Indifference value of the item with a free replacement warranty. Concept Introduction: Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate. Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

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Answer 1

Question

Chapter 13.8, Problem 41P

a

Summary Introduction

Interpretation:

Indifference value of the item with a free replacement warranty.

Concept Introduction:

Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate.

Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

b

Summary Introduction

Interpretation:

Whether the value of warranty larger or smaller than in exponential case.

Concept Introduction:

Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate.

Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

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9.19 In bottle production, bubbles that appear in the glass are considered defects. Any botle that has more than two bubbles is elassified as "nonconforming" and is sent to recycling Suppose that a particular production line produces bottles with bubbles at a rate of 1. bubbles per bottle. Bubbles occur independently of one another. a What is the probability that a randomly chosen bottle is nonconfornming? b Bottles are packed in cases of 12. An inspector chooses one bottle from each case and examines it for defects. If it is nonconforming, she inspects the entire case, re placing nonconforming bottles with good ones. This process is called rectification If the chosen bottle conforms (has two or fewer bubbles), then she passes the cuse. In total, 20 cases are produced. What is the probability that at least 18 of them pass! c What is the expected number of nonconforming bottles in the 20 cases after they have been inspected and rectified using the scheme described in part b?

Large-scale integrated (LSI) circuit chips are made in one department of an electronics firm. These chips are incorporated into analog devices that are then encased in epoxy. The yield is not particularly good for LSI manufacture, so the AQL specified by that department is 17% while the LTPD acceptable by the assembly department is 47%. Assume the company is willing to accept a consumer's risk of 10 percent and a producer's risk of 5 percent. a. Find the sample size. Use Exhibit 10.16. Note: If the exact value of the computed LTPD/AOQ ratio does not appear in Exhibit 10.16, use the next higher ratio. (Round up your answer to the next whole number.) Sample size b. How would you tell someone to do the test? Randomly sample LSI using the sample size from part a, the lot if more than defective.

A producer of pocket calculators estimates that the calculators fail at a rate of one every five years. The calculators are sold for $25 each with a one-year free replacement warranty but can be purchased from an unregistered mail-order source for $18.50 without the warranty. What length of period of the warranty equates the replacement costs of the calculator with and without the warranty?

Answer 2

Question

Chapter 13.8, Problem 41P

a

Summary Introduction

Interpretation:

Indifference value of the item with a free replacement warranty.

Concept Introduction:

Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate.

Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

b

Summary Introduction

Interpretation:

Whether the value of warranty larger or smaller than in exponential case.

Concept Introduction:

Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate.

Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

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Answer 3

Question

Chapter 13.8, Problem 41P

a

Summary Introduction

Interpretation:

Indifference value of the item with a free replacement warranty.

Concept Introduction:

Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate.

Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

b

Summary Introduction

Interpretation:

Whether the value of warranty larger or smaller than in exponential case.

Concept Introduction:

Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate.

Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

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Answer 4

Question

Chapter 13.8, Problem 41P

a

Summary Introduction

Interpretation:

Indifference value of the item with a free replacement warranty.

Concept Introduction:

Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate.

Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

b

Summary Introduction

Interpretation:

Whether the value of warranty larger or smaller than in exponential case.

Concept Introduction:

Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate.

Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

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Answer 5

Chapter 13.8, Problem 41P

a

Summary Introduction

Interpretation:

Indifference value of the item with a free replacement warranty.

Concept Introduction:

Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate.

Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

b

Summary Introduction

Interpretation:

Whether the value of warranty larger or smaller than in exponential case.

Concept Introduction:

Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate.

Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

Answer 6

Chapter 13.8, Problem 41P

a

Summary Introduction

Interpretation:

Indifference value of the item with a free replacement warranty.

Concept Introduction:

Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate.

Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

Answer 7

Chapter 13.8, Problem 41P

a

Summary Introduction

Interpretation:

Indifference value of the item with a free replacement warranty.

Concept Introduction:

Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate.

Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

Answer 8

b

Summary Introduction

Interpretation:

Whether the value of warranty larger or smaller than in exponential case.

Concept Introduction:

Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate.

Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

Answer 9

b

Summary Introduction

Interpretation:

Whether the value of warranty larger or smaller than in exponential case.

Concept Introduction:

Exponential distribution is a probabilitydistribution which finds probability of an event to occur between independent constant rate and continous rate.

Probability is the likelihood of an event to occur.. It ranges between 0 to 1. O implies no chance of occurance while 1 implies 100% chance of occurance.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 13.1 - Prob. 3P Ch. 13.1 - Prob. 4P Ch. 13.1 - Prob. 5P Ch. 13.1 - Prob. 6P Ch. 13.2 - Prob. 7P Ch. 13.2 - Prob. 9P Ch. 13.3 - Prob. 13P Ch. 13.3 - Prob. 14P Ch. 13.4 - Prob. 15P Ch. 13.4 - Prob. 16P

Solution Summary: The author explains that the value of warranty is larger or smaller than in exponential case, since the exponential distribution is memoryless.

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