IND ENG 161 Study Guide - Final Guide: Poisson Point Process, Exponential Distribution, Markov Chain

• School: Berkeley
• Department: Industrial Engineering And Operations Research
• Course: IND ENG 161
• Professor: All

Document Summary

6 questions, total score is 150: [5, 5, 5] a machine"s revenue generating potential depends on its condition. Assume that there are 5 possible operating modes, {broken, poor, good, very good and excellent}, and that a new machine is in an excellent condition to start with, and deteriorates over time (to. Very good , and then to good , and then to poor , before it breaks). Assume that the time between changes in condition are exponential with rate = 0. 5 per hour (i. e. mean of 2 hours), and that the machine continues generating revenue until it is broken . The machine generates revenue at the rate of per hour when its condition is very good or excellent , and at per hour when its condition is good . It drops to per hour when its condition is.