Quantitative Methods- ISBM Latest solved assignments

 

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Aeren Foundation

 

INDIAN SCHOOL OF BUSINESS MANAGEMENT AND ADMINISTRATION

 


AN ISO 9001:2015 CERTIFIED INTERNATIONAL B-SCHOOL

 


Name : Marks : 80

Course :Masters in Business Administration (MBA 4 Sem)

Subject : Quantitative Methods

 

 

 


Case Studies

Multi Criteria Decision Making (20 Marks)

 

 

MCDA. (multi criteria decision analysis) is considered to be one of the fastest growing research operations in the la several years. The researcher focus towards MCDA led to development of many different approaches and ways in t field. There are two types of procedures: theoretical assumptions and decision addressed type. This difference throw challenges to the prcedure of choosing the most ideal method for the decision making problem. Most of the time, t initial approach towards applying MCDA in the real world problems relates to the set up of simple understanding Of t context and recognizing the problem of decision. This step includes the ones• who make decisions and other importa participants who make important contributions for the MCDA procedure by sharing their knowledge. The common insig of the decision framework is received by knowing the goals of the decision making body and recognizing not only tho people who make decisions but also those who face the decision. • Dooley (2009) says that the first three steps take more time in the process of MCDA, particularly because of their qualitative features. Assigning of comparative significa weights to the selected criteria is the next step: These weights can be ascertained directly, for example ranking, swin trade off; or indirectly, for example- centrality, regression and interactive. Later, the DM has to give individual score considering his or her views, to each of the recognized options according to the criteria which seem vital. These scor show the decision of DM . related to spreading of each substitute to every performance standard. The information whi is attained is maintained distinctively into performance template, which is also as consequence matrix, options matrix, just decision table. The next process includes abstract of the information consisting of the performance matrix in t form of multi criteria scores, for every possible plan. Mostly, this is attained by combining the individual scores of mat so that total valuation of .each substitute which allows more comparison. The groups of substitute ranked on the basis all these scores. Finally, the procedure can include a warm evaluation of the outcome to amendments in the scores criteria, to conclude the sturdiness of the result of MCDA. At the end, the analysis and trade offs included in t respective choices are given to and conferred with the DM. In many cases, the ultimate decision that DM takes, does n match with the highest level of alternative, as they are more focused towards the process of knowing the effect of ea and every factor in ranking of choices than in the exactness of the ranking. Also, it should be observed that t generalizations are not used to of the outcome given by the process of MCDA, and they only appropriate for the group choices which were assessed.

 

Answer the following question.

 

Q1. What role does MCDA play in decision making? (Hint: MCDA is considered to be one of the fastest growing research operations, these scores show the decision of DM related to spreading of each substitute to every performance standard)

 

Answer : This criteria is applicable when solving problems that are characterized as a choice among alternatives. When making decisions, this criteria helps us focus on what is important. It is useful in dividing the decision into smaller more understandable parts, analyzing each part and integrating these parts to produce a more meaningful solution. Therefore we can say that the multi-criteria decision analysis helps us make the best situation regarding a certain situation by helping us analyze and understand better

 

 

 

Q2. What does MCDA stand for? (Hint: multi criteria decision analysis) (20 marks )

Answer : MCDA stands for Multiple criteria

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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A monte Carlo

Case Study Marks 20

 

