Birla Institute of Technology & Science, Pilani

Work-Integrated Learning Programmes Division

Second Semester 2016-2017
Comprehensive Examination (EC-3 Regular)

Course No. : MBA ZC417

Course Title : QUANTITATIVE METHODS
Nature of Exam : Open Book
Weightage : 45% No. of Pages =6
Duration : 3 Hours No. of Questions = 7
Date of Exam : 08/04/2017 (AN)
Note:
1. Please follow all the Instructions to Candidates given on the cover page of the answer book.
2. All parts of a question should be answered consecutively. Each answer should start from a fresh page.
3. Assumptions made if any, should be stated clearly at the beginning of your answer.
4. Wherever the level of significance is not given, take alpha = 5%
Q.1. An ad campaign for a new snack chip will be conducted in a limited geographical area and can use
TV ads, radio ads, and newspaper ads. Information about each medium is shown below.

Medium Cost Per Ad # Reached Exposure Quality

TV 500 10000 30
Radio 200 3000 40
Newspaper 400 5000 25
If the number of TV ads cannot exceed the number of radio ads by more than 4, and if the
advertising budget is $10000, develop the model that will maximize the number reached and
achieve an exposure quality if at least 1000. DO NOT SOLVE! [5]

Q.2. Solve the following Linear Programming Problem by answering the 4 parts given below.
Min 5x + 6y

s.t. 3x + y ≥ 15
x + 2y ≥ 12
3x + 2y ≥ 24
x,y≥0
(a) Draw the feasible space
(b) Draw the line 5x + 6y = 30 in the graph of part A
(c) Identify the optimum solution
(d) Compute the optimum objective value [3 + 0.5 + 1 + 1 = 5.5]

Q.3. The final examination grades of random samples of students from three different classes are shown
below.

Class A Class B Class C

92 91 85
85 85 93
96 90 82
95 86 84

You need to check, at 0.05 level of significance, whether there is any difference in the mean
grades of the three classes?
(a) State the null and alternative hypotheses.
(b) Construct an ANOVA table (estimate the p-value)

MBA ZC417 (EC-3 Regular) Second Semester 2016-2017 Page 1 of 5

 (c) What conclusion do you draw? [1+ 5 + 1 = 7]
MBA ZC417 (EC-3 Regular) Second Semester 2016-2017 Page 2
Q.4. Consider the following LPP
The formulation is given below. The sensitivity report is given below the formulation. You
need to answer the questions that follow the sensitivity report.
The decision variables represent the amounts of ingredients 1, 2, and 3 to put into a blend. The
objective function represents profit. The first three constraints measure the usage and
availability of resources A, B, and C. The fourth constraint is a minimum requirement for
ingredient 3.
Model Formulation
MAX 4X1+6X2+7X3
S.T.
1. 3X1+2X2+5X3 ≤ 120
2. 1X1+3X2+3X3 ≤ 80
3. 5X1+5X2+8X3 ≤ 160
4. +1X3 ≥ 10
5. X1, X2, X3 ≥ 0
Microsoft Excel 15.0 Sensitivity Report

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$E$6 Solution X1 0 -2 4 2 1E+30
$F$6 Solution X2 16 0 6 1E+30 1.625
$G$6 Solution X3 10 0 7 2.6 1E+30

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$E$16 Constraint 1 LHS 82 0 120 1E+30 38
$E$17 Constraint 2 LHS 78 0 80 1E+30 2
$E$18 Constraint 3 LHS 160 1.2 160 3.33 80
$E$19 Constraint 4 LHS 10 -2.6 10 10 1.11
(a) How much of ingredient 1 will be put into the blend?
(b) How much of ingredient 2 will be put into the blend?
(c) How much of ingredient 3 will be put into the blend?
(d) How much resource A is used?
(e) How much resource B will be left unused?
(f) What is the maximum profit?
(g) Is it possible that the solution changes if the profit from ingredient 2 drops to 4?
(h) Will the solution change if the profit from ingredient 3 increases by 1?
(i) Give the solution if the profit from ingredient 3 is 9.
(j) Give the value of the optimum objective function if the amount of resource C increases by 2?
(k) What will happen to the solution if the minimum requirement for ingredient 3 increases to 15?
(l) What should be the profit on X1 so that it enters the solution?
(m) At what price will you buy 1 extra unit of Resource A?
(n) Suppose you are forced to sell 1 unit of ingredient 3. What should be the minimum price?
(o) The LPP needs to be solved again if the availability of resource A drops to 80. Why?

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 [0.5 * 15 = 7.5]
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Q.5. Ms. Shreya, a zoologist, was studying the natures and the habitations of wolves in Solovetsky Islands
in the Onega Bay of the White Sea, Russia. After studying the Gray Wolves (Canis lupus, Linnaeus,
1758) for three years, she had a reason to believe that the weight of a wolf is linearly dependent on
the length of its tail. To verify her belief, Ms. Shreya recorded the data for 10 wolves about their
weights (in Pounds) and the lengths of their tails (in inches). The data set is given below.

Tail Length Weight

10 79
13 72
19 100
19 116
20 85
20 88
23 100
24 80
25 160
27 120
(a) Determine the linear dependency of a wolf’s weight on the length of its tail.
(b) Compute the expected weight for a wolf with tail length of 10 inches. Explain why this
weight differs from the given data where the wolf with tail length = 10 inches weighed 79
pounds. [6 + 2 = 8]

Q.6. A heavy equipment manufacturer were having issues with their sales personnel. HR wanted to
understand the relationship between the number of years of in the company and the current salary for
the sales team. After collecting the data, HR ran the Regression function in Excel and got the
following output. Answer the questions available below the output.

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.47
R Square 0.22
Adjusted R
Square 0.12
Standard Error 4.19
Observations 10

ANOVA

df SS MS F Significance F
Regression 1 40 40 2.28 0.17
Residual 8 140.4 17.55
Total 9 180.4

Standard
Coefficients Error t Stat P-value Lower 95% Upper 95%
Intercept 21.6 4.19 5.16 0.00 11.94 31.26
X 2 1.32 1.51 0.17 -1.05 5.05

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MBA ZC417 (EC-3 Regular) Second Semester 2016-2017 Page 4

Q.6 (a) What is the Coefficient of Determination?

Q.6 (b) Is the relationship significant at alpha = 5%? Explain your conclusion?
Q.6 (c) At alpha = 5%, would you reject the null hypothesis that 1 = 6? Explain your conclusion.
[1 + 2 + 2 = 5]

Q.7. A group of individuals (randomly selected) from 3 different types of cities (Metro, Satellite City,
Town) were asked whether they owned a foreign or a domestic car. The following contingency table
shows the results of the survey. Based on the following contingency table showing the results of the
survey, find out if the type of car purchased is independent of the type of city in which the buyers
live. Test at  = 0.05.

Town Metro Satellite City

Domestic 80 200 520
Foreign 120 600 480

(a) State the null and alternative hypotheses to be tested.

(b) Show the contingency table of the expected frequencies.
(c) Compute the test statistic.
(d) Estimate the p-value.
(e) What do you conclude? [1 + 2 + 2 + 1 + 1 = 7]

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