Answer:
$1300
Step-by-step explanation:
The extruder yields a revenue of $200per hour
Y denotes the number of breakdown per day.
The daily revenue generated is given as
R = 1600 - 50Y^2
We have an average of 2 breakdown per day
Lamda = 2
Represent lamda as β
E(Y) = β
E(Y(Y-1)) = β^2
E(Y^2) = E[Y(Y-1)] + E(Y)
= β^2 + β
E(R) = E(1600 - 50Y^2)
= 1600 - 50E(Y^2)
= 1600 - 50(β^2 +β)
Recall that β = lamda = 2
= 1600 - 50(2^2 + 2)
= 1600 - 50(4+2)
= 1600 - 50(6)
= 1600 - 300
= 1300
$1300
The expected daily revenue of the extruder is $1300
