Question
Q based on statistics: The life length X of an electronic component follows an exponential distribution. There are 2 processes by the component may be
Q based on statistics:
The life length X of an electronic component follows an exponential distribution. There are 2 processes by the component may be manufactured. The expected life length of the component is 100h if the process I is used to manufacture, while it is 150h if the process II is used. The cost of manufacturing a single component by process I is 10,whileits20 for process II. Moreover if the component last less than the guaranteed life of 200h, a loss of 50$ is to be borne by the manufacturer. Which process is advantageous to the manufacturer?
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