Question

In Problem 53, the decision analysis is for automobiles and light trucks. Blue Ridge Power and Light would like to reformulate the problem for its heavy construction equipment. Emergency maintenance is much more expensive for heavy equipment, costing $15,000. Required preventive maintenance costs $2,000, and unnecessary maintenance costs $1,200. The cost of an oil change is $100, and the cost of taking an oil sample and analyzing it is $30. All the probabilities remain the same. Determine the strategy Blue Ridge Power and Light should use for its heavy equipment.



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  • CreatedJuly 17, 2014
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