(d) The production cost of a phone battery is $100 and the selling price to the mobile company is $500. When the phone battery is found defective within a year, it could be sent back for repairment, which costs "SmartB" $70. Suppose all defective phone battery would be reported by the customer within a year and would be sent back for repairment. Present the probability distribution function of the profit gained by “SmartB" from a phone battery. (Remark: Profit = revenue – cost) (e) Calculate the expectation, variance, and standard deviation of the profit gained by "SmartB" from a phone battery.
(d) The production cost of a phone battery is $100 and the selling price to the mobile company is $500. When the phone battery is found defective within a year, it could be sent back for repairment, which costs "SmartB" $70. Suppose all defective phone battery would be reported by the customer within a year and would be sent back for repairment. Present the probability distribution function of the profit gained by “SmartB" from a phone battery. (Remark: Profit = revenue – cost) (e) Calculate the expectation, variance, and standard deviation of the profit gained by "SmartB" from a phone battery.
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....
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“SmartB” owns a phone battery assembly line which provide phone battery to a mobile company. It is known that 4% of the batteries produced by “SmartB” are defective. A random sample of 28 phone batteries is selected from the assembly line and will be sent for inspection.
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