The manager of a mining company is planning to invest in a new extraction machine of...
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The manager of a mining company is planning to invest in a new extraction machine of either type A or B. The number of hours of daily operation for both machines is denoted by t. The number of daily repairs to maintain type A machine is a random variable YĄ with mean and variance both equal to 0.10t. The number of daily repairs to maintain type B machine is a random variable Y with mean and variance both equal to 0.12t. The daily operating cost of type A and B machines are C₁ (t) = 10t + 30Y2, and CB (t) = 8t + 30Y 2², respectively. Assuming that the repairs take negligible time, which machine minimises the expected daily cost if a workday consists of (a) 10 hours and (b) 20 hours? The manager of a mining company is planning to invest in a new extraction machine of either type A or B. The number of hours of daily operation for both machines is denoted by t. The number of daily repairs to maintain type A machine is a random variable YĄ with mean and variance both equal to 0.10t. The number of daily repairs to maintain type B machine is a random variable Y with mean and variance both equal to 0.12t. The daily operating cost of type A and B machines are C₁ (t) = 10t + 30Y2, and CB (t) = 8t + 30Y 2², respectively. Assuming that the repairs take negligible time, which machine minimises the expected daily cost if a workday consists of (a) 10 hours and (b) 20 hours?
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Related Book For
Statistics For Business And Economics
ISBN: 9780321826237
12th Edition
Authors: James T. McClave, P. George Benson, Terry T Sincich
Posted Date:
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