Explanation Given information: The lifetime of a certain computer monitor is an exponential random variable with an expected value of 5 years. The manufacturer sells the monitor for $ 100 , but will give a complete refund if the monitor burns out within 3 years. The revenue that the manufacturer receives on each monitor is a discrete random variable Y , with values 100 and 0 . Explanation: A random variable X is the lifetime of a certain computer monitor is an exponential random variable with an expected value of 5 years. Since the expected value of exponential distribution is 1 k = 5 So the parameter for exponential distribution is k = 1 5 . The density function for exponential distribution is f ( x ) = k e − k x , x ≥ 0 . The manufacturer sells the monitor for $ 100 , but will give a complete refund if the monitor burns out within 3 years. So, the random variable Y be the revenue received by the manufacturer, such that Y = 0 if the monitor burns out within 3 years and Y = 100 otherwise. To determine the expected revenue per monitor, first find out the probability that the monitor burns out within 3 years that is Pr ( X ≤ 3 ) which is nothing but Pr ( Y = 0 ) . Thus, Pr ( X ≤ 3 ) = ∫ 0 3 f ( x ) d x ⇒ Pr ( X ≤ 3 ) = ∫ 0 3 1 5 e − x / 5 d x

12th Edition

ISBN: 9780137590810

Author: Larry J. Goldstein, David C. Lay, David I. Schneider, Nakhle H. Asmar, William Edward Tavernetti

Publisher: PEARSON

See similar textbooks

Concept explainers

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear re…

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.

Videos

Question

Chapter 12, Problem 17RE

To determine

The expected revenue per monitor if the manufacturer sells the monitor for $100, but will give a complete refund if the monitor burns out within 3 years.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 12, Problem 16RE

Chapter 12, Problem 18RE

Students have asked these similar questions

rmine the immediate settlement for points A and B shown in figure below knowing that Aq,-200kN/m², E-20000kN/m², u=0.5, Depth of foundation (DF-0), thickness of layer below footing (H)=20m. 4m B 2m 2m A 2m + 2m 4m

sy = f(x) + + + + + + + + + X 3 4 5 7 8 9 The function of shown in the figure is continuous on the closed interval [0, 9] and differentiable on the open interval (0, 9). Which of the following points satisfies conclusions of both the Intermediate Value Theorem and the Mean Value Theorem for f on the closed interval [0, 9] ? (A A B B C D

= Q6 What will be the allowable bearing capacity of sand having p = 37° and ydry 19 kN/m³ for (i) 1.5 m strip foundation (ii) 1.5 m x 1.5 m square footing and (iii)1.5m x 2m rectangular footing. The footings are placed at a depth of 1.5 m below ground level. Assume F, = 2.5. Use Terzaghi's equations. 0 Ne Na Ny 35 57.8 41.4 42.4 40 95.7 81.3 100.4

Chapter 12 Solutions

Calculus & Its Applications

Ch. 12.1 - Compute the expected value and the variance of the...Ch. 12.1 - Prob. 2CYU Ch. 12.1 - Prob. 1E Ch. 12.1 - Prob. 2E Ch. 12.1 - Prob. 3E Ch. 12.1 - Prob. 4E Ch. 12.1 - Prob. 5E Ch. 12.1 - Probability Table, Expected Value The number of...Ch. 12.1 - Prob. 7E Ch. 12.1 - Prob. 8E

