A certain machine has a life X that has an exponential distribution with mean 10. The warranty

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A certain machine has a life X that has an exponential distribution with mean 10. The warranty is such that $m is returned if the machine fails in the first year, (0.5)m of the price is returned for a failure during the second year, and nothing is returned after that. If the machine cost $2500, find m so that the expected payment is $200.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Probability and Statistical Inference

ISBN: 978-0321923271

9th edition

Authors: Robert V. Hogg, Elliot Tanis, Dale Zimmerman

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