11. The profit is $350 for each computer assembled by a certain person. Suppose that the assembler...
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11. The profit is $350 for each computer assembled by a certain person. Suppose that the assembler guarantees his computers for one year and the time between two failures of a computer is exponential with mean 18 months. If it costs the assembler $40 to repair a failed computer, what is the expected profit per computer?
Hint: Let N(t) be the number of times that the computer fails in [0, t]. Then N(t) : t ≥ 0
is a Poisson process with parameter λ = 1/18.
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Fundamentals Of Probability With Stochastic Processes
ISBN: 9780429856273
4th Edition
Authors: Saeed Ghahramani
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