Homework_Assignment_3 - Homework Assignment 3: (1) A...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Homework Assignment 3: (1) A company establishes a fund of 120 from which it wants to pay an amount, C, to any of its 20 employees who achieve a high performance level during the coming year. Each employee has a 2% chance of achieving a high performance level during the coming year, independent of any other employee. Determine the maximum value of C for which the probability is less than 1% that the fund will be inadequate to cover all payments for high performance. (Ans 60) (2) Specifications for large batches of a certain item are that no batch shall contain more than 10% defectives. The inspection procedure is to draw 100 items out of the batch and reprocess the whole batch if there are 5 or more defectives in the sample. Find an upper bound for the probability that a bad batch is erroneously accepted. (Ans 0.024) (3) The number of accidents incurred by an insured driver in a given year has a Poisson distribution with parameter 2. If an accident occurs, the probability that the damage amount exceeds the deductible is
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.
Ask a homework question - tutors are online