girish

82

Note:- This step 4 means ABC Analysis & Job Assignment is same for all problems for

assigning and after ABC classified & ABC Treament, to draw the reduced cost table.

Salesmen/Territories

20-10=10

65-10=55

40-10=30

Nilesh

35

Naresh

10

Girish

10-10=0

10-10= 0

20+10=30

0+10=10

20-10=10

M1

302

303

304

After ABC Analysis, The optimal assignments can be made as the least number of lines

covering all zeros.

M2

302

304

305

301

M3

303

301

304

305

302

M4

302

305

304

303

M5

301

302

304

Aakash

Ghutkala

Tukum

MANAGER

Jatpura

Naginabag

Here, Key element is 10, after ABC Treatment, the following table appears

Most of the managers did not list all the five rooms sincethey were not satisfied with some

of these rooms and thy have left these from the list. Assuming that their preferences can

be quantified by numbers, find out as to which manger should be assigned to which room

so that total preference ranking is a minimum.

82

Ex (1) :- Welldone Company has taken the third floor of a multi-streyed building for rent

with a view to locate one of their zonal officers. There are five main rooms in tis to be

assigned to five mangers. Each room has its own advantages and disadvantages.

Some have windows, some are closer to the swashrooms or to the canteen or secretarial pool. The rooms are of all different sizes and shapes. Each of the five managers

were asked to rank their room preferences amongst the rooms 301, 302,303,304 and

305. Their preferences were recorded in a table as indicated below:

83

4

1

M

2

3

2

5

1

3

4

M

1

4

3

2

1

2

M

3

M

M4

M5

N I L E S H

301

302

303

304

305

M

1-1=0

2-1=1

3-2=1

M

4-1=3

1-1=0

M

2-2=0

3-2=1

2-1=1

5-1=4

1-1=0

3-2=1

4-2=2

M

1-1=0

4-1=3

3-2=1

2-2=1

1-1=0

2-1=1

M

3-2=1

M

Job Assignment

Rooms / Manager M1

M4

B 03

B 01

C 04

B0

C 01

303

A 01

BM

B0

A 03

BM

304

A 01

B0

B 01

A 01

B 01

B 01

B 02

A 01

BM

Step 4 :

304

1-1=0

305

3-1=2

01

1-1=0

01

01

02

1-1=0

Room

301

302

303

304

305

Manager

M5

M1

M3

M2

M4

Total =

Ranking

01

01

01

02

02

07

( Zmin = 07 )

N I L E S H

P A Z A R E

2) No change in B

3) Add key element to all C

Note:- This step 4 means ABC Analysis & Job Assignment is same for all problems for

assigning and after ABC classified & ABC Treament, to draw the reduced cost table.

a)

b)

83

Viewing

Hours

1-2 P.M.

2-3 P.M.

3-4 P.M.

4-5 P.M.

Network

A

27.1

18.9

19.2

11.5

B

18.1

15.5

18.5

21.4

C

11.3

17.1

09.9

16.8

D

09.5

10.6

07.7

12.8

ABC Treatment :-

ABC Classified

A - Uncrossed B- Single Crossed

C-Double Crossed

Key element = minimum key of all A

C0

1-1=0

01

Which network should be scheduled each hour to provide the maximum audience

exposure?

How would the schedule change if it is decided not to use network A between 1 and

3 P.M.?

QDM notes for MBA

B0

302

305

B0

303

4+1=5

Ex (2) :- A company has just developed a new item for which it proposes to undertake a

national television promotional compaign. It has decided to schedule a series of oneminute commercials during peak audience viewing hours of 1 to 5 P.M. To reach the

widest possible audience, the company wants to schedule one commercial on each of

the networks and to hae only one commercial appear during each of the four one-hour

time blocks. The exposure ratings for each hour, which represent the number of viewers

per Rs. 10000 spent, are given below:

M5

301

0+1=1

M3

M2

302

P A

P A

P A Z A R E

01

Step 2 : Column minimization - The minimum value of each column is subtracted from all

elements in the column. In all the column has present the Zero, so table same as above.

Step 3 :

03

M3

M2

301

Step 5 :

Rooms / Manager M1

M5

covering all zeros.

Ans:- Step 1 : Row minimization - The minimum value of each row is subtracted from all

elements in the row. It is shown in following table.

