ba7211 dabm imp qs.pdf

8/20/2019 BA7211 DABM IMP QS.pdf

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ANNA UNIVERSITY: CHENNAI – 600 025

MBA DEGREE EXAMINATIONS , MAY- 2014

REGULATIONS – R-2013

BA7211 : Data Analysis and Business Modeling

SEMESTER : 02

DURATION : 3 Hrs MAX MARKS : 100

( In a batch of 20 students , each student will get any two questions from this set)

Descriptive statistics

1. Calculate the frequency distribution. Create a data file with the following variables .

Label for the variables (50 Marks)

Age: 1 (< 20), 2 (20-25), 3 (25-30), 4 (30-40), 5 (>40).

Gender: 1 (Male), 2(Female).

Education: 1 – High school, 2 – Graduate in Arts and Science degree , 3- Graduate in professional degree, 4-Post graduate degree.

Working Experience (years) : 1 (< 1 year) 2(1-5 years ), 3(5-10Year),

4(10-20), 5(>20).

Enter your own data set (minimum 25 data set ) in the data view of SPSS than Calculate the

frequency distribution. Graphically represent the variables in the form of BAR Chart.


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2. Calculate the measures of central Tendency. Create a data file with the following variables.

( 50 marks)

Label for the variables

Age: 1 (< 20), 2 (20-25), 3 (25-30), 4 (30-40), 5 (>40).

Gender: 1 (Male), 2(Female).

Education: 1 – High school, 2 – Graduate in Arts and Science degree , 3- Graduate in

professional degree, 4-Post graduate degree.

Working Experience (years) : 1 (< 1 year) 2(1-5 years ), 3(5-10Year),

4(10-20), 5(>20).

Enter your own data set (minimum 25 data set ) in the data view of SPSS than Calculate the

frequency distribution. Graphically represent the variables in the form of BAR Chart.

Correlation

3. (50 marks)

Twenty students have taken their common entrance test after their graduation. The selection

committee wants to see the relationship between the scores of CET and the percentage achieved

in graduation through correlation analysis.

Frame a hypothesis and show the type of relationship (positive or negative relationship) betweenthe variables.

CETscores

70 60 65 68 70 75 87 89 90 96 97 65 80 86 77

% in UGdegree

71 82 73 64 75 69 75 88 90 90 88 82 73 74 65


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Hypothesis : Parametric

4. (50 marks)

The life time of tube for a random sample of 20 provides following figures:

Item 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Life

(inyears)

5 5.5 6 5.4 2 3.4 6.5 7 5.4 5.9 6 5.8 5.7 9 6 7 8.7 5.9 5

Null hypothesis: Average Life of tube is 5 years.

Analyze the above problem through T test.

5. (50 Marks )

The height of males and the height of females were compared

Research question : Does height create a significant difference between the male and female.

Analyze the problem using independent sample t test.

Label : Male : 1, Female :2

Gender 1 1 2 1 2 1 2 1 2 1 1 2 1 2 1 1 2 2 1 2

Height

in cms

140 146 156 149 154 156 151 148 158 150 151 159 153 148 155 146 150 152 149 156

6. (50 Marks)

A researcher wants to compare the pretest scores and posttest scores of 30 students who has

undergone training in an institution.

Research Question is: Does the training have any impact in the scores of the students. Analyze

the problem using paired sample T test

pretest 53 54 57 68 66 74 63 71 74 75 59 71 69 55 52 61 76 81 61 69

posttest 88 96 98 103 108 122 112 120 123 124 97 115 111 85 79 94 93 96 87 77


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7. (50 Marks)

Gupta wants to compare the scores of CBSE students from four metro cities of India i.e Delhi,

Kolkata, Mumbai, Chennai. He Obtained 10 participant scores based on random sampling from

each of the four metro cities, Collecting 40 responses. He made the following hypothesis

NULL HYPOTHESIS : There is no significant difference in scores between different metro

cities of India.

ALTERNATE HYPOTHESIS: There is significant difference in scores between different

metro cities of India.

Note: This is an independent design, since the respondents are from different cities. Use One –

way between groups ANOVA.

