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Unit 13 - Week 12

Course
outline
Week 12 Assignment
The due date for submitting this assignment has passed. Due on 2018-04-18, 23:59 IST.
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Week 1 Week 12 assignment for BAMD

1) In the given table, there are three alternatives and four states of nature. If you go with Wald 1 point
Week 2 criterion what should be the pay-off (Answers are in Unit)?

Week 3

Week 4

Week 5

Week 6

Week 7 -25000

-40000
Week 8
-10000
Week 9 40000

Week 10 No, the answer is incorrect.

Score: 0
Week 11 Accepted Answers:
-10000
Week 12
2) In the given table, there are three alternatives and four states of nature. If you go with realism 1 point
Lecture 56 : criterion and α = 0.8, what should be the pay-off (Answers are in Unit)?
Introduction to
decision theory

Lecture 57 :
Decision
making under
uncertainty

Lecture 58 :
Decision
making under
40000
certainty
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31000
Lecture
A project of 59 : In association with
Decision tree 22000
Lecture 60 : 22500
The value of
information and No, the answer is incorrect. Funded by
utility theory

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week 12 Accepted Answers:
40000
Quiz : Week 12
Assignment 3) Consider the below newsvendor model: 1 point
Week 12
Lecture
materials

Week 12
assignment
Solution

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Cost of a copy is 30 paise and sale price is 50 paise. He can’t return unsold copies. How many copies
should he order?

14

13

12

11

No, the answer is incorrect.

Score: 0
Accepted Answers:
12

4) The probability of the demand for hiring lorries on any day in a given district is as follows: 1 point

Lorries have a fixed cost of Rs. 90 per day to keep the daily hire charges (Variable cost of running is Rs.
200). If the lorry hire company is about to go into business and currently has no lorries, how many lorries
should it buy?

No, the answer is incorrect.

Score: 0
Accepted Answers:
2

5) A vegetable seller buys tomatoes for Rs. 45 a box and sells them for Rs. 80 per box. If the box is 1 point
not sold on the first selling day, it is worth Rs. 15 as salvage. The past record indicates that the demand is
normally distributed with a mean of 30 boxes daily and a standard deviation of 9 boxes. How many boxes
should he stock?

31

32

33

34

No, the answer is incorrect.

Score: 0

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Accepted Answers:
31

6) A company receives shipments of certain items. It should decide whether to accept or reject the 1 point
shipment, on the basis of inspection of a sample selected from the shipment. From the past experience, it is
known that the percentage of defective items in a batch of shipment is either 0, 2 or 5, the probabilities for
which are 0.5, 0.3, 0.2 respectively. The company can accept only those batches which have no defectives.
The cost of rejecting a good batch i.e., batch with no defectives is Rs. 200. The cost of accepting a defective
batch is Rs. 600.
A sample of 10 items has been selected from the shipment and two items are found to be defective. The
conditional probabilities of getting 2 defectives in a sample of 10 items from a batch of 0, 2, and 5 percent
defectives are calculated as 0.083, 0.185, 0.265 respectively. What decision the company should take about
the shipment?

Reject

Accept

Neither accept nor reject

Insufficient information

No, the answer is incorrect.

Score: 0
Accepted Answers:
Reject

7) A dealer finds that the cost of holding a mini cooking range in stock for a month is Rs. 200. 1 point
Customers who can’t obtain a cooking range immediately tend to go to other dealers and he estimates that
for every customer who can’t get immediate delivery, he loses an average of Rs. 500. The probabilities of a
demand of 0, 1 , 2, 3, 4, and 5 mini cooking ranges in a month are 0.05, 0.10, 0.20, 0.30, 0.20, 0.15
respectively. What is the optimum stock level of cooking range?

No, the answer is incorrect.

Score: 0
Accepted Answers:
4

8) A physician purchases a particular vaccine on Monday each week. The vaccine must be used 1 point
within the following week, otherwise it becomes worthless. The vaccine costs Rs. 2 per dose and the
physician charges Rs. 4 per dose. In the past 50 weeks, the physician has administered the vaccine in the
following quantities:

Determine how many doses should the physician buy every week.

25

20

40

60

No, the answer is incorrect.

Score: 0

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Accepted Answers:
40

9) A glass factory that specializes in crystal is developing a substantial backlog and for this the 1 point
firm’s management is considering three courses of action. To arrange for subcontracting (S1), to begin
overtime production (S2), and to construct new facilities (S3). The correct choice depends largely upon
future demand, which may be low, medium, or high. By consensus, management ranks the respective
probabilities as 0.10, 0.50, and 0.40. A cost analysis reveals the effect upon the profits. This is shown in the
table below.

Which course of action should be chosen?

S1

S2

S3

Either S1 or S2

No, the answer is incorrect.

Score: 0
Accepted Answers:
S3

10)Assume that you are indifferent between getting $700 and getting $1000 with probability 80% 1 point
(and otherwise nothing). Assume also that you are indifferent between getting $300 and getting $700 with
probability 60% (and otherwise nothing). Consider lottery A, which gives you $1000 with probability 2/3 (and
otherwise nothing), and lottery B, which gives you a 50%-50% bet between $300 and $700 dollar. If you
follow von-Neumann-Morgenstern’s theory, you should:

Prefer A to B

Prefer B to A

Be indifferent between A and B

Insufficient data

No, the answer is incorrect.

Score: 0
Accepted Answers:
Prefer A to B

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