Left most digit Net Id Will be 5 so

Use ( customer $ 5000) in the question

Problem 3 (20 points) A firm has received an order for three (3) die cast parts made from precious metals. It will cost $15,000 to produce an individual part. Probability distributions for the number of good parts produced in a batch of varying sizes are given below. Due to machine capability constraints, the firm can only schedule up to 5 parts for production. Number of Number of Parts Scheduled Good Parts 1 2 3 4 5 0 0.2 0.1 0 0 0 1 0.8 0.1 0.1 0 0 2 0.8 0.2 0.1 0.1 3 0.7 0.3 0.2 4 0.6 0.3 5 0.4 - The customer has indicated a willingness to pay $25,000 per part for 3 acceptable parts; the customer has also agreed to pay $10,000 each for 1 or 2 additional parts. Parts not sold, good and bad, can be recycled at a value of $3,000. The customer is unwilling to purchase fewer than 3 or more than 5 parts. A penalty clause in the contract results in the firm having to pay the customer $0,000 if at least three good parts are not produced.. Note: O= the leftmost digit of the number in your NetID. (1) Calculate the expected profits when the firm schedules 3, 4, and 5 parts for produc- tion, respectively. (2) Determine the number of parts to be scheduled for production to maximize expected profit, (3) Following (2), what is the corresponding profit and what is the probability of losing money at this production level? Problem 3 (20 points) A firm has received an order for three (3) die cast parts made from precious metals. It will cost $15,000 to produce an individual part. Probability distributions for the number of good parts produced in a batch of varying sizes are given below. Due to machine capability constraints, the firm can only schedule up to 5 parts for production. Number of Number of Parts Scheduled Good Parts 1 2 3 4 5 0 0.2 0.1 0 0 0 1 0.8 0.1 0.1 0 0 2 0.8 0.2 0.1 0.1 3 0.7 0.3 0.2 4 0.6 0.3 5 0.4 - The customer has indicated a willingness to pay $25,000 per part for 3 acceptable parts; the customer has also agreed to pay $10,000 each for 1 or 2 additional parts. Parts not sold, good and bad, can be recycled at a value of $3,000. The customer is unwilling to purchase fewer than 3 or more than 5 parts. A penalty clause in the contract results in the firm having to pay the customer $0,000 if at least three good parts are not produced.. Note: O= the leftmost digit of the number in your NetID. (1) Calculate the expected profits when the firm schedules 3, 4, and 5 parts for produc- tion, respectively. (2) Determine the number of parts to be scheduled for production to maximize expected profit, (3) Following (2), what is the corresponding profit and what is the probability of losing money at this production level