A company manufacturers around 150 mopeds. The daily production varies from 146 to 154 depending upon the availability of raw materials and other working conditions.
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A company is deciding to choose between two mutually exclusive projects A and B. Project A requires an initial investment of Rs. 3,00,000 and is expected to generate cash flow of Rs. 1,50,000 per annum for the 3 years of its life. Project B, on the other hand, requires 3,40,000, has a life of 6 years and would generate Rs., 1,00,000 every year. Which proposal should be accepted?

A repairman is to be hired by a company to repair machines that break down following a Poisson process, with an average rate of four per hour. The cost of nonproductive machine time is Rs 90 per hour. The company has the option of choosing either a fast or a slow repairman. The fast repairman charges Rs 70 per hour and will repair machines at an average rate of 7 per hour, while the slow repairman charges Rs 50 per hour and will repair machines at an average rate of 6 per hour. Which repairman should be hired?

A company has Rs 6,00,000 to invest, and a total of three investments are available to it. If x_{j} rupees (in lakhs) are invested j, then a net present value (in lakhs of rupees) of v_{j}(x_{j}) is obtained, where v_{j}(x_{j})’s are given below:
V_{1}(x_{1}) = 7 x_{1} + 2
V_{2}(x_{2}) = 3 x_{2 }+ 7
V_{3}(x_{3}) = 4 x_{3} + 5
The amount placed in each investment has to be in multiples of Rs 1 lakh only. How should the company invest Rs 6,00,000 in order to maximise the net present value obtained from the investments?

An investor has Rs 10,000 to invest and she has an opportunity to invest the amount in either of two investments A or B, at the beginning of each of the following three years. The investment A results either in a total loss of the amount invested with probability 0.2. The conditions allow at the most one investment each year and she can invest only Rs 10,000 each time and any additional funds accumulated are left idle. Using dynamic programming, find the investment policy that maximizes the expected amount of money will have after three years.

A company manufacturers around 150 mopeds. The daily production varies from 146 to 154 depending upon the availability of raw materials and other working conditions.
Production per day 
Probability 
146 
0.04 
147 
0.09 
148 
0.12 
149 
0.14 
150 
0.11 
151 
0.10 
152 
0.20 
153 
0.12 
154 
0.08 
The finished mopeds are transported in a specially arranged lorry accommodating only 150 mopeds. Using following random numbers 80,81,76,74,64,43,18,26,10,12,65,68,69,61,57, stimulate the process to find out:

What will be the average number of mopeds waiting in the factory?

What will be the average number of empty spaces on the lorry?

The XYZ company is considering whether or not to invest Rs 1,20,000 in an investment proposal to add a new product to its existing range. The management forecasts that the new plant will generate incremental net cash flows, each of which is assumed to be normally distributed random variable with following parameters.
Year 
Expected Value (Rs) 
Standard Deviation (Rs) 
1 
44,000 
5,800 
2 
40,000 
5,600 
3 
40,000 
6,000 
4 
35,000 
5,000 
5 
30,000 
4,000 
Using the discount rate of 10 % determine:

the mean of the present value distribution and its standard deviation,

the probability that the investment shall have a negative NPV,

whether the project should be undertaken if the management has laid down that no project be undertaken unless it has at least 70 % chance of giving an NPV at least equal to Rs 25,000.

Differentiate marginal and average revenue.

What are reasons for conducting business research?

Explain the consumer surplus and producer surplus with an example.

The company had declared that the sales of Horlicks has increased by 10% after the advertisement. You assigned to measure the impact of advertisement among horlics users. Try to develop the questionnaire for measuring impact of advertisement on horlicks among the users.
A company manufacturers around 150 mopeds.
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A company manufacturers around 150 mopeds.