IEOR 3106: Introduction to Operations Research: Stochastic Models SOLUTIONS to Final Exam, Sunday, December 16, 2012
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چکیده
Mr. Brown has a policy that he buys a new car as soon as his old one breaks down or reaches the age of 6 years, whichever occurs first. Suppose that the successive lifetimes (time until they breakdown) of the cars he buys can be regarded as independent and identically distributed random variables, each uniformly distributed on the interval [0, 10] years. Suppose that each new car costs $20, 000. Suppose that Mr. Brown incurs an additional random cost each time the car breaks down. Suppose that this additional breakdown cost is exponentially distributed with mean $4, 000. Suppose that he can trade his car in after it is 6 years old if it does not break down, and only if it does not break down, and receive a random dollar value uniformly distributed in the interval [1000, 3000].
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