Lexicographic Goal Programming is used to solve a series of Linear Programming Model
Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224
Quantitative Methods
Case Studies (20 Marks)
Linear Programming
Lexicographic Goal Programming is used
to solve a series of Linear Programming Model. This programming is used wen . a
goal has to be attained on•priority basis. Revenue budgeting is being used to
decide budget instead of a specific system in budget. Nevertheless, revenue
budget lays emphasis on the rising limitation of revenue while estimating
budget. The decision makers are limited due to the rising power of capital and
also the awareness of imminent restraints and fear of capital resources. The
goal is to raise the salary and allowance of the workers,to cut down the
operating cost, to raise the revenue expenses, to raise the capital generated
internally, and the cut down the overall budget. Some of the problems are:
insufficient allocation of funds and income, and• absence of importance of
order. The insufficient allotment occurred as the quantitative allotment models
were not used with power. . It is seen that the allotment of capital were not
being used in the right" way as a result the capital allotted to the labs
is drawn •in the maintenance of hostel. Various other changes also happen. In
fact, the funds allotted to the tertiary organizations are more often not
managed properly. The University of Owerri suffered and the progress of the
institution came down. There is absence of active teams for monitoring budget,
and so the budget can function in any manner. If the active teams to monitor
budget were present, the problem of mismanagement and the wrong use of it would
come down. Sundaram (1978) and Lee (1972) agreed that the various features of
target programming are, that it allows ordinal solution. According to Igniio
(1978), this tactic called Goal Programming, frequently symbolizes considerable
progress in the modeling and evaluation of the multi objective problems. This shows
that this area lets the systematic evaluation of a number of multi objective
problems which could include linear or non linear operations in the incessant
or separate variables. This is most successful in the research area. The goal
programming developed due to Charnes and Cooper, who suggested that the model
and method for dealing with some linear programming problems where the contradictory
'goals of management' involed as limitations. Goal programming method has been
used for a number of programs. Goal programming technique has solved the
following problems: planning production in a ship repairing company, smoothing production
in 'just in time' production atmosphere. The problem occurs when the model does
not show the real inclination of the decision maker. Noninferior solution in
some cases many not be essentially better than the lesser solution mainly in
the case of natural resource problem.
Answer
the following question.
Q1.
What are the problems while estimating the budget? (Hint: insufficient
allocation of funds and income, and absence of importance of order, The
insufficient allotment occurred as the quantitative allotment models were not
used with power) A monte Carlo
Case Study (20 Marks)
Laura,' a 57 year old unmarried woman,
earns around 68,000 dollars per year with expenditure of 37,500 dollars. She
hit away 14,000 dollars each year and collected 330,000 dollars in her RRSP and
TFSA, and also a rented apartment worth 250,000 dollars. She has a iixed
pension given by her employer, although it is not indicated to price rise, and
Is entitled 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 and business bonds. Due to wrong entry of ETFs in the account, unnecessary
taxes were charged. Even before reconstructing Laura's portfolio,"he had
to make certain that it matched with.her financial aims. Laura's main aim was
to ascertain if she could retire before the age of 65, maybe as early as 60,
therefore she had to know if her investments could produce enough flow of cash
after she retires. Monte Carlo may show a top possibility of success with the
allotment of equity of 70% ot 80%. Through a risky questionnaire and art open
interview, Justin Ill 'ascertain that Laura was the best person for a portfolio
of 60% fixed income and 40% equities. . Through Monte Carlo software, Justin entered
the current portfolio . size of Laura, her rate of savings, projected
retirement expenditure, and other employer income and government pensions. If
Laura feels that working till the age of 63 was unpleasant, she could go for
the reproduction again and with different estimation. Increasing her
anticipated returns or bringing down the rate of inflation, is only a thought,
therefore, she will have to make some stronger decisions: she will have to
making some more savings, or bring down her rate of planned expenses after
retirement. Amazingly, by bringing up the allotment to fixed salary could
increase her opportunity to succeed: in spite of th returns being lower than
the equities, the volatility is also less, which lessens the risk of helpless
decline in the early years. At last, Laura decided to work for 6 more years and
plan her retirement at the age of 63. After this, Justin decided to help her
make a fresh ETF portfolio to match that goal: it was finalized at 30% short
term business bonds, 30% GICs, and the rest of it was divided among Canadian,
L'S and global equities. Laura was able to make a notified decision through the
Monte Carlo simulation, but this wasn't the end of the 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 of her retirement goal, as many issues like, loss of
job, a legacy, new connections, increase in the interest rates, all these could
bring a change in the main suppusitions 1 ; and she will have to redo her
plans. The possibilities are different before the age of 63. For each added
year that Laura works, her portfolio will addition instead of a decrease and
this will lead to a thrilling difference: the success rate will rise up by 25%
points if she continues to work till the age of 61 instead of 60.
Answer
the following question.
Q1.
How much was Laura earning at the age of 57? (Hint: 68,000 dollars per year)
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 16 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?
Q2.
What is a chisquare test?
Q3.
What is sampling and what are its uses.
Q4.
Is there any alternative formula to find the value of Chisquare?
CASE STUDY (20 Marks)
The bulbs manufactured by a company
gave a mean life of 3000 hours with standard deviation of 400 hours. If a bulb
is selected at random, what is the probability it will have a mean life less
than 2000 hours?
Answer
the following question.
Q1.
Calculate the probability.
Q2.
In what situation does one need probability theory?
Q3.
Define the concept of sample space, sample points and events in context of
probability theory.
Q4.
What is the difference between objective and subjective probability?
Assignment Solutions, Case study Answer sheets
Project Report and Thesis contact
ARAVIND – 09901366442 – 09902787224
Comments
Post a Comment