Dayanada Sagar Pre-University College

(A unit of Dayananda Sagar Instituions,Kumaraswamy layout)

Statistics II PUC

Unit-I -Vital Statistics

1. Define Vital Statistics.
a) Vital statistics are the numerical records, analysis and interpretation of numerical data of
vital events occurring in human population.
2. What is demography?
a) The statistical study of human population is called demography.
3. Mention a source/method of obtaining vital statistics?
a) 1) Registration method 2) Census enumeration method
4. Write the formula for estimating the population for two census years?
a) Pt=P0+(B-D)+(I-E)
5. Mention two uses of vital statistics.
a) 1. They are used in actuarial science.
2. They are useful in medical research.
6. Define fertility.
a) Fertility refers to the births occurring to women of child bearing age.
7. Generally what is the child bearing age for a woman?
a) 15-49
8. Define Fecundity.
a) Fecundity refers to “the capacity of a woman to bear children”.
9. In situation, if GRR per woman is greater than 1 and NRR per woman is less than 1 then
what is your conclusion about the population?
a) “The conclusion is the population is decreasing.
10. Which measure of mortality is used to know the healthy condition of two places?
a) STDR
11. What is life table?
a) Life table is a tabular presentation of numerical data describing the mortality experience
of a cohort.
12. Mention any two uses of life table?
a) 1. It is used for estimating the future population.
2. Life table are used by life insurance companies to determine the rates of premium for
policies of persons of different ages.
13. Define longevity.
a) Longevity is the expected number of years that a new born baby would live.
14. Define Cohort.
a) Cohort is a group of individuals who are born at the same time and they experience the
same mortality conditions.
15. Define radix.
a) Radix is the size of Cohort. (Generally 100000).
16. What is mortality ratio?
a) The probability that a person of exact age x years will die before reaching the age (x+1)
17. What is survival ratio?
a) The probability that a person of age x survives up to age x+1.
18. Mention any two vital events occurring in human population?
a) Birth, Death, Marriage, Divorce
19. Mention any two fertility rates.
a) CBR, GFR, ASFR, TFR
20. Mention any two mortality rates.
a)CDR, ASDR,STDR,IMR,NMR,MMR
21. Define expectation of life.
a) The average number of years a person age ‘x’ is expected to live under prevailing
mortality to expected average conditions.
22.Name the measure which indicates general healthiness of women.
a) MMR
*Formulas and two marks problems of all birth and death rates.

