The pipefitting contractor for some work to be done on the heating, ventilating, and air conditioning (HVAC) system in the Business Building has summed her estimates for the various stages of the project. She has determined that the expected (i.e., average) time a job like this should take is 55 days, with a standard deviation of 5 days. In addition, it is typical for completion times of projects like this to be approximately normally distributed. The contract specifies that the contractor must complete the job within 2 months of the starting date. If the work is not completed within that time frame, the contractor will be required to pay liquidated damages of $1,000 per day. Based upon her estimates what is the probability the contractor will be required to pay at least some liquidated damages?

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Solution Mean completion time 55 days Standard deviation o ... View the full answer