Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 15 Jan 2018 My Price 3.00

mechanic, Bob

A mechanic, Bob, requires on average 3 h to complete a repair. Furthermore, the repair time closely follows an exponential distribution. Bob realizes that by hiring his nephew Bill as an assistant, he can reduce the average repair time to 2 h. The repair time would still be exponential because the job structure is unchanged. For each repair job, Bob gets paid $220 if he finishes in less than 2 h and $180 if he cannot. Assume that Bob does not want to decrease his expected payment per repair job. What is the maximum amount per job that Bob would be willing to pay Bill?

Answers

(5)
Status NEW Posted 15 Jan 2018 10:01 PM My Price 3.00

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