BSA 18MBA14

VTU PREVIOUS YEAR QUESTIONS AND SOLUTIONS

UNIT- 1

Descriptive Statistics

1. What do you mean by Measures of Central Tendency? (June 2013)(2 Marks)

A classified statistical data may sometimes be described as distributed around some value
called the central value or average is some sense. It gives the most representative value of the
entire data. Different methods give different central values and are referred to as the measures
of central tendency.
Thus, the most important objective of statistical analysis is to determine a single value that
represents the characteristics of the entire raw data. This single value representing the entire
data is called ‗Central value ‘or an average‘. This value is the point around which all other
values of data cluster. Therefore, it is known as the measure of location and since this value is
located at central point nearest to other values of the data it is also called as measures of
central tendency.
Different methods give different central values and are referred as measures of central
tendency. The common measures of central tendency are a) Mean b) Median c) Mode.
These values are very useful not only in presenting overall picture of entire data, but also for
the purpose of making comparison among two or more sets of data.

2. What are the important functions of an average? (Jan 2014) (6 Marks)

 To represents complex or large data.

 It facilitates comparative study of two variables.

 helps to study population from sample data.

 Helps in decision making.

 Represents single value for a series of data.

 To establish mathematical relationship.

3. Explain briefly the Merits of Arithmetic Mean. (July 2013) (8 Marks)

1. It is simple and easy to compute.

2. It is rigidly defined.

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3. It can be used for further calculation.

4. It is based on all observations in the series.

5. It helps for direct comparison.

6. It is more stable measure of central tendency (ideal average).

4. What is Geometric Mean (GM) and state its merits and demerits. (Jan 2015)
(3,6Marks)
The GM is nth root of product of quantities of the series. It is observed by multiplying the
values of items together and extracting the root of the product corresponding to the number of
items. Thus, square root of the products of two items and cube root of the products of the
three items are the Geometric Mean.

In the field of business management various problems often arise relating to average
percentage rate of change over a period of time. In such cases, the arithmetic mean is not an
appropriate average to employ, so, that we can use geometric mean in such case. GM are
highly useful in the construction of index numbers

Merits of GM
a. It is based on all the observations in the series.

b. It is rigidly defined.

c. It is best suited for averages and ratios.

d. It is less affected by extreme values.

e. It is useful for studying social and economic data.

Demerits of GM
a. It is not simple to understand.

b. It requires computational skill.

c. GM cannot be computed if any of items is zero or negative.

d. It has restricted application.

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5. What is Median? (Jan 2014) (3 Marks)

Median is the value of that item in a series which divides the array into two equal parts, one
consisting of all the values less than it and other consisting of all the values more than it.
Median is a positional average. The number of items below it is equal to the number. The
number of items below it is equal to the number of items above it. It occupies central
position.
Thus, Median is defined as the mid value of the variants. If the values are arranged in
ascending or descending order of their magnitude, median is the middle value of the number
of variant is odd and average of two middle values if the number of variants is even.

6. What is Mode? (July 2014) (3 Marks)

It is the value which occurs with the maximum frequency. It is the most typical or common
value that receives the height frequency. It represents fashion and often it is used in business.
Thus, it corresponds to the values of variable which occurs most frequently. The model class
of a frequency distribution is the class with highest frequency. It is denoted by ‘Z’
Mode is the value of variable which is repeated the greatest number of times in the series. It
is the usual, and not casual, size of item in the series. It lies at the position of greatest density.

7. Explain the term Measures of Dispersion (July 2013) (6 Marks)

Measures of dispassion are the ‘average of second order’. They are based on the average of
deviations of the values obtained from central tendencies, Me or z. The variability is the basic
feature of the values of variables. Such type of variation or dispersion refers to the ‗lack of
uniformity‘.x’
Definition: A measure of dispersion may be defined as a statistics signifying the extent of the
scatteredness of items around a measure of central tendency.

8. List the various Measures of Dispersion (Jan 2015) (3 Marks)

Following are the common measures of dispersions.
a. The Range

b. The Quartile Deviation (QD)

c. The Mean Deviation (MD)

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d. The Standard Deviation (SD)

9. What is Mean Deviation? (Jan 2014) (3 Marks)
Mean deviation is the average differences among the items in a series from the mean itself or
median or mode of that series. It is concerned with the extent of which the values are
dispersed about the mean or median or the mode. It is found by averaging all the deviations
from control tendency. These deviations are taken into computations with regard to negative
sign. Theoretically the deviations of item are taken preferably from median instead than from
the mean and mode.

10. What is Standard Deviation? List the merits and demerits. (July 2014) (6Marks)
Standard deviation is the root of sum of the squares of deviations divided by their numbers. It
is also called ‘Mean error deviation’. It is also called mean square error deviation (or) Root
mean square deviation. It is a second moment of dispersion. Since the sum of squares of
deviations from the mean is a minimum, the deviations are taken only from the mean (But not
from median and mode).
The standard deviation is Root Mean Square (RMS) average of all the deviations from the
mean. It is denoted by sigma
Merits
1. It is based on all observations.

