A video cassette recorder manufacturer is so certain of its quality control that it is offering a complete replacement warranty if a recorder fails within 2 years. Based upon compiled data, the company has noted that only 1 percent of its recorders fail during the first year, whereas 5 percent of the recorders that survive the first year will fail during the second year. The warranty does not cover replacement recorders. a) Formulate the evolution of the status of a recorder as a Markov chain whose states include two absorption states that involve needing to honor the warranty or having the recorder survive the warranty period. Then construct the one-step transition matrix. b) Find the probability that the manufacturer will have to honor the warranty.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
course name : stochastic models
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
