Machine Maintenance. A machinecan bein twostates: "In adjustment "or "out of adjustment". If it is in adjustment, themachine earns revenue at therate of $200 per day. If themachine is out of...

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Extracted text: Machine Maintenance. A machinecan bein twostates: "In adjustment "or "out of adjustment". If it is in adjustment, themachine earns revenue at therate of $200 per day. If themachine is out of adjustment at the start of a day, it is repairedat a cost of $100, which then places it in adjustment. Therepairtimerequires a full day, during which no revenue is earned. Thetransition matrixisgiven below. In adjustment Out of adjustment In adjustment Out of adjustment a. What fraction of timein thelong run can themachine be expectedbe in adjustment? Out of adjustment? b. Computethe expectedlong-run daily revenue earnedby themachine. 0.70 0.30