Unit II - Index Numbers

1. What is an index number?
a) Index numbers are statistical device designed to measure the relative change in the level
of phenomenon with respect to time, geographical location or other characteristics.
2. Why index numbers are called economic barometers?
a) Index number measures the pulse of an economy and act as barometers to find the
variations in economic conditions of a country. That is why index numbers are called as
economic barometers.
3. Define price relative.
a) Price relative is the price in the current year (p 1) expressed as the percentage of the price
in the base year(p0).
Price relative = 𝑝1x100
𝑝0
4. What is the value of the index number for the base year?
a) 100
5. If the price during the current year is triple the price during the base year, then what is
the index number?
a) 300
6. If the current year price index is 175, what would you conclude?
a) The index number has been increased by 75%.
7. If the general price level goes up by 80% between 2000 and 2012 what is the index
number for 2012 with base 2000?
a) The index number for 2012 with base 2000 is 180.
8. If the quantity index number for current year is 80, then what would you conclude?
a) The quantity index number has been decreased by 20%.
9. Mention two characteristics of index numbers?
a) 1. Index numbers are specialized averages.
2. Index numbers are expressed in ratios but for comparison purpose they are expressed
in percentages.
10. Mention any two uses of index numbers?
a) 1. Index numbers are used in studying trends and tendencies.
2. Index numbers are used by the government to frame policies regarding fixation of bank
rates, allowances to government, employees etc.
11. Mention any two limitations of index numbers?
a) 1. While constructing index numbers, the quality of product is not taken into
considerations. 2. Many formulas are used in the construction of index numbers and
different formulae give different answers.
12. What is meant by fixed base index numbers?
a)If the period of comparison is kept fixed for all current years, it is called fixed base period.
13. What is meant by chain base index number?
a)If the relative changes in the level of phenomenon for any period are compared with that
of the immediate preceding period, it is called chain base period.
14. Name the common average used in construction of index numbers
a) Arithmetic mean
15. Which average is considered as the best average in the construction of index number?
a) Geometric mean.
16. Why an index number based on A.M would be higher than an index number based on
G.M?
a) A.M gives greater weightage to bigger items, so index number which uses A.M would be
higher than the index number using G.M.
17. Which system of weights are used in the construction of
a) 1. Laspeyre’s price index number: Base year quantity
2. Paasche’s price index number: Current year quantity
3. Marshall Edgeworth’s and Fisher’s price index numbers: AVERAGE OF base year
and current year Quantity.
18. State the relation between LA,PA and DB index number.
a) DB= 1 (𝐿𝐴 + 𝑃𝐴)
2
19. State the relation between LA,PA and FI index number.
a)FI = √𝐿𝐴 𝗑 𝑃𝐴
20. Name the index number which does not satisfy unit test.
a)simple aggregative price index formula.
21. Name the index which satisfies TRT.
a) Marshall edgeworth’s, Fisher’s and Kelly’s index number
22. Name the index number which satisfies both TRT and FRT?
a) Fisher’s index number.
23. State the condition to satisfy TRT.
a) P01xP10=1
24. State the condition to satisfy FRT.
a) P01xQ01=V01
25. Name the index number which satisfies circular test?
a) Simple geometric mean of the price and kelly’s fixed weights method.
26. Which index number shows upward bias?
a) Laspeyre’s index number.(Because it uses base year quantities as weights)
27. Which index number shows down ward bias?
a) Paasche’s index number.( Because it uses current year quantities as weights)
28. Why Fisher’s index number is free of bias?
a) Because it uses both base year and current year quantities as weights.
29. Why Fisher’s index number is called Ideal index number?
a) 1. It satisfies both TRT and FRT
2. It is free of bias.
30. Write any two uses of CPI
a)1. It is used to determine the purchasing power of money and for computing the real
wages.
2. It is commonly used in fixation of salary, dearness allowance or grant of bonus to the
employees.
31. State any two considerations (norms) for selection of base year.
a) Base year should be economically stable.
b)The base year should not be too distant from the current year.
*Formulas and two marks problems of all the index numbers.

Unit III-Time Series Analysis

1. Define time series. Give one example.
a) A time series is a set of statistical observations arranged in chronological order.
Eg: If we observe agriculture production, sales, exports, imports etc. at different points of
time, say over the last 5 or 10 years, the set of observations constitute time series.
2. What is a ‘Historigram’?
a) A graphic representation of time series data is called Historigram.
3. What is secular trend? Give an example.
a) The general tendency of the time series data to increase or decrease or to remain a
constant during a long period of time is called secular trend.
Eg: Increase in price of gold for the past many years is an upward trend.
4. What is seasonal variation? Give an example.
a) The regular, periodic and short term variation in a time series is called seasonal variation.
Eg: Increase in sales of umbrella during rainy season.
5. What are cyclic variations?
a) Eg: Most of economic and business time series are influenced by the wave-like changes
of prosperity and depression. There is periodic up and down movements. This movement is
known as cyclical variation.
6. Which index is used for measurement of seasonal variation?
a) Seasonal indices are used for the measurement of seasonal variation.
7. What is random variation?(Irregular/Erratic) Give an example.
a) These variations are not regular. These are sudden unexpected variations. Caused by
war, strikes, earthquakes etc.
Eg: Sudden rise in death rate of a locality due to earth quake, tsunami etc.
8. Which variation is predictable?
a) Seasonal variation is predictable.
9. Which variation is unpredictable?
a) Irregular variations are unpredictable.
10. Which components of time series are associated with the following sentences?
a) Fall in death rate due to advance in science – Ans) Secular Trend
A increase in employment during harvest season- Ans) Seasonal variation
Rise in death rate due to earth quake in uttarakhand- Ans) Irregular variation
11. Diagrammatically represent “Business cycle” with phases.
a)

