A production line has three machines A, B, and C, with reliabilities of .90, .95, and .98, respectively. The machines are arranged so that if one breaks down, the others must shut down. Engineers are weighing two alternative designs for increasing the line's reliability. Plan 1 involves adding an identical backup line, and plan 2 involves providing a backup for each machine. In either case, three machines (A, B, and C) would be used with reliabilities equal to the original three. a. Compute overall system reliability under Plan 1. (Round your intermediate calculations and final answer to 4 decimal places.) Reliability b. Compute overall system reliability under Plan 2. (Round your intermediate calculations and final answer to 4 decimal places.) Reliability c. Which plan will provide the higher reliability? Plan 1 O Plan 2
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- Suppose a company charges a premium of $150 per year for an insurance policy for storm damage to roofs. Actuarial studies show that in case of a storm, the insurance company will pay out an average of $8000 for damage to a composition shingle roof and an average of $12,000 for damage to a shake roof. They also determine that out of every 10,000 policies, there are 7 claims per year made on composition shingle roofs and 11 claims per year made on shake roofs. What is the company’s expected value (i.e., expected profit) per year of a storm insurance policy? What annual profit can the company expect if it issues 1000 such policies? Determine the probability of a composition shingle roof claim out of 10,000 = ______ Determine the probability of a shake roof claim out of 10,000 = ______ How many claims are made out of 10,000? = _______ What is the probability of no claims out of 10,000? = _______ How much does each shingle roof claim cost the company, don’t forget each person pays $150…Every month a clothing store conducts an inventory and calculates losses from theft. The store would like to reduce these losses and is considering two methods. The first is to hire a security guard, and the second is to install cameras. To help decide which method to choose, the manager hired a security guard for 6 months. During the next 6-month period, the store installed cameras. The monthly losses were recorded and are listed here. The manager decided that because the cameras were cheaper than the guard, he would install the cameras unless there was enough evidence to infer that the guard was better. What should the manager do? Security guard Cameras 355 284 401 398 477 254 486 303 270 386 411 435A manufacturing company receives orders for engines from two assembly plants Plant I needs at least 45 engines, and plant Il needs at least 32 engines. The company can send at K most 120 engines to these assembly plants. It costs $30 per engine to ship to plant I and $50 per engine to ship to plant II. Plant I gives the manufacturing company $20 in rebates toward its products for each engine they buy, while plant il gives similar $10 rebates. The manufacturer estimates that they need at least $1500 in rebates to cover products they plan to buy from the two plants. How many engines should be shipped to each plant to minimize shipping costs? What is the minimum cost? How many engines should be shipped to each plant to minimize shipping costs. subject to the given constraints? The number of engines to send to plant I is. The number of engines to send to plant II is
- The financial statements of Coronado Manufacturing Company report net sales of $516200 and accounts receivable of $76000 and $40000 at the beginning and end of the year, respectively. What is the accounts receivable turnover for Coronado? O 3,7 times O 6.8 times O 12.9 times O 8.9 times Save for Later Attempts: 0 of 1 used Submit Answer MacBook Air 15 F10 PC F1 & (a 23 $4 -A 8 1 3 4 R Y Q E K F G A S C V optio command MOSISO option command ntrol .. .-Romans Food Market, located in Saratoga, New York, carries a variety of specialty foods from around the world. Two of the store's leading products use the Romans Food Market name: Romans Regular Coffee and Romans DeCaf Coffee. These coffees are blends of Brazilian Natural and Colombian Mild coffee beans, which are purchased from a distributor located in New York City. Because Romans purchases large quantities, the coffee beans may be purchased on an as-needed basis for a price 10% higher than the market price the distributor pays for the beans. The current market price is $0.47 per pound for Brazilian Natural and $0.62 per pound for Colombian Mild. The compositions of each coffee blend are as follows. Bean Blend Regular DeCaf Brazilian Natural 75% 40% Colombian Mild 25% 60% Romans sells the Regular blend for $3.60 per pound and the DeCaf blend for $4.40 per pound. Romans would like to place an order for the Brazilian and Colombian coffee beans that will enable the…The Lawson Fabric Mill Produces five different fabrics. Each fabric can be woven on one or more of the mill’s 36 looms. The sales department’s forecast of demand for the next month is shown in below Table 1, along with data on the selling price per yard, variable cost per yard, and purchase price per yard. The mill operates 24 hours a day and is scheduled for 30 days during the coming month. The mill has two types of looms: draw and regular. The draw looms are more versatile and can be used for all five fabrics. The regular looms can produce only three of the fabrics. The mill has a total of 36 looms: 8 are draw and 28 are regular. The rate of production for each fabric on each type of loom is given in below Table 2. The time required to change over from producing one fabric to another is negligible and does not have to be considered. The Lawson Fabric Mill satisfies all demand with either its own fabric or fabric purchased from another mill. Fabrics that cannot be woven at the…
