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# A plant supervisor is interested in budgeting weekly

ISBN: 9780495110811 47

## Solution for problem 94SE Chapter 7

Mathematical Statistics with Applications | 7th Edition

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Problem 94SE

A plant supervisor is interested in budgeting weekly repair costs for a certain type of machine. Records over the past years indicate that these repair costs have an exponential distribution with mean 20 for each machine studied. Let Y1, Y2, . . . , Y5 denote the repair costs for five of these machines for the next week. Find a number c such that  assuming that the machines operate independently. [Hint: Use the result given in Exercise 7.93.]

Reference

If Y has an exponential distribution with mean θ, show that U = 2Y/θ has a χ 2 distribution with 2 df.

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