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Rain delays in pouring concrete. A contractor is planning to pour concrete on Monday morning, but he has heard a weather forecast that rain is expected. The probabilities of rain are 0.8 on Monday, 0.6 on Tuesday, 0.3 on Wednesday, and 0.1 on Thursday and each succeeding day for five days.
If it rains on the day that concrete is poured, there will be an immediate $10,000 damage cost and a delay of five days in the construction schedule. For every day of delay, $4000 is lost. The delay cost applies even if it is the contractor who decides to delay the pour.
Determine on which day the concrete should be poured. What is the associated expected cost?
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