Question

The life span (in thousand hours) of picture tubes manufactured by a company can be modeled using exponential distribution. On a survey it has been found that there were two types of processes by which the picture tubes can be manufactured. If type I has been adopted, the expected life span would be 700 (in thousand hours) whereas the expected lifespan of picture tubes by using the second type would be 1050 hours. Type Il is twice as costly as Type I which costs around150 RO. Furthermore. If a picture tube fails in 1400 in thousand hours) for the period it is guaranteed, a loss of OMR 200 is assessed against the manufacturer. Which process should the company adopt?

Answer 1

which So Cov of-Would be 300 625 ね.la it a fetso tik ela ir, 140oahang