- Consider a remote town in which two restaurants, All-You-Can-Eat Café and GoodGrub Diner, operate in a duopoly. Both restaurants disregard health and safety regulations, but they continue to have customers because they are the only restaurants within 80 miles of town. Both restaurants know that if they clean up, they will attract more customers, but this also means that they will have to pay workers to do the leaning. If neither restaurant cleans, each will earn $14,000; alternatively, if they both hire workers to clean, each will earn only $11,000. However, if one cleans and the other doesn't, more customers will choose the cleaner restaurant; the cleaner restaurant will make $18,000, and the other restaurant will make only $6,000. Complete the following payoff matrix using the information just given. (Note: All-You-Can-Eat Café and GoodGrub Diner are both profit-maximizing firms.) All-You-Can-Eat Café $ Cleans Up Doesn't Clean Up $ Cleans Up $ 81°F Sunny $ GoodGrub Diner $ $ If…The college graduates of 2000 could hardly have asked for better luck. The unemployment rate dropped to 4.1 % in May 2000- roughly, the lowest level in a generation- and employers were literally scrambling for new hires. Starting salaries rose, many graduating seniors had numerous job offers, and some firms even offered $10,000- $20,000 bonuses to students who signed the dotted line. Three years later, the job market for the Class of 2003 was rather different. U.S. economic growth had slowed to a crawl, and then to a halt. Companies that had stocked up on recent college grads in the tighter labour markets of 1998-2000 found themselves with more than they knew what to do with in 2002 and 2003. They were not eager to hire more. Bonuses and other “perks” disappeared; job offers became scarcer. With the unemployment rate around 6% in May and June of 2003, the job market was far from the worst ever. But it was nothing like the glory days of 2000. YOU ARE REQUIRED TO: (iv) Briefly…Kentville, a community of 10,000 people, resides next to a krypton mine, and there is a concern that the emission from the krypton smelter have resulted in adverse effects. Specifically, Kryptonosis seems to have killed 12 of Kentville’s inhabitants last year. A neighboring community, Lanesburg, has 25,000 inhabitants and is far enough from the smelter to not be affected by the emission. In Lanesburg, only three people last year died of Kryptonosis. Given that the number of deaths in Kentville and their causes last year were: Heart attack=7 Accidents=4 Kryptonosis=12 Other=6 What is the risk of dying of Kryptonosis in Kentville relative to non-contaminated locality?What is the risk of dying of Kryptonosis in Kentville relative to deaths due to other causes? How many times the chance of dying of Kryptonosis compared to dying of accidents ? How many times the chance of dying of Kryptonosis compared to Other causes?
- Supreme Ventures Limited is a major gambling company in the Caribbean. Last year Supreme Ventures had budgeted up to $8.000 per week for local advertising. The money was allocated among four promotional media: tv spots, newspaper ads, and two types of radio advertisements. Supreme Ventures goal is to reach the largest possible high-potential audience through the various media at the lowest cost possible. The following table presents the number of potential gamblers reached by making use of an advertisement in each of the four media. It also provides the cost per advertisement placed and the maximum number of ads that can be purchased per week. Medium Audience Reached Cost Maximum Ads per Ad per Ad S per Week 12 TV spot (1 min) Daily newspaper (full-page ad) 8500 Radio spot (30 sec, primetime) 2400 Radio spot (1min afternoon) 5,000 800 925 5 290 25 2800 380 20 Supreme Ventures contractual arrangements require that at least 5 radio spots be placed each week. In addition, the firm wants…Classic Construction Company specializes in constructing buildings with a period-correct architectural style. Three of their current projects, one in Dallas, one in St. Louis, and one in Atlanta, all require a particular reddish “scratch-faced brick,” which can only be purchased from two suppliers, one based in Newkirk, Ohio and one based in Tulsa, Oklahoma. The unit purchase costs and the availability of bricks at the two locations are given in the table below: Unit Costs (per brick) Available Supply Newkirk $0.57 95,000 (bricks) Tulsa $0.64 78,000 (bricks) The quantities (“demand”) needed by Classic Construction are given in the table below. Dallas St. Louis Atlanta 57000 44,000 68000 Suppose that shipping costs are assessed per truck. Each truck can carry up to 10,000 bricks. However, if you send a truck with only 5000 bricks from Newkirk to Atlanta, Classic Construction still pays $4000 for the half-loaded truck. The shipping costs…A ticket between Corellia and Dantooine (located in a galaxy far far away) sells for $150. The plane can hold 100 people. It costs $8000 to fly an empty plane. Each person on the plane incurs variable costs of $30 (for food and fuel). If the flight is overbooked, anyone who cannot get a seat receives $300 in compensation. On average, 95% of all people who have a reservation show up for the flight. To maximize profit, how many reservations for the flight should you book? Hint: You can assume that the number of people that show up for a flight follows a binomial random variable.