Question
2) An engineering company has contracted with a factory to overhaul one of the factory's large machines over 2 days (Saturday and Sunday). If the
2) An engineering company has contracted with a factory to overhaul one of the factory's large machines over 2 days (Saturday and Sunday). If the job isn't finished before Monday, the engineering company agreed to pay a $20K penalty. The engineering company has to decide how many engineers to hire if it has to pay each one $480 for the weekend work. The impact of the number of engineers assigned on the probability of completing the job on time is show in the following table. No engineers Prob of on-time completion 10 40% 15 60% 20 90% How large a team should be chosen to minimize the expected value of the engineering firm's costs?
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