Label For City : 1 – Delhi , 2 – Kolkata, 3-Mumbai, 4 – Chennai

City Scores of the Student

1 400 450 499 480 495 300 350 356 269 298

2 389 398 399 498 457 400 300 298 369 348

3 488 469 425 450 399 385 299 298 389 390

4 450 400 428 398 359 360 310 295 322 365

8. (50 marks)

Sekar Kapoor wants to know the sales in four different metro cities of India in Diwali season. Heassumes the sales contrast of 2:1:-1:-2 for Delhi: Kolkata: Mumbai: Chennai, respectively. He

collects sales data from 10 respondents each from the four metro cities. Frame the required

hypothesis, do the analysis using the One-way between groups ANOVA with planned

Comparisons and show the result. Calculate F ratio along with Post Hoc analysis.

City Sales in Rs (Lacs)

1 500 498 478 499 450 428 500 498 486 469

2 500 428 389 378 498 469 428 412 410 421

3 421 410 389 359 369 359 349 349 359 4004 289 269 259 299 389 349 350 301 297 279


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9. ( 50 marks)

Deepak wants to know the sales in four different cities of India in Christmas Season. He assumes

the sales contrast of 5: 3: 4: -4 for Delhi: Bangalore: Mumbai: Hyderabad, respectively. He

collects sales data from 10 respondents each from the four cities, collecting a total of 40 sales

data.

City Sales in (Rs Crores)

Delhi 50,48,47,49,40,42,50,98,86,69

Bangalore 40,38,43,38,39,87,69,48,41,40

Mumbai 41,10,89,39,36,39,49,29,59,40

Hyderabad 28,29,59,99,39,34,30,31,29,39

Frame the required hypothesis, Analyses through One-way between groups ANOVA with

planned comparisons, Calculate F ratio along with Post Hoc analysis.

Hypothesis – Non – Parametric

10. (50 marks)

Neha gupta wants to research that whether sales (dependent) of the respondents depend on their

place (independent) and education (independent). She assigns 10 respondents from each metro

city.

Labels

Place: 1 (Delhi), 2 (Kolkata), 3(Chennai)

Education: 1 (Under graduate), 2(Graduate), 3(Post Graduate).

She wants to know which variable shows significant effect on sales

Whether the location influences sales?

Whether the education influences the sales?

Whether the influence of education on sales depends on location of respondent?

Use two ways between groups Anova to determine the significant effect between variables.


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11. (50 marks)

Mohit Rajan wants to research that whether sales (dependent) of the respondents depend on their

place (independent) and age (independent). He assigns 10 respondents from each metro city.

Each respondent can select from 3 age levels.

Place : Ram Nagar, Jyoti Colony, Vivek Vihar

Ram Nagar – 10 respondents

Jyoti Colony – 9 respondents

Vivek Vihar – 10 respondents

Age : 1 (below 25 years), 2 (25-35 years), 3 (above 35 years).

Place Age Sales (Rs. Lacs)

Ram nagar 1 20,40,44,35

2 30,34,50,40

3 60,55Jyoti Colony 1 15,25,30

2 35,40,45,70

3 65,80

Vivek Vihar 1 80,75,30,10

2 100,90,75

3 150,89,99

Analyze through Two-way between groups ANOVA. Find the variable that has significant effect

on sales.

12. (50 marks)

Mathu Gupta wants to know whether the serial preference was dependent on location of the

respondent. The responses indicate, 75 respondents each have seen serial crorepathi and Big

Boss. His responses indicate 66 respondents from Delhi and 84 respondents from Mumbai. The

frequency table is shown below.

Serial Place Frequency

Crorepathi Delhi 40Crorepathi Mumbai 35

Big Boss Delhi 26

Big Boss Mumbai 49

Conduct a chi square test for independence or relatedness (Based on weigh cases)


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13. (50 marks)

Pawan wants to see the relationship between monthly household income and retail purchase by

20 respondents through Spearman’s rank order correlation.

Sl.No 1 2 3 4 5 6 7 8 9 10

Household

income(Rs in

Lac)

1 5 0.50 10 3 3 7 8 10 0.40

Retail

purchase

(Rs. Inthousand)

10 25 10 100 35 30 100 100 150 8

Sl.No 11 12 13 14 15 16 17 18 19 20

Householdincome (Rs

in Lac)

0.30 0.20 0.10 0.15 0.80 5 6 7 8 1

Retail

purchase

(Rs. Inthousand)

6 3 2 2 10 30 30 20 60 10

14. (50 marks)

The sales of two retails stores of Delhi(store1) and Mumbai(store2) are compared by ganesh. The

sales are in Rs.Lacs. There are 20 respondents, 10 from each store. Apply Mann – Whitney non-

parametric t-test of independent groups to prove the hypothesis

Null hypothesis: There exists no significant difference in the sales of two retails shop

Alternative hypothesis: There exists significant difference in the sales of two retails shop.