2. It can be smoothly handled algebraically.

3. It is a well defined and definite measure of dispersion.

4. It is of great importance when we are making comparison between variability of two

series.
Demerits
1. It is difficult to calculate and understand.

2. It gives more weightage to extreme values as the deviation is squared.

3. It is not useful in economic studies.

11. What do you mean by Central tendency? What are the different measures of it? List
the pre-requisites of good measures of central tendency? (Dec 2018/Jan 2019)(10
Marks)

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central tendency (or measure of central tendency) is a central or typical value for a

probability distribution. It may also be called a center or location of the distribution.
There are three main measures of central tendency: the mode, the median and the mean.
pre-requisites of good measures of central tendency
 It should be rigidly defined.
• It should be easy to understand and calculate.
• It should be based on all the observations.
• It should be suitable for further mathematical treatment.
• It should be affected as little as possible by fluctuations of sampling. 
• It should not be affected much by extreme observations.

UNIT 2

1. What is Correlation?(June 2015) (3 Marks)

Correlation refers to any of a broad class of statistical relationships involving dependence.

Familiar examples of dependent phenomena include the correlation between the
physical statures of parents and their offspring, and the correlation between the demand for a
product and its price

12. What is Regression analysis? (June 2015) (3 Marks)

Regression analysis is a statistical process for estimating the relationships among variables.
It includes many techniques for modelling and analysing several variables, when the focus is
on the relationship between a dependent variable and one or more independent variables (or
'predictors'). More specifically, regression analysis helps one understand how the typical
value of the dependent variable (or 'criterion variable') changes when any one of the
independent variables is varied, while the other independent variables are held fixed. Most
commonly, regression analysis estimates the conditional expectation of the dependent
variable given the independent variables – that is, the average value of the dependent variable
when the independent variables are fixed. Less commonly, the focus is on a quintile, or
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other location parameter of the conditional distribution of the dependent variable given the
independent variables. In all cases, the estimation target is a function of the independent
variables called the regression function. In regression analysis, it is also of interest to
characterize the variation of the dependent variable around the regression function which can
be described.

3. Differentiate between positive and negative correlation? (Dec 2018/Jan 2019)(3

marks)
A positive correlation indicates that two variables co-vary in the same direction. In contrast, a
negative correlation indicates that two variables co-vary in the opposite direction
4. Discuss the types of correlation? (Dec 2018/Jan 2019,June/July)(7 marks)

1. Positive and Negative Correlation: Whether the correlation between the variables is

positive or negative depends on its direction of change. The correlation is positive when
both the variables move in the same direction, i.e. when one variable increases the other on
an average also increases and if one variable decreases the other also decreases.The
correlation is said to be negative when both the variables move in the opposite direction, i.e.
when one variable increases the other decreases and vice versa.
2. Simple, Partial and Multiple Correlation: Whether the correlation is simple, partial
or multiple depends on the number of variables studied. The correlation is said to be simple
when only two variables are studied.The correlation is either multiple or partial when three
or more variables are studied. The correlation is said to be Multiple when three variables are
studied simultaneously. Such as, if we want to study the relationship between the yield of
wheat per acre and the amount of fertilizers and rainfall used, then it is a problem of multiple
correlations.

Whereas, in the case of a partial correlation we study more than two variables, but consider
only two among them that would be influencing each other such that the effect of the other
influencing variable is kept constant. Such as, in the above example, if we study the
relationship between the yield and fertilizers used during the periods when certain average
temperature existed, then it is a problem of partial correlation.

3. Linear and Non-Linear (Curvilinear) Correlation: Whether the correlation

between the variables is linear or non-linear depends on the constancy of ratio of change
between the variables. The correlation is said to be linear when the amount of change in one
variable to the amount of change in another variable tends to bear a constant ratio

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UNIT-3

Probability Distribution

1. What is Probability? (Jan 2015) (3 Marks)

Probability is the measure of the likeliness that an event will occur. Probability is quantified

as a number between 0 and 1 (where 0 indicates impossibility and 1 indicates certainty). The
higher the probability of an event, the more certain we are that the event will occur. A simple
example is the toss of a fair (unbiased) coin. Since the two outcomes are equally probable, the
probability of "heads" equals the probability of "tails", so the probability is 1/2 (or 50%)
chance of either "heads" or "tails".

