2.69 It is common in many industrial areas to use a filling machine to fill boxes full of product. This occurs in the food industry as well as other areas in which the product is used in the home, for example, detergent. These machines are not perfect, and indeed they may A, fill to specification, B, underfill, and C, overfill. Generally, the practice of underfilling is that which one hopes to avoid. Let P(B) = 0.001 while P(A) = 0.990. (a) Give P(C). (b) What is the probability that the machine does not underfill? (c) What is the probability that the machine either overfills or underfills?

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2.69 It is common in many industrial areas to use
a filling machine to fill boxes full of product. This
occurs in the food industry as well as other areas in
which the product is used in the home, for example,
detergent. These machines are not perfect, and indeed
they may A, fill to specification, B, underfill, and C,
overfill. Generally, the practice of underfilling is that
which one hopes to avoid. Let P(B) = 0.001 while
P(A) = 0.990.
(a) Give P(C).
(b) What is the probability that the machine does not
underfill?
(c) What is the probability that the machine either
overfills or underfills?
2.70 Consider the situation of Exercise 2.69. Suppose
50,000 boxes of detergent are produced per week and
suppose also that those underfilled are "sent back,"
with customers requesting reimbursement of the pur-
chase price. Suppose also that the cost of production
is known to be $4.00 per box while the purchase price
is $4.50 per box.
(a) What is the weekly profit under the condition of no
defective boxes?
(b) What is the loss in profit expected due to under-
filling?
Transcribed Image Text:2.69 It is common in many industrial areas to use a filling machine to fill boxes full of product. This occurs in the food industry as well as other areas in which the product is used in the home, for example, detergent. These machines are not perfect, and indeed they may A, fill to specification, B, underfill, and C, overfill. Generally, the practice of underfilling is that which one hopes to avoid. Let P(B) = 0.001 while P(A) = 0.990. (a) Give P(C). (b) What is the probability that the machine does not underfill? (c) What is the probability that the machine either overfills or underfills? 2.70 Consider the situation of Exercise 2.69. Suppose 50,000 boxes of detergent are produced per week and suppose also that those underfilled are "sent back," with customers requesting reimbursement of the pur- chase price. Suppose also that the cost of production is known to be $4.00 per box while the purchase price is $4.50 per box. (a) What is the weekly profit under the condition of no defective boxes? (b) What is the loss in profit expected due to under- filling?
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