Retail store 1 2 1 1 2 2 2 1 2 1

Sales (Rs

Lacs)

40 30 60 45 55 25 60 80 100 20

Retail store 2 1 1 2 1 1 2 2 1 2

Sales (Rs

Lacs)

10 80 85 90 120 85 60 55 56 25


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15. (50 marks)

A showroom manager compares the laptop sales for the year in two parts. He wants to compare

the sales of first half and second half of the year. He recorded the sales from 20 showrooms and

saved their sales in Rs.Lacs. Apply Wilcoxon signed-rank test of non-parametric , paired-test to

prove the hypothesis.

Null hypothesis: There exists no significant difference in the showroom sales for the first and

second half of the year.

Alternative hypothesis: There exists significant difference in the showroom sales for the first

and second half of the year.

Sale 1 (Rs

Lacs)

10 20 25 50 45 30 50 60 100 20

Sale 2 (Rs

Lacs)

20 50 60 35 65 90 110 25 20 35

Sale 1 (RsLacs)

50 90 60 40 20 45 65 56 38 28

Sale 2 (Rs

Lacs)

64 69 95 85 76 68 59 120 60 30

Linear programming

16. (50 marks)

Solve the following linear programming problem using Graphical Method.

Maximize Z = 2 X1 + 3 X2

Subject to

X1 + X2 > 6

7 X1 + X2 > 14

X1, X2 > 0

17. (50 marks)

Solve the following linear programming problem using Simplex Method.Maximize Z = 6 X1 + 8 X2

Subject to

5 X1 + 10 X2


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Transportation Problem

18. (50 marks)

Find the feasible solution for the transportation problem using North –West Corner rule:

To

From

D E F Supply

A 6 4 1 50

B 3 8 7 40

C 4 4 2 60

Demand 20 95 35 150

19. (50 marks)

Find the feasible solution for the transportation problem using Least cost method:

To

From

D E F Supply

A 6 4 1 50

B 3 8 7 40

C 4 4 2 60

Demand 20 95 35 150

20. (50 marks)

Find the basic feasible solution for the following transportation problem using vogel’

approximation method

To

From

D1 D2 D3 D4 Supply

O1 11 13 17 14 250

O2 16 18 14 10 300

O3 21 24 13 10 400

Demand 200 225 275 250 950


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Assignment Problem

21. (50 marks)

The following matrix gives the cost involved to perform jobs 1,2 and 3 operators A,B and C.

Assign the operators and jobs to minimize the total time taken to complete the jobs

Operator Job1 Job2 Job 3

A 10 16 7

B 9 17 6

C 6 13 5

22. (50 marks)

A firm wants to purchase three different types of equipment and five manufactures have come

forward to supply one or all the three machines. However , the firms policy is not to accept more

than one machine from any of the manufactures. The data relating to the price (in lakhs of

rupees) quoted by the different manufactures are given below.

Manufacturers

MACHINES

1 2 3

A 2.99 3.11 2.68

B 2.78 2.87 2.57

C 2.92 3.05 2.80

D 2.82 3.10 2.74

E 3.11 2.90 2.64

Determine how best the firm can purchase three machines.


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Networking Models

23. (50 marks)

A project schedule has the following characteristics as shown in Table given below

Activity Name Time (days)

Activity Name Time(days)

1-2 A 4 5-6 G 4

1-2 B 1 5-7 H 8

2-4 C 1 6-8 I 1

3-4 D 1 7-8 J 2

3-5 E 6 8-10 K 5

4-9 F 5 9-10 L 7

1. Compute Te and TL for each activity.

2. Find the critical path.

3. Calculate the project duration.

24. (50 marks)

R and D project has a list of tasks to be performed whose time estimates are given in the table.

Draw the network diagram for the R&D project.

Activity Activity

name

Time

(days)

To

Time

(days)

Tm

Time

(days)

TP1-2 A 4 6 8

1-3 B 2 3 10

1-4 C 6 8 16

2-4 D 1 2 3

3-4 E 6 7 8

3-5 F 6 7 14

4-6 G 3 5 7

4-7 H 4 11 12

5-7 I 2 4 66-7 J 2 9 10


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Inventory Models

25. ( 50 marks)

Alpha industry needs 15,000 units/year of a bought out component which will be used in its main

product. The ordering cost is Rs. 125 per order and the carrying cost per unit per unit per year is

20% of the purchase price per unit which is Rs 75.

