Question: In the model in Example 15.5, suppose bonuses and penalties are incurred for earliness or lateness. Specifically, suppose a bonus of $2000 is received if

In the model in Example 15.5, suppose bonuses and penalties are incurred for earliness or lateness. Specifically, suppose a bonus of $2000 is received if the project is completed within 60 days, an extra bonus of $1000 is received if the project is completed within 58 days, and a penalty of $1000 is incurred for every full day past a project completion of 64 days. (For example, if the project is completed in 66.7 days, the penalty is $2000—

two full days late.) Modify the model appropriately, and then run the simulation to find the distribution of the net monetary outcome (negative if a penalty, positive if a bonus). What is the expected value of this net amount?

What is the probability of a $3000 total bonus? What is the probability of a penalty of at least $4000?

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