It costs ($ 50) to find out whether a spare part required for repairing a failed device

Question:

It costs $\$ 50$ to find out whether a spare part required for repairing a failed device is faulty or not. Installing a faulty spare part causes damage of $\$ 1000$.

Is it on average more profitable to use a spare part without checking if

(1) $1 \%$ of all spare parts of that type,

(2) $3 \%$ of all spare parts of that type, and

(3) $10 \%$ of all spare parts of that type are faulty?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Applied Probability And Stochastic Processes

ISBN: 9780367658496

2nd Edition

Authors: Frank Beichelt

See More Books

Question Posted: Apr 26, 2024 04:00 PM

See More Questions

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
A taxpayer has qualified business income of $50,000 from partnership A and a qualified business loss of $30,000 from partnership B. Wages allocable to the taxpayers interest in partnership A were...
A put option and call option with an exercise price of $60 expire in four months and sell for $1.35 and $5.30, respectively. If the stock is currently priced at $63.38, what is the annual...
Pricing and impact on demand Andrea Kimball has recently acquired a franchise of a well-known fast-food restaurant chain. She is considering a special promotion for a week during which hamburger...
A thin-walled filament-wound composite pressure vessel has fibers wound at a helical angle , as shown in Figure 1.45. Ignore the resin matrix material and assume that the fibers carry the entire...
Penny Davis runs the Shear Beauty Salon near a college campus. Several months ago, Penny used some unused space at the back of the salon and bought two used tanning beds. She hired a receptionist and...
Compute the predetermined overhead allocation rates using machine hours as the allocation base for the Assembly Department and direct labor hours for the Packaging Department. Begin by selecting the...
Market analysts predict that a newly developed product in design 1 will bring in a profit of $\$ 500000$, whereas in design 2 it will bring in a profit of $\$ 200000$ with probability 0.4 , and a...
84 specimen copies of soft coal, sampled from the ongoing production in a colliery over a period of 7 days, had been analyzed with regard to ash and water content, respectively [in \%]. Both ash and...
The polar coordinates of a point are given. Find the rectangular coordinates of the point. (-2, 3 /4)
Explain and Elaborate the statement of UNWTO on Tourism Development? 2. What is ROS and its relationship to Tourism Recreation Industry? 3. How is it possible to assess tourism-related phenomena...
On January 15, 2022. ABC Inc., sold 1400 laptops to XYZ company. Prior to this sale, ABC's perpetual inventory records for these units included the following cost layers. Purchase date 15-Dec-20...
There are a number of risk assessment and evaluation strategies that can be applied to dispute management within conveyancing in Australia. Review the strategies below and explain how you can...
2 For the function f(x) = x+5x-14 solve the following. f(x) 0
Bodashka is building a home for Galyna that under the original contract is to be completed by December 31. Galyna found the plans for the home in a publication focusing on unique houses and is...
Determine the velocities of blocks A and B 2 s after they are released from rest. Neglect the mass of the pulleys and cables. 2 lb 4 lb
Establish identity. cos( + k) = (-1)k cos , k any integer
Analyze the attributes how can they relate in a Dataset abstracted from Tweeter regarding Disinformation of Climate Change in Massachusetts. If this is the core dataset you are asked to examine, then...
Redfern Audio produces audio equipment including headphones. At the Campus Facility, it produces two wireless models, Standard and Enhanced, which differ both in the materials and components used and...
Assume that after the completion of a project, 15% of the work force is assigned to maintenance each time, and there are seven projects of 1.5 years duration. Calculate the percentage of the total...

It costs ($ 50) to find out whether a spare part required for repairing a failed device

Question:

Step by Step Answer:

Applied Probability And Stochastic Processes

Students also viewed these Business questions