Find a. Economic order quantity

b. Number of orders per year

c. Time between successive orders

26. ( 50 marks)

A product is to be manufactured within the company , the details of which are as follows:

R=36000 units/year,K = 72000 units/year,

set up cost, Co = Rs. 250 per set-up

Carrying Cost Cc = Rs 25/unit/year

Find the EBQ and cycle time.

27. ( 50 marks)

The annual demand foe an automobile component is 36000 units. The carrying cost is Rs.

0.50/unit/year, the ordering cost is Rs 25.00 per order and the shortage cost is Rs 15.00/unit/year.Find the optimal values of the following.

1. EOQ

2. Maximum inventory

3. Maximum Shortage Quantity

4. Cycle time

5. Inventory period(T1)

6. Shortage Period (T2)


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Queuing Theory

28. (50 Marks)

Customers arrive at a booking office window, being manned by a single individual at a rate of 25

per hour. Time required to serve a customer has exponential distribution with a mean of 120seconds. Find the mean waiting time of a customer in the queue.

29. (50 Marks)

A belt snapping for conveyors in an open cast mine occur at the rate of 2 per shift. There is only

one hot plate available for vulcanizing. And it can vulcanize on an average 5 belts snap per shift.

a. What is the probability that when a belt snaps, the hot plate is readily available?

b. what is the average number of belts in the system?

c. What is the waiting time of an arrival?

d. What is the average waiting plus vulcanizing time?

30. (50 Marks)

A repairman is to be hired to repair machines which breakdown at an average rate of 6 per hour.

The breakdowns follow Poisson distribution. The non-production time of a machine is

considered to cost Rs. 20 per hour. Two repairmen, Mr.X and Mr.Y have been interviewed forthis purpose. Mr.X charges Rs. 10 per hour and he services breakdown machines at the rate of 8

per hour. Mr. Y. demands Rs. 14 per hour and he services at an average of 12 per hour. Which

repairman should be hired?

MS- EXCEL

31. (50 Marks)

The operating costs of the vehicle used by your company’s sales people are too high. The major

component of operating expense is fuel cost; to analyze fuel costs, you collect mileage data from

the company’s two wheelers for the previous month. Use Excel sheet for calculation.

MPL 27 29 33 21 21 12 16 25 8 17 24 34 38 15 19 19 41

• Summary statistics.

• Histogram analysis.

• Rank and Percentile analysis tool.


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Financial Management

32. (50 Marks)

Suppose we have availed a loan of Rs.1, 00,000 that is to be paid off in 48 monthly installments

of rupees 3,000 each. Find out the rate of interest charged on this loan.

33. (50 Marks)

You deposit Rs.1,000 each and every month in your bank account. The bank pays 12% annual

rate that is compound every month. Find out how much money will be in your account at the

end of 24 months.

34. (50 Marks)

You expect to receive Rs.800/- every month over next 24 months. If the current discount rate is12% per annum. What is the present value of these future payments?

35. (50 Marks)

You can afford only Rs.500/- per month. If you are crediting this amount in a bank that pays an

annual interest of 12% compounded monthly. How long will it take for your investment to

accumulate to Rs.50, 000?

36. (50 Marks)

Suppose if you want to take a loan of Rs.2, 00,000 at an annual interest rate of 14%. The loan

has to be repaid in 15 years in equal monthly installments. Find out the EMI.

37. (50 Marks)

You are expected to get 5 monthly payments of Rs.500, 900, 550, 478, 950 respectively. At the

discount rate of 10% per annum. Find the Net Present Value (NPV).

38. (50 Marks)

Assuming that an initial investment of Rs.1, 00,000. Results in 12 annual cash outflows as given

below.

13200, 15,000, 13,000, 2,000, 12,400, 16,000, 14,000, 16,450,

17,690, 16,550, 16,500 and 12,200.

Find the Internal Rate of Return (IRR).


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39. (50 Marks)

A leading financial services company wants to find if there is association between Investment

preference and geographic region. The Business analyst interviews a random sample of 250

individual investors from the three states -Tamilnadu, Kerala and Karnataka - and the records ofthe observed frequencies are as shown below.

Instrument Bank Gold Land Stock market

State —

Tamilnadu 72 8 12 23

Kerala 26 10 16 33

Karnataka 7 10 14 19

Using Chi-Square test, find out if there is association between investment instrument and region.

