Suppose an average of 240 trucks arrive each day, there are fourfour wellhead pumps, and each pump can serve an average of 3 trucks per hour. What is the probability that exactly 10trucks will arrive between 2:00 p.m. and 4:00 p.m. on any given day? How likely is it that once a truck is in position at a wellhead, the filling time will be less than 15 minutes? The probablity that 1010 trucks will arrive between 22:00 p.m. and 44:00 p.m. is .58%. The probability that the filling time for the truck being served will be less than 15 minutes is ___%

Suppose an average of 240 trucks arrive each day, there are fourfour wellhead pumps, and each pump can serve an average of 3 trucks per hour. What is the probability that exactly 10trucks will arrive between 2:00 p.m. and 4:00 p.m. on any given day? How likely is it that once a truck is in position at a wellhead, the filling time will be less than 15 minutes? The probablity that 1010 trucks will arrive between 22:00 p.m. and 44:00 p.m. is .58%. The probability that the filling time for the truck being served will be less than 15 minutes is ___%

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter5: Probability: An Introduction To Modeling Uncertainty

Section: Chapter Questions

Problem 29P: The Siler Construction Company is about to bid on a new industrial construction project. To...

See similar textbooks

Similar questions

The Siler Construction Company is about to bid on a new industrial construction project. To formulate their bid, the company needs to estimate the time required for the project. Based on past experience, management expects that the project will require at least 24 months, and could take as long as 48 months if there are complications. The most likely scenario is that the project will require 30 months. a. Assume that the actual time for the project can be approximated using a triangular probability distribution. What is the probability that the project will take less than 30 months? b. What is the probability that the project will take between 28 and 32 months? c. To submit a competitive bid, the company believes that if the project takes more than 36 months, then the company will lose money on the project. Management does not want to bid on the project if there is greater than a 25% chance that they will lose money on this project. Should the company bid on this project?
Assume that the traffic to the web site of Smileys People, Inc., which sells customized T-shirts, follows a normal distribution, with a mean of 4.5 million visitors per day and a standard deviation of 820,000 visitors per day. a. What is the probability that the web site has fewer than 5 million visitors in a single day? b. What is the probability that the web site has 3 million or more visitors in a single day? c. What is the probability that the web site has between 3 million and 4 million visitors in a single day? d. Assume that 85% of the time, the Smileys People web servers can handle the daily web traffic volume without purchasing additional server capacity. What is the amount of web traffic that will require Smileys People to purchase additional server capacity?
The values of Alabama building contracts (in millions of dollars) for a 12-month period are as follows: Construct a time series plot. What type of pattern exists in the data? Compare a three-month moving average forecast with an exponential smoothing forecast. Use α = 0.2. Which provides the better forecasts based on MSE? What is the forecast for the next month using exponential smoothing with α = 0.2?
Assume that the operations manager of a small semi-conductor manufacturer wants to run a Simulation model to better understand the uncertainties related to cost and demand for a particular product. He assumes that the total cost per month could be anywhere between $150,000 and $200,000 with equal likelihood. He also assumes that the demand is normally distributed with a mean of 5,000 items per month and a standard deviation of 1,000. Each item is sold for $95. a) Use the random numbers in the following table to simulate the costs, revenues and profits per month. Use Random Number A to generate the costs and Random Number B to generate the revenues per month and then calculate the profit as the difference between revenues and costs. Complete the table by reporting the minimum, maximum and average profit per month according to this simulation. Trial 1 2 3 4 5 6 7 8 9 10 you b) Can Random A 0.23 you 0.04 0.14 0.07 0.03 0.67 0.26 0.03 0.83 0.32 Cost Random B 0.75 0.89 0.82 0.33 0.96 0.67…
You are evaluating a project that costs $79,000 today. The project has an inflow of $168,000 in one year and an outflow of $69,000 in two years. What are the IRRs for the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Smallest Largest IRR IRR % % What discount rate results in the maximum NPV for this project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
1. Calculate the net present value of the project. (use 3 decimal places for the PV factor) 2. To gauge the sensitivity of the project to these estimates, assume that if only 80 campers attend each week, revenues will be $2,085,000 and expenses will be $1,865,000. What is the net present value using these alternative estimates? (use 3 decimal places for the PV factor) 3. Assuming the original facts, what is the net present value if the project is actually riskier than first assumed, and a 12% discount rate is more appropriate? The present value of 1 at 12% is .104 and the present value of an annuity of 1 is 7.469.
Emergency 911 calls to a small municipality in Idaho come in at the rate of one every two minutes. Assume that the number of 911 calls is a random variable that can be described by the Poisson distribution. a. What is the expected number of 911 calls in one hour? b. What is the probability of three 911 calls in five minutes? c. What is the probability of no 911 calls during a five-minute period?
A manager is trying to decide whether to buy one machine or two. If only one machine is purchased and demand proves to be excessive, the second machine can be purchased later. Some sales would be lost, however, because the lead time for delivery of this type of machine is six months. In addition, the cost per machine will be lower if both machines are purchased at the same time. The probability of low demand is estimated to be 0.20 and that of high demand to be 0.80. The after-tax NPV of the benefits from purchasing two machines together is $70,000 if demand is low and $170,000 if demand is high. If one machine is purchased and demand is low, the NPV is $100,000. If demand is high, the manager has three options: (1) doing nothing, which has an NPV of $100,000; (2) subcontracting, with an NPV of $140,000; and (3) buying the second machine, with an NPV of $120,000. What is the best decision and what is its expected payoff? Best decision is to buy nothing…
Consider a truck terminal with 2 platforms. Empty trucks’ arrival follows Poisson process with average arrival rate of 2 trucks in an hour. Each platform can load goods with a service time of 28 minutes per truck {negative exponentially distributed}. Assume that an arriving truck can use any available platform. A. Analyze the problem using queuing theory. If you are the operator of the truck terminal, will you retain the 2 platforms, reduce it to 1, or increase it to at least 3? B. What is the average length of queue. C. What is the average time waiting. D. What is the average time spent in the system. Note: This is not an assignment question Please solve all questions
Solve the problem. A lab orders a shipment of 100 frogs each week. Prices for the weekly shipments of frogs follow the dotribution below: Price S1000 04 $12.50 SI500 045 015 Probability How much should the lab budget for next year's frog orders assurning this distribution does not change? (Hint Find the expected price and assume 52 weeks per year) O $1.211.000.0o O $11BA.00 O $11.80 O $617.30
Assume that you are 20 years old now and have $1000 in hand to invest in one business project, and you wish to have $2,000,000 in hand when you turn 60 based solely on the investment earned from this project. What is the minimum yearly earning rate (%) this project should attain in order to achieve your goal? Show calculations to justify your answer by applying the nature logarithm function - not by trial and error
A manager is trying to decide whether to buy one machine or two. If only one machine is purchased and demand proves to be excessive, the second machine can be purchased later. Some sales would be lost, however, because the lead time for delivery of this type of machine is 6 months. In addition, the cost per machine will be lower if both machines are purchased at the same time. The probability of low demand is estimated to be 0.30 and that of high demand to be 0.70. The after-tax NPV of the benefits from purchasing two machines together is $90,000 if demand is low and $170,000 if demand is high. If one machine is purchased and demand is low, the NPV is $120,000. If demand is high, the manager has three options: (1) doing nothing, which has an NPV of $120,000; (2) subcontracting, with an NPV of $140,000; and (3) buying the second machine, with an NPV of $130,000. a. Draw a decision tree for this problem. b. What is the best decision and what is its expected payoff?