A manufacturer of exercise equipment knows that 15% of their products are defective. They also know that only 35% of their customers will actually use the equipment in the first year after it is purchased. If there is a one-year warranty on the equipment, what proportion of the customers will actually make a valid warranty claim

A manufacturer of exercise equipment knows that 15% of their products are defective. They also know that only 35% of their customers will actually use the equipment in the first year after it is purchased. If there is a one-year warranty on the equipment, what proportion of the customers will actually make a valid warranty claim

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 80 stocks traded on the NYSE that day showed that 11 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of α=0.02α=0.02.What is the test statistic for this sample? (Report answer accurate to three decimal places.)test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.)p-value = The p-value is... less than (or equal to) αα greater than αα This test statistic leads to a decision to... reject the null accept the null fail…
Urgent Care is organized in to 4 department: Registration (Reg), Waiting (Wait), Treatment (Treat), and Payment & Check Out (PCO). For all patients who receive treatment at the Urgent Care, the expected time (in minutes) per patient needed in each of the departments: Reg. Wait. Treatment PCO 10 15 30 3 or 2 All patients enter and register at the registration cubicle. After registering, 10% of the patients walk out without waiting and seeing the physician for treatment. However, still they have to walk through the PCO & return the admissions slip. These patients need only 2 min at PCO (instead of 3 min). No waiting and treatment time for patients who walk out. Simulate the total time spent in the Urgent care for the first patient. Total time spent by Patient 1 at the Urgent Care is . RN: 0.05 Hint: Need to check (simulate) whether a patient, after registering( 10 min), walks out or not. O 2 min O 12 min O 10 min O None of these
2. Rini prefers red M&Ms over any other color. The Mars Company, makers of M&Ms, claims that 20% of all M&Ms are red. Rini plans to remove M&Ms from her bag one at a time until she gets her first red. How many M&Ms should she expect to remove?
2. The following situation arises in various situations such as when you are a homeowner. Suppose you face a random loss L in the coming year. You can purchase insurance against the loss L; the premium is double what the insurance company expects to pay out. (This price is in the ballpark of what reputable insurance companies charge. When you're offered an extended warranty or similar product, e.g., when purchasing an electronic device, the premium can be worse; e.g., 15 or 20 times your expected loss.) Let's assume that your loss L will be $1000 with probability 1/10, $100,000 with probability one in ten thousand, and $1,000,000 with probability one in a million; otherwise, your loss is 0. (a) If you purchase full coverage against the loss L, what is your premium? (b) Usually, the expensive part of insurance is insuring against small losses, and I've selected the p.m.f. of L to reflect this behavior. Assume that a loss of $5,000 would be painful to you and much more than $5,000 would…
To boost holiday sales, Ginsberg jewelry store is advertising the following promotion: “If more than five inches of snow fall in the first three days of the year (January 1 through January 3), all purchases made between Thanksgiving and Christmas are free!” Based on historical sales records as well as experience with past promotions, the store manager believes that the total holiday sales between Thanksgiving and Christmas could range anywhere between $200,000 and $400,000 but is unsure of anything more specific. Ginsberg has collected data on snowfall from December 16 to January 18 for the past several winters in the file Ginsberg. Construct a simulation model to assess potential refund amounts so that Ginsberg can evaluate the option of purchasing an insurance policy to cover potential losses. What is the probability that Ginsberg will have to refund sales? What is the average refund? Why is this a poor measure to use to assess risk? In the cases when snowfall exceeds 5…
A hospital wants to estimate the percentage of admitted patients who receive Medicare benefits. If we want to estimate that percentage based on examination of randomly selected patient payment records, how many patient records must be examined in order to be 90% confident that we are within four percentage points of the population percentage?
A gerontologist investigating various aspects of aging process wanted to see whether staying “ lean and mean, “ that is, being under normal body inbred line to one of three diets: (1) unlimited access to food, (2) 90% of the amount of food that a rat of size would normally eat, or (3) 80% of amount of food that a rat of the size would normally eat. She maintained the rats on three diets throughout their lives and recorded their lifespans (in years). Five rates in each group. Is there evidence that diet affected life span in this study? Let α= 0.01 Complete the ANOVA table . Source of variation df SS MS Fc Treatment 2 1.575 Error 12 Total 14 5.60 A) Hypothesis Test H0: H1: B) Test Statistic C) Decision Rule d) Conclusion *(please with equations and explanation) and thamnk you