NATIONAL OPEN UNIVERSITY OF NIGERIA

UNIVERSITY VILLAGE, PLOT 91, CASDASTRAL ZONE, NNAMDI AZIKIWE EXPRESS WAY, JABI, ABUJA.
FACULTY OF MANAGEMENT SCIENCES
JANUARY 2021 EXAMINATION

COURSE CODE: BUS 800

COURSE TITLE: QUANTITATIVE ANALYSIS

CREDIT UNIT: 2

INSTRUCTION: 1. Indicate your Matriculation Number clearly

2. Attempt question one (1) and any other two (2) questions; THREE questions in all

3. Question one (1) is compulsory and carries 30 marks, while the other questions carry 20marks each.

4. Present all your points in a coherent and orderly Manner TIME ALLOWED: 2Hours

QUESTION ONE

(a) Consider the following contingency table for the salary range of 94 employees: 15 marks

What is the probability of selecting an employee who is a man or earns below N10, 000 per month?

(b) With the aid of examples, discuss the Multiplication Law for Independent Events 15 marks

QUESTION TWO

By recording the daily demand for a perishable commodity over a period of time, a retailer was able to construct the following probability distribution for the daily demand levels:

The opportunity loss table for this demand-inventory situation is as follows: Table 14.4: The Opportunity Loss Table

Required: find the inventory level that minimises the expected opportunity loss. 20 marks

QUESTION THREE

Assume there is a drug store with 10 antibiotic capsules of which 6 capsules are effective and 4 are defective.

What is the probability of purchasing the effective capsules from the drug store? 20 marks

QUESTION FOUR

(a) State clearly in which situation must the decision maker be for us to refer to him being in a state of making decision under uncertainty. 10 marks

(b) List and discuss briefly the available techniques that a decision maker can use to analyse problems under the situation identify in Question 4(a) above. 2 marks x 3 = 10 marks