QUESTION $1$

Time Allowed: $2Hrs39m.$

$($a$)$ Define decision making and explain in details the different types of decision situations and there major characteristics.

$10$ Marks

$\backslash$table$[[\backslash$table$[[$STATE OF$],[$NATURE$]],$PROJECT ACTIVITIES,PROBABILITIES$],[$A$,$B$,$C$,$D$],[,,,],[$P$,N5,000,$N $10,000,$N$18,000,N25,000,0\mathrm{.}17],[$Q$,N8,000,N7\mathrm{.}000,N8\mathrm{.}000,N23,000,0\mathrm{.}34],[R,N21,000,$N$18,000,N12\mathrm{.}000,N21,000,0\mathrm{.}27],[$S$,N30\mathrm{.}000,N22\mathrm{.}000,N19,000,N20,000,0\mathrm{.}22]]$

Calculate the following using:

$\backslash$table$[[$i$.$ Maximax Approach,$],[$ii$.$ Maximin Approach,$],[$iii$.,$Minimax Approach$],[$iv$.$ Laplace Approach,$],[$v$.$ EOL Approach,$]]$

$15$ Marks

QUESTION $2$

$($a$)$ Discuss briefly the uses of Linear Programming.

$5$ Marks

$($b$)$ MKO Ltd makes two products $x$ and $Y$ whose contribution margin are $N100$ and $N115$ per units respectively. The production process passes through three machines $M1,M2$ and $M3$ whose maximum available hours are $800$ hours, $600$ hours and $720$ hours respectively. $x$ requires $8$ hours. $10$ hours and $4$ hours on M$1.$ M$2$ and M$3$ respectively per unit while $Y$ requires for every unit $10$ hours, $6$ hours and $12$ hours for M$1,$ M$2$ and M$3$ respectively.

Required: formulate the linear programming model.

$10$ Maris