Decline Improvement

Prosperity
Depression

12. State two conditions of least squares method of measuring trend.

a)(i) ∑(𝑦 − 𝑦̂)=0
(ii) ∑(𝑦 −𝑦̂)2 is least.
13. Give any two merits and demerits of least squares method.
a) Merits: The method is mathematical, so it is highly efficient.
It can be used for forecasting the future trend.
Demerits: The procedure of calculation is difficult.
If fresh observations are available, the whole procedure has to be repeated.
*Normal equations of fitting of a) linear trend (b) quadratic trend (c) exponential trend.
* Merits and Demerits

Unit-IV- Interpolation and Extrapolation

1. Define Interpolation.
a) Interpolation is the technique of estimating the value of dependent variable(Y) for any
intermediate value of the independent variable (X).
2. Define Extrapolation.
a) Extrapolation is the technique of estimating the value of dependent variable(Y) for any
value of the independent variable (X) which is outside the range of the given series.
3. Write down the assumptions of interpolation and extrapolation.
a)1. There are no sudden jumps in the values of dependent variable from one period to
another.
2. There will be no consecutive missing values in the series.
4. Write down the condition for the application of Binomial expansion method of
interpolation.
a) 1. The values of the independent variable should have common difference.
2. The value of X, for which the value of Y is to be interpolated, should be one of thevalues
of X.

5. Expand (y-1)5

a) y5-5 y4+ 10 y3-10 y2+5 y1- y0=0

*Newtons’ formula of interpolation and the formula to find the value of ‘x’ in finding the
missing value of ‘y’ using Newton’s method of interpolation.

Unit-V –Theoretical Distribution

1. Write the relationship between mean and variance of a Bernoulli distribution.

a) In a Bernoulli distribution mean is greater than variance.
2. If X1,X2,……..Xn are independently and identically distributed Bernoulli variate with
parameter p, what is the distribution of X=X1+X2 +…….Xn?
a)Binomial Distribution.
3. Write is the relationship between mean and variance of a binomial distribution.
a) Mean > Variance for a binomial distribution. Mean and mode are equal if np is an
integer.
4. Mention the condition under which binomial distribution tends to Poisson distribution.
a)The binomial distribution tends to Poisson distribution when n → ∞, p→ 0 and np=ƛ
5. Mention the condition under which binomial distribution tends to normal distribution.
a) The binomial distribution tends to normal distribution when n→ ∞ and p, q are almost
equal.
6. For what value of ‘p’ is binomial distribution symmetric?
a) If p=q=1/2 the binomial distribution is symmetrical. (i.e 𝖰1=0)
If p<1/2 and q>1/2 then binomial distribution is positively skewed (𝛽 1>0)
If p>1/2 and q<1/2 then binomial distribution is negatively skewed (𝛽 1<0)
7. Write the relationship between mean and variance of a Poisson distribution?
a) The mean and variance are equal for Poisson distribution.
8. Under what condition Poisson distribution tends to normal distribution?
a) When λ is large Poisson distribution can be considered to be normal distribution.
9. What are the values of 𝜷1 and 𝜷2 for Poisson distribution?
a) 𝛽 1 >0 (positively skewed) and 𝛽 2>3 (leptokurtic)
10. Under what condition hyper geometric distribution tends to binomial distribution?
a) Hyper geometric distribution tends to binomial distribution when (a+b)→ ∞ and 𝑎 = 𝑝.
𝑎+𝑏
10. For which distribution mean and variance are equal?
a)Poisson Distribution
11. What are the values of co-efficient of skewness (β1) and co efficient of kurtosis (𝜷2) for a
normal distribution?
a) 𝜷1=0 and β2=3
12. What is the probability that a normal variate takes a value greater than its mean?
a) 0.5
13. What is the total area under the normal curve?
a) 1
14. Name the distribution for which variance and S.D are equal?
a) Standard normal distribution
15. Range of the distributions:
a) Bernoulli distribution: x=0,1
b) Binomial distribution: x=0,1,2….n
c) Poisson distribution: x=0,1,2…..∞
d) Hyper geometric :x=0,1,….min(a,n)
e) Normal distribution x: -∞ 𝑡𝑜 ∞
f) Standard Normal Distribution: z: -∞ 𝑡𝑜 ∞
g)Chi square distribution : 0 to ∞
h) Student’s t distribution t: -∞ 𝑡𝑜 ∞
16. Parameters of distribution:
a)Bernoulli distribution: p
b)Binomial Distribution :n & p
c) Poisson distribution: 𝜆
d) Hyper Geometric Distribution: a,b,n
e) Normal Distribution:𝜇 & 𝜎
f) Standard Normal: 0 & 1
g)Chi square :n
h) Student’s –t : n
17. Mean & Variance of the distribution:
a) Bernoulli Distribution: p and pq
b)Binomial Distribution: np and npq
c) Poisson Distribution: 𝜆 and 𝜆
d) Hyper Geometric Distribution: 𝑛𝑎 𝑎𝑛𝑑 𝑛𝑎𝑏(𝑎+𝑏−𝑛)
𝑎+𝑏 (𝑎+𝑏) 2(𝑎+𝑏−1)
e) Normal Distribution: 𝜇 & 𝜎2
f)Standard Normal Distribution: 0 and 1
g) Chi-Square Distribution: n and 2n
h)Student’s –t Distribution: 0 and 𝑛 for n>2 ;0 otherwise
𝑛−2