2. Explain the concept Random Variable. (July 2014) (6 Marks)

A random variable x takes on a defined set of values with different probabilities.
For example, if you roll a die, the outcome is random (not fixed) and there are 6 possible
outcomes, each of which occur with probability one-sixth.
For example, if you poll people about their voting preferences, the percentage of the sample
that responds ―Yes on Proposition 100‖ is an also a random variable (the percentage will be
slightly different every time you poll).
Roughly, probability is how frequently we expect different outcomes to occur if we repeat the
experiment over and over (frequent view)
Random variables can be discrete or continuous:
 Discrete random variables have a countable number of outcomes
Examples: Dead/alive, treatment/placebo, dice, counts, etc.
 Continuous random variables have an infinite continuum of possible values.
Examples: blood pressure, weight, the speed of a car, the real numbers from 1 to 6.

3. What is Independent Event? (Jan 2015)

If two events, A and B are independent then the joint probability is

For example, if two coins are flipped the chance of both being heads is .

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4. Explain i) Mutually exclusive events ii)not mutually exclusive events (Jan 2014) (8
Marks)

If either event A or event B occurs on a single performance of an experiment this is called the

union of the events A and B denoted as  . If two events are mutually

exclusive then the probability of either occurring is

For example, the chance of rolling a 1 or 2 on a six-

sided die is 

If the events are not mutually exclusive then

For example, when drawing a single card at random from a regular deck of cards, the chance

of getting a heart or a face card (J,Q,K) (or one that is both) is  ,
because of the 52 cards of a deck 13 are hearts, 12 are face cards, and 3 are both: here the
possibilities included in the "3 that are both" are included in each of the "13 hearts" and the
"12 face cards" but should only be counted once.

5. What is Conditional probability? (June 2013) (3 Marks)

Conditional probability is the probability of some event A, given the occurrence of some

other event B. Conditional probability is written , and is read "the probability of A,

given B". It is defined by

If   then   is formally undefined by this expression. However, it is

possible to define a conditional probability for some zero-probability events using an σ-
algebra of such events (such as those arising from a continuous random variable).

For example, in a bag of 2 red balls and 2 blue balls (4 balls in total), the probability of taking

a red ball is ; however, when taking a second ball, the probability of it being either a red
ball or a blue ball depends on the ball previously taken, such as, if a red ball was taken, the

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probability of picking a red ball again would be   since only 1 red and 2 blue balls would
have been remaining.

6. Explain Baye’s theorem (July 2013)(Dec 2018/Jan 2019)(03/8 marks)

 Describes the probability of an event, based on conditions that might be related to the event.
For example, suppose one is interested in whether Addison has cancer. Furthermore, suppose
that Addison is age 65. If cancer is related to age, information about Addison's age can be
used to more accurately assess his or her chance of having cancer using Baye’s' Theorem.

When applied, the probabilities involved in Baye’s' theorem may have

different interpretations. In one of these interpretations, the theorem is used directly as part of
a particular approach to statistical inference. In particular, with the Bayesian interpretation of
probability, the theorem expresses how a subjective degree of belief should rationally change
to account for evidence: this is Bayesian inference, which is fundamental to Bayesian
statistics. However, Baye’s' theorem has applications in a wide range of calculations
involving probabilities, not just in Bayesian inference.

Baye’s' theorem is stated mathematically as the following equation:

Where A and B are events.

 P(A) and P(B) are the probabilities of A and B without regard to each other.

 P(A | B), a conditional probability, is the probability of A given that B is true.
 P(B | A), is the probability of B given that A is true.

7. Explain Binomialdistribution (Jan 2014) (6 Marks)

In probability theory and statistics, the binomial distribution with parameters n and p is

the discrete probability distribution of the number of successes in a sequence
of n independent yes/no experiments, each of which yields success with probability p. A
success/failure experiment is also called a Bernoulli experiment or Bernoulli trial; when n =
1, the binomial distribution is a Bernoulli distribution. The binomial distribution is the basis
for the popular binomial test of statistical.

8. Write a note on Poisson distribution(Jan 2014) (3 Marks)

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Is a discrete probability distribution that expresses the probability of a given number of

events occurring in a fixed interval of time and/or space if these events occur with a known
average rate and independently of the time since the last event.The Poisson distribution can
also be used for the number of events in other specified intervals such as distance, area or
volume.

A discrete random variable X is said to have a Poisson distribution with parameter λ > 0, if,

for k = 0, 1, 2… the probability of X is given by

Where

 e is Euler's number (e = 2.71828...)

 k! Is the factorial of k.

The positive real number λ is equal to the expected value of X and also to its variance

9. What is Normal distribution?(Jan 2014) (3 Marks)

In probability theory, the normal (or Gaussian) distribution is a very common continuous

probability distribution. Normal distributions are important in statistics and are often used in
the natural and social sciences to represent real-valued random variables whose distributions
are not known.

