1 The Law of large numbers implies that the relative frequency of an event after many trials is increasingly predictable; this however cannot predict the outcome of any individual trial True False
2 In a batch of 25 products, there are 9 defective units. 6 of these have only minor defects while 3 have major defects. What is the probability that a randomly selected unit from the batch has major defects given that it is defective? 0.33 0.25 0.24 0.08
3 A critical system component has a power source consisting of 2 generators only one of which is required to keep the component functional. What is the reliability of this power source if each generator has a reliability of 0.9? 1.0 0.99 0.95 0.9
1.
Correct option: True
2.
Correct option:
0.33
EXPLANATION:
P(Major Defects/Defective) =
3.
Correct option:
0.99
EXPLANATION:
Reliability = 1 - (1-0.9)2 = 1 - 0.01 = 0.99
1 The Law of large numbers implies that the relative frequency of an event after many...
Case 2: Going to The X-Stream Gil Reihana is the chief executive officer of X-Stream, an Auckland-based company that assembles personal computers for the New Zealand and Australian markets, and sells them through a number of chain stores and independent retailers. He started the company six years ago, at the age of 25, after graduating from university with a Bachelor’s degree in Information Technology and Management. To establish the company, Reihana invested $300 000 he had inherited and persuaded various...