Msci609_MT_Fall_2010_Solution

Msci609_MT_Fall_2010 - UNIVERSITY OF WATERLOO MANAGEMENT ENGINEERING PROGRAM DEPARTMENT OF MANAGEMENT SCIENCES MSCI 609 Quantitative data Analysis

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Unformatted text preview: UNIVERSITY OF WATERLOO MANAGEMENT ENGINEERING PROGRAM DEPARTMENT OF MANAGEMENT SCIENCES MSCI 609 Quantitative data Analysis for Management Sciences Fall 2010 Midterm Examination – 90 minutes Name and ID number:______________________________________________ Question 1: ( 10 marks ) An insurance company offers its policy holders a number of different premium payment options. For a randomly selected policyholder, let X be the number of months between successive payments. The cumulative distribution function of X is: 1 0.4 1 3 ( ) 0.6 3 5 0.8 5 7 1.0 7 if x if x F x if x if x if x a) Find the probability mass function of X ? ( 5 marks ) b) Compute (4 7) P X . ( 5 marks ) Answer: Question 2: ( 15 marks ) Suppose that airplane engines operate independently and fail, when in flight, with probability equal to 0.4. Assuming that a plane makes a safe flight if at least one-half of its engines run (i.e., remain operative), determine whether a 4-engine plane or a 2-engine makes a safe flight if at least one-half of its engines run (i....
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This note was uploaded on 01/12/2012 for the course MSCI 609 taught by Professor Almehdawe,eman during the Fall '10 term at Waterloo.

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Msci609_MT_Fall_2010 - UNIVERSITY OF WATERLOO MANAGEMENT ENGINEERING PROGRAM DEPARTMENT OF MANAGEMENT SCIENCES MSCI 609 Quantitative data Analysis

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