The normal distribution is remarkably useful because of the central limit theorem. In its most
general form, under mild conditions, it states that averages of random variables independently
drawn from independent distributions are normally distributed. Physical quantities that are
expected to be the sum of many independent processes (such as measurement) often have
distributions that are nearly normal.[3] Moreover, many results and methods (such as
propagation and least squares parameter fitting) can be derived analytically in explicit form
when the relevant variables are normally distributed.

The probability density of the normal distribution is:

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10. List out the classification of probability distribution? ?(June /July 2019)(3 marks)

There are many different classifications of probability distributions. Some of them include

the normal distribution, chi square distribution, binomial distribution, and
Poisson distribution.
UNIT-4

Time series Analysis

1.What are the objectives of time series Analysis? Brief about components of time series
?(Dec 2018/Jan 2019)(7marks)

 objectives of time series analysis may be classified as

Description
Explanation
Prediction
Control
Description

The first step in the analysis is to plot the data and obtain simple descriptive measures (such
as plotting data, looking for trends,  seasonal fluctuations and so on) of the main properties of
the series

Explanation

Observations were taken on two or more variables, making possible to use the variation in
one time series to explain the variation in another series. This may lead to a deeper
understanding. Multiple regression model may be helpful in this case.

Prediction

Given an observed time series, one may want to predict the future values of the series. It is an
important task in sales of forecasting and is the analysis of economic and industrial time
series. Prediction and forecasting used interchangeably.

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Control

When time series generated to measure the quality of a manufacturing process (the aim may
be) to control the process. Control procedures are of several different kinds. In quality
control, the observations are plotted on a control chart and the controller takes action as a
result of studying the charts. A stochastic model is fitted to the series. Future values of the
series are predicted and then the input process variables are adjusted so as to keep the process
on target.

The four categories of the components of time series are

 Trend

 Seasonal Variations

 Cyclic Variations

 Random or Irregular movements

2.Bring out the utility of time series analysis?(Dec 2018/Jan 2019)(3 marks)

i) It helps in studying the behaviours of a variable. 

In a time series, the past data relating to a variable over a period of time are arranged in an
orderly manner. By simple observation of such a series, one can understand the nature of
change that takes place with the variable in course of time. Further, by the technique of
isolation applied to the series, one can tendency of the variable, seasonal change, cyclical
change, and irregular or accidental change with the variable.

(ii) It helps in forecasting

The analysis of a time series reveals the mode of changes in the value of a variable in course
of the times. This helps us in forecasting the future value of a variable after a certain period.
Thus, with the help of such a series we can make our future plan relating to certain matters
like production, sales, profits, etc. This is how in a planned economy all plans for the future
development are the analysis of time series of the relevant data.

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(iii) It helps in evaluating the performances.

Evaluation of the actual performances with reference to the predetermined targets is highly
necessary to judge the efficiency, or otherwise in the progress of a certain work. For example,
the achievements or out five-Year Plans are evaluated by determining the annual rate of
growth in the gross national product. Similarly, our policy of controlling the inflation, and
price rises is evaluated with the help of various price indices. All these are facilitated by
analysis of the time series relating to the relevant variables.

(iv) It helps in making comparative study.

Comparative study of data relating to two, of more periods, regions, or industries reveals a lot
of valuable information which guide a management in taking the proper course of action for
the future. A time series, per se, provides a scientific basis for making the comparision
between the two, or more related set of data as in such series, the data are chronologically,
and the effects of its various components are gradually isolated and unraveled.

UNIT– 5

Linear Programming

1. What is Linear programming Problem? (June 2013) (3 Marks)

Linear Programming is a mathematical technique for optimum allocation of limited or scarce
resources, such as labour, material, machine, money, energy and so on , to several competing
activities such as products, services, jobs and so on, on the basis of a given criteria of
optimality.
The term ‘Linear’ is used to describe the proportionate relationship of two or more variables
in a model. The given change in one variable will always cause a resulting proportional
change in another variable.
The word , ‘Programming’ is used to specify a sort of planning that involves the economic
allocation of limited resources by adopting a particular course of action or strategy among
various alternatives strategies to achieve the desired objective.
Hence, Linear Programming is a mathematical technique for optimum allocation of limited
or scarce resources, such as labour, material, machine, money energy etc

2. Explain briefly the Structure of linear program model. (July 2014) (6 Marks)

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The general structure of the Linear Programming model essentially consists of three
Components.
i) The activities (variables) and their relationships
ii) The objective function and
iii) The constraints
The activities are represented by X1 X2, X3 ……..Xn.
These are known as Decision variables.

The objective function of an LPP (Linear Programming Problem) is a mathematical

Representation of the objective in terms a measurable quantity such as profit, cost, revenue,
etc.
Optimize (Maximize or Minimize) Z=C1X1 +C2X2+ ………..CnXn
Where Z is the measure of performance variable
X1, X2, X3, X4…..Xn are the decision variables
C1, C2, Cn are the parameters that give contribution to decision variables.