2
19. If Z is a SNV, then name the distribution of Z and find its Variance.
a) Z2 is a chi square variate with one degree of freedom. Variance=2n=2(1)=2.

*One and two marks problems based on mean, mode, variance, standard deviation,
example and features of all the distribution
Unit –VI - Statistical Inference
1. Define Parameter.
a) A statistical constant of the population is called a parameter.
2. What is statistic?
a) A function of the sample values is called a statistic.
3. What is sample space?
a) The set of all sample of same size that can be drawn from a population is called sample
space.
4. Define sample.
a) Representative unit of population selected for study is called sample.
5. Define population.
a) The totality unit under consideration is called population.
6. What is sampling distribution of a statistic?
a) The distribution of the values of a statistic for different samples of same size is called its
sampling distribution.
7. Define standard error.
a) The standard deviation of the sampling distribution of a statistic is called standard
error (S.E)
8. What is statistical inference?
a) The theory of making the decisions about the population parameters using sampling
and concept of probability.
9. What are the two branches of statistics?
a) (i) Estimation (ii) Testing of hypothesis
10. Define estimation.
a) Method of obtaining the most likely value of the population parameter using statistic is
called estimation.
11. Define estimator.
a) Any statistic which is used to estimate an unknown parameter is called an estimator. Its
specific value is an estimate.
12. Define Point estimation.
a) If a single value is proposed as an estimate of the unknown parameter, then it is point
estimation.
Ex: Mean marks obtained by a set of 100 students will be 55.
13. Define Interval estimation.
a) If an interval is proposed as an estimate of the unknown parameter, then it is interval
estimation.
Ex: The set of 100 students will get second class. i.e. (50-59).
14. Define null hypothesis.
a) Null hypothesis is the hypothesis which is being tested for a possible rejection, under
the assumption that it is true. It is denoted by H0.
15. Define alternative hypothesis.
a) Alternative hypothesis is the hypothesis which is accepted when null hypothesis is
rejected. It is the hypothesis which is complimentary to the null hypothesis. It is denoted
by H1.
16. Define Type-I error.
a) The error that occurs by rejecting null hypothesis when it is actually true is called
Type-1 error.
17. Define Type-II error.
a) The error that occurs by accepting the null hypothesis when it is actually not true is
called type II error.
18. Define size of the test.
a) The probability of rejecting H0, when it is not true is called size of the test. It is denoted
by 𝑎.(Producer’s risk).

