Question
The life of a machine follows an exponential distribution with a mean of 4 years. A machine is changed as soon as it breaks down
The life of a machine follows an exponential distribution with a mean of 4 years. A machine is changed as soon as it breaks down or when it reaches 5 years. The price of a new machine is 10,000 soles, and the costs associated with a breakdown within 5 years are 1,500 soles.
Calculate the average cost per year: Answer
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Labor and Employment Law Text and Cases
Authors: David Twomey
15th edition
1133188281, 978-1133711841, 1133711847, 978-1285247632, 978-1133188285
