How many trucks should the boardsign a long term contract

Reference no: EM132695499

The village board of SnowCity, must contract for plowing services. Weekly snowfall during is normallydistributed with a mean of 10 inches and a standard deviation of 3 inches. The board is considering a longterm contract with a snow removal company which charges $1000 per truck per week contracted. Thus, ifthe board signs a long-term contract for 3 trucks, they pay $3,000 per week whether the trucks are used ornot. Each truck is capable of clearing 2 inches of snow per week. If snowfall in a week exceeds the quantitythat can be handled by the trucks included in the long term contract, the board must make emergencyarrangements at a cost of $2,500 for each additional truck brought in.

Problem 1: For how many trucks should the boardsign a long term contract?

Reference no: EM132695499

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