Calculate the average profit, Basic Statistics

A machine is used for machining of a manufactured product. At the beginning of each business day inspection reveals the machine's condition. There are three possible states: 0, 1 and 2. In state 0, the machine is unproductive and must be repaired. The repair costs $ 500 per day and can last more than a day. When the repair is completed, the machine is in perfect working condition (condition 2) and can operate at full capacity, which refers income of $ 400 per day. When the machine is in state 1, it can be used only at half speed, which yields $ 200 per day. In these conditions, assumes that the machine state changes according to a Markov chain with the probability following transition:

                                                0.2          0              0.8

                                                0.4          0.6          0

                                                0.1          0.2          0.7

(A) On average, how many consecutive days the machine is in state 0 ?

(B) On average, what percentage of days the machine is productive?

(C) Calculate the average profit per day.

 

Posted Date: 3/26/2013 8:01:27 AM | Location : United States







Related Discussions:- Calculate the average profit, Assignment Help, Ask Question on Calculate the average profit, Get Answer, Expert's Help, Calculate the average profit Discussions

Write discussion on Calculate the average profit
Your posts are moderated
Related Questions

The square of the sample correlation coefficient is typically denoted r2 and called the coefficient of determination. It estimates the fraction of the variance in Y that is explain

Less than 5 yrs 22 5-10 18 10-20 5 20-30 4 More than 30 1

What are the applications of measure of dispersion in civil engineering?

suggestions to improve accounting concepts

October Transactions Date Transaction Description Oct. 1 Began business by making a deposit in a company bank account of $12,000, in exchange for 1,200 shares of $10 par value com

Why do Jovian planets have rings? - Ring particles cannot have lasted for billions of years so the particles we see today must have been created recently. - New ring particles

Marginal costing and Break-even analysis According to C.I.M.A. Manchester, "Marginal Price means the quantity at any given variety of result by which get worse scenario costs ar

Mention the characteristics of Statistics. Explain any two applications of Statistics