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23634/36661/F610/F710
!2363436661F610F710! Reg. No.

VI Semester B.Com.2/B.Com.3 Degree Examination, May - 2019

ADVANCED BUSINESS STATISTICS - III
(Repeater/RCU Regular)

Time : 3 Hours Max. Marks : 80

Instructions : (1) Simple Calculators are allowed.

(2) Working steps should be clearly mentioned.

SECTION - A

1. Answer any Ten of the following. 2x10=20

(a) Distinguish between pure and mixed strategy in game theory.

(b) What do you mean by saddle point in Game theory problem ?

8 −1 
3 0 
(c) Solve the following pay off matrix   . Is the game fair ?
0 −2 

(d) What are the needs for replacement of equipments ?

(e) What is optimal solution in Transportation problem ?

(f) What do you mean by degenerate and non-degenerate basic feasible solution in
Transportation problem ?

(g) Write the steps in formulating linear programming problem.

(h) In L.P.P. define decision variables and what do you mean by multiple solution ?

(i) What is optimal solution in Assignment problem ?

(j) Mention the variables in Inventory problem when shortage is allowed.

(k) Distinguish between Lead Time and Time Horizon.

(l) If R=4 units/day, C1= ` 8 per year, C3= ` 60. Find Economic Order Quantity

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SECTION - B
Answer any Three of the following : 5x3=15
2. For the following Two person zero sum game, write down the solution to the game. Is
the game fair ?
Player B

B1 B2 B3 B4
A1 4 2 0 5
Player A A2 -1 -2 0 -3
A3 -3 1 -3 0

3. Determine minimum total Transportation cost by using North-West Corner Rule.

Destination Availability
D1 D2 D3 D4 ai
O1 12 8 2 10 28
Origin O2 16 18 4 14 32
O3 8 6 12 4 10
Requirement bj 12 20 30 8

4. Define Inventory. Mention the advantages and disadvantages of maintenance of

Inventory.

5. A company manufactures two varieties of pens A and B. Each A variety pen needs 2
hours labour. Each B variety pen needs 1 hour labour. Total labour available is 500 hrs
per month. The demand for A and B variety pens are ` 150 per month and ` 250 per
month resp. The profits that two varieties fetch are ` 10 and ` 15 per pen. Formulate
an L.P.P. and donot solve it.

6. Determine the economic order quantity if demand is 200 units per year, inventory
holding cost is ` 5 per unit per year. Shortage cost is ` 8 per unit per year and setup
cost is ` 300 per replenishment.

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SECTION - C
Solve any two questions : 15x2=30

7. (a) The annual demand for an item is 3200 units, capital cost is ` 6 per unit. 8+7
Inventory carrying cost is 25% per annum. If set up cost is ` 150. Determine
the following :
(i) Economic order quantity
(ii) Number of orders per year
(iii) Optimum cost
(b) A machine cost ` 50,000 running cost estimated to be ` 8,000 for each of the first
five years. It increases by ` 2,000/- in the 6th and subsequent year. Find the
optimal replacement age.

8. (a) Solve the following L.P.P. graphically 8+7

Maximize Z=20X+80Y
Subjects to constraints, 12X+6Y ≤ 6000
4X+10Y4000
X ≤ 400
X0, Y0
(b) Solve the assignment problem to the following data :

Men
M1 M2 M3 M4
Jobs J1 24 40 64 20
J2 18 52 68 32
J3 20 48 60 30
J4 32 44 56 24

9. (a) Solve the following game by Dominance principle method : 8+7

Player B
B1 B2 B3 B4
Player A A1 2 −3 7 7
A2 6 1 12 7
A3 −3 −2 −2 6
A 4 6 −2 4 1

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(b) Solve the Transportation problem by using Matrix-Minima Method.

Destination Available
D1 D2 D3 ai
Origin O1 2 7 4 50
O2 3 3 1 80
O3 5 4 7 70
O4 1 6 2 140
Demand bj 70 90 180

10. (a) Solve the following assignment problem : 7+8

Men
M1 M2 M3
J1 9 26 15
Job J2 13 27 6
J3 35 20 15

(b) Use Vogel’s Approximation method to obtain an initial basic feasible solution to
the following transportation problem.
Destination Availability
Origin D E F G ai
A 11 13 17 14 250
B 16 18 14 10 300
C 21 24 13 16 400
Demand bj 200 225 275 250

SECTION - D
Case Study (Compulsory)

11. There are two machines A and B, which costs are ` 80,000 and ` 1,00,000 respectively. 15
If annual operating cost of Machine A is ` 2,000 during first year and thereafter it is
` 15,000 more every year. Another Machine B, its annual operating cost is ` 4,000 in
the first year and thereafter it is ` 7,000 more every year.
(i) Write down the optimal replacement schedule for both machines.
(ii) If one of these machines has to be chosen for the purchase, which one would you
suggest as more economical.

-oOo-

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