The AJAX Disk Co. manufactures compact disks (CDs) for the music industry. As part of its quality-control
Question:
The AJAX Disk Co. manufactures compact disks (CDs) for the music industry. As part of its quality-control program, the diameter of each disk is measured using an electronic measuring device. Letting \(X_{1}\) represent the actual diameter of the disk and \(X_{2}\) represent the measured diameter of the disk,
\(\mathrm{E}\left[\begin{array}{l}X_{1} \\ X_{2}\end{array}ight]=\left[\begin{array}{l}4.6775 \\ 4.6775\end{array}ight]\) and \(\operatorname{Cov}(X)=\left[\begin{array}{ll}.00011 & .00010 \\ .00010 & .00010\end{array}ight]\), where \(x_{1}\) and \(x_{2}\) are measured in inches.
(a) What is the correlation between the actual diameter and the measured diameter of the CDs?
(b) Assume that \(P\left(x_{1} \in[4.655,4.700]ight)=1\). Use a graph to elucidate the degree of linear association between \(X_{1}\) and \(X_{2}\) that is represented by the correlation value you calculated in (a).
(c) Given the characteristics of \(\left(X_{1}, X_{2}ight)\) indicated above, the manager of the quality control-department states that the difference between measured and actual disk diameters is no more than .01 inches with probability \(\geq .90\). Do you agree? Why or why not?
Step by Step Answer:
Mathematical Statistics For Economics And Business
ISBN: 9781461450221
2nd Edition
Authors: Ron C.Mittelhammer