The initial value of an appliance is $700 and its dollar

Probability and Statistical Inference | 9th Edition | ISBN: 9780321923271 | Authors: Robert V. Hogg, Elliot Tanis, Dale Zimmerman

Problem 20E Chapter 3.2

Probability and Statistical Inference | 9th Edition

  • 2901 Step-by-step solutions solved by professors and subject experts
  • Get 24/7 help from StudySoup virtual teaching assistants
Probability and Statistical Inference | 9th Edition | ISBN: 9780321923271 | Authors: Robert V. Hogg, Elliot Tanis, Dale Zimmerman

Probability and Statistical Inference | 9th Edition

4 5 0 409 Reviews
26
5
Problem 20E

The initial value of an appliance is $700 and its dollar value in the future is given by

where t is time in years. Thus, after the first three years, the appliance is worth nothing as far as the warranty is concerned. If it fails in the first three years, the warranty pays v(t). Compute the expected value of the payment on the warranty if T has an exponential distribution with mean 5.

Step-by-Step Solution:

Answer:

Step 1 of 1 :

Given that,

The initial value of an appliance is $7,000 and it's the value in future is

 

Where t is time in years and has an exponential distribution with mean 5.

Our goal is to find

The expected value of the payment on the warranty if T has an exponential distribution with mean 5.

Now we have find the expected value of the payment on the warranty.

Therefore its p.d.f is

Therefore expected value of payment on the warranty

Step 2 of 3

Chapter 3.2, Problem 20E is Solved
Step 3 of 3

Textbook: Probability and Statistical Inference
Edition: 9th
Author: Robert V. Hogg, Elliot Tanis, Dale Zimmerman
ISBN: 9780321923271

×
Log in to StudySoup
Get Full Access to Probability And Statistical Inference - 9th Edition - Chapter 3.2 - Problem 20e

Forgot password? Reset password here

Join StudySoup for FREE
Get Full Access to Probability And Statistical Inference - 9th Edition - Chapter 3.2 - Problem 20e
Join with Email
Already have an account? Login here
Reset your password

I don't want to reset my password

Need help? Contact support

Need an Account? Is not associated with an account
Sign up
We're here to help

Having trouble accessing your account? Let us help you, contact support at +1(510) 944-1054 or support@studysoup.com

Got it, thanks!
Password Reset Request Sent An email has been sent to the email address associated to your account. Follow the link in the email to reset your password. If you're having trouble finding our email please check your spam folder
Got it, thanks!
Already have an Account? Is already in use
Log in
Incorrect Password The password used to log in with this account is incorrect
Try Again

Forgot password? Reset it here