ABC Manufacturing has 6 machines that perform a particular task. Breakdowns occur frequently for this machine. Past records indicate that the number of breakdowns that occur each day is described by the following probability distribution:
Number of Breakdowns Probability
0 0.4
1 0.3
2 0.2
3 0.1
More than 3 0.0
(a) What is the expected number of breakdowns in any given day?
(b) What is the variance for this distribution?
(c) What is the probability that there will be at least 2 breakdowns in a day?
(a) expected value = 1.0
(b) variance = 1(.4 ) + 0(.3 ) + 1(.2 ) + 4(.1 ) = 1.0
(c) P(2 or more) = 0.2 + 0.1 = 0.3
You might also like to view...
In a production environment that manufactures goods to customer specifications, a job-order costing system
a. can be used only if standard costs are used for materials and labor. b. will provide reasonable product cost information only when all jobs utilize approximately the same quantities of material and labor. c. may be maintained using either actual or predetermined overhead rates. d. emphasizes that large customers create the most costs even though they also provide the most revenues.
Define MSO and LAO in a negotiation. Give an example of each.
What will be an ideal response?
Which act created the NASD to regulate the OTC market?
a. Securities Act of 1933 b. Securities Exchange Act of 1934 c. Maloney Act d. Investment Company Act e. Securities Investor Protection Act
During the maturity and decline stages, a firm may want to stick with the maximum flexibility a pull strategy allows or follow a hybrid strategy that commits to inventory of raw and packaging materials without committing to a large amount of finished goods inventory.
Answer the following statement true (T) or false (F)