One cause of the downtime in Problem 3 was traced to a specific piece of computer hardware.

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One cause of the downtime in Problem 3 was traced to a specific piece of computer hardware. Management believes that switching to a different hardware component will result in the following transition probabilities:


One cause of the downtime in Problem 3 was traced

a. What are the steady-state probabilities of the system being in the running and down states?
b. If the cost of the system being down for any period is estimated to be $500 (including lost profits for time down and maintenance), what is the breakeven cost for the new hardware component on a time-periodbasis?

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Quantitative Methods For Business

ISBN: 148

11th Edition

Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam

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