Question: 16. In an engineering workshop, motors breakdown at an average rate of 5 per day, the number of breakdowns being Poisson distributed. The present unqualified

16. In an engineering workshop, motors breakdown at an average rate of 5 per day, the number of breakdowns being Poisson distributed. The present unqualified mechanic can repair motors at an average rate of 6 per day and is paid a daily wage of Rs 100. A qualified mechanic offers his services at a daily wage of Rs 200 and is capable ofrepairing, on the average, 8 motors per day. Whenever a motor is idle, there is a downtime cost incurrence at the rate of Rs 100 per day. Would it be worthwhile to employ the qualified mechanic in lieu of the present mechanic? Justify on cost/benefit analysis.

(DMS, Mumbai, 1993)

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