M4

How to draw the table, observe the questions data, M1 not assigned 301 room, same M4

also not assigned 301 room, M2 assigned 301 in 4 Rank, same as M3 assigned 2 rank

and M5 assigned 1 rank (See the questions table and understand it)

M3

M5

M2

M4

M

1

2

3

M

M3

301

302

303

304

305

M2

Rooms / Manager M1

Rooms / Manager M1

Here, Key element is 1, after ABC Treatment, the following table appears

In the first step, we formulate the assignment problem using preference ranks. This is in

following table. Notice that the rooms not ranked by a manager are represented by M - as

prohibited assignments.

E-mail :- nilesh_pazare@rediffmail.com

84

Ans:- a) To solve this problem, we first multiply each value in the matrix by 10 to express

exposure ratings per Rs. 1 lakh. It simplifies the calculation work somewhat.

C

11.3x10=113

17.1x10=171

09.9x10=099

16.8x10=168

D

09.5x10=095

10.6x10=106

07.7x10=077

12.8x10=128

D

271-095=176

271-106=165

271-077=194

271-128=143

Here, Key element is 3, after ABC Treatment, the following table appears

D

176-0=176

165-82=83

194-79=115

143-57=86

P A Z A R E

A 0

A 0

3-4 P.M.

C0

B 07

B 75-3=72

B 32-3=29

99

A 93

2-3 P.M.

C0

C 34

B 0

B 0

3-4 P.M.

B0

B 07

A 75

A 32

A 28

A 03

28-3=25

3-3=0

Viewing

Hours

Network

1-2 P.M.

90-7=83

137-7=130

90-7=83

2-3 P.M.

3+7=10

37

3-4 P.M.

7-7=0

72-7=65

29-7=22

4-5 P.M.

99+7=106

25

Viewing Hour

1-2 P.M.

2-3 P.M.

3-4 P.M.

4-5 P.M.

Network

A

B

C

D

Total =

27.1

18.5

17.1

12.8

75.5

A 140

B 90

B 0

A 34+3=37

covering all zeros.

B0

B 99

B 0+3=3

( Zmax = 75.5 )

84

1-2 P.M.

4-5 P.M.

2-3 P.M.

A D

B 140-3=137 B 93-3=90

Step 5 :

Job Assignment

A

B 90

D

176-83=93

83-83=0

115-83=32

86-83=3

C0

Hours

C

158-18=140

18-18=0

93-18=75

46-18=28

Step 3 :

B

90-0=90

34-0=34

7-0=7

0-0=0

A C

1-2 P.M.

P A Z A R E

Network

A

0-0=0

0-0=0

0-0=0

99-0=99

Network

Above table, optimal solution is not satisfied. So again ABC treament use for covering all

zeros. Now, Here, Key element is 7.

Step 2 : Column minimization - The minimum value of each column is subtracted from all

elements in the column. It is shown in following table.

Viewing

Hours

1-2 P.M.

2-3 P.M.

3-4 P.M.

4-5 P.M.

A B

P A

Network

B

C

090-0=90

158-0=158

116-82=34

100-82=18

86-79=7

172-79=93

57-57=0

103-57=46

B A

4-5 P.M.

P A

A

0-0=0

82-82=0

79-79=0

156-57=99

Viewing

Hours

N I L E S H

Step 1 : Row minimization - The minimum value of each row is subtracted from all

elements in the row. It is shown in following table.

Viewing

Hours

1-2 P.M.

2-3 P.M.

3-4 P.M.

4-5 P.M.

2) No change in B

N I L E S H

3) Add key element to all C

C

271-113=158

271-171=100

271-099=172

271-168=103

C-Double Crossed

assigning and after ABC classified & ABC Treament, to draw the reduced cost table.

B

271-181=090

271-155=116

271-185=086

271-214=057

ABC Treatment :-

A

271-271=000

271-189=082

271-192=079

271-115=156

Key element = minimum key of all A

Network

Viewing

Hours

1-2 P.M.

2-3 P.M.

3-4 P.M.

4-5 P.M.

