A company produces a type of pump used in offshore installations. All ready-made pumps are functionally tested, and one or more faults are found on some of the pumps. Based on long-term experience, it is known that the number of faults found per pump, X, has the probability distribution given in the table below X 0 1 2 3 P(X=x) 0.92 0.05 0.02 0.01 a) What is the probability that a pump has at least one fault? Calculate E(X) and Var(X). The cost associated with testing and correcting errors per pump can be expressed as K = 1500+2000X. Find E(K) and SD(K).

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A company produces a type of pump used in offshore installations. All ready-made pumps are
functionally tested, and one or more faults are found on some of the pumps. Based on long-term
experience, it is known that the number of faults found per pump, X, has the probability distribution
given in the table below
X
0
1 2 3
P(X=x)
0.92 0.05 0.02 0.01
a) What is the probability that a pump has at least one fault?
Calculate E(X) and Var(X).
The cost associated with testing and correcting errors per pump can be expressed as K =
1500+2000X.
Find E(K) and SD(K).
Transcribed Image Text:A company produces a type of pump used in offshore installations. All ready-made pumps are functionally tested, and one or more faults are found on some of the pumps. Based on long-term experience, it is known that the number of faults found per pump, X, has the probability distribution given in the table below X 0 1 2 3 P(X=x) 0.92 0.05 0.02 0.01 a) What is the probability that a pump has at least one fault? Calculate E(X) and Var(X). The cost associated with testing and correcting errors per pump can be expressed as K = 1500+2000X. Find E(K) and SD(K).
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