View the step-by-step solution to:

A new integrated computer system is to be installed worldwide for a major corporation. Bids on this project are being solicited, and the contract...

A new integrated computer system is to be installed worldwide for a major corporation. Bids on this project are being solicited, and the contract will be awarded to one of the bidders. As a part of the proposal for this project, bidders must specify how long the project will take. There will be a significant penalty for finishing late. One potential contractor determines that the average time to complete a project of this type is 40 weeks with a standard deviation of 5 weeks. The time required to complete this project is assumed to be normally distributed.
(a) If the due date of this project is set at 40 weeks, what is the probability that the contractor will have to pay a penalty (i.e., the project will not be finished on schedule)?
(b) If the due date of this project is set at 43 weeks, what is the probability that the contractor will have to pay a penalty (i.e., the project will not be finished on schedule)?
(c) If the bidder wishes to set the due date in the proposal so that there is only a 5% chance of being late (and consequently only a 5% chance of having to pay a penalty), what due date should be set?
Sign up to view the entire interaction

Top Answer

The answer to this question... View the full answer

8439169.xlsx

A n ew integrated computer system is to be installed worldwide for a major corporation. Bids on this project are being solicited, and the contract will be awarded to one of the bidders. As a part...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online