There are two machines that break down with a probability of 0.2 (each) per day.
ID: 2627948 • Letter: T
Question
There are two machines that break down with a probability of 0.2 (each) per day. This is a binomial probability of 0, 1 or 2 failures per day with probabilities of .64, .32 and .04 respectively. You can hire one or two repairmen at a cost of $50 per man per day. Machine downtime costs you $80 per hour if one machine is down but $120 per hour if both machines are down. One man can fix a machine in four hours and two men working together can fix a machine in three hours. Assume the machines breakdown early in the day.
1. How many repairmen should you hire?
a. 0
b. 1
c. 2
The total maintenance cost (including downtime cost) in the case of two repairmen on duty is:
a. $96
b. $134
c. $150
d. $172
e. None of these
Explanation / Answer
1. How many repairmen should you hire?
a. 0
b. 1
c. 2-answer
The total maintenance cost (including downtime cost) in the case of two repairmen on duty is:
a. $96
b. $134
c. $150
d. $172answer
e. None of these
Finance