19. Define consumer’s risk.

a) The probability of type II error is called consumer’s risk (𝜷)
20. Define level of significance.
a) Maximum size of the test is called level of significance. It may be 5% or 1%.
21. Define power of the test.
a) The probability of rejecting H0 when it is not true is called power of a test. It is denoted
by 1- 𝜷
22. Define critical region.
a) Critical region is the set of those values of the test statistic, which leads to the rejection
of the null hypothesis.
23. Define Acceptance region.
a) It is the set of those values of the test statistic which leads to the acceptance of the null
hypothesis.
24. Define critical value.
a) It is the value of the test statistic which separates the critical region and the acceptance
region. It is denoted by k which depends on the level of significance.
25. Define two tailed test.
a) Two tailed test is a test of statistical hypothesis, where rejection region is located at
both the tails of the probability curve of the null distribution of the test statistic.
26. Define right tailed test.
a) One tailed test is a test of statistical hypothesis, where the rejection region will be
located at only one tail of the probability curve of null distribution of the test statistic. The
rejection region will be either at the left or right tail of the curve.
27. Define null distribution.
a) The statistical distribution of the test statistic under the null hypothesis is called null
distribution.
28. Define test statistic.
a) A statistic based on whose distribution the testing of hypothesis conducted is called
test statistic.
29 *Problems based on standard error.(v.imp for two marks)
1. S.E (̅𝗑) = 𝜎
√𝑛
2 2
2. S.E(̅𝗑1-𝗑
̅2) =√ 1𝜎+ 2𝜎)
𝑛1 𝑛2
𝑃O
3. S.E(p)=√
𝑛
𝑃1 O1 𝑃2 O2 1 1
4. S.E(p -p )=√ + , If P =P =P then S.E=√𝑃O( + )
1 2 1 2 𝑛1
𝑛1 𝑛2 𝑛2
30. Write two applications of t-test.
a) 1.To test the significance of the mean of a population using small sample.
2. To test the difference between the means of the populations using two samples.
31. Mention two applications of 𝗑2 test.
a) 1. To test whether population has given variance.
2. To test ‘goodness of fit’ of a theoretical distribution to an observed data.
32. Mention two conditions for applicability of 𝗑2 test for goodness of fit.
a) (i) The total frequency N should be reasonably large.
(ii). The theoretical frequencies Ei should be 5 or more.
 33. When is the pooling done in testing of goodness of fit?
a) If any Ei is less than 5, it should be pooled with the adjacent frequency.
34. Give two uses (Utilities) of Standard error.
a) (i) Decide the efficiency and consistency of the statistic as an estimator.
(ii)Obtain the confidence intervals of an estimate.
*Test statistic (formula) and d.f of all the tests.

Unit –VII -STATISTICAL QUALITY CONTROL

1. Define SQC?
a) SQC is the method of controlling the quality of the products using statistical techniques.
2. Mention the three stages of production process.
a) (i) Specification (ii) Production (iii) Inspection
3. Mention two uses of SQC.
a) (i) To improve the quality and to decrease the proportion of defective.(ii) The producer
can guarantee his product with confidence.
4. Mention two types of causes for variation in manufacturing process.
a) (i) Chance cause (ii) Assignable cause
5. Define Chance cause and assignable cause.
a) Chance cause: A small amount of variation for which no specific cause can be attributed
(identified) is termed as chance variation. This cause is beyond human control.
Assignable cause: Variation that can be observed in the quality of the product, where the
causes can be precisely identified and eliminated is called assignable cause.
6. SQC helps in detecting which type of variation?
a) Assignable variations.
7. Which variations cannot be detected using SQC?
a) Chance variations.
8. What do you mean by product control and process control?
a) Product control: The process of inspection of manufactured lot for acceptability is called
product control.
Process control: Controlling the quality of the goods, during the manufacturing process
itself is said to be in process control.
9. Name the control chart used in case of defectives in SQC.
a) np or d chart.
10. What is a control chart?
a) Control chart is a graphical device which is used to study and verify whether the
production process is in statistical control or not.
11. Name the control charts for variables.
a) ̅𝗑 and R chart
12. Name the control charts for attributes.
a) np and c chart
13. What are the upper and lower limits? What is the conclusion if an observation falls
outside the control limits?
a) The lower limit is the minimum acceptable variation from the average quality level for a
process.
The upper limit is the maximum acceptable variation from the mean for process.
Conclusion: If any point falls outside the control limits then we conclude that the process is
out of control.
14. What are defect and defectives?
a) Defect: A defect is a quality characteristic which does not conform to specifications. Eg:
Misprints, a fold or scratches in paper.
Defectives: An item having one or more defects is called defective item.
Eg: The cloth having the misprints, a paper with folds or scratches is defectives.
15. Define acceptance sampling.
a) The manufactured lot will be accepted after inspection and confirmation of the quality
standards. It is called acceptance sampling.
16. Mention two advantages of acceptance sampling.
a)1. It is used when the items are of destructive in nature. 2.
It is less expensive as 100% inspection is more expensive
17. Mention two disadvantages of acceptance sampling plan.
a) 1. There is a risk of accepting a bad lot and rejecting a good lot, since verification is done
only on the basis of samples.
2. Timely identification of the production of defectives cannot be achieved.
* Single sampling and double sampling plan and formulas of control limits.

Unit – VIII - Operation Research

1. Define LPP.
a) A general LPP deals with the optimization of a linear function of variable (cost, profit
etc.) subject to set of constraints (demand, labor etc)
2. Give the general form of LPP.
a) Z=c1x1+c2x2+…….cnxn
STC: a11x1+a12X2+………a1nXn(≤=≥)b1
a21x1+a22X2+………a2nXn(≤=≥)b2…..
………………………….…………………………………………..
an1x1+an2X2+………amnXn(≤=≥)bm and satisfy the non-negativity restrictions x1,x2,….xn ≥ 0
3. Define Solution.
a) A set of real values of x1,x2,……..xn which satisfy the constraints (AX≤=≥) b is called a
solution to general L.P.P.
4. Define feasible solution.
a). Any solution to a general L.P.P which satisfies the non-negativity restriction is called a
feasible solution to the L.P.P.
5) Define optimal solution.
a) A feasible solution which optimizes (minimizes or maximizes) the objective function of a
general L.P.P is called an optimal solution to L.P.P
6) Define objective function.
a) The linear function Z=c1x1+c2x2+……cnxn which is to be optimized is called the objective
function of the general L.P.P.
7. Graphical solution to L.P.P lies in the first quadrant. Give reason.
a) Due to the non-negativity restriction of the decision variables.
8. Is the optimal solution always feasible in L.P.P?
a) Yes, an optimal solution is always feasible.
9. Define unbounded solution.
a) In case of maximization problem, when the L.P.P does not possess a finite optimum that is
value of Z can be increased indefinitely then the L.P.P is said to be unbounded.
10 .When do you say that there is No solution in L.P.P?
a) When an L.P.P has no feasible region i.e there are no points that satisfy the constraints of
the problem, it is said to have no solution.
11. Which of the two feasible solutions (12,10) and (14,4) of an L.P.P. maximises the
objective function Z=5x+4y
STC: x+3y≤ 10
x≤ 5, x≥ 0, 𝑦 ≥ 0
a)
12. Consider the following L.P.P Max Z= 8x+6y
STC: : 4x+6y≤ 10
6x+3𝑦 ≤ 5, x≥ 0, 𝑦 ≥ 0. Suppose x= -4 and y=4 .Is it a feasible solution to the given L.P.P?
a)No it is not a feasible solution to L.P.P because x and y cannot be negative.
13. In a T.P, when do you say that a solution is degenerate?
a) When the number of positive allocations in any Basic feasible solution is less than (m+n-1)
, then the solution is said to be non-degenerate.
14. What do you mean by non-degenerate solution in a T.P?
a) When the number of positive allocations in any Basic feasible solution is exactly (m+n-1)
then the solution is said to be non-degenerate.
15. When is a T.P balanced?
a) A T.P is said to be balanced if and only if ∑𝑎i=∑𝑏j (supply = demand).
16. When a T.P problem is unbalanced?
a) A T.P is said to be unbalanced if and only if ∑𝑎I ≠ ∑𝑏j (supply G demand).
17. Mention any two methods of obtaining initial feasible solution for a transportation
problem.
a) (i) Least Cost Method (ii) Matrix Minima Method.
18. Check whether the following T.P is degenerate.
3
8 10
16

