1. Suppose that a firm is planning to produce two components that are inputs in the production of a number of major household appliances. Based on market experience, the firm estimates their profit on the two components will be $11 for component 1 and $15 for component 2. The table represents the per unit labour and per unit copper required to construct the components along with the total availability). Product Labour (Hours) Copper (Kgs) Component 1 2 4 Component 2 3 5 Availability 120 220 Use the information given above to answer the following questions: (e) Suppose your estimate of the profit for component 1 is normally distributed with standard deviation of o = 1. What is the probability this model would predict the correct outcome? (f) Ignoring the previous part, suppose the firm becomes concened that the profit per unit for component 1 is $10.50 as the market price appears to be weaker than expected. The firm can lock in a price of $11 per unit; however, it has to agree to produce at least 40 units of component 1. What would you recommend? Are there any slack variables? 1. Suppose that a firm is planning to produce two components that are inputs in the production of a number of major household appliances. Based on market experience, the firm estimates their profit on the two components will be $11 for component 1 and $15 for component 2. The table represents the per unit labour and per unit copper required to construct the components along with the total availability). Product Labour (Hours) Copper (Kgs) Component 1 2 4 Component 2 3 5 Availability 120 220 Use the information given above to answer the following questions: (e) Suppose your estimate of the profit for component 1 is normally distributed with standard deviation of o = 1. What is the probability this model would predict the correct outcome? (f) Ignoring the previous part, suppose the firm becomes concened that the profit per unit for component 1 is $10.50 as the market price appears to be weaker than expected. The firm can lock in a price of $11 per unit; however, it has to agree to produce at least 40 units of component 1. What would you recommend? Are there any slack variables