Question

A construction company employs three sales engineers. Engineers 1,2, and 3 estimated the costs of 20%,...

A construction company employs three sales engineers. Engineers 1,2, and 3 estimated the costs of 20%, 30% and 50%, respectively, of all jobs bid on by the company. For i=1,2,3, define Ei to be the event that a job is estimated by engineer i. The following probabilities describe the rates at which engineers make serious errors in estimating costs: P(error|E1)=0.03 P(error|E2)=0.04 P(error|E3)=0.01 (Give answers to three decimal places.)

a) If a particular bid results in a serious error in estimating job cost, what is the probability that the error was made by engineer 1?

b) If a particular bid results in a serious error in estimating job cost, what is the probability that the error was made by engineer 2?

c) If a particular bid results in a serious error in estimating job cost, what is the probability that the error was made by engineer 3?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Date Page Given 1 Ezila gob is estimated by engineen 13 Ez : { À job is estimated by engineer 23 Ezu Ş A job is estimated byDate Page pl Bi) PLAIBI) ALBO PLATB.) *PlBx) platby) + + PlBkJ PLATEK) Bayes rule say that if we have kevent which are utualProbability that the ever was made by E 1=0.26= ba Plezl ever) PLE2) Pl error E2 PLEJ Plerror E1) + PLE2) Pleror / ET +PLE3)

Add a comment
Know the answer?
Add Answer to:
A construction company employs three sales engineers. Engineers 1,2, and 3 estimated the costs of 20%,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Western Components, Inc. manufactures a variety of pinions, gears and other component parts used by companies...

    Western Components, Inc. manufactures a variety of pinions, gears and other component parts used by companies around the world. Their major customer is a large west-coast aircraft manufacturer. Currently, Western has substantial unused capacity due to a downturn in production for this major customer. This in turn has caused a significant drop in profits at Western since their workers are highly skilled and Western does not want to reduce head-count during this downturn which they expect to be temporary. Sally...

  • Zando Pharmaceuticals is an affiliate of the German-based Heisenberg Corporation, which employs 40,000 worldwide. Zando’s St....

    Zando Pharmaceuticals is an affiliate of the German-based Heisenberg Corporation, which employs 40,000 worldwide. Zando’s St. Louis facility houses the U.S. corporate headquarters and Research and Development (R&D). It produces 30 products, using 28 different batch processes. The facility has 2,000 employees on-site. In recent years, Zando’s profitability has suffered, which can be attributed to increased competition, customer dissatisfaction, and regulatory pressures. Luis Alvarado, president of Zando, called a meeting to consider ways to improve profitability. He labeled the meeting...

  • Zando Pharmaceuticals is an affiliate of the German-based Heisenberg Corporation, which employs 40,000 worldwide. Zando’s St....

    Zando Pharmaceuticals is an affiliate of the German-based Heisenberg Corporation, which employs 40,000 worldwide. Zando’s St. Louis facility houses the U.S. corporate headquarters and Research and Development (R&D). It produces 30 products, using 28 different batch processes. The facility has 2,000 employees on-site. In recent years, Zando’s profitability has suffered, which can be attributed to increased competition, customer dissatisfaction, and regulatory pressures. Luis Alvarado, president of Zando, called a meeting to consider ways to improve profitability. He labeled the meeting...

  • TORENTO CONSTRUCTION: ETHICAL CONTRACTING On December 27, 2010, Cary Holmes, manager of the Supply Chain Management...

    TORENTO CONSTRUCTION: ETHICAL CONTRACTING On December 27, 2010, Cary Holmes, manager of the Supply Chain Management (SCM) group at Torento Construction Inc. (NCG), was in his office in Torento, Ontario, trying to organize the thoughts running through his head as a result of a recent bidding to save operating costs at NCG. There was no problem in terms of the final outcome; in fact, the bid was going to result in cost savings of 25 per cent, which was exactly...

  • The following ANOVA model is for a multiple regression model with two independent variables: Degrees of            Sum of                 Mean Source           Freedom            Squares              ...

    The following ANOVA model is for a multiple regression model with two independent variables: Degrees of            Sum of                 Mean Source           Freedom            Squares                Squares       F       Regression            2                    60 Error                   18                 120 Total                   20                 180 Determine the Regression Mean Square (MSR): Determine the Mean Square Error (MSE): Compute the overall Fstat test statistic. Is the Fstat significant at the 0.05 level? A linear regression was run on auto sales relative to consumer income. The Regression Sum of Squares (SSR) was 360 and...

  • 8. Which of the following accounts has a normal debit balance? a. Accounts Payable b. Sales...

    8. Which of the following accounts has a normal debit balance? a. Accounts Payable b. Sales Returns and Allowances c. Sales d. Interest Revenue 9. Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a a. debit to Sales b. debit to Merchandise Inventory c. credit to Merchandise Inventory d. credit to Sales 10. A retailer purchases merchandise with a catalog list price of $15,000. The retailer receives a 30%...

  • Respond to the following prompt with your original thoughts, at least 200 words, utilize academic sources...

    Respond to the following prompt with your original thoughts, at least 200 words, utilize academic sources to support your point. Is the WACC an estimation of the real cost of capital(explicit cost of money) or an opportunity cost tied to a particular decision based on market required returns? You use the following points to discuss this question or utilize your own points. 1. Projects of different levels of risk should have different associated discount rates. 2. The WACC reflects the...

  • I have this case study to solve. i want to ask which type of case study...

    I have this case study to solve. i want to ask which type of case study in this like problem, evaluation or decision? if its decision then what are the criterias and all? Stardust Petroleum Sendirian Berhad: how to inculcate the pro-active safety culture? Farzana Quoquab, Nomahaza Mahadi, Taram Satiraksa Wan Abdullah and Jihad Mohammad Coming together is a beginning; keeping together is progress; working together is success. - Henry Ford The beginning Stardust was established in 2013 as a...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT