August 1997
QT211: QUANTITATIVE ANALYSIS FOR MANAGEMENT

QUESTION 1 (Compulsory)

Total Marks: 20 Marks

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SUGGESTED SOLUTIONS
for Question 1
1 (a) Will doubling the service rate of a single-channel queuing system halve the average waiting time in the queue? Give an explanation of your answer. [3]
[Hint : Formulae relating to queuing are provided].
(b) The waiting time in queues may be reduced by increasing the number of servers. Give two other ways in which the waiting time might be reduced. [2]
(c) If the random variable X follows a Normal distribution with a mean of 24 and a variance of 9 i.e. X ~ N(24,9), and given that P(x > a) = 0.950, deduce the value of a. Explain your answer carefully (you might find it helpful to draw a diagram). [5]
(d) Find the mean and standard deviation of the following set of numbers: [5]
2, 4, 8, 12, 5, 8, 10.
(e) Sketch the Venn Diagram for the expression A - B - C. [2]
(f) Give three types of inventory cost (note: purchasing cost may not be used as an answer). [3]