Group A

.
Solve the following unbalanced transportation problem (symbols have their usual meanings)

Cost information (in Rs.)

Destination D1

D2

D3

Supply

O1

19

18

25

100

O2

16

20

15

130

O3

18

23

21

120

Requirement

180

60

110

Origin

1. Jensen, Solberg, and Zorn investigated the relationship of insider ownership, debt, and
dividend policies in companies. One of their findings was that firms with high insider
ownership choose lower levels of both debt and dividends. Shown here is a sample of
data of these three variables for 10 different industries. Use the data to develop the
equation of the regression model to predict insider ownership by debt ratio and dividend
payout.
Industry

Insider
Ownership

Debt Ratio

Dividend
Payout

Mining

14

10

Food and beverage

18

20

14

Furniture

11

18

12

Publishing

28

18

11

Glass and cement

15

24

12

Motor vehicle

15

15

12

Department store

18

20

Restaurant

13

23

11

Transport

18

40

Hospitals

10

30

(a) Determine the best fit equation for these data. Estimate insider ownership if the debt

ratio is 30 and dividend payout is 8

(b) Interpret the regression coefficients.
(c) Compute the coefficient of multiple determinations and interpret it.
2. A research firm is planning a questionnaire survey on sexual harassment to office lady.
The following are the activities to be carried out for the survey:
Activity

Predecessor

tm

to

tp

A Design of questionnaire

None

B Sampling design

None

12

16

C Testing of questionnaire and refinements

12

D Recruiting for interviewers

E Orientation to interviewers

D, A

F Allocation of areas to interviewers

G Conducting interviews

C, E, F

14

10

18

H Evaluation of results

20

18

34

a) What are the expected task durations and the variances of task durations?
b) Draw a network for the project and find the critical path. What is the expected duration
of the project?
c) What is the probability that the project will not exceed 60 days?

Group B

3. Mega Commercial Bank has four new tellers with varying skills who are to be assigned
to the Head office or one of the Branches. The criterion for assigning tellers to locations
is minimal customer waiting time. Customers waiting time (in seconds) is shown in the
table below for each of four locations and teller skills. Make teller assignments, using the
assignment algorithm that will minimize overall waiting time. What is the total waiting
time index for the optimal assignment?

Teller Skill
Location

Head Office

40

50

75

35

Putali Sadak Branch

60

40

70

70

Baneshor Branch

100

120

90

70

Balaju Branch

60

30

70

90

4. The small manufacturer employs 5 skilled men and 10 semi-skilled men for making a
product in two qualities: a deluxe model and an ordinary model. The production of a
deluxe model requires 2-hour work by a skilled man and 2-hour work by a semi-skilled
man. According to worker unions rules, no man can work more than 8 hours per day. The
profit of the deluxe model is Rs. 1000 per unit and that of the ordinary model is Rs. 800
per unit. Formulate a linear programming model for this manufacturing situation. Use
graphical method to determine the production volume of each model such that the total
profit is maximized.
6. Following are time-series data for eight different periods. Compute forecast value for the
time period 9 using exponential smoothing method with value of alpha, = .1. Compute the
errors for forecast. Value of the first time period can take as forecast for the second period to
use your model.
Time Period
1
2
3
4

Value
211
228
236
241

Time Period
5
6
7
6

Value
242
227
217
203

7. Mrs.Sujaan, supervisor of the Circle O discount chain, would like to examine relationship
annual demands for widgets. Demand for widgets is affected by number of factors. She
has some feeling that disposable income effective demand for the product She collects
data for 6customers given below:
Demand

40

45

50

55

60

70

Income (000)

a)

Calculate the degree of relationship and interpret it.

b) Test the significance of your result at 0.05 level of significance.

8. The Kathmandu Builder is interested in seeing whether his apartment rents are typical.
Thus, he has taken a random sample of 5 rents and apartment sizes of similar apartment
complexes. The data are as follows:
Apartment

No. of bedroom

Rent (in 00000)

33

19

45

31

21

Assuming linear relationship develop equation that describe best relationship for this
data. Also estimate likely rent when number of bed rooms in an apartment is 6.
9. Write short notes on any two

a. Tracking signal in forecasting.

b. CPM & PERT in network analysis.
c. Simple regression.