Which engineer would you guess did the work?

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter7: Systems Of Equations And Inequalities
Section7.1: Systems Of Linear Equations: Two Variables
Problem 2SE: If you are performing a break-even analysis for a business and their cost and revenue equations are...
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You manage a systems engineering firm, and you often get projects by bidding on them. An
important aspect of bidding on such projects is estimating the amount to bid: a bid that’s too
high may mean your firm isn’t awarded the project, but a bid that’s too low may mean you are
awarded the project and lose money in the process. You have two cost engineers that estimate
project costs. Engineer 1 estimates about 70% of bids while Engineer 2 estimates the rest. It is
known that the error rate for Engineer 1 is such that 0.02 is the probability of an error occurs
when she does the cost estimation, whereas the probability of an error in the estimate of
Engineer 2 is 0.04. Suppose a bid arrives and a serious error occurs in estimating cost. Which
engineer would you guess did the work?  

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