A contractor is planning the purchase of equipment, including bulldozers, needed
ID: 3302957 • Letter: A
Question
A contractor is planning the purchase of equipment, including bulldozers, needed for a new project in a remote area. Suppose that from his previous
experience, he figures there is a 60% chance that each bulldozer can last at least 6 months without any breakdown.
a. If he purchased 5 bulldozers, what is the probability that there will be only 1 bulldozer left operative in 6 months?
b. Let X denote the number of operative bulldozers at the end of 6 months.
Whatis the expected number of operating bulldozers at the end of 6 months? And what is the variance and coefficient of variation? State the distribution of X.
Explanation / Answer
Pr ( Each bulldozer will last at least 6 months wthout any breakdown) = 0.6
(a) Purchased 5 bulldozers, that there will be only 1 bulldozer left operative that means other 4 will fail.
so Pr( one bulldozer is operative out of 5 after next 6 monhs) = 5C1 (0.6)1 (1 - 0.6)4 = 0.0768
(b) If X = Number of operative bulldozers at the end of 6 months
Expected number of operating bulldozers = E(X) = = 5 * 0.6 = 3 bulldozers
Varaince of number of operating bulldozers at the end of 6 months 2 = 5 * 0.6 * 0.4 = 1.2
Coefficient of variation C.V = / = sqrt (1.2)/ 3 = 0.365 = 36.5 %
The distribution of X is a binomial distribution with parameter n = 5 and p = 0.6
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