Ch. 12.1 - Decision Making Based on Expected Value A citrus...Ch. 12.1 - Prob. 10E Ch. 12.2 - Prob. 1CYU Ch. 12.2 - Prob. 2CYU Ch. 12.2 - Prob. 1E Ch. 12.2 - Prob. 2E Ch. 12.2 - Prob. 3E Ch. 12.2 - Prob. 4E Ch. 12.2 - Prob. 5E Ch. 12.2 - Prob. 6E Ch. 12.2 - Prob. 7E Ch. 12.2 - Prob. 8E Ch. 12.2 - Prob. 9E Ch. 12.2 - Prob. 10E Ch. 12.2 - Prob. 11E Ch. 12.2 - Prob. 12E Ch. 12.2 - Prob. 13E Ch. 12.2 - Prob. 14E Ch. 12.2 - Prob. 15E Ch. 12.2 - Prob. 16E Ch. 12.2 - Prob. 17E Ch. 12.2 - Prob. 18E Ch. 12.2 - Prob. 19E Ch. 12.2 - Prob. 20E Ch. 12.2 - Prob. 21E Ch. 12.2 - Prob. 22E Ch. 12.2 - Prob. 23E Ch. 12.2 - Prob. 24E Ch. 12.2 - Prob. 25E Ch. 12.2 - Prob. 26E Ch. 12.2 - An experiment consists of selecting a point at...Ch. 12.2 - Prob. 28E Ch. 12.2 - Prob. 29E Ch. 12.2 - Prob. 30E Ch. 12.2 - Prob. 31E Ch. 12.2 - Prob. 32E Ch. 12.2 - Prob. 33E Ch. 12.2 - Prob. 34E Ch. 12.2 - Prob. 35E Ch. 12.2 - A random variable X has a cumulative distribution...Ch. 12.2 - Prob. 37E Ch. 12.2 - Prob. 38E Ch. 12.3 - Prob. 1CYU Ch. 12.3 - Prob. 2CYU Ch. 12.3 - Prob. 1E Ch. 12.3 - Prob. 2E Ch. 12.3 - Prob. 3E Ch. 12.3 - Prob. 4E Ch. 12.3 - Prob. 5E Ch. 12.3 - Prob. 6E Ch. 12.3 - Prob. 7E Ch. 12.3 - Prob. 8E Ch. 12.3 - Prob. 9E Ch. 12.3 - Prob. 10E Ch. 12.3 - Prob. 11E Ch. 12.3 - Prob. 12E Ch. 12.3 - Expected Reading Time The amount oftime (in...Ch. 12.3 - Prob. 14E Ch. 12.3 - Prob. 15E Ch. 12.3 - Prob. 16E Ch. 12.3 - Prob. 17E Ch. 12.3 - Prob. 18E Ch. 12.3 - If X is a random variable with density function...Ch. 12.3 - Prob. 20E Ch. 12.3 - Prob. 21E Ch. 12.3 - Prob. 22E Ch. 12.3 - Prob. 23E Ch. 12.3 - Prob. 24E Ch. 12.3 - Prob. 25E Ch. 12.3 - Prob. 26E Ch. 12.4 - The emergency flasher on an automobile is...Ch. 12.4 - Prob. 2CYU Ch. 12.4 - Prob. 1E Ch. 12.4 - Prob. 2E Ch. 12.4 - Prob. 3E Ch. 12.4 - Prob. 4E Ch. 12.4 - Prob. 5E Ch. 12.4 - In a large factory there is an average of two...Ch. 12.4 - Prob. 7E Ch. 12.4 - Prob. 8E Ch. 12.4 - During a certain part of the day, the time between...Ch. 12.4 - During a certain part of the day, the time between...Ch. 12.4 - Prob. 11E Ch. 12.4 - Prob. 12E Ch. 12.4 - Reliability of Electronic Components Suppose that...Ch. 12.4 - Prob. 14E Ch. 12.4 - Prob. 15E Ch. 12.4 - Find the expected values and the standard...Ch. 12.4 - Prob. 17E Ch. 12.4 - Find the expected values and the standard...Ch. 12.4 - Prob. 19E Ch. 12.4 - Prob. 20E Ch. 12.4 - Prob. 21E Ch. 12.4 - Prob. 22E Ch. 12.4 - Prob. 23E Ch. 12.4 - Prob. 24E Ch. 12.4 - Prob. 25E Ch. 12.4 - Normal Distribution and Life of a Tire Suppose...Ch. 12.4 - Amount of Milk in a Container If the amount of...Ch. 12.4 - Breaking weight Theamount of weight required to...Ch. 12.4 - Time of a commute A student with an eight oclock...Ch. 12.4 - Prob. 30E Ch. 12.4 - Diameter of a Bolt A certain type of bolt must fit...Ch. 12.4 - Prob. 32E Ch. 12.4 - Prob. 33E Ch. 12.4 - Prob. 34E Ch. 12.4 - Prob. 35E Ch. 12.4 - Prob. 36E Ch. 12.4 - Prob. 37E Ch. 12.5 - A public health officer is tracking down the...Ch. 12.5 - Suppose