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5. Individual Prublerns 20-5 BFD Sen-lines is in the business of digitizing information From terms that are lled out by hand. In 2006, a big
5. Individual Prublerns 20-5 BFD Sen-lines is in the business of digitizing information From terms that are lled out by hand. In 2006, a big client gave BFO a distribution of the Forms that it digitized in house last year. and BFD stimabed how much it would cost In digitize each Form. Form Type Mix not" Farms Form Cost: A I] .5 53. "1'5 B 0.5 $1.25 The expected cost of digitizing a Form is . Suppose the client and BPO agree to a deal. whereby the client pays BPO to digitize forms. The price of each form processed is equal to the expected post of the form that you calculated in the previous part of the problem. Suppose that alter the agreement. the client sends only forms of type A. The expected digitization cost perform ofthe forms sent by the client is_ . This leads to an expected loss 0- perform for BFG. (Hint: Do not round your answers. Enter the loss as a positive number.)
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