quiz2BS-M1_f10 - Econ 506, Section M1 Quiz 2B, Sept. 30,...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 506, Section M1 NAME:_ SOLUTION_ _____ Quiz 2B, Sept. 30, 2010 Total points: 50 I. The probability that you find a defective machine in a warehouse is 0.2. A company selects the machines randomly. a. (4 points) the company repairs the defective ones at a cost of $50 each. Find the mean and variance of the total repair cost, if the company selects 5 machines. let Y = # of defective machine selected in 5 machines E (50 Y ) = 50 E ( Y ) = 50[5 ( 29 10 2 ] = $50. Furthermore, V (50 Y ) = 2500 V ( Y ) = 2500[5 ( 29 10 8 10 2 ] = 2000. b. (5 points) what is the probability that the third defective machine is found on the selection of the fifth machine? let Y = # of machine selected until third defective is found. Therefore, Y is negative binomial where r = 3 and p = 0.4. Then, P ( Y = 5) = ( 29 ( 29 083 . 6 . 0 4 . 0 2 4 3 3 = . II. Let Y be a continuous random variable, with the following probability density function: = elsewhere
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

quiz2BS-M1_f10 - Econ 506, Section M1 Quiz 2B, Sept. 30,...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online