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FACULTY OF MANAGEMENT STUDIES

UNIVERSITY OF DELHI
MBA-Executive and MBA-Executive (Health Care Administration)
I yr Examination, November 2020 (Repeat)

MBAex 8102: Quantitative Methods for Management

Time: 3 hours Maximum marks:70

Answer any FIVE questions, selecting at least TWOquestion from each section.
All questions carry equal marks.

Section A

1. The table of data below resulted from selecting 25 batches of 5000 test-kits and determining
how many in each batch were defective.

Defects
1 3 3 4 5 5 6 6 7 9 11 11 15
17 19 21 22 24 25 25 25 27 27 27 29

(i) Construct a frequency distribution. For example you may use, for the above
defects data, "0 but less than 5" as the first class.

(ii) Construct a histogram.

(iii) Find the mean, mode and coefficient of variation.

(iv) Is the distribution symmetric? If not, comment on its skewness.

2.(a) The probability that industrial output will increase if interest rates decline more than 0.5
percentage points during the next financial year is 0.80. The probability that interest rates
will decline by more than 0.5 percentage points during the next financial year is 0.20. What
is the probability that for the next financial year, both the interest rate will decline and
production will increase?

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(b) The ABC Construction Company has the opportunity to enter into a contract to build a toll
road. The following table shows the probability distribution for the profit that could occur if
it takes the contract:

Profit Probability
Rs. 30 crores 0.15
Rs. 50 crores 0.20
Rs. 70 crores 0.30
Rs. 100 crores 0.35

(i) What is the probability of profit being at least Rs.50 crores?

(ii) What is the the expected profit for the company if it takes the contract?

(iii) What is the probability of profit being below Rs.70 crores?

3. Info Software Co. randomly sampled ten employees and analyzed their performance (based
on an internally developed index) and number of hours worked over-time per week. The
following data were observed:

Performance
score HOURS
3.14 25
2.75 30
3.68 11
3.22 18
2.45 22
2.80 40
3.00 15
2.23 29
3.14 10
2.90 0

(i) What is the correlation coefficient between the two variables?

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 (ii) How will you classify the linear relationship?

(iii) Using linear regression, develop a model to help in the prediction.

4.(a) Taxi fares for travel between North campus and South campus of Delhi University are
normally distributed with a mean of 500 rupees and a standard deviation of 50 rupees. Based
on this information, what is the probability that a specific fare will exceed 560 rupees?

(b) A drug company is considering marketing a new local anesthetic. The effective time of the
anesthetic the drug company is currently producing has a normal distribution with a mean of
9.1 minutes with a standard deviation of 1.3 minutes. The chemistry of the new anesthetic is
such that the effective time should be normally distributed with the same standard deviation,
but the mean effective time may be lower. If it is lower, the drug company will market the
new anesthetic; otherwise, they will continue to produce the older one. A sample of size 36
results in a sample mean of 8.5. A hypothesis test will be done to help make the decision.

(i) What are the appropriate statistical hypotheses?

(ii) Test the hypotheses at 0.05 level of significance.

Section B

5.(a) What is a linear programming problem? Describe its usefulness for managers using one
example.

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(b) Three pharmaceutical manufacturers (X, Y and Z) supply a specific drug to three hospitals.
Deliveries are made at hospitals (A, B and C). The unit cost of procurement for drugs is
equal for all manufacturers but the transportation costs are born by the hospitals. The
following transportation table summarizes per-unit transportation cost between various
combinations of manufacturers and hospitals.

Hospital
A B C Supply
Pharma X 11 7 9 300
Manufacturer Y 4 10 6 160
Z 8 9 12 240
Demand 200 180 160

Formulate a linear programming model (do not solve) that can be solved to find the optimal
quantities to be transported from each manufacturer to each hospital that minimizes the total
cost of transportation.

6. The Marigold Seeds Shop mixes two types of grass seed into a blend. Each type of grass has
been rated (per pound) according to its shade tolerance, ability to stand up to traffic, and
drought resistance, as shown in the table. Type A seed costs Rs.70 and Type B seed costs
Rs.140. If the blend needs to score at least 300 points for shade tolerance, 400 points for
traffic resistance, and 750 points for drought resistance, how many pounds of each seed
should be in the blend? Which targets will be exceeded? How much will the blend cost?

Type A Type B
Shade Tolerance 1 1
Traffic Resistance 2 1
Drought Resistance 2 5

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(b) Consider the following LP formulation and find out its solution
Maximize Z = 80X1 + 70X2

Subject to

2X1 + X2 <= 120

X1 <= 70
X1 + X2 <= 60
X1, X2 >= 0

You can make use of graphical method of solution.

7. XYZ Hospitals has four senior surgeons who have different levels of competence on three
types of operations (O1, O2, O3). The hospital receives a large number of patients who
undergo these operations and many among them have to wait a long time due to
unavailability of operation theaters. XYZ hospital wants to assign each senior surgeon to a
particular operation type only so that the utilization of operation theaters is maximized. The
competence level is decided on time taken to complete an operation. The following table
gives the time taken in hour by each surgeon to conduct the operations.

Find out best assignment. For the surgeon who will not get selected will be assigned some
other job.

O1 O2 O3

Dr. A 4 5 7

Dr. B 2 5 3

Dr. C 5 7 4

Dr. D 3 5 6

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