As compared to rental and leasing methods to acquire computer systems for a Management Information System (MIS), purchase method has following advantage:
Consider the conditional entropy and mutual information for the binary symmetric channel. The input source has alphabet X = {0, 1} and associated probabilities {1 / 2, 1 / 2}. The channel matrix is
where p is the transition probability. Then the conditional entropy is given by:
Consider the following transportation problem:
The transportation cost in the initial basic feasible solution of the above transportation problem using Vogel’s Approximation method is: