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J.D. Power and Associates calculates and publishes various statistics concerning car quality. The dependability score measures problems experienced during the past 12 months by owners of vehicles (2015). For these models of cars, Ford had 1.88 problems per car and Toyota had 1.11 problems per car. (Data extracted from C. Woodyard, "Lexus Has Staying 'Power'," USA Today, February 26, 2015, p. 5B.) Let X be equal to the number of problems with a Ford.
a. What assumptions must be made in order for X to be distributed as a Poisson random variable? Are these assumptions reasonable?
Making the assumptions as in (a), if you purchased a Ford in the 2015 model year, what is the probability that in the past 12 months, the car had
b. zero problems?
c. two or fewer problems?
d. Give an operational definition for problem. Why is the operational definition important in interpreting the initial quality score?
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