The constraints: These are the set of linear inequalities and/or equalities which impose
restriction of the limited resource

3. Explain briefly the applications of LPP. (June 2013) (6 Marks)

1. Scientific Approach to Problem Solving. Linear Programming is the application of
scientific approach to problem solving. Hence it results in a better and true picture of the
problems-which can then be minutely analyzed and solutions ascertained.
2. Evaluation of All Possible Alternatives. Most of the problems faced by the present
Organisations are highly complicated - which cannot be solved by the traditional approach to
decision making. The technique of Linear Programming ensures that’ll possible solutions are
generated - out of which the optimal solution can be selected.
3. Helps in Re-Evaluation. Linear Programming can also be used in .re-evaluation of a basic
plan for changing conditions. Should the conditions change while the plan is carried out only
partially, these conditions can be accurately determined with the help of Linear Programming
so as to adjust the remainder of the plan for best results.
4. Quality of Decision. Linear Programming provides practical and better quality of
decisions‟ that reflect very precisely the limitations of the system i.e.; the various restrictions
under which the system must operate for the solution to be optimal. If it becomes necessary

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to deviate from the optimal path, Linear Programming can quite easily evaluate the associated
costs or penalty.
5. Focus on Grey-Areas. Highlighting of grey areas or bottlenecks in the production process
is the most significant merit of Linear Programming. During the periods of bottlenecks,
imbalances occur in the production department. Some of the machines remain idle for long
periods of time, while the other machines are unable toffee the demand even at the peak
performance level.
6. Flexibility. Linear Programming is an adaptive & flexible mathematical technique and
hence can be utilized in analyzing a variety of multi-dimensional problems quite successfully.

7. Creation of Information Base. By evaluating the various possible alternatives in the light
of the prevailing constraints, Linear Programming models provide an important database
from which the allocation of precious resources can be don rationally and judiciously.

8. Maximum optimal Utilization of Factors of Production. Linear Programming helps in

optimal utilization of various existing factors of production such as installed capacity, Labour
and raw materials etc.

4. What are the Limitations of Linear Programming? (Jan 2014) (3 Marks)

Although Linear Programming is a highly successful having wide applications in business
and trade for solving optimization' problems, yet it has certain demerits or defects. Some of
the important-limitations in the application of Linear Programming are as follows:
1. Linear Relationship.
Linear Programming models can be successfully applied only in those situations where a
given problem can clearly be represented in the form of linear relationship between different
decision variables. Hence it is based on the implicit assumption that the objective as well as
all the constraints or the limiting factors can be stated in term of linear expressions - which
may not always hold well in real life situations. In practical business problems, many
objective function & constraints cannot
2. Constant Value of objective & Constraint Equations.
Before a Linear Programming technique could be applied to a given situation, the values or
the coefficients of the objective function as well as the constraint equations must be
completely known. Further, Linear Programming assumes these values to be constant over a
period of time. In other words, if the values were to change during the period of study, the

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technique of LP would loosen its effectiveness and may fail to provide optimal solutions to
the problem.
However, in real life practical situations often it is not possible to determine the coefficients
of objective function and the constraints equations with absolute certainty. These variables in
fact may, lie on a probability distribution curve and hence at best, only the Iikelil1ood of their
occurrence can be predicted. Move over, often the value’s change due to extremely as well as
internal factors during the period of study. Due to this, the actual applicability of Linear
Programming tools may be restricted.
3. No Scope for Fractional Value Solutions.

There is absolutely no certainty that the solution to a LP problem can always be quantified as
an integer quite often, Linear Programming may give fractional-varied answers, which are
rounded off to the next integer. Hence, the solution would not be the optimal one. For
example, in finding out 'the pamper of men and machines required to perform a particular
job, a fractional Larson-integer solution would be meaningless.

4. Degree Complexity.
Many large-scale real life practical problems cannot be solved by employing Linear
Programming techniques even with the help of a computer due to highly complex and
Lengthy calculations. Assumptions and approximations are required to be made so that $e,
given problem can be broken down into several smaller problems and, then solve separately.
Hence, the validity of the final result, in all such cases, may be doubtful
5. Multiplicity of Goals.
The long-term objectives of an organisation are not confined to a single goal. An
organisation, at any point of time in its operations has a multiplicity of goals or the goals
hierarchy - all of which must be attained on a priority wise basis for its long term growth.
Some of the common goals can be Profit maximization or cost minimization, retaining
market share, maintaining leadership position and providing quality service to the consumers.
In cases where the management has conflicting, multiple goals, Linear Programming model
fails to provide an optimal solution. The reason being that under Linear Programming
techniques, there is only one goal which can be expressed in the objective function. Hence in
such circumstances, the situation or the given problem has to be solved by the help of a
different mathematical programming technique called the "Goal Programming".
6. Flexibility.

