S.P.

JAIN INSITUTE OF MANAGEMENT & RESEA

Pre Foundation Phase
Subject: Quantitative Methods

Instructions
§  The examination shall be conducted on ‘Examsoft’ on your Laptop.
§  The students will not be allowed to carry their mobile phones and/ or tablets in the Examination Hall.
§  Open Book Exam.
§  Calculators are allowed.

Instructions: Solve any 5 (20 marks each)

1. The following are quoted interest rates on Italian bonds. Calculate m

2.95 4.25 3.55 1.9

3.45 1.75 3.5 1.69

2.85 8.7 1.8 2.87
3.4 3.55 4.25 1.85

2. A motion picture industry analyst wants to estimate the gross earnin

obtains information on a random sample of 20 Hollywood movies made

a) Carry out the regression analysis to predict the gross earnings based
Book (whether movie is based on a book or not 1=yes, 0= no)
Gross Production Promotion
Movie Earnings Cost (Million Cost (Million
(Million $) $) $)
1 28 4.2 1
2 35 6 3
3 50 5.5 6
 4 20 3.3 1
5 75 12.5 11
6 60 9.6 8
7 15 2.5 0.5
8 45 10.8 5
9 50 8.4 3
10 34 6.6 2
11 48 10.7 1
12 82 11 15
13 24 3.5 4
14 50 6.9 10
15 58 7.8 9
16 63 10.1 10
17 30 5 1
18 37 7.5 5
19 45 6.4 8
20 72 10 12

3. The profit (or loss) from an investment is normally distribut

standard deviation of $8250.
a) what is the probability that the profit will be between $1000
b) find x such that the probability that the profit will exceed x
c) if the loss exceeds $10000 the company will have to borrow
probability that the company will have to borrow additional ca
d) what is the probability that the profit will be less than $110
4.Pepscico Co. has factories at Pune, Nasik and Nagpur which
and W3. Weekly factory capacities are 200,160 and 90 units. W
are 180,120 and 150 units. Unit transportation costs are as fol
distribution for this company to minimize total transportation

W1 W2
Pune 16 20
Nasik 14 8
Nagpur 26 24
Demand 180 120

5. A toy manufacturer makes three versions of a toy product (

10 minutes for fabrication & packaging and 2 pounds of plasti
minutes for fabrication & packaging and 3 pounds of plastic. T
minutes for fabrication & packaging and 4 pounds of plastic. T
packaging available and 200 pounds of plastic available for th
profits are $1 for each Version 1, $5 for each Version 2 and $6
10 units of each version of robot must be made to fill the prev
product mix for profit maximization.
6. A Finance Manager is considering drilling a well. In the past
successful at 20 meters depth in that area. Moreover on findin
persons in that area drilled it further up to 25 meters but only
The prevailing cost of drilling is Rs. 500 per meter. The Financ
he does not get water in his own well, he will have to pay Rs. 1
for the same period of getting water from the well. The follow
1. Do not drill any well:
2. Drill up to 20 meters, and
3. If no water is found at 20 meters, drill further up to 25 mete
Draw an appropriate decision tree and determine Finance Man
MANAGEMENT & RESEARCH
Time: 60 min
Date : 00/00/0000

the Examination Hall.

onds. Calculate mean, standard deviation and variance.

2.05 1.78 2.9 1.85

2.85 4.1 3.8 3.85

3.95 3.5 2.9 3.45
2.95

e the gross earnings generated by a movie. Analyst

ood movies made within the last 5 years.

oss earnings based on Production cost, Promotion cost ,

s, 0= no)

Book

0
1
1
 0
1
1
0
0
1
0
1
1
0
0
1
0
1
0
1
1

rmally distributed with a mean of $11200 and a

e between $10000 and $ 20000 ?

fit will exceed x is 25% ?
have to borrow additional cash . What is the
ow additional cash?
e less than $11000 ?
d Nagpur which supply to warehouses at W1, W2
and 90 units. Weekly warehousing requirements
costs are as follows. Determine the optimal
transportation costs

W3 Supply
12 200
18 160
16 90
150 450

f a toy product (robot). The first version requires

pounds of plastic. The second version requires 12
nds of plastic. The third version requires 15
nds of plastic. There are 8 hours of fabrication &
available for the next production cycle. The unit
ersion 2 and $6 for each Version 3. A minimum of
e to fill the previous order. Determine the optimal
well. In the past, only 70% of wells drilled were
reover on finding no water at 20 meters, some
meters but only 20% struck water at that level.
eter. The Finance Manager estimated that in case
have to pay Rs. 15000 to buy water from outside
well. The following decisions are considered:

er up to 25 meters.
ne Finance Manager’s optimal strategy