19. Define Transportation problem.

a) T.P is considered as a special type of L.P.P whose object is to determine the quantity of
units to transport from various origins to different destinations at a minimum cost.
20. What is an n person game?
a) A game with n participants is called n-person game.
21. Write down the characteristics of a competitive game.
a) (i) There are finite number of competitors called players or participants.
(ii) Each player has a finite number of courses of ACTION.
(iii) A game is said to be played when each player chooses one of his courses of action.
22. What do you mean by pay off in the rectangular matrix?
a) Every courses of action is associated with an outcome which may be positive, negative or
zero to each player. The outcome may be money, points etc. This payment is called as payoff
(gain).
23. What is two person game?
a) A game involving two participants is called two person game.
24. Define strategy.
a) The strategy of a player is the pre-determined rule by which a player determines his
course of action.
25. Define pure strategy.
a) If player decides to use only one particular course of the action irrespective of the course
of action chosen by his opponent during every play, the strategy is said to be pure strategy.
26. Define mixed strategy.
a) If a payer decided to use all or some of his available courses of action in some fixed
proportion, he is said to use mixed strategy.
27. What is Pay –off matrix?
a) It is the table showing how payments are to be made at the end of each play or a game.
28. Define Maximin.
a) The maximum of the row minimum is known as maximin.
29. Define minimax.
a) The minimum of the column maximum is known as minimax.
30. Define saddle point.
a) The position in the pay-off matrix where maximin and minimax coincide is the saddle
point.
31. Define value of the game.
a) The Pay-off at the position of the saddle point is the value of the game.
32. Define fair game.
a) A game is said to be fair if the value of the game is zero.
33. In a two person zero-sum game if the gain of one player is Rs. 3 then what is the loss of
the other player?
a) Rs. 3
34. In rectangular game, if saddle point exists and maximin is -4, what is the value of the
minimax?
a) -4
35.If in a game the pay-off at saddle point is 4, what is the value of minimax?
a) 4.
36. What do you mean by replacement problem?
a) It deals with the problem of deciding the age at which an item which deteriorates with
time has to be replaced by a new one.
37. Give one example for equipment which deteriorates with age?
a) Truck, car
38. What is the principle adopted for replacement of equipment which deteriorate with age?
a) For equipment which deteriorates with time, maintenance would be costlier.
39. Mention any two needs for replacement of equipment.
a) (i) The item that has become inefficient with passage of time.
(ii) The item requires more cost of maintenance as age increases.
(iii) A better or a more efficient design of the machine or equipment has become available in
the market.
40. What is meant by inventory?
a) It is physical stock of goods kept for future purpose.
41. What are the advantages and disadvantages of inventory?
a) Advantages (i) It helps in smooth and efficient running of business
(ii) It reduces the set up cost.
Disadvantages: (i) Ware house rent
(ii) Labor for the maintenance of inventory and records.
42. Mention the different types of variables associated with an inventory.
a)(i) Holding cost (ii) Set-up cost (iii) Shortage cost (iv) Production or purchase cost
43. Define holding cost.
a) The cost associated with the maintenance of an inventory until they are sold or used is
called holding cost.
44. What is meant by lead time?
a) The time gap between the placing of order and arrival of goods at the inventory is the
lead time.
45. What is economic order quantity?
a) The order quantity which minimizes the total costs of carrying inventory and the
ordering cost is the economic order quantity.
46. Give any one objective of inventory.
a) The main objective of inventory is to decide when to acquire goods, how much to be
acquired such that the cost is minimized and to fulfill the requirements of the customer.
47. Define set up cost.
a) The cost associated with setting up of machinery before staring production is called set up
cost.
48. Define shortage cost.
a) The cost associated with either a delay in meeting the demand or the inability to the meet
the demand is called shortage cost.
49. Define controlled variables and uncontrolled variables.
a) Controlled variables: The variables that may be controlled like the quantity of goods
acquired to the inventory, the frequency of replenishment and the completion stage of
stocked items are known as controlled variables.
Uncontrolled variables: The variables that may not be controlled in an inventory problem
like the inventory costs, demand, and lead time are known as uncontrolled variables.
50. What are the assumptions under model-I and model -II of inventory?
a) Model-I: Uniform demand
Shortages are not allowed
Model-II: Uniform demand
Shortages allowed.