# Option 2 He can call in a specialist local engineering company. They will charge \$20 000 to carry out the repair and they estimate

A large machine in a factory has broken down and the company that owns the factory will incur costs of \$3200 for each day the machine is out of action. The factory’s engineer has three immediate options:

Option 1

He can return the machine to the supplier who has agreed to collect, repair and return it free of charge, but not to compensate the company for any losses they might incur while the repair is being carried out. The supplier will not agree to repair the machine if any other person has previously attempted to repair it. If the machine is returned, the supplier will guarantee to return it in working order in 10 days’ time.

Option 2

He can call in a specialist local engineering company. They will charge \$20 000 to carry out the repair and they estimate that there is a 30% chance that they will be able to return the machine to working order in 2 days. There is, however, a 70% chance that repairs will take 4 days.

Option 3

He can attempt to carry out the repair work himself, and he estimates that there is a 50% chance that he could mend the machine in 5 days. However, if at the end of 5 days the attempted repair has not been successful he will have to decide whether to call in the local engineering company or to make a second attempt at repair by investigating a different part of the mechanism. This would take 2 further days, and he estimates that there is a 25% chance that this second attempt would be successful. If he fails at the second attempt, he will have no alternative other than to call in the local engineering company. It can be assumed that the probability distribution for the local engineering company’s repair time will be unaffected by any work which the factory engineer has carried out.

Assuming that the engineer’s objective is to minimize expected costs, what course(s

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.