Estimating random variable

Reference no: EM1399038

1. Management of an airline knows that 0.5% of the airline's passengers lose their luggage on domestic flights. Management also know that the average value claimed for a lost piece of luggage on domestic flights is $600.00. The company is considering increasing fares by an appropriate amount to cover expected compensation to passengers who lose their luggage. By how much should the airline increase fares? Why? Explain, using the ideas of a random variable and its expectation.

2. A large shipment of computer chips is known to contain 10% defective chips. If 100 chips are randomly selected, what is the expected number of defective ones? What is the standard deviation of the number of defective chips? Use Chebyshev's theorem to give bounds such that there is at least a 0.75 chance that the number of defective chips will be within the two bounds.

3. A mainframe computer in a university crashes on the average 0.71 times in a semester.

a. What is the probability that it will crash at least two times in a given semester?

b. What is the probability that it will not crash at all in a given semester?

c. The MIS administrator wants to increase the probability of no crash at all in a semester to at least 90%. What is the largest u (mu) that will achieve this goal?

Reference no: EM1399038

Questions Cloud

Street performer approaches to make a bet : A street performer approaches you to make a bet. He shows you three cards: one that is blue on both sides, one that is orange on both sides, and one that is blue on one side and orange on the other.

Explain medical dictionary or aerospace for career : Locate three specializes reference sources(for instance, a medical dictionary or aerospace encyclopedia) relating to future career filed( any kind of engraving, wood working, or electronics repair) or topic of interest.

Analyze future trends relative to the field of t & d : Go online and research the future trends relative to the field of T & D. Consider researching professional organizations such as SHRM or ASTD.

Question about emv : ABC insurance sells term life insurance policies. If the plicy holder dies during the term of the policy ABC pays out $100000. If the person does not die ABC pays nothing and there is no further value to the policy.

Estimating random variable : What is the probability that it will crash at least two times in a given semester? What is the probability that it will not crash at all in a given semester?

Explain why cutting an arterial vessel will cause : Explain why cutting an arterial vessel will cause a greater loss of blood over the same amount of time than cutting a venous vessel.

Identifying the organization mission, values and goals : Let's also take a look at some examples of organizations and their training programs. Take some time to research a few organizations of your choice on the Web.

Research way company is organized-business philosophy : Research way company is organized, its business philosophy, and its niche in marketplace. Write down report which would be helpful to other students who might be interested in seeking employment there.

Draw on a separate diagram the electrical current : The recordings thus reflect the summed total of thousands to millions of potassium, sodium and other ion-selective channels.

User Account

All Pages