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Once a problem has been properly quantified in terms of objective function and the constraint
equations and the tools of Linear Programming are applied to it, it becomes very difficult to
incorporate any changes in the system arising on account of any change in the decision
parameter. Hence, it lacks the desired operational flexibility.

5. Explain the concept of Duality in Linear Programming. (June 2015) (7 Marks)

Every LPP (called primal) is associated with another LPP (called its dual). The original
problem is then called primal problem while the other is called its Dual problem the
importance of duality concept is due to two main reasons
1. If the primal contains a large number of constraints and a small number of variables, the
labour of computation can be considerably reduced by converting it into the dual problem and
then solving it.
2. The interpretation of the dual variables from the cost or economic point of view, Proves
extremely useful in making the future decisions in the activities being programmed. The
symmetrical relationship between primal and dual problems.

6. Define unboundedness and infeasibility in linear programming.(Dec 2018/Jan.2019)

(03 Marks)
An infeasible problem is a problem that has no solution while an unbounded problem is one
where the constraints do not restrict the objective function and the optimal objective goes to
infinity.

6. What is Transportation problem? (Jan 2014) (3 Marks) (3 Marks)

The Transportation problem is one of the subclasses of linear programming problem where
the objective is to transport various quantities of a single homogeneous product that are
initially stored at various origins, to different destinations in such a way that the total
transportation is minimum.
F.I. Hitchaxic developed the basic transportation problem in 1941. However it could be
solved for optimally as an answer to complex business problem only in 1951, when George
B. Danzig applied the concept of Linear Programming in solving the Transportation models.

7. List the different Methods of finding initial basic feasible solution. (June 2014) (3
Marks)
The solution algorithm to a transpiration problem can be summarized into following steps:
i. North West Corner Rule (NWCR)

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ii. Least cost Method (LCM)

iii. Vogel Approximation Method (VAM)

8. What is Optimality? (Jan 2015) (3 Marks)

Once the initial feasible solution is reached, the next step is to check the optimality. An
optimal solution is one where there is no other set of transportation routes (allocations) that
will further reduce the total transportation cost. Thus, we’ll have to evaluate each unoccupied
cell (represents unused routes) in the transportation table in terms of an opportunity of
reducing total transportation cost.

9. Explain briefly the steps involved in Modified Distribution Method (MODI). (Jan 14)
It is a method for computing optimum solution of a transportation problem.
STEPS
Step 1
Determine an initial basic feasible solution using any one of the three methods given below:
• North West Corner Rule
• Matrix Minimum Method
• Vogel Approximation Method
Step 2
Determine the values of dual variables, ui and vj, using ui + vj = cij
Step 3
Compute the opportunity cost using cij – ( ui + vj ).
Step 4
Check the sign of each opportunity cost. If the opportunity costs of all the unoccupied cells
are either positive or zero, the given solution is the optimum solution. On the other hand, if
one or more unoccupied cell has negative opportunity cost, the given solution is not an
optimum solution and further savings in transportation cost are possible.
Step 5
Select the unoccupied cell with the smallest negative opportunity cost as the cell to be
included in the next solution.

Draw a closed path or loop for the unoccupied cell selected in the previous step. Please note
that the right angle turn in this path is permitted only at occupied cells and at the original
unoccupied cell.
Step 7

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Assign alternate plus and minus signs at the unoccupied cells on the corner points of the
closed path with a plus sign at the cell being evaluated.
Step 8
Determine the maximum number of units that should be shipped to this unoccupied cell. The
smallest value with a negative position on the closed path indicates the number of units that
can be shipped to the entering cell. Now, add this quantity to all the cells on the corner points
of the closed path marked with plus signs and subtract it from those cells marked with minus
signs. In this way an unoccupied cell becomes an occupied cell.
Step 9
Repeat the whole procedure until an optimum solution is obtained.
10. What is Degeneracy? (June 2015)
In a transportation problem, degeneracy occurs when the number of Allocations are less than
(Rows +Columns – 1), where
M= number of rows
N=number of columns
This is also called as Rim condition. If rim condition is satisfied, the solution is not
degenerate. But if number of allocations are less than (m + n – 1), then the solution is
degenerate. To remove degeneracy, we need to take Epsilon Є which is an imaginary
allocation almost equal to zero.

11. Write a note on Assignment problem (Jan 2014) (6 Marks)

In the world of trade Business Organizations are confronting the conflicting need for optimal
utilization of their limited resources among competing activities. When the information
available on resources and relationship between variables is known we can use LP very
reliably. The course of action chosen will invariably lead to optimal or nearly optimal results.
The problems which gained much importance under LP are:
The assignment problem is a special case of transportation problem in which the objective is
to assign a number of origins to the equal number of destinations at the minimum cost (or
maximum profit). Assignment problem is one of the special cases of the transportation
problem. It involves assignment of people to projects, jobs to machines, workers to jobs and
teachers to classes etc., while minimizing the total assignment costs. One of the important
characteristics of assignment problem is that only one job (or worker) is assigned to one
machine (or project). Hence the number of sources are equal the number of destinations and
each requirement and capacity value is exactly one unit.

