Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The lifetime of a machine is an Erlang random variable with parameters k = 2 and =0.2 (per day). When the machine fails, it is

The lifetime of a machine is an Erlang random variable with parameters k = 2 and =0.2 (per day). When the machine fails, it is repaired. The repair times are Exp() with mean 1 day. Suppose the repair costs $10 per hour. The machine produces revenues at a rate of $200 per day when it is working. Compute the long run net revenue per day

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Stochastic Calculus And Applications

Authors: Samuel N Cohen, Robert J Elliott

2nd Edition

1493928678, 9781493928675

More Books

Students also viewed these Mathematics questions