At a car factory, two jobs are performed at the specified costs given in the table. Each job can be performed at two different speeds: a) Calculate the expected value (mean) of the cost for different speeds and indicate which option (job couple of Job I and Job II) is the most economical. b) Due to a new situation that comes up, a total cost reduction of 70000 (i.e. -70000) will be offered if Job II is completed in 2 days. Considering this new situation, will the most economical option change?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
At a car factory, two jobs are performed at the specified costs given in the table. Each job can be performed
at two different speeds:
a) Calculate the
couple of Job I and Job II) is the most economical.
b) Due to a new situation that comes up, a total cost reduction of 70000 (i.e. -70000) will be offered if
Job II is completed in 2 days. Considering this new situation, will the most economical option change?
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