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12. Explain briefly the steps involved in Hungarianmethod (June 2013) (3 Marks)
Step 1.Determine the cost table from the given problem.
(i) If the no. of sources is equal to no. of destinations, go to step 3.
(ii) If the no. of sources is not equal to the no. of destination, go to step2.
Step 2.Add a dummy source or dummy destination, so that the cost table becomes a square
matrix. The cost entries of the dummy source/destinations are always zero.
Step 3.Locate the smallest element in each row of the given cost matrix and then subtract the
same from each element of the row.
Step 4.In the reduced matrix obtained in the step 3, locate the smallest element of each
column and then subtract the same from each element of that column. Each column and row
now have at least one zero.
Step 5.In the modified matrix obtained in the step 4, search for the optimal assignment as
follows :(a) Examine the rows successively until a row with a single zero is found. En
rectangle this row () and cross off (X) all other zeros in its column. Continue in this manner
until all the rows have been taken care of.

(b) Repeat the procedure for each column of the reduced matrix.
(c) If a row and/or column have two or more zeros and one cannot be chosen by inspection
then assign arbitrary any one of these zeros and cross off all other zeros of that row / column.
(d) Repeat (a) through (c) above successively until the chain of assigning () or cross (X) ends.
Step 6. If the number of assignment () is equal to n (the order of the cost matrix), an optimum
solution is reached.
If the number of assignment is less than n(the order of the matrix), go to the next step.
Step7. Draw the minimum number of horizontal and/or vertical lines to cover all the zeros
of the reduced matrix.
Step 8.Develop the new revised cost matrix as follows:
(a)Find the smallest element of the reduced matrix not covered by any of the lines.
(b)Subtract this element from all uncovered elements and add the same to all the elements
laying at the intersection of any two lines.

13.Explain looping and dangling error in network?(Dec2018/Jan 2019,June/July)(3

marks)
1 Dangling error: To disconnect an activity before the completion of all activities in a
network diagram is known as dangling. ...

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2) Looping error: Looping error is also known as cyclic error in the network. Drawing an

endless loop in a network diagram is known as error of looping

14.What do you mean by Redundant constrain?(Dec 2018/Jan 2019)(3 marks)

Redundant constraint  A redundant constraint is a constraint that can be removed from a

system of linear constraints without changing the feasible region

15.Bring out the special cases in linear programming problem, With illustration.
(June/July)(7 marks)

Infeasible solution

Multiple solution (infinitely many solution)

Unbounded solution

Degenerated solution

Multiple Optimal Solutions

The linear programming problems discussed in the previous section possessed unique
solutions. This was because the optimal value occurred at one of the extreme points (corner
points). But situations may arise, when the optimal solution obtained is not unique. This case
may arise when the line representing the objective function is parallel to one of the lines
bounding the feasible region. The presence of multiple solutions is illustrated through the
following example.
Example:
Maximize z = x1 + 2x2
subject to
x1 ≤80
x2 ≤60
5x1 +6x2 ≤600
x1 + 2x2 ≤ 160
x1, x2 ≥ 0.
Infeasible Problem
In some cases, there is no feasible solution area, i.e., there are no points that satisfy all
constraints of the problem. An infeasible LP problem with two decision variables can be

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identified through its graph. For example, let us consider the following linear programming
problem.
Minimize z = 200x1 + 300x2
subject to
2x1 +3x2 ≥1200
x1 +x2 ≤ 400
2x1 + 1.5x2 ≥  900
x1, x2 ≥ 0

The region located on the right of PQR includes all solutions, which satisfy the first and the
third constraints. The region located on the left of ST includes all solutions, which satisfy the
second constraint. Thus, the problem is infeasible because there is no set of points that satisfy
all the three constraints.
3.. Unbounded Solutions
It is a solution whose objective function is infinite. If the feasible region is unbounded then
one or more decision variables will increase indefinitely without violating feasibility, and the
value of the objective function can be made arbitrarily large. Consider the following model:
Minimize z = 40x1 + 60x2
subject to
2x1+x2 ≥70
   x1 +x2 ≥40
      x1 + 3x2 ≥ 90
                                x1, x2 ≥ 0

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The point (x1, x2) must be somewhere in the solution space as shown in the figure by shaded
portion.
The three extreme points (corner points) in the finite plane are:
P = (90, 0); Q = (24, 22) and R = (0, 70)  The values of the objective function at these
extreme points are: Z(P) = 3600, Z(Q) = 2280 and Z(R) = 4200.
In this case, no maximum of the objective function exists because the region has no boundary
for increasing values of x1 and x2. Thus, it is not possible to maximize the objective function
in this case and the solution is unbounded.

