C - 7

COMMONWEALTH EXECUTIVEMBA/ MP A PROGRAMME

Term-End Examination

December, 200900

O C - 7 : QUANTITATIVE TECHNIQUES

Time : 3 hours Maximum Marks : 100

(Weightage 70%)

Note :

There are two sections.

Section A has six questions, each carrying 15 marks.

Attempt any four questions from section A.

Section B is compulsory and carries 40 marks. Attempt

both questions.

Statistical tables may be supplied on request.

SECTION - A

What factors in modern society contribute to theincreasing importance of quantitative approachto management ? List one application ofquantitative techniques in each functional areaof management.

Discuss the importance of measuring variabilityfor managerial decision-making. List somemeasures of variation and discuss advantages ofeach of them.

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3. From the frequency distribution, find the standarddeviation using the formula for the grouped data :

Class Interval Frequency

10-20 9

20-30 18

30-40 31

40-50 17

50-60 16

60-70 9

Total 100

What do you understand by the termcorrelation ? Explain how the study of correlationhelps in forecasting demand of a product.

In a study to test whether there is a differencebetween the average heights of adults femalesborn in two different countries, random samplesyielded the following results :

n i = 120, .7 1 = 62.7, S1= 2.50

n2 = 150, x 2 = 61.8, S2 = 2.62

where the measurements are in inches. Use 0.05level of significance to test the difference betweenthe average heights.

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6. Write short notes on any three of the following :

Step functions

Significance of measures of Dispersion

Criteria of Optimism

The F distribution

(e) Auto-regressive (AR) models

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SECTION - B

Given below are figures of production(in thousand kilos) for a sugar factory. Obtainthe secular trend by fitting a straight line.

Years 2000 2001 2002 2003 2004 2005 2006Production 12 10 14 11 13 15 16

Highlight why a decision maker has to revise theprobability estimates with added information.Thus, describe in detail, the Bayes' theorem.

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