# 320_hw7_ans - Economics 320: Homework 7 Continuous...

320_hw7_ans
Download Document
Showing pages : 1 of 3
This preview has blurred sections. Sign up to view the full version!
Economics 320: Homework 7 Continuous Distributions: Exponential Sampling Distributions EXPONENTIAL DISTRIBUTION: 1. 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. a. What is the probability that the dealership will wait at least 6 months until the next claim? i. λ is the mean number of occurrences per time unit ; so λ = 0.1 ii. F(x) = 1 - x e λ - for x > 0. iii. P(x > 6) = x e - = 6 * 1 . 0 - e = 0.5488 b. At least a year? i. P(x > 12) = x e - = 12 * 1 . 0 - e = 0.3012 c. At least 6 months but not more than 1 year? i. P(6 < x < 12) = (1 - 12 * 1 . 0 - e ) - (1 - 6 * 1 . 0 - e ) = 0.2476 2. 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. a. Find the probability that at least 50,000 hours would elapse before the next in- flight shutdown in 1982. i. λ is the mean number of occurrences per time unit ; so λ(1982) = 6 and λ(1992) = 1.5 ii. for 1982: P(x > ½) = 5 . 0 * 6 - e = 0.0498 b. Calculate the same probability in 1992. i.
This is the end of the preview. Sign up to access the rest of the document.

## Create a FREE account now to get started. Log In

The email address you entered is not valid. The email address you provided is already in use.
Your username must be at least 5 characters. Your username must consist of only alphanumeric characters. Your username must contain at least one letter. Your username contains inappropriate language. Another user has already claimed this username.
Your password must be at least 6 characters in length.
{[ \$select.selected.label ]} Please select a valid school.
By creating an account you agree to our Privacy Policy, Terms of Use, and Honor Code.
Create my FREE account Processing...
or
Sign Up with Facebook

We will never post anything without your permission.

Already on Course Hero? Log In