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i) Compound event is the simultaneous occurrence of two or more events in connection with each other. It is an aggregate of simple events. The probability that the two events will occur is the joint probability of the events
ii) Mutually exclusive events are events that cannot occur simultaneously. Occurrence of one event precludes the occurrence of the other event. Two events A and B are mutually exclusive if they do not have any elementary outcome in common.
iii) Collectively exhaustive events exist when no other outcome is possible for a given experiment. That is, they include all possible outcomes. The sum of probabilities is equal to one.
iv) Equally likely events are events whereby each outcome is likely to occur the same way the other is likely to occur. That is, one event does not occur more than the other. Equal probability is assigned to each outcome.
v) Conditional probability is the probability of occurrence of an event given that another event has occurred.
Wilfykil answered the question on February 20, 2019 at 08:26
- A survey by Marketing Society here in Kenya found out the following buying habits of household air conditioners considered a luxury.(Solved)
A survey by Marketing Society here in Kenya found out the following buying habits of household air conditioners considered a luxury.
Required:
i)Calculate the arithmetic mean, median and mode. (5 marks)
ii) Does the survey show that the luxury item is consumed by high-income earners? Show your answer by calculating appropriate measure of skewness
Date posted: February 20, 2019. Answers (1)
- Define the following terms as used in measures of dispersion:
i) Platykurtic versus leptokurtic and mesokurtic.
ii) Coefficient of skewness.
iii) Quartile deviation.(Solved)
Define the following terms as used in measures of dispersion:
i) Platykurtic versus leptokurtic and mesokurtic.
ii) Coefficient of skewness.
iii) Quartile deviation.
Date posted: February 20, 2019. Answers (1)
- Three industries, packaging P, Bakery B, and Flour F are related with the intermediate demand matrix below.(Solved)
Three industries, packaging P, Bakery B, and Flour F are related with the intermediate demand matrix below.
Required:
i)Determine the total output for products of industries P, B and F. (10 marks)
ii) Comment on the total output for industries.
Date posted: February 20, 2019. Answers (1)
- Write down short notes on:
i) Final demand.
ii) Technical coefficients.
iii) Closed model versus open model(Solved)
Write down short notes on:
i) Final demand.
ii) Technical coefficients.
iii) Closed model versus open model
Date posted: February 20, 2019. Answers (1)
- Lillian Wambugu is the project manager of Jokete Construction Company. The company is bidding a contract to install telephone lines in a small town. It...(Solved)
Lillian Wambugu is the project manager of Jokete Construction Company. The company is bidding a contract to install telephone lines in a small town. It has identified the following activities along with their predecessor restrictions, expected times and worker requirements:
Lillian Wambugu has agreed with the client that the project should be completed in the shortest duration.
Required:
i) Draw a network for the project.
ii) Determine the critical path and the shortest project duration.
iii) Lillian Wambugu will assign a fixed number of workers to the project for its entire duration and so she would like to ensure that the minimum number of workers is assigned and that the project will be completed in 14 weeks. Draw a schedule showing how the project will be completed in 14 weeks
iv) Comment on the schedule you have drawn in (iii) above.
Date posted: February 20, 2019. Answers (1)
- State four attributes of the Beta distribution which made it to be chosen as representing the distribution of activity times in project evaluation and review...(Solved)
State four attributes of the Beta distribution which made it to be chosen as representing the distribution of activity times in project evaluation and review technique (PERT).
Date posted: February 20, 2019. Answers (1)
- Explain the four different methods or approaches for organizing and displaying project information(Solved)
Explain the four different methods or approaches for organizing and displaying project information
Date posted: February 20, 2019. Answers (1)
- A small construction project involves the following activities:
Required:
i) Determine the shortest time and associated cost to finish this project.
ii) If a penalty of Sh.4,500 must...(Solved)
A small construction project involves the following activities:
Required:
i) Determine the shortest time and associated cost to finish this project.
ii) If a penalty of Sh.4,500 must be charged for every day beyond 12 days, what is the most economical time for completing the project?
Date posted: February 20, 2019. Answers (1)
- Consider the following project network and activity times (in weeks)
Required:
i) How long will it take to finish this project?
ii) Can activity D be delayed without...(Solved)
Consider the following project network and activity times (in weeks)
Required:
i) How long will it take to finish this project?
ii)Can activity D be delayed without delaying the entire project? If so, by how many weeks?
iii)What is the schedule for activity E?
Date posted: February 20, 2019. Answers (1)
- Explain the following terms used in network analysis:
i) Network planning;
ii) Activities;
iii) Events;
iv) Critical path;
v) Float.(Solved)
Explain the following terms used in network analysis:
i) Network planning;
ii) Activities;
iii) Events;
iv) Critical path;
v) Float.
Date posted: February 20, 2019. Answers (1)
- Consider a project which has been modeled as follows:
Required:
a) Determine the project?s expected completion time and its critical path.
b) Can activities E and G be...(Solved)
Consider a project which has been modeled as follows:
Required:
a) Determine the project‟s expected completion time and its critical path.
b) Can activities E and G be performed at the same time without delaying the completion of the project?
c) Can one person perform activities A, G and I without delaying the project?
d) By how much time can activities G and L be delayed without delaying the entire project?
e) By how much time would the project be delayed if activity G were delayed by 3 hours and activity L by 4 hours? Explain.
