Discuss teh below:
Q: McBurger Inc. wants to redesign its kitchens to improve productivity and quality Three designs. called designs K1. K2. and K3. are under consideration No matter which design is used daily production of sandwiches at a typical McBurger restaurant is for 500 sandwiches A sandwich costs $1 50 to produce Non-defective sandwiches sell, on the average, for $3 10 per sandwich Defective sandwiches cannot be sold and are scrapped The goal is to choose a design that maximizes the expected profit at a typical restaurant over a 300-day period Designs K1. K2. and K3 cost $100,000. $150.000. and $170 000 respectively.
Under design K1. there is a 80 chance that 90 out of each 100 sandwiches are non-defective and a 20 chance that 70 out of each 100 sandwiches ere non-defective
Under design K2. there is a 85 chance that 90 out of each 100 sandwiches are non-defective and a 15 chance that 75 out of each 100 sandwiches are non-defective
Under design K3 there is a 90 chance that 95 out of each 100 sandwiches arc non defective and a 10 chance that 80 out of each 100 sandwiches are non-defective