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Author Question: Suppose that a car mechanic offers you a deal that for the next 3 years any breakdowns will be ... (Read 18 times)

dbose

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Question 1

Consider a product that is "settled in." Its MTBF distribution has been found to be normal with a mean of 10,000 hours and a standard deviation of 100 hours. What is the probability of a breakdown before 8,000 hours? Before 9,000 hours? Would you prefer a policy of preventive maintenance, or a policy of breakdown maintenance, on this product? Explain your choice.

Question 2

Suppose that a car mechanic offers you a deal that for the next 3 years any breakdowns will be covered, so long as you bring your car in for $50 preventative maintenance sessions each month. If you predict the likelihood of a breakdown being 25% without the maintenance, how much must a breakdown cost for you to prefer the preventative maintenance?


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Marked as best answer by dbose on Dec 3, 2019

randomguy133

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dbose

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Reply 2 on: Dec 3, 2019
Great answer, keep it coming :)


recede

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Reply 3 on: Yesterday
:D TYSM

 

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