ABC Classified

Further, being a maximisation problem, we subtract each value from the largest value to

get the opportunity loss matrix. The result of these steps is given in following table:

B

18.1x10=181

15.5x10=155

18.5x10=185

21.4x10=214

A

27.1x10=271

18.9x10=189

19.2x10=192

11.5x10=115

Step 4 :

Network

Viewing

Hours

1-2 P.M.

2-3 P.M.

3-4 P.M.

4-5 P.M.

E-mail :- nilesh_pazare@rediffmail.com

85

Ans:- b) For the given restriction, the prohibited time slots are replaced by M, when network

1 and 3 P.M. not to be used, then table are as follows:

C

158

100

172

103

D

176

165

194

143

C

158-90=68

100-100=0

172-79=93

103-57=46

D

176-90=86

165-100=65

194-79=115

143-57=86

M

M

0-0=0

99-0=99

B

0-0=0

16-0=16

7-0=7

0-0=0

C

68-0=68

0-0=0

93-0=93

46-0=46

D

86-65=21

65-65=0

115-65=50

86-65=21

P A Z A R E

Step 3 :

Job Assignment

D

B0

A 68

A 21

2-3 P.M.

C 16

B0

B0

3-4 P.M.

B0

B 07

A 93

A 50

4-5 P.M.

B 99

B0

A 46

A 21

68-21=47

21-21=0

2-3 P.M.

16

3-4 P.M.

07

93

50

4-5 P.M.

99

46-21=25

21-21=0

Above table, first we find the only one Zero, but solution not satisfied the optimal solution

then we find two Zeros and satisfied our solution as optimal solution, However, the

problem has an alternative optimal solution as well. Both of these are given below:

Step 5 :

Viewing Hour

1-2 P.M.

2-3 P.M.

3-4 P.M.

4-5 P.M.

Network

B

C

A

D

Total =

for the ( b ) condition Zmax is 67.2

Network

D

C

A

B

Total =

18.1

17.1

19.2

12.8

67.2

09.5

17.1

19.2

21.4

67.2

N I L E S H

P A Z A R E

Ex (3) :- A firm produces four products. There are four operatiors who are capable of

producing any of these four products. The firm records 8 hors a day and allows 30 minutes

for lunch. The processing time in minutes and the profit for each of the products are given

below:

Operator/Products

1

2

3

4

Profit (Rs) per unit

A

15

10

25

15

8

B

9

6

15

9

6

C

10

9

15

10

5

D

6

6

9

10

4

1-2 P.M.

Hours

1-2 P.M.

P A

Network

A

P A

Viewing

Hours

1-2 P.M.

2-3 P.M.

3-4 P.M.

4-5 P.M.

N I L E S H

elements in the column. It is shown in following table.

B

90-90=0

116-100=16

86-79=7

57-57=0

A

M

M

79-79=0

156-57=99

Network

Network

Viewing

Hours

1-2 P.M.

2-3 P.M.

3-4 P.M.

4-5 P.M.

Step 1 : Row minimization - The minimum value of each row is subtracted from all

elements in the row. It is shown in following table.

B

090

116

086

057

A

M

M

079

156

Viewing

Hours

Network

Here, Key element is 21, after ABC Treatment, the following table appears

Viewing

Hours

1-2 P.M.

2-3 P.M.

3-4 P.M.

4-5 P.M.

E-mail :- nilesh_pazare@rediffmail.com

Step 4 :

ABC Treatment :-

C-Double Crossed

3) Add key element to all C

2) No change in B

85

Key element = minimum key of all A

Ans:- An 8 hour working day, with a 30-minutes lunch time allowed, implies that new

working time available per day is 7 hours 30 minutes, that is 450 minutes.

Total working hours =

8 hrs = 8 x 60 = 480 mint.

Lunch Break

30minutes = - 30 mint.

Actual working time = 450 mint.

The number of units of deifferent products which cold be produced by the four operators

can be calculated by dividing 450 by the given processing times.