40. (50 Marks)

With the following information’s available for a company, calculate Weighted Average Cost of

capital

Equity Share ----- 25, 00,000

Debenture (12%) ---- 40,00,000

Pref Share (13%) ---- 20,00,000

Retained earnings ---- 10,00,000

The expected dividend for the equity shares are estimates at Rs. 4.50 for the share issued. Rs 10/-

the company’s tax rate is 50%.

41. (50 Marks)

Calculate EPS from the following information’s made available to you.

Capital structure :-

10,000 equity shares of 100 each – 10,00,00

14% Debenture - 40,00,000

The expected EBIT of the company is estimated at Rs 15,00,000 per annum. The company is in

the tax bracket of 40%.


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( In a batch of 20 students , each student will get any one questions from this set) (100 marks)

1. Calculate the frequency distributions and measures of central tendency from following table.

(100 marks)

Label for Gender – 1 (Male), 2(Female)

Gender 1 1 2 1 2 1 2 1 2 1 1 2 1 2 1 1 2 2 1 2

Height

in cms

140 146 156 149 154 156 151 148 158 150 151 159 153 148 155 146 150 152 149 156

Weightin kg

56 45 68 51 54 53 69 51 70 49 45 68 50 55 61 53 65 64 47 59

Graphically represent the variables in the form of Histogram Chart.

(100 Marks)

2.Twenty employees of different age group have taken their Exams for getting promotions in

their designation in the office. The appraisal committee wants to see the relationship between the

scores of Exam and the age through correlation analysis.

Frame a hypothesis and show the type of relationship (positive or negative relationship) between

the variables using correlation.

The appraisal committee also wants to calculate the Unit increase in the Exam score when there

is increase in age by applying regression. It also wants to predict the exam score of an employee

with the age of 21.

Age of

Employees

24 34 27 26 30 34 45 43 48 51 46 30 38 42 32

Exam

scores

70 60 65 68 70 75 87 89 90 96 97 65 80 86 77


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3. (100 marks)

A Survey was taken among 25 students; the data collected was “preparatory hours of the

student”, “Exam percentage of the student”. The Researcher was to see the direction of

correlation between the preparatory hours and Exam percentage through correlation analysis. He

also wants to calculate the how much Exam percentage will increases when the preparatory timeis increased by 1 hour. Apply regression to calculate the Unit increase.

Preparatoryhours of

the student

4 3 7 6 3 4 5 4 8 5 6 3 8 4 3

Exam

percentage

70 60 65 68 70 75 87 89 90 96 97 65 80 86 77

4. (100 marks)

Indian Oil has developed a formulation with increased use of ethanol in petroleum products,

which increases engine efficiency with less harmful emissions. 30 cars were test driven with and

without the ethanol and the number of kilometers per litre were recorded. The cars used for the

tests were having either automatic or manual transmission.

Label : Car Coding : 1 (Automatic ), 2 (Manual)

The earlier trial shows that mean number of kilometer per litre was 12. Indian Oil wants to

know:

1. Second trial efficiency of cars is better than the previous trial. (use one sample T test)

2. Whether efficiency of engine improves with added ethanol.(Paired T test)

3. Whether efficiency of engine with and without the ethanol differ between manual and

automatic cars. (Independent group T test)

Frame hypothesis and determine the significant difference between two set of scores


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Car 1 1 2 2 1 2 1 2 1 2 1 2 1 1 2 1 2 1 1 2

With Ethanol

(in kms)

15 16 20 22 18 20 10 19 9 8 6 15 16 11 19 14 20 18 25 16

Without

Ethanol (in

kms)

15 15 19 18 15 18 11 20 9 8 6 14 13 10 18 12 19 17 20 15

Car 1 2 1 1 2 1 2 1 1 1 2 1 2 1 1

WithEthanol

(in kms)

15 12 20 19 24 11 10 16 26 28 20 19 11 16 23

WithoutEthanol

(in kms)

14 13 19 20 22 10 9 17 20 20 19 15 10 13 21

(Marks 100)

5. Determine the initial basic feasible solution to the following transportation problem using

a) The least cost method

b) The Vogel’s approximation method

Sources

Destinations

SupplyD1 D2 D3 D4

S1 1 2 1 4 30

S2 3 3 2 1 50

S3 4 2 5 9 20

Demand 20 40 30 10


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Ratio Analysis (Marks 100)

6. The following financial details of Express Company Ltd are available. You are required to

calculate the following ratios:

