Advanced math
STAMFORD UNIVERSITY
Course: Advanced Quantitative Technique
Code: MAT-520
Fall-2013
MBA
ID NAME
Part-I Part-II
Ques. No. Ans. at Page Ques. No. Ans. at Page
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1. Write down a short Essay on Operation Research/ Linear Programming which includes the following: Definition, Characteristics, Classification, Necessity, Scope/Application and Limitation.
2. A person is interested in investing Tk.5,00,000 in a mix of investments. The investment choices and expected rates of return on each one of them are:
Investment Projected Rate of Return
Mutual Fund A
Mutual Fund B
Money Market Fund
Government Bonds
Share X
Share Y 0.12
0.09
0.08
0.085
0.16
0.18
The investor wants at least 35 percent of his investment in government bonds. Because of the higher perceived risk of the two shares, he has specified that the combined investment in these not to exceed Tk.80,000. The investor has also specified that at least 20 percent of the investment should be in the money market fund and the amount of money invested in shares should not exceed the amount invested in mutual funds. His final investment condition is that the amount invested in mutual fund A should no more than the amount invested in mutual fund B. The problem is to decide the amount of money to invest in each alternative so as to obtain the highest amount of total return.
Formulate the above as Linear Programming Problem.
3. A media specialist plans to allocate advertising expenditure in three media whose unit cost of a message are Tk.1500, Tk.1250 and Tk.1000 respectively. The total advertising budget available for a year is Tk.100,000. The first medium is a monthly magazine and it is desired to advertise not more than once in one issue. At least five advertisements should appear
Course: Advanced Quantitative Technique
Code: MAT-520
Fall-2013
MBA
ID NAME
Part-I Part-II
Ques. No. Ans. at Page Ques. No. Ans. at Page
1 6
2 7
3 8
4 9
5 10
1. Write down a short Essay on Operation Research/ Linear Programming which includes the following: Definition, Characteristics, Classification, Necessity, Scope/Application and Limitation.
2. A person is interested in investing Tk.5,00,000 in a mix of investments. The investment choices and expected rates of return on each one of them are:
Investment Projected Rate of Return
Mutual Fund A
Mutual Fund B
Money Market Fund
Government Bonds
Share X
Share Y 0.12
0.09
0.08
0.085
0.16
0.18
The investor wants at least 35 percent of his investment in government bonds. Because of the higher perceived risk of the two shares, he has specified that the combined investment in these not to exceed Tk.80,000. The investor has also specified that at least 20 percent of the investment should be in the money market fund and the amount of money invested in shares should not exceed the amount invested in mutual funds. His final investment condition is that the amount invested in mutual fund A should no more than the amount invested in mutual fund B. The problem is to decide the amount of money to invest in each alternative so as to obtain the highest amount of total return.
Formulate the above as Linear Programming Problem.
3. A media specialist plans to allocate advertising expenditure in three media whose unit cost of a message are Tk.1500, Tk.1250 and Tk.1000 respectively. The total advertising budget available for a year is Tk.100,000. The first medium is a monthly magazine and it is desired to advertise not more than once in one issue. At least five advertisements should appear