UNIT-6

Project Management

1. What is Project Management? (Jan 2013)

Project management is the process and activity of planning, organizing, motivating, and
controlling resources, procedures and protocols to achieve specific goals in scientific or daily
problems. A project is a temporary endeavour designed to produce a unique product, service
or result with a defined beginning and end (usually time-constrained, and often constrained
undertaken to meet unique goals and objectives, typically to bring about beneficial change or
added value. The temporary nature of projects stands in contrast with business as usual (or
operations), which are repetitive, permanent, or semi-permanent functional activities to
produce products or services. In practice, the management of these two systems is often quite

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different, and as such requires the development of distinct technical skills and management
strategies.

2. Write a note on Critical path method. (June 2014) (2 Marks)

The critical path method (CPM) is a project modelling technique developed in the late 1950s
by Morgan R. Walker of DuPont and James E. Kelley, Jr. of Remington Rand.Kelley and
Walker related their memories of the development of CPM in 1989 Kelley attributed the term
"critical path" to the developers of the Program which was developed at about the same time
by Booz Allen Hamilton and the U.S. Navy. The precursors of what came to be known as
Critical Path were developed and put into practice by DuPont between 1940 and 1943 and
contributed to the success of the Manhattan Project.

CPM is commonly used with all forms of projects, including construction, aerospace and
defence, software development, research projects, product development, engineering, and
plant maintenance, among others. Any project with interdependent activities can apply this
method of mathematical analysis. Although the original CPM program and approach is no
longer used, the term is generally applied to any approach used to analyze a project network
logic diagram.

3. What is an Activity? (June 2014) (2 Marks)

– A task or a certain amount of work required in the project

– Requires time to complete
– Represented by an arrow

4. Write a note on Dummy Activity, Event and Network. (Jan 2014) (6 Marks)

– Indicates only precedence relationships

– Does not require any time of effort

• Event

– Signals the beginning or ending of an activity

– Designates a point in time
– Represented by a circle (node)

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• Network

– Shows the sequential relationships among activities using nodes and arrows
 Activity-on-node (AON)

Nodes represent activities, and arrows show precedence relationships

 Activity-on-arrow (AOA)

Arrows represent activities and nodes are events for points in time

5. What is PERT analysis? (June 2013) (2 Marks)

• PERT is based on the assumption that an activity’s duration follows a probability

distribution instead of being a single value
• Three time estimates are required to compute the parameters of an activity’s duration
distribution:

– Pessimistic time (tp ) - the time the activity would take if things did not go well
– Most likely time (tm ) - the consensus best estimate of the activity’s duration
– Optimistic time (to ) - the time the activity would take if things did go well

PERT analysis

 Draw the network diagram.

 Analyze the paths through the network and find the critical path.
 The length of the critical path is the mean of the project duration probability
distribution which is assumed to be normal
 The standard deviation of the project duration probability distribution is computed by
adding the variances of the critical activities (all of the activities that make up the
critical path) and taking the square root of that sum
 Probability computations can now be made using the normal distribution table.

6. What is Project Crashing? (June 2015) (6 Marks)

• Crashing

– reducing project time by expending additional resources

Crash time
– An amount of time an activity is reduced

• Crash cost
– cost of reducing activity time

• Goal
– reduce project duration at minimum cost

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7. List the Benefits of CPM/PERT (Jan 2014) (6 Marks)

• Useful at many stages of project management

• Mathematically simple
• Give critical path and slack time
• Provide project documentation
• Useful in monitoring costs

8. What are the Limitations to CPM/PERT (Jan 2014 )

• Clearly defined, independent and stable activities

• Specified precedence relationships
• Over emphasis on critical paths

• Activity time estimates are subjective and depend on judgment

• PERT assumes a beta distribution for these time estimates, but the actual distribution may
be different
• PERT consistently underestimates the expected project completion time due to alternate
paths becoming critical

9. What are the Differences between CPM and PERT.? (June 2014)

CPM PERT

 CPM uses activity oriented network.  PERT uses event oriented Network.

 Durations of activity may be estimated 
with a fair degree of accuracy.
 It is used extensively in construction 
projects.
 Deterministic concept is used.
 CPM can control both time and cost 
when planning.
Estimate of time for activities are not
so accurate and definite.
It is used mostly in research and
development projects, particularly
projects of non-repetitive nature.
 Probabilistic model concept is used.
PERT is basically a tool for planning.

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 In CPM, cost optimization is given 
prime importance. The time for the
completion of the project depends upon
cost optimization. The cost is not directly
proportioned to time. Thus, cost is the
controlling factor.
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In PERT, it is assumed that cost varies
directly with time. Attention is therefore
given to minimize the time so that
minimum cost results. Thus in PERT,
time is the controlling factor.