Date posted: February 20, 2019. Answers (1)
- Consider the cost-time estimates for the product development project as given in the table below.(Solved)
Consider the cost-time estimates for the product development project as given in the table below.
Indirect cost is made up of two components: Fixed cost of $5,000 and a variable cost of $1,000 per week of elapsed time. Also, for each week the project exceeds 17 weeks, an opportunity cost of $2,000 per week is assessed.
Construct a time chart for the minimum total cost schedule.
Date posted: February 20, 2019. Answers (1)
- Consider the simplified scenario for the development of a consumer product through the market test phase
shown in the table below.(Solved)
Consider the simplified scenario for the development of a consumer product through the market test phase
shown in the table below.
a) Draw the network for this project.
b) Calculate the slacks and interpret their meaning.
c) Determine the critical path and interpret its meaning.
d) Construct a time chart and identify scheduling flexibilities
Date posted: February 20, 2019. Answers (1)
- Consider the two person zero sum game between players A and B given by the following pay-off table:(Solved)
Consider the two person zero sum game between players A and B given by the following pay-off table:
Required:
i) Using the maximin and minimax values, is it possible to determine the value of the game? Give
reasons.
ii) Use graphical methods to determine optimal mixed strategy for player A and determine the
value of the game.
Date posted: January 23, 2019. Answers (1)
- Define the following terms used in game theory:
i) Dominance.
ii) Saddle point
iii) Mixed strategy
iv) Value of the game(Solved)
Define the following terms used in game theory:
i) Dominance.
ii) Saddle point
iii) Mixed strategy
iv) Value of the game
Date posted: January 23, 2019. Answers (1)
- Explain the following terms as used in decision analysis.
a) Decision making under risk versus uncertainty.
b) Decision trees versus probability trees.
c) Minimax versus maximax criterion.
d) Pure...(Solved)
Explain the following terms as used in decision analysis.
a) Decision making under risk versus uncertainty.
b) Decision trees versus probability trees.
c) Minimax versus maximax criterion.
d) Pure strategy versus mixed strategy games.
e) Games with more than two persons versus non zero-sum games
Date posted: January 23, 2019. Answers (1)
- An urban cable television company is investigating the installation of cable TV system in urban areas. The engineering department estimates the cost of the system...(Solved)
An urban cable television company is investigating the installation of cable TV system in urban areas. The engineering department estimates the cost of the system (in present worth Sh.) to be Sh. 7 million. The sales department has investigated four pricing plans. For each pricing plan, the marketing division has estimated the revenue per household in present worth Sh. to be:
Date posted: January 23, 2019. Answers (1)
- A trust officer for a major banking institution is planning the investment of a USD 1 million family trust for the coming year. The trust...(Solved)
A trust officer for a major banking institution is planning the investment of a USD 1 million family trust for the
coming year. The trust officer has identified a portfolio of stocks and another group of bonds that might be
selected for investment. The family trust can be invested in stocks or bonds exclusively, or a mix of the two.
This trust officer prefers to divide the funds in increments of 10 percent; that is, the family trust may be split
100 percent stocks /0 percent bonds, 90 percent stocks /10 percent bonds, 80 percent stocks /20 percent
bonds, and so on.
The trust officer has evaluated the relationship between the yields on the different investments and general
economic conditions. Her judgment is as follows:
1) If the next year is characterized by solid growth in the economy, bonds will yield 12 percent and stocks
20 percent.
2) If the next year is characterized by inflation, bonds will yield 18 percent and stocks 10 percent.
3) If the next year is characterized by stagnation, bonds will yield 12 percent and stocks 8 percent.
a) Formulate a payoff table where payoffs represent the annual yield, in dollars, associated with the
different investment strategies and the occurrence of various economic conditions
b) Determine the optimal investment strategy using the max-max, max-min, Hurwicz (
),
equally likely, and regret criteria.
c) Suppose that a leading economic forecasting firm projects P(solid growth)= 0.4, P(inflation)=0.25,
and P (stagnation)= 0.35. Use the expected value criterion to select the appropriate strategy.
d) What is the expected value with perfect information?
Date posted: January 23, 2019. Answers (1)
- The following table is a payoff table for a particular venture.
(Solved)
The following table is a payoff table for a particular venture.
Required:
a) Determine the decision alternative that maximizes expected payoff.
b) Determine expected value under certainty.
c) What is the expected value of perfect information?
Date posted: January 23, 2019. Answers (1)
- The following is a payoff table for a particular venture.(Solved)
The following is a payoff table for a particular venture.
Determine the optimal decision using:
a) Max-min criterion.
b) Max-max criterion.
c) Min-max regret criterion.
d) Maximum expected payoff (assuming equal likelihood of states of nature).
Date posted: January 23, 2019. Answers (1)