that a random variable X has a Poisson...Ch. 12.5 - Prob. 2E Ch. 12.5 - Prob. 3E Ch. 12.5 - Prob. 4E Ch. 12.5 - Number of Insurance Claims The monthly number of...Ch. 12.5 - Waiting Time in an Emergency Room On a typical...Ch. 12.5 - Prob. 7E Ch. 12.5 - Number of Cars at a Tollgate During a certain part...Ch. 12.5 - Poisson Distribution in a Mixing Problem A bakery...Ch. 12.5 - Prob. 10E Ch. 12.5 - Prob. 11E Ch. 12.5 - Quality Control The quality-control department at...Ch. 12.5 - Two Competing Companies In a certain town, there...Ch. 12.5 - Prob. 14E Ch. 12.5 - Prob. 15E Ch. 12.5 - Prob. 16E Ch. 12.5 - Prob. 17E Ch. 12.5 - Prob. 18E Ch. 12.5 - Prob. 19E Ch. 12.5 - Prob. 20E Ch. 12.5 - Prob. 21E Ch. 12.5 - Prob. 22E Ch. 12.5 - Prob. 23E Ch. 12.5 - Prob. 24E Ch. 12.5 - Prob. 25E Ch. 12.5 - The number of accidents occurring each month at a...Ch. 12 - What is probability table?Ch. 12 - Prob. 2FCCE Ch. 12 - Prob. 3FCCE Ch. 12 - Prob. 4FCCE Ch. 12 - Prob. 5FCCE Ch. 12 - Prob. 6FCCE Ch. 12 - Prob. 7FCCE Ch. 12 - Prob. 8FCCE Ch. 12 - Prob. 9FCCE Ch. 12 - Give two ways to compute the variance of a...Ch. 12 - Prob. 11FCCE Ch. 12 - Prob. 12FCCE Ch. 12 - Prob. 13FCCE Ch. 12 - Prob. 14FCCE Ch. 12 - How is an integral involving a normal density...Ch. 12 - Prob. 16FCCE Ch. 12 - Prob. 17FCCE Ch. 12 - Let X be a continuous random variable on 0x2, with...Ch. 12 - Prob. 2RE Ch. 12 - Prob. 3RE Ch. 12 - Prob. 4RE Ch. 12 - Prob. 5RE Ch. 12 - Prob. 6RE Ch. 12 - Prob. 7RE Ch. 12 - Prob. 8RE Ch. 12 - Probability of Gasoline Sales A certain gas...Ch. 12 - Prob. 10RE Ch. 12 - Prob. 11RE Ch. 12 - Prob. 12RE Ch. 12 - Prob. 13RE Ch. 12 - Prob. 14RE Ch. 12 - Prob. 15RE Ch. 12 - Prob. 16RE Ch. 12 - Prob. 17RE Ch. 12 - Deciding on a Service Contract The condenser motor...Ch. 12 - Prob. 19RE Ch. 12 - Prob. 20RE Ch. 12 - Prob. 21RE Ch. 12 - Prob. 22RE Ch. 12 - Prob. 23RE Ch. 12 - Prob. 24RE Ch. 12 - Prob. 25RE Ch. 12 - Prob. 26RE Ch. 12 - Area under the Normal Curve It is useful in some...Ch. 12 - Prob. 28RE Ch. 12 - Prob. 29RE Ch. 12 - Prob. 30RE Ch. 12 - Prob. 31RE Ch. 12 - Prob. 32RE Ch. 12 - Prob. 33RE Ch. 12 - Rolling Dice A pair of dice is rolled until a 7 or...Ch. 12 - Rolling Dice A pair of dice is rolled until a 7 or...Ch. 12 - Rolling Dice A pair of dice is rolled until a 7 or...

Knowledge Booster

$Calculus$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, calculus and related others by exploring similar questions and additional content below.

The expected revenue per monitor if the manufacturer sells the monitor for $ 100 , but will give a complete refund if the monitor burns out within 3 years.

Solution Summary: The author explains that the manufacturer sells the monitor for 100, but will give a complete refund if it burns out within 3 years.

Concept explainers

Videos

The expected revenue per monitor if the manufacturer sells the monitor for $100, but will give a complete refund if the monitor burns out within 3 years.

Want to see the full answer?

Chapter 12 Solutions