Question

Your company decided to purchase the bricks needed for a construction project from “Bricks of New York”, which is a well-known brick and mortar company in the area. Generally, the truck containing bricks arrive at the site after 8am in the morning. In the event that the truck arrives after 9am, there is a labor surcharge of $1000 incurred each time. You will need 40 days of such truck delivery from January 1 to February 9 during each year of the 4-year duration of the construction. Data on the previous arrival times (minutes after 8am) of the trucks in that area is as follows: 11.96, 5.03, 67.40, 16.07, 31.50, 7.73, 11.10, 22.38 Your boss is interested in knowing the distribution of the addition surcharge under assumptions and uncertainties (uncertainty in parameter estimation, measurement errors and model uncertainties). Develop the probability distribution of the additional surcharge that the company could incur during the course of the project if you decide to buy the bricks from this company. Please write r studio code for exponential distribution for data above.

Answer 1