Business profitability

Gross profit margin (Gross profit)/Net Sales

Net Profit margin (Net Profit after tax)/(Net Sales)

Return on equity (Net Profit after tax)/(Owner's equity)

Financial Stability

Current Ratio (Current assets)/Current Liabilities

Debt/Equity Ratio (Total assets-Owner's equity)/Owner's equityQuick Ratio (Current assets less inventory)/(Current Liabilities)

Resource Utilization

Total Asset Turnover (Net sales)/Total assets

Inventory Turnover (Cost of goods sold)/Inventory

Debt Turnover (Credit Sales)/Debtors

Calculate the above ratios for the Express Company Limited


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Express company Ltd -Final Accounts

P & L Account

For Year ended 31st Dec 2010 31st Dec 2011

Rs.'000 Rs.'000

Rs.'00

0 Rs.'000

Sales

Cash 150 180

Credit 330 480 420 600

Less: Cost of Goods sold

Opening inventory 200 195

Purchases 60 80

260 275

Less closing inventory 30 230 10 265

Gross Profit 250 335

Less: Operating expenses

administrative expenses 75 70

financial expenses 18 20

selling and distributionexpenses 55 148 60 150

Net Profit before tax 102 185

Less: corporation tax 25 47 Net profit after tax (earnings) 77 138


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Balance Sheet

As at 31st Dec 2010 31st Dec 2011

Fixed Assets Rs.'000 Rs.'000

Rs.'00

0 Rs.'000Building and land 60 90

Equipment 110 170 85 175

Current assets

Inventory 30 10

Debtors 50 90

Cash 150 230 100 200

400 375

Current liabilities & owner's equityCreditors 80 55

Dividends 30 42

Overdraft 4 114 20 117

Owner's equity 286 258

Total liabilities & owner's equity 400 375

Investment Appraisal (Marks 100)

7. Small Wonders Ltd is a small manufacturer of microcomputers. The Board of Directors of the

firm is faced with the problem of evaluating four proposals and deciding which, if any, of the

alternatives are acceptable. The table shows the expected cash flows of the project and available

capital (Rs.’000s) over the next four years. Cash inflows are shown in positive and cash outflows

are shown in negative and cost of capital is assumed as 15% per annum.

Proposals Year 1 Year 2 Year 3 Year 4

1 -60 0 40 70

2 -50 -30 50 100

3 -40 -80 100 904 -35 110 -50

Capital available for each year 100 100 50 50

You are requested to compute the proportion of investment in each projects that will maximize

the NPV for Small Wonders Ltd.


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Portfolio Management (Marks 100)

8. Eby Abraham has recently inherited some money which he would like to invest in stock. Eby

already holds stock in company A, and over the past ten years he has received an average annualreturn of 7.48% on his investment. He would like to increase this and hence informed his

investment banker that an annual return of at least 12% is his desired objective. The bank’s

funds investment manager has forwarded details given below of two suitable companies B and

C, whose stock performances meet Edby’s requirements.

Company 1 2 3 4 5 6 7 8 9 10

A 8.5 15.3 11.5 -1.6 -3.6 8.4 6.8 11.9 6.1 11.5

B 6.7 9.2 11.3 17.7 7.4 13 19.5 15.1 19.4 15.2

C 15.1 27.8 38.6 -12 -5.6 12.7 -2.1 12.8 36.8 22.7

Revenue Management

(Marks 100)

9. A hotel near a university always fills up on the evening before football games. History has

shown that when the hotel is fully booked, the number of last-minute cancellations has a mean of

5 and standard derivation of 3. The average room rate is Rs. 80. When the hotel is overbooked, policy is to find a room in a nearby hotel any to pay for the room for the customer. This usually

costs the hotel approximately Rs.200 since rooms booked on such late notice are expensive. How

many rooms should the hotel overbook?

(Marks 100)

10. ABC company made an EPS of Rs.20. Confirm the above with the following data.

• sale of Rs. 15,00000,

• expenses Rs. 10,00000,

• Fixed expenses Rs.2,00000,

• Interest Rs.20,000 (10% of the fixed expenses )

• Tax 84,000 (30%)

•

number of shares 10000.

As the sales manager of the firm, you need to know what would be the effect of sales on EAT

and EPS. What would be your target for the sales force so that the investors could earn an EPS

of Rs.30. Also find out what will be the effect of cost cutting measures that would result in 5%

and 10% reduction in the expenses respectively.

ba7211 dabm imp qs.pdf

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