# 07 STAT HWA a - Dr. V.R. Bencivenga Economics 329 PRACTICE...

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

Dr. V.R. Bencivenga Economics 329 PRACTICE ASSIGNMENT #7A: RIGHT ANSWERS 1.a. High speed: ) 00000676 . , 4 ( N ~ X i . Note that . 0026 . 00000676 . ) 92 . 1 Z 92 . 1 ( P 0026 . 4 005 . 4 X 0026 . 4 995 . 3 P ) 005 . 4 X 3995 (. P i i 9452 . 1 ) 9726 (. 2 1 ) 92 . 1 ( F 2 ) 92 . 1 ( F ) 92 . 1 ( F P(unit needs repair if produced at high speed) = 1 .9452 = .0548 Low speed: ) 00000361 . , 4 ( N ~ X i . Note that 0019 . 00000361 . . ) 63 . 2 Z 63 . 2 ( P 0019 . 4 005 . 4 X 0019 . 4 995 . 3 P ) 005 . 4 X 3995 (. P i i 9914 . 1 ) 9957 (. 2 1 ) 63 . 2 ( F 2 ) 63 . 2 ( F ) 63 . 2 ( F P(unit needs repair if produced at low speed) = 1 .9914 = .0086 b. High speed: 03 . 21 ) 40 . 10 ( 0548 . 45 . 20 ] C [ E Low speed: 84 . 20 ) 40 . 10 ( 0086 . 75 . 20 ] C [ E Producing at low speed has a lower expected cost. 2. i X = number of arrests in week i ) 19 , 166 ( N i.i.d. n ..., , 1 i , X 2 i n = 52 52 19 , 166 N ~ X 2 because the population is normal 0643 . 9357 . 1 ) 52 . 1 ( F 1 ) 52 . 1 Z ( P 52 19 166 170 n X P ) 170 X ( P 3. i X = length of time to diagnose electrical problem i (in minutes) i X are i.i.d. with ] X [ E i and 2 i 2 ) X ( Var n 2 , N ~ X 2 by the CLT provided n is large

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 02/26/2012 for the course ECONOMICS 329 taught by Professor Bencivenga during the Spring '12 term at University of Texas at Austin.

### Page1 / 4

07 STAT HWA a - Dr. V.R. Bencivenga Economics 329 PRACTICE...

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

View Full Document
Ask a homework question - tutors are online