50. Applicational Materials sells several pieces of equipment used in the manufactureof silicon-based microprocessors. In 2003 the company filled 130 orders for modela55212. Suppose that the machines fail according to a Weibull law. In particular,the cumulative distribution function F(t) of the time until failure of any machineAppendix 13–A 793is given byF(t) = 1 – e-0.04751 2for all t> 0,where t is in years.a. What is the failure rate function for this piece of equipment?b. Of the original 130 sold in 2003, how many machines would one expect would notexperience a breakdown before January 2007? Assume for the sake of simplicitythat all the machines were sold on January 1, 2003.c. Using the results of part (a), estimate the fraction of machines that have survived10 years of use that will break down during the 11th year of operation [or you maycompute this directly if you did not get the answer to part (a)].

a) Calculation of function failure rate r(t) The known cumulative distribution function F(t) =…

Answered: 50. Applicational Materials sells…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Under the operating method, each rental receipt of the lessor is recorded as generally when payments are received, i.e., performance obligation is satisfied. The underlying leased asset is still recognized on the balance sheet of the lessor and In addition to , any other related costs to the lease arrangement, such as insurance, maintenance, taxes, etc. are recorded Under a sales-type lease, lessors report in the income statement, in the order of the sequence shown on the multiple-step income statement, and thus at commencement of the lease. During the lease term, is reported. on
The army is attempting to determine the optimal replacement age for a piece of field equipment. The equipment costs $280,000 to replace. The manufacturer will supply a rebate toward the next purchase that declines at a rate of 20 percent per year. Maintenance costs for the first year are estimated to be $1,000, and they increase roughly at the rate of 18 percent per year. Estimate the number of years that the army should hold the equipment before making a replacement.(Production and Operation Analysis by Steven Nahmias, 7th edition, pg.774 Problem # 24)
The Woodruff Corporation purchased a piece of equipment three years ago for $211,000. It has an asset depreciation range (ADR) midpoint of eight years. The old equipment can be sold for $89,000. A new piece of equipment can be purchased for $321,500. It also has an ADR of eight years. Assume the old and new equipment would provide the following operating gains (or losses) over the next six years. Old equ 26,250 14,750 9,500 6,000 5,500 -6,500 The firm has a 25 percent tax rate and a 9 New equipment 81,000 74,500 70,750 61,250 51,500 46,750 year 1 4 percent cost of capital. What is the net cost of the new equipment? Round your solution to two decimal places. What is the present value of incremental benefits? Round your solution to two decimal places. What is the NPV of this replacement decision? Round your solution to two decimal places.
A software firewall development company is selling a solution against distributed denial of service attacks (DDoS). the software solution looks at the IP address of all incoming packets and if it finds any address that accounts for more than 2% of the network traffic over the last hour, it installs an entry in the firewall (rule table) that blocks all packets from that IP address for 24 hours. the company is very happy and believes that this solution prevents DDOS attacks. a. is this a good solution for preventing DDOS (Yes or No)? b. give two reasons why it is a good solution or why it is not c. can this solution also be used to prevent LAND attacks? explain the answer
A design engineer is considering the number of levels of redundancy to buildinto a particular circuit. The circuit will be part of a sensitive piece of equipmentwith cost estimated at $500 per failure. Each additional level of redundancy costs$100. If each component fails at random at a rate of one failure every five years,what level of redundancy most closely equates the cost of the design with the expected failure cost of the equipment over its 10-year life cycle?
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40. Habard's, a chain of hardware stores, sells a variety of tools and home repair items. One of their best wrenches sells for $5.50. Habard's will include a three-year free replacement warranty for an additional $1.50. The wrench is expected to be sub- ject to heavy use and, based on past experience, will fail randomly at a rate of one every eight years. Is it worth purchasing the warranty?

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