ABC Classified

86

With the profit per unit of each product being given, we may calculate the profit resulting

from each possible asignment. The profit matrix is given in following table:

B 06

C 0

B 25

B 0

A 34

B 0

A 150

A 150

B0

C 20

B 0

B 0

A 04

B 0

A 25

A 120

Step 4 :

ABC Classified

A - Uncrossed B- Single Crossed

C-Double Crossed

Key element = minimum key of all A

ABC Treatment :-

3) Add key element to all C

2) No change in B

To solve the problem, it is first converted into a minimisation problem by obtaining loss

matrix by subtracting each value from 450. The 450 is the highest profit value in the table.

x4=300

(450

6 )

(450

) x4=300

6

x4=200

(450

9 )

(450

) x4=180

10

x5=225

(450

10 )

(450

) x5=250

9

x5=150

(450

15 )

(450

) x5=225

10

x6=300

(450

9 )

(450

) x6=450

6

x6=180

(450

15 )

(450

) x6=300

9

x8=240

(450

15 )

(450

)x8=360

10

x8=144

(450

25 )

(450

)x8=240

15

Operator/Product

Job Assignment

Step 3 :

Optr/Prdct

E-mail :- nilesh_pazare@rediffmail.com

Here, Key element is 4, after ABC Treatment, the following table appears

N I L E S H

450-360=090 450-450=0

Operator/Product

450-250=200 450-300=150

P A Z A R E

Step 1 : Row minimization - The minimum value of each row is subtracted from all

elements in the row. It is shown in following table.

Operator/Product

D

150-150=0

90-0=90

0-0=0

200-0=200

150-0=150

306-250=56

270-250=20

300-250=50

250-250=0

210-150=60

150-150=0

225-150=75

270-150=120

34-4=30

0

4-4=0

25

150-4=146

150-4=146

20-4=16

25-4=21

120-4=116

P A Z A R E

Step 5 :

Operator

1

2

3

4

Product

D

B

C

A

Total

Profit

0300

0450

0150

0240

1140

( Zmax = 1140 )

Operator/Product

elements in the column. It is shown in following table.

0+4=4

225-150=75

06

150-150=0

210-150=60

covering all zeros.

N I L E S H

3

4

P A

P A

Operator/Product

0-0=0

75-50=25

0-0=0

90-56=34

0-0=0

200-50=150

150-0=150

56--56=0

20-0=20

50-50=0

0-0=0

60-56=4

0-0=0

75-50=25

120-0=120

60-56=6

Ex (4) :- A solicitors firm employs typists on hourly piece-rate basis for their daily work.

These are five typists and their charges and speed are different. According to an earlier

understanding, only one job is given to one typist and the typist is paid for a full hour even

when he works for a fraction of an hour. Find the least cost allocation for the following data:

86

No.of Pages Typed/hr

12

14

08

10

11

Job

P

Q

R

S

T

No.of Pages

199

175

145

298

178

Step 2 : Column minimization - The minimum value of each column is subtracted from all

elements in the column. It is shown in following table.

Typist/Job

N I L E S H

17x5=85

15x5=75

13x5=65

25x5=125

15x5=75

15x6=90

13x6=78

11x6=66

22x6=132

13x6=78

25x3=75

22x3=66

19x3=57

38x3=114

23x3=69

20x4=80

18x4=72

15x4=60

30x4=120

18x4=72

19x4=76

16x4=64

14x4=56

28x4=112

17x4=68

75-65=10

65-65=0

125-65=60

75-65=10

90-66=24

78-66=12

66-66=0

132-66=66

78-66=12

75-57=18

66-57=09

57-57=0

114-57=57

69-57=12

80-60=20

72-60=12

60-60=0

120-60=60

72-60=12

76-56=20

64-56=08

56-56=0

112-56=56

68-56=12

12-10=2

18-18=0

09-8=1

57-56=1

12-10=2

20-18=2

12-8=4

60-56=4

12-10=2

20-18=2

08-8=0

56-56=0

12-10=2

Job Assignment

P

C 02

B 02

C 0

B 04

B0

B 06

A 04

B 0

A 10

A 02

B0

A 01

B 0

A 01

A 02

B 02

A 04

B 0

A 04

A 02

C 02

B0

C 0

B0

B 02

N I L E S H

ABC Analysis and Job Assignment

P A Z A R E

ABC Classified

ABC Treatment :-

C-Double Crossed

3) Add key element to all C

2) No change in B

Here, Key element is 1, after ABC Treatment, the following table appears

Typist/Job

A 2+1=3

A 02

B 0+1=1

A 04

B0

A 06

A 4-1=3

B 0

A 10-1=9

B 2-1=1

B0

B 1-1=0

C 0

B 1-1=0

C 2-1=1

A 02

A 4-1=3

B 0

A 4-1=3

B 2-1=1

B 2+1=3

B0

C 0+1=1

B0

C 02

Above table, optimal solution is not satisfied. So again ABC treament use for covering all

zeros. Now, Here, Key element is 2.

