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Metalco is in the process of hiring a repairperson for a 10-machine shop. Two candidates are...

Metalco is in the process of hiring a repairperson for a 10-machine shop. Two candidates are under

consideration. The first candidate can carry our repairs at the rate of 5 machines per hour and earns

$15 an hour. The second candidate, being more skilled, receives $20 an hour and can repair 8 machines

per hour. Metalco estimates that each broken machine will incur a cost of $50 an hour because of lost

production. Assuming that machines break down according to a Poisson distribution with a mean of 3

per hour and that repair time is exponential, which repairperson should be hired?

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