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F1200 Pages: 4

would have to wait at least 3 minutes for the phone. By how much time must be the flow
of arrivals be increased in order to justify for a second booth
Give reasons for maintaining inventory in a firm
Derive an expression for Economic Order Quantity and Total Minimum Cost for a
Purchase model without Shortage

PART C

Answer any four questions. Each question carries 10 marks.

Explain any two approaches that can be used in decision making under risk
Explain decision tree analysis using any example
Explain maximin and minimax principle applied to games

Explain the terms 1) Saddle point 2) Value for a game

Solve the game

Player B

Player A 2 2 6

What are the application areas of simulation?

Determine the area of a circle with 5cm radius using Monte Carlo simulation.
Carry out 10 iterations.

Students arrive at a college library counter with inter-arrival time distributed as
given in Table 1. The time for a transaction at the counter can be 3, 4, 5, 6, or 7
minutes with equal probability for all the values. Simulate the system for 10
transactions and compute the average waiting time for a student and average time

a student spends in the system.

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