Table on next page

87

85-65=20

66-56=10

Key element = minimum key of all A

12-8=4

24-18=6

Step 4 :

10-10=0

Typist/Job

Step 1 : Row minimization - The minimum value of each row is subtracted from all

elements in the row. It is shown in following table.

Typist/Job

60-56=4

P A

10-8=2

20-18=2

P A

P A Z A R E

Typist/Job

(178

) x5

12

(178

) x6

14

(178

) x3

08

(178

) x4

10

(178

) x4

11

(298

)x5

12

(298

)x6

14

(298

)x3

08

(298

)x4

10

(298

)x4

11

Step 3 :

(145

)x5

12

(145

)x6

14

(145

)x3

08

(145

)x4

10

(145

)x4

11

(175

)x5

12

(175

)x6

14

(175

)x3

08

(175

)x4

10

(175

)x4

11

(199

)x 5

12

(199

)x 6

14

(199

)x 3

08

(199

)x 4

10

(199

)x 4

11

Ans:- Using the given inform, we first obtain the cost matrix, when different jobs are

performed by different typists. The elements of the matrix are obtained as follows. To

illustrate, if typist A is given job P, he would require 199/12 = 16.58 hours and, hence, be

paid for 17 hours @ Rs. 5 per hour. This results in a cost of Rs. 85 for this combination.

Typist/Job

E-mail :- nilesh_pazare@rediffmail.com

Rate/hour (Rs)

5

6

3

4

4

Typist

A

B

C

D

E

87

Typist/Job

A

3-2=1

2-2=0

01

4-2=2

03

9-2=7

01

0+2=2

1+2=3

3-2=1

3-2=1

01

1+2=3

2+2=4

101

102

103

104

Step 5 :

Flight

101

102

103

104

Arrival

7 A.M.

9 A.M.

3 P.M.

9 P.M.

204

Departure

6 P.M.

6 P.M.

6 P.M.

6 P.M.

Time

11 hrs

09 hrs

27 hrs

21 hrs

Flight

101

102

103

104

201

24

22

16

10

202

25

23

17

11

203

06

28

22

16

204

11

09

27

21

N I L E S H

Flight

101

102

103

104

P A Z A R E

Time

20 hrs

22 hrs

28 hrs

10 hrs

Arrival

3 P.M.

3 P.M.

3 P.M.

3 P.M.

203

Departure

5 A.M.

7 A.M.

1 P.M.

7 P.M.

Time

14 hrs

16 hrs

22 hrs

28 hrs

Flight

101

102

103

104

Flight

101

102

103

104

Arrival

10 A.M.

10 A.M.

10 A.M.

10 A.M.

202

Departure

5 A.M.

7 A.M.

1 P.M.

7 P.M.

Time

19 hrs

21 hrs

27 hrs

09 hrs

Arrival

8 P.M.

8 P.M.

8 P.M.

8 P.M.

204

Departure

5 A.M.

7 A.M.

1 P.M.

7 P.M.

Time

09 hrs

11 hrs

17 hrs

23 hrs

Flight

101

102

103

104

88

Flight

101

102

103

104

QDM notes for MBA

201

20

22

28

10

202

19

21

27

09

203

14

16

22

28

Now actual table are as follows for Crew at New Delhi ( Table 2 )

201

Departure

5 A.M.

7 A.M.

1 P.M.

7 P.M.

Arrival

9 A.M.

9 A.M.

9 A.M.

9 A.M.

Ex (5) :- An airline, operating seven days a week, has given the following schedule of its

flights between New Delhi and Mumbai. The crews should have a minimum of five hours

between the flights. Obtain the pairing of flights that minimises layouver time away from

home. For any given pairing, the crew will be based at the city that rusults in the smallest

layover.

New Delhi - Mumbai

Mumbai - New Delhi

Flight No.

Departure

Arrival

Flight No.

