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- 1.- A study conducted in the automotive field states that more than 40% of vehicle engine failures are due to problems in the cooling system. To test this statement, a study is carried out on 70 vehicles and the critical region is defined as x < 26, where x is the number of vehicle engines that have problems in the cooling system. (use the normal approximation)a) Evaluate the probability of making a type I error, assuming that p = 0.4.b) Evaluate the probability of committing a type II error, for the alternative p = 0.3.2) The time between successive customers coming to the market is assumed to have Exponential distribution with parameter l. a) If X1, X2, . . . , Xn are the times, in minutes, between successive customers selected randomly, estimate the parameter of the distribution. b) b) The randomly selected 12 times between successive customers are found as 1.8, 1.2, 0.8, 1.4, 1.2, 0.9, 0.6, 1.2, 1.2, 0.8, 1.5, and 0.6 mins. Estimate the mean time between successive customers, and write down the distribution function. c) In order to estimate the distribution parameter with 0.3 error and 4% risk, find the minimum sample size.An industrial product is packaged in batches of units each. The number ofdefective units within each batch is unknown. Since checking whether aunit is defective or not is expensive, the quality control consists in selectingunits of the batch and obtaining an estimation of the number of defectiveunits within the batch. The batch is rejected if the estimated number ofdefective units exceeds . a. Find the moment estimator of the number of defective units within aparcel.b. If N=20, n=5, and among these units 2 of them are defective, is thebatch rejected?
- . Consider a call option having the strike price K and exercise time t. Suppose further that thenominal interest rate is r, compounded continuously, and also that the price of the securityfollows a geometric Brownian motion with variance parameter σ^2. Derive the formula that is used to price the unique cost of the option that does not give rise to an arbitrageSuppose claim amounts at a health insurance company are independent of one another. In the first year calim amounts are modeled by a gamma random variable X with alpha=40, and beta=3. In the second year, individual claim amounts are modeled by random variable Y=1.05X+3. Let W be the average of 30 claim amounts in year two set up the equation to model the random variable W. a) Find the moment generating function of W b) Based on moment generating function of W is W also a gamma distribution? if so what are the parameters? c) Find the approximate probability that W is between 125$ and 130$.A researcher is testing the effect of a new cold and flu medication on reaction time. A sample of n = 16 students is obtained and each student is given the normal dose of the medicine. Thirty minutes later, each student's reaction time is measured. The scores for the sample averaged M = 220 milliseconds with SS = 6000. Assuming that reaction time for students in the regular population averages μ = 200 milliseconds, are the data sufficient to conclude that the medication has a significant effect on reaction time? Test at the .05 level of significance. Make a point estimate and a 95% confidence interval estimate for the treated population mean.
- The amount of water in a reservoir at the beginning of the day is a random variable X and theamount of water taken from the reservoir during the day is a random variable Y . The joint pdffor X and Y isf (x, y) ={1/200, 0 < y < x < 20;0, otherwise.Use the distribution function technique to find the pdf of the amount of water left in thereservoir at the end of the dayPfizer claims that their COVID-19 vaccine is 95percent effective. Suppose that in a clinical trial test, 960 out of 1000 subjects have received protection from the virus. Test the claim using two tailed test at 0.01 level.( Disregard the continuity correction in your solution). a.) State the null and alternative hypothesis b.) Calculate the critical region c.) What is the t-value/ z-valueFind the critical region/s using z-table a) a = 0.015, two-tailed test b) a = 0.025, left-tailed test c) a = 0.0125, right-tailed test
- The specification for the pull strength of a wire that connects an integrated circuit to its frame is 10 g or more. Units made with aluminum wire have a defect rate of 10%. A redesigned manufacturing process, involving the use of gold wire, is being investigated. The goal is to reduce the rate of defects to 5% or less. Out of the first 100 units manufactured with gold wire, only 4 are defective. True or false: a) Since only 4% of the 100 units were defective, we can conclude that the goal has been reached. b) Although the sample percentage is under 5%, this may represent sampling variation, so the goal may not yet be reached. c) There is no use in testing the new process, because no matter what the result is, it could just be due to sampling variation. d) If we sample a large enough number of units, and if the percentage of defective units is far enough below 5%, then it is reasonable to conclude that the goal has been reached.A projectile is launched at an angle theta with respect to the surface with velocity v0 (deterministic). If the angle of inclination is a uniform random variable in [0, pi/2 ], calculate the distribution function of the variable R defined as the point of impact of the projectile on the ground, measured from the origin. Also calculate your expected valueAn instrument is used to measure very small concentrations, X, of a certainchemical in soil samples. Suppose that the values of X in those soils in which thechemical is present is modeled as a random variable with density function f (x).The assay of a soil reports a concentration only if the chemical is first determinedto be present. At very low concentrations, however, the chemical may fail tobe detected even if it is present. This phenomenon is modeled by assuming thatif the concentration is x, the chemical is detected with probability R(x). Let Ydenote the concentration of a chemical in a soil in which it has been determinedto be present. Show that the density function of Y isg(y) = R(y) f (y)/An instrument is used to measure very small concentrations, X, of a certainchemical in soil samples. Suppose that the values of X in those soils in which thechemical is present is modeled as a random variable with density function f (x).The assay of a soil reports a concentration only if the…