INDIAN SCHOOL OF TECHNOLOGY AND

MANAGEMENT
AN ISO 9001:2015 CERTIFIED INTERNATIONAL B-SCHOOL
Name : SUSHMA Marks : 80
Course : Masters in Business Administration (MBA 4 Sem)
Subject : Quantitative Methods

Case Studies

(20
CASE STUDY Marks)

The cost of fuel in running of an engine is proportional to the square of the speed and is Rs 48 per hour for speed of 16
kilometers per hour. Other expenses amount to Rs 300 per hour. What is the most economical speed?
Answer the following question.
Q1. What is most economical speed?
Q2. What is a chi-square test?
Q3. What is sampling and what are its uses.
Q4. Is there any alternative formula to find the value of Chi-square?

(20
CASE STUDY Marks)

The bulbs manufactured by a company gave a mean life of 3000 hours with standard deviation of 400 hours. If a bulb is
selected at random, what is the probability it will have a mean life less than 2000 hours?
Answer the following question.
Q1. Calculate the probability.
Q2. In what situation does one need probability theory?
Q3. Define the concept of sample space, sample points and events in context of probability theory.
Q4. What is the difference between objective and subjective probability?

(20
Problem of Transportation Routes Marks)

The N&C Bank in Thailand is one of the biggest banks. There are 377 branches in Bangkok and 3 distribution centers.
Presently, it has experienced drivers who take to the transportation routes. 27 vehicles are used on the 29 routes whose
capacity is the same. Two of the vehicles do overtime with taking two trips each day. Some of the problems faced by
N&S and formulated are: Each trip will begin from its respective depot and end there. The route will remain the same
both morning and evening. The travelling time taken between each branch is a known location and correct. The
company is aware of 'the demand for capital of each branch. Time of processing for every stop is same. for each branch.
Some of the limitations of this problem are: The volume of each vehicle is firmly implemented by the insurance value per
trip. Each branch's hours of functioning depends upon its location. If the location is in the department store, then the
working hours will be from 11 am to 8 pin. If the location is anywhere else, the working hours would be from 8.30 am to
3.30 pm. The processing capacity of every depot or the distribution center (DC) is diverse at the ratio of 50:30:20. Each
distribution center works from 8.00 am to 5.00 pm. N&C aims at increasing the transportation services along with the
current resources. N&C has three distribution centers which look after the picking up and delivery of cash to and from
every branch each day at different timings. The most appropriate method for this problem would be the multiple depot
routing problems with time limit.Nevertheless, the new routes can bring changes in everyday process, i.e., change in
requirements, processing time, etc, hence, N&C requires a method to give results in a short time operations. Two main
methods are used. First, development problem •is utilized. and capacitate VRPTW (vehicle routing problem with time) is
utilized later. The assignment problem gathers 377 branches into 3 groups, with each belonging to each distribution
center and VRP'IW makes daily routes for each distribution center. Consignment Problem method is used for giving the
tasks to the agents mating their positions, which can give a very competent result. Vehicle rouong problem is the CVRP
(capacitate vehicle routing problem), a pr' Herb where all its customers need to be satisfied, awareness of dumbfounds,
and identifying all vet-ides, constrained capacity and based at a central depot. The aim is to reduce the fleet of \•vehicles
and total commuting time at the same time as, total requirement of goods for each route should not go beyond the
capacity of the vehicle which plies on that route. ":be most vital expansion of CVRP is the vehicle routing problem with
VRPTW (time window) which should serve each customer with a particular time window.
Answer the following question.
Write a short on the transportation system of N&C bank. (Hint: it has experienced drivers who take to
the transportation routes. 27 vehicles are used on the 29 routes whose capacity is the same,N&C has
Q1.
three distribution centers which look after the picking up and delivery of cash to and from every branch
each day at different timings)
Q2. What does CVRP stand for? (Hint: capacitated vehicle routing problem)

(20
Case Marks)

Since 9/11•terrorism has cased threat attacks which have drawn the attention of political and media world. The US had
to launch. a 'war on terror' and applied a range of counteract terrorism safety measures towards aviation, public
transportation, ports, borders, publicgMhermg places, etc. While these steps may show cheap course of act!on by
government and security services, it is quite expensive. According to the calculations done by Mueller and Stewart
(2011), the expenditure of US homeland and security has gone over 1.1 trillion dollars, which includes federal, state and
domestic government, and private sector, and also the cost of opportunity. The Iraq an Afghanistan wars have added 1.2
trillion dollars to this expenditure. The expenditure of federal, state and local US government on home ground security
has been estimated to 75 billion dollars more than the last levels of 2001. It is seen that US is not the only country to be
in thse high level of expenses, even though no other country can match its per capita or GDP expenditure. For example,
increased expenditure• on homeland security in UK, Canada and Australia is nearly one half to one quarter of US
expenditure per capita or GDP. Nevertheless, in 2009, the government spent nearly 141.6 billion dollars each year on
homeland security. This figure is expected to reach about 300 billion dollars by 2016. After 9/11, the main objective has
been to prevent or alleviate any harm or casualty as a result of terrorism. The main issue is, if this expenditure of
counteracting terrorism been invest.ed in a way that has increased the cost of security of the public efficiently or not.
Hence, the commission report of 9/11, among other issues, was called upon • the US government to execute safety
measures which show evaluation of risks and effectiveness of expenditure. Nevertheless, while the US needs to.
evaluate expenditure benefits for government regulations, such evaluation seems co have not been done for homeland
security in general, or for the DHS (department of homeland security). One of the causes could be that DHS is not able
to take up such evaluation. The NRC (national research council) committee of the National Academics of Sciences,
Engineering and Medicine, made a request through S Congress to evaluate the functions of DHS, which was working on
the project for almost 2 years, came up with some surprising result-. Besides e'•aluation of natural disasters, the
committee 'did not find any DHS risk analysis capabilities and methods that are yet adequate for supporting DHS
decision making.' Due to which, very less confidence could be had in most of the risk evaluation done by DHS. The
committee said that "it is not yet clear that DHS is on a I ! trajectory for development of methods and capability that is
sufficient to ensure reliable risk analyses". l.sually the government and their rigid agencies shoo a neutral behavior
towards their decision making. Stewart says that "the standard criterion for deciding whether a government; programme
can be justified on economic principles is net present rnlue - the discounted monetized value of expected net benefits
(i.e., benefits minus costs)" and that "e'Cpecttd values (an unbiased estimate) is the appropriate estimate for use" (UMB,
1992).
Answer the following question.
Q1. The government spent nearly 141.6 billion dollars each year on 1 1 il (Hint: homeland security)
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