Departure

Arrival

101

5 A.M.

7 A.M.

201

7 A.M.

09 A.M.

102

7 A.M.

9 A.M.

202

8 A.M.

10 A.M.

103

1 P.M.

3 P.M.

203

1 P.M.

03 P.M.

104

7 P.M.

9 P.M.

204

6 P.M.

08 P.M.

To begin with, we first assume that all the crew is based at New Delhi. Using this

assumption, we can obtain the layover times of various combinations of flights. To illustrate, the flight 101 which starts from New Delhi at 5 A.M. reaches Mumbai at 7 A.M. If it is to

return as 201, the scheduled time for which is 7 A.M., then it can do so only after 24 hours

since a minimum layove time of 5 hours is required. Similarly, layover times for other flight

combinations can be obtained as shown in the table.

Time

06 hrs

28 hrs

22 hrs

16 hrs

Time

25 hrs

23 hrs

17 hrs

11 hrs

P A

P A

P A Z A R E

203

Departure

1 P.M.

1 P.M.

1 P.M.

1 P.M.

202

Departure

8 A.M.

8 A.M.

8 A.M.

8 A.M.

Now actual table are as follows for Crew at New Delhi ( Table 1 )

( Zmin = 399 )

Arrival

7 A.M.

9 A.M.

3 P.M.

9 P.M.

101

102

103

104

Arrival

7 A.M.

9 A.M.

3 P.M.

9 P.M.

N I L E S H

Flight

Cost

75

66

66

80

112

399

Job

T

T

T

T

T

Total

Typist

A

A

A

A

A

Time

24 hrs

22 hrs

16 hrs

10 hrs

101

102

103

104

201

Departure

7 A.M.

7 A.M.

7 A.M.

7 A.M.

Flight

In this case, after covering zeros there are 2 Rows lefts i.e. C & E, so assume alternate

and cross the Zero for satisfied the optimal solution.

The minimum number of lines to cover all zeros equals 5, which matches with the order

of the matrix. Accordingly, assignments have been made as described below:

Arrival

7 A.M.

9 A.M.

3 P.M.

9 P.M.

2-2=0

3-2=1

Flight

6-2=2

E-mail :- nilesh_pazare@rediffmail.com

88

204

09

11

17

23

Second Edition 2013 - 2014

89

Step 4 :

Flight

21 *

16 *

09

103

16

17

22

17 *

104

10

09 *

16

21

40

At

( from

( from

( from

( from

table

table

table

table

N I L E S H

P A

P A Z A R E

P A

N I L E S H

To continue, we can obtain the optimal pairing of flights so as to minimise the total laover

time, using the Hungarian Assignment Method.

Step 1 : Row minimization - The minimum value of each row is subtracted from all

elements in the row. It is shown in following table.

Flight

201

202

203

204

101

20-6=14

19-6=13

6-6=0

9-6=3

P A Z A R E

102

22-9=13

21-9=12

16-9=7

9-9=0

103

16-16=0

17-16=1

22-16=6

17-16=1

104

10-9=1

9-9=0

16-9=7

21-9=12

)

)

)

)

( Zmin = 40 )

1

1

1

2

22

Crew Based

New Delhi

New Delhi

New Delhi

Mumbai

102

Total

Layover Time

06

06

16

09

06

204

09 *

Flight No.

203

204

201

202

202

19 *

203

101

201

20 *

Flight No.

101

102

103

104

Now, since the crew can be based at either of the stations, minimum layover times can be

obtained for different flight combinations y selecting the corresponding by selecting the

corresponding lower value out of the above two tables. for instance, in combining flight

101, we select 20, which is lower of the two values 24 and 20 ( see the both tables), like

that select the lower limits for other flights also. The values are shown in following table:

E-mail :- nilesh_pazare@rediffmail.com

204

101

14

13

03

102

13

12

07

103

01

06

01

104

01

07

12

203

202

201

Flight

Job Assignment

Step 3 :

Step 2 : Column minimization - The minimum value of each column is subtracted from all

elements in the column. In all the column has present the Zero, so table same as above.

With a zero in each column as well, there is no neeed to perform the ABC treatment or

column reductions. Further, the number of lines covring all zeros is equal to the order of

the given matrix, we can obtain the optimal assignment as shown in the table:

89

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