Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During a day, a machine turns out two items, one in the morning and one in the afternoon. The quality of each item is measured

During a day, a machine turns out two items, one in the morning and one in the afternoon. The quality of each item is measured as good (G), mediocre (M), or bad (B). The long-run fraction of good items the machine produces is 1/2, the fraction of mediocre items is 1/3, and the fraction of bad items is 1/6. (a) Assume a good item returns a profit of $2, a mediocre item a profit of $1, and a bad item yields nothing. Let X be the random variable describing the total profit for the day. In a column adjacent to the column in part (a), write the value of this random variable corresponding to each point in the sample space. (b) Assuming that the qualities of the morning and afternoon items are independent, in a third column associate with every point in the sample space a probability for that point. (c) Write the set of all possible outcomes for the random variable X. Give the probability distribution function for the random variable. (d) What is the expected value of the days profit?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Which are non projected Teaching aids in advance learning system?

Answered: 1 week ago

Question

Design a health and safety policy.

Answered: 1 week ago