MBA

Semester I

Quantitative Applications in Management

(Assignment)










Instructions
Questions 15 are each 6 marks questions.
Questions 68 are each 10 marks questions.
Questions 9 & 10 are each 20 marks questions.

SECTIONA
Ques.1 Two automatic filling machines A and B are used to fill tea in 500g cartons. A random
sample of 100 cartons on each machine showed the following:

Tea Contents (in gms) Machine A Machine B
485490 12 10
490495 18 15
495500 20 24
500505 22 20
505510 24 18
510515 4 13

Comment on the performance of the two machines on the basis of average filling and
dispersion?




Ques.2. A company based on the advice of a consultant has been increasing its spending on
advertisements in various media in each successive month. It is interested in knowing whether
the spending on advertisements has translated in increasing sales of various products of the
company. Calculate the coefficient of correlation and comment on the result?









Months Mar Apr May Jun Jul Aug
Sep
t
Oct Nov Dec Jan Feb
Advertising
expenditure
(in000 of Rs)
60 70 75 80 90 110 115 130 145 160 170 185
Total Sales (in000 of
Rs)
1300
147
0
150
0
170
0
190
0
210
0
220
0
240
0
250
0
280
0
300
0
320
0




Ques.3. An analysis of production rejects resulted in the following observations;
No of
rejects per
operator
No of
operators
No of rejects per
operator
No of
operators
2125 5 4145 15
2630 15 4650 12
3135 28 5155 3
3640 42

(a) Calculate the inter quartile range ?
(b) Calculate the mean of the rejects?
(c) Calculate the standard deviation?

Ques.4. The probability that a pen manufactured by a company will be defective is 1/10. If 12
such pens are manufactured find the probability that
(i) exactly two will be defective
(ii) at least three will be defective
(iii) none will be defective




Ques.5. A placement company has conducted a written test to recruit people in a software
company. Assume that the test marks are normally distributed with mean 120 and standard
deviation 50. Calculate the following:
a) Probability of randomly obtaining scores greater than 200 in the test.
b) Probability of randomly obtaining scores that is 180 or less.
c) Probability of randomly obtaining scores less than 80.
d) Probability of randomly obtaining scores between 70 to 170 for the exam.

SECTIONB
Ques.6. Starting salaries for MBA grads at two universities are normally distributed with the
following means and standard deviations. Samples from each school are taken
University 1 University 2
Mean 62,000 $/yr 60,000 $/yr
Std. Dev. 14,500 $/yr 18,300 $/yr
sample size (n) 50 60

Is there any significant difference in starting salary offered by the two universities








Ques.7. A florist in order to satisfy the needs of a number of regular and sophisticated
customers, stocks highly perishable flowers. A dozen flowers cost Rs.3 and sell at Rs.10.Any
flowers not sold on the day are worthless.
Demand distribution in dozens of flowers is as follows:

Demand : 1 2 3 4
Probability : 0.2 0.3 0.3 0.2

How many flowers should he stock daily in order to maximize his expected net profit?

Ques.8. A Tamiami shearing machine is producing 10 percent defective pieces, which is
abnormally high. The quality control engineer has been checking the output by almost
continuous sampling since the abnormal condition began. What is the probability that in the
sample of 10 pieces:
a) Exactly 5 will be defective
b) 5 or more will be defective







SECTIONC
Case Study (20 Marks)
Ques.9. A sugar mill is committed to accepting beets from local producers and has experienced
the following supply pattern

Year
Beet
supply('000
tonnes) Year
Beet
supply('000
tonnes)
1990 100 1995 400
1991 100 1996 400
1992 200 1997 600
1993 600 1998 800
1994 500 1999 800


The operations manager would like to project a trend to determine what facility additions will
be required by 2004

1. Sketch a free hand curve and extend it to 2004.What would be your 2004 forecast based
upon the curve?
2. Compute a three year moving average and plot it as a dotted line on a graph
3. Fit a trend line by the method of semiaverages.








Ques.10. Apollo tires are interested in removing pollutant from the exhaust at the factory, and
cost is a concern. The company has collected data from other companies concerning the
amount of money spent on environmental measures and resulting amount of dangerous
pollutants released (as a percentage of total emissions).
Money Spent
(000)
8.4 10.2 16.5 21.7 9.4 8.3 11.5 18.4 16.7 19.3 28.4 4.7 12.3
% of Dangerous
Pollutants
35.
9
31.8 24.7 25.2 36.8 35.8 33.4 25.4 31.4 27.4 15.8 31.5 28.9
a. Draw a scatter diagram of this data and interpret the result through it.
b. Find the two lines of regression.
c. Find the correlation coefficient between money spent on environmental measures and
percentage of dangerous pollutants released.
d. Is their significant linear relationship between the money spent on environmental
measures and percentage of dangerous pollutants released.
e. Predict the expected percentage of dangerous pollutants released when Rs 20,000 is
spent on control measures.