OCTOBER 2011 P/ID 6002/MBB

Time : Three hours Maximum : 80 marks

PART A (8 5 = 40 marks)
Answer any EIGHT questions.
All questions carry equal marks.
1. Explain the following.
(a) Rank of a matrix
(b) Identity matrix.
2. State Bayes theorem and illustrate its application
with an example.
3. List and explain different decision environments.
4. Construct the probability mass function of tossing
2 coins.
5. Consider the details of two competing alternatives
as shown in the following table. The initial outlay
of each of the alternatives is Rs. 50,00,000. The life
of each alternative is 15 years. Find the best
alternative when the interest rate is 0% using the
expected value criterion.

Alternative 1 Alternative 2
Annual
revenue (Rs.)
Probability Annual
revenue (Rs.)
Probability
12,00,000 0.25 22,00,000 0.20
19,00,000 0.45 24,00,000 0.45
28,00,000 0.30 32,00,000 0.35
P/ID 6002/MBB 2
6. The revenue function of a product in terms of its
quantity of sales is given below. Find the marginal
revenue expression and also estimate the marginal
revenue when the quantity of sales is 100.
( ) 80 6 20 10
2 3
+ + = X X X X f
7. If a coin is tossed 10 times, what is the probability
of appearance of :
(a) 5 heads (b) at most 4 heads.
8. The annual training expenditure (lakhs of rupees)
and the corresponding labour productivity index
(0 to 100) for the past 8 years of a company are
presented below. Find the correlation coefficient
between annual training expenditure and labour
productivity index.
Year (i) : 1 2 3 4 5 6 7 8
Annual training
expenditure, Xi
5 7 9 10 12 15 18 20
Productivity
index, Yi
80 90 75 85 95 70 95 60
9. Distinguish between cluster sampling method and
stratified sampling method.
10. How will you determine the sample size in a
survey?
11. What are the types of report and explain them in
brief?
12. Distinguish between regression and correlation.
P/ID 6002/MBB 3
PART B (4 10 = 40 marks)
Answer any FOUR questions
All questions carry equal marks
13. Find the inverse of ( ) Y X
T
if :

(
(
(

=
3 2 1
1 2 3
5 4 2
X
|
|
|

\
|
=
5 1 2
6 2 3
4 2 1
Y
14. The arrival rate of vehicles arriving at a toll gate
follows poisson distribution with a mean arrival
rate of 50 vehicles per hour. Find the probability
that (a) no vehicle will arrive in one hour,
(b) exactly 40 vehicles will arrive in one hour,
(c) at most 5 vehicles will arrive in one hour, (d) at
least 6 vehicles will arrive in one hour.
15. A retail store desires to determine the optimal
daily order size for a perishable item. The stores
buys the perishable item at the rate of Rs.55 per
kg and sells at the rate of Rs.85 per kg. If the
order size is more than the demand, the excess
quantity can be sold at Rs.70 per kg in a secondary
market ; otherwise, the opportunity cost for the
store is Rs. 12 per kg for the unsatisfied portion of
the demand. Based on the past experience , it is
found that the demand varies from 50 kg to 100kg
in steps of 25 kg. The possible values of the order
P/ID 6002/MBB 4
size are from 100 kg to 150 kg in steps of 50 kg.
Determine the optimal order size which will
maximize the dialy profit of the store using
(a) Laplace criterion (b) Maximin criterion.
16. The R & D Manager of a manufacturing firm is in
a state of dilemma whether the sales
revenue(crores of rupees) is affected by sales
region. Because there might be variability from
one period to another period, he decides to use the
Randomized Complete Block Design. The
corresponding data are presented in the table.
Sales Region
A B C D E F
Period 1 18 9 15 22 9 10
2 25 7 14 18 28 13
3 20 8 12 9 15 17
4 11 13 30 12 20 23
5 18 11 25 15 16 8
6 24 30 17 16 20 30
(a) Write the corresponding model.
(b) Check whether each component of the model
has effect on the sales revenue at a
significance level of 5%.
17. What are the methods of cluster analysis? Explain
any one of them with a suitable example.
18. List and explain different types of research.