Laura,' a 57 year old unmarried woman, earns around 68,000 dollars per year with expenditure of 37,500 dollars. She away 14,000 dollars each year and collected 330,000 dollars in her RRSP and TFSA, and also a rented apartment wor 250,000 dollars. She has a fixed pension given by her employer, although it is not indicated to price rise, and Is entitle to get complete benefits of Canada Pension Plan and Old Age Security, for retirement. She did not have a very competent portfolio: one fourth of cash is there, and most of it was in contracted sector ETFs, single stocks a business bonds. Due to wrong entry of ETFs in the account, unnecessary taxes were charged. Even befo reconstructing Laura's portfolio,"he had to make certain that it matched with.her financial aims. Laura's main aim was ascertain if she could retire before the age of 65, maybe as early as 60, therefore she had to know if her investment could produce enough flow of cash after she retires. Monte Carlo may show a top possibility of success with t allotment of equity of 70% ot 80%. Through a risky questionnaire and art open interview, Justin Ill 'ascertain that Lau was the best person for a portfolio of 60% fixed income and 40% equities. . Through Monte Carlo software, Jus entered the current portfolio . size of Laura, her rate of savings, projected retirement expenditure, and other employ income and government pensions. If Laura feels that working till the age of 63 was unpleasant, she could go for t reproduction again and with different estimation. Increasing her anticipated returns or bringing down the rate of inflatio is only a thought, therefore, she will have to make some stronger decisions: she will have to making some more saving or bring down her rate of planned expenses after retirement. Amazingly, by bringing up the allotment to fixed sala could increase her opportunity to succeed: in spite of th returns being lower than the equities, the volatility is also les which lessens the risk of helpless decline in the early years. At last, Laura decided to work for 6 more years and plan h retirement at the age of 63. After this, Justin decided to help her make a fresh ETF portfolio to match that goal: it w finalized at 30% short term business bonds, 30% GICs, and the rest of it was divided among Canadian, L'S and glob equities. Laura was able to make a notified decision through the Monte Carlo simulation, but this wasn't the end of t procedure. In two or three years time, she will have to visit the location again to see that she is still on the right path her retirement goal, as many issues like, loss of job, a legacy, new connections, increase in the interest rates, all the could bring a change in the main suppusitions 1 ; and she will have to redo her plans. The possibilities are differe before the age of 63. For each added year that Laura works, her portfolio will addition instead of a decrease and this w lead to a thrilling difference: the success rate will rise up by 25% points if she continues to work till the age of 61 instea of 60.

 

Answer the following question.

 

Q1. How much was Laura earning at the age of 57? (Hint: 68,000 dollars per year)

Answer: Before beginning the simulation, it was important to understand Laura’s comfort with risk. The Monte Carlo might indicate a high probability of success with an equity allocation of 70% or 80%, for example, but that would be irrelevant if Laura could not deal with that level of volatility. With the help of a risk-tolerance questionnaire and an honest interview, Justin determined that Laura would be best suited to a

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CASE STUDY (20

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 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?

Answer : The is most economical speed  is 40 m.p.h.

Let the speed of the train be v and distance to be covered be s so that total time taken is s/v hours. 

 

 

 

 

 

Q2. What is a chi-square test?

Answer :  A chi-square (χ2) statistic is a test that measures how a model compares to actual observed data. The data used in calculating a chi-square statistic must be random, raw, mutually exclusive, drawn from independent

 

 

 

 

Q3. What is sampling and what are its uses.

Answer : Sampling is a tool that is used to indicate how much data to collect and how often it should be collected. This tool defines the samples to take in order to quantify a system, process, issue, or problem.

 

 

Q4. Is there any alternative formula to find the value of Chi-square?

Answer :  The sq

 

 

 

 

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Problem of Transportation Routes (20 Marks)

 

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

 

Answer the following question.

 

Q1. 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 three distribution centers which look after the picking up and delivery of cash to and from every branch each day at different timings)

 

Answer: BANKing business is the financial institute that plays an important role in the economic system. In the past, major duty of bank is to circulate money in the economic system by raising money from saving and make it available for personal or business loan. Over the past few years, the overseas banks have been allowed to do business in Thailand. Since then, banking business has become a highly competitive business and Thai banks have developed "universal banking" concept in order to encounter or compete with the new comer. The meaning of "universal banking" is everything about money which

 

 

 

Q2. What does CVRP stand for? (Hint: capacitated vehicle routing problem)

 

Answer: The Vehicle Routing Problem (VRP) is a combinatorial optimization and integer programming problem which asks "What is the optimal set of routes for a fleet of vehicles to traverse in order to deliver to a given set of customers?" In our paper to describe the Methods of Capacitated Vehicle Routing Problem we implement using c code the Clarke and Wright's savings algorithm to solve our problem where

 

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