Economics 320: Homework 7
Continuous Distributions: Exponential
Automobile warranty claims for engine mount failure in a Troppo Malo 2000 SE are rare
at a certain dealership, occurring at a mean rate of 0.1 claims per month.
What is the probability that the dealership will wait at least 6 months until the
At least a year?
At least 6 months but not more than 1 year?
In 1982, the in-flight shutdown rate for the Garrett TFE731 turbofan engine was 6.0
shutdowns per 100,000 hours.
In 1992, with improvements, the in-flight shutdown rate
for this same engine dropped to 1.5 shutdowns per 100,000 hours.
Find the probability that at least 50,000 hours would elapse before the next in-
flight shutdown in 1982.
Calculate the same probability in 1992.
How would you characterize the degree of improvement?
Suppose the probability distribution of X is given by
Draw a sample of size three from this population and assume x