In an oil well area of Texas are three automatic pumping units that bring the crude...

 

 

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In an oil well area of Texas are three automatic pumping units that bring the crude oil from the ground. These pumps are installed to operate continuously, 24 hours per day, 365 days per year. Each pump delivers 156 barrels per day of oil when operating normally and the oil is sold at a current price of $42 per barrel. There are times when the pumps stop because of blockages in the feed pipes and severe weather conditions. When this occurs, the automatic controller at the pump wellhead sends an alarm to the maintenance center. Here there is always a crew on-call 24 hours a day. When a maintenance crew is called in there is always a three-person team and they bill the oil company fora fixed 10-hourday at a rate of $62 per hour per crewmember. The data below gives the operating performance of these three pumps in a particularyear, for each day of a 365-day year. In the table, "1" indicates the pumpis operating. "0" indicates the pump is down (not operating). Pump No. 1 11111|1|11|1|1 1 1111|1|1011 1 101111111 1111111111 11111 11111 11111 1|1|1|11 1111110111 1111111101 1 111111111 1111111111 1111111111 11111111 11 1111111111 Pump No. 2 1|1|1|11|1|1|1 1|1 111111111|1 111|11 1101 1 Pump No. 3 11 111 1 1111 1111111111 111111|1|111 1111111111 1111111111 11 1 111 1111 1111111111 1 111110111 1 110111011 111111 1111 1 111111111 1111111111 11111 10111 1 11111 1111 1 111111101 1111111111 111110 1111 1111111111 1 11111 1011 1 111111111 1111111111 1111110111 111111 1101 1 111101111 111111 1111 1 111111010 111110 1111 11111111 1国1010 1111111111 111111 1111 1111111111 1101111001 11111111111国NA 1111000111 1111113011 1111110111 111111111 1 1111110111 111110111 1 1111111111 1 111 1111 11111 10|111 11011111 11 1111111111 1 11 111 1111 111111|1011 1|1|1|11|1|1|1|1|0 111|1|1|1|0|11|1 1111 111111 1111 111111 1 111111111 1 101111011 1111 111111 1 111 110111 1111111111 1 111101111 1 111111011 1111111111 111111 1101 11 1|11|11 1 11 111111011 1 1111111101 1 1111 11 111 111110111 11 111110 1111 11111111 11 1111111111 11111 11011 1111111111 1111111011 1111111111 1111111111 11111 111 11 1111111 111 1 111111111 1 10111 1011 1111|11 111|1 11111 11 1111 110|1 1. 0 11|1|1|1|1| 1 1. 1111 Pump No. 1 Pump No. 2 Pump No. 3 111111101 1 1111111111 1111101111 1011111111 11111 1111110111 1111 111 1011111 1111111011 11111 1|1|1|1| 1 1111 1. 111 1|11110 1 111|1|1|1|1111 10|1111011 1 1|1 11 1. 10 1 Required Describe this situation in probability andfinancial terms. In an oil well area of Texas are three automatic pumping units that bring the crude oil from the ground. These pumps are installed to operate continuously, 24 hours per day, 365 days per year. Each pump delivers 156 barrels per day of oil when operating normally and the oil is sold at a current price of $42 per barrel. There are times when the pumps stop because of blockages in the feed pipes and severe weather conditions. When this occurs, the automatic controller at the pump wellhead sends an alarm to the maintenance center. Here there is always a crew on-call 24 hours a day. When a maintenance crew is called in there is always a three-person team and they bill the oil company fora fixed 10-hourday at a rate of $62 per hour per crewmember. The data below gives the operating performance of these three pumps in a particularyear, for each day of a 365-day year. In the table, "1" indicates the pumpis operating. "0" indicates the pump is down (not operating). Pump No. 1 11111|1|11|1|1 1 1111|1|1011 1 101111111 1111111111 11111 11111 11111 1|1|1|11 1111110111 1111111101 1 111111111 1111111111 1111111111 11111111 11 1111111111 Pump No. 2 1|1|1|11|1|1|1 1|1 111111111|1 111|11 1101 1 Pump No. 3 11 111 1 1111 1111111111 111111|1|111 1111111111 1111111111 11 1 111 1111 1111111111 1 111110111 1 110111011 111111 1111 1 111111111 1111111111 11111 10111 1 11111 1111 1 111111101 1111111111 111110 1111 1111111111 1 11111 1011 1 111111111 1111111111 1111110111 111111 1101 1 111101111 111111 1111 1 111111010 111110 1111 11111111 1国1010 1111111111 111111 1111 1111111111 1101111001 11111111111国NA 1111000111 1111113011 1111110111 111111111 1 1111110111 111110111 1 1111111111 1 111 1111 11111 10|111 11011111 11 1111111111 1 11 111 1111 111111|1011 1|1|1|11|1|1|1|1|0 111|1|1|1|0|11|1 1111 111111 1111 111111 1 111111111 1 101111011 1111 111111 1 111 110111 1111111111 1 111101111 1 111111011 1111111111 111111 1101 11 1|11|11 1 11 111111011 1 1111111101 1 1111 11 111 111110111 11 111110 1111 11111111 11 1111111111 11111 11011 1111111111 1111111011 1111111111 1111111111 11111 111 11 1111111 111 1 111111111 1 10111 1011 1111|11 111|1 11111 11 1111 110|1 1. 0 11|1|1|1|1| 1 1. 1111 Pump No. 1 Pump No. 2 Pump No. 3 111111101 1 1111111111 1111101111 1011111111 11111 1111110111 1111 111 1011111 1111111011 11111 1|1|1|1| 1 1111 1. 111 1|11110 1 111|1|1|1|1111 10|1111011 1 1|1 11 1. 10 1 Required Describe this situation in probability andfinancial terms.

Answer rating: 100% (QA)

Pump 1 Probabilities Total number of observations days 365 Number of 0s number of days the pump is ... View the full answer