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The owners of an Italian restaurant are interested in signing a lease with a res

ID: 3061844 • Letter: T

Question

The owners of an Italian restaurant are interested in signing a lease with a restaurant supply company for a new industrial freezer. Before deciding on the model, the owners want to get an idea of how reliable the equipment will be over the three-year term of the lease. For one particular model, the supplier informs the owners that in a given year, 80% of the freezers sold do not need service, 11% need service once, 5% need service twice, 4% need service three times, and none require service more than three times in a year.

Considering this information to suggest a probability distribution on the number of repairs, what is the standard deviation of the number of repairs for the freezer per year?

0.33 repairs.

2.5 repairs2.

0.75 repairs.

1.25 repairs.

0.512 repairs2.

0.33 repairs.

2.5 repairs2.

0.75 repairs.

1.25 repairs.

0.512 repairs2.

Explanation / Answer

from above: standard deviation of the number of repairs for the freezer per year =0.75 repairs/

y p(y) yP(y) (y-)2 (y-)2P(y) 0 0.8000 0.000 0.109 0.087 1 0.1100 0.110 0.449 0.049 2 0.0500 0.100 2.789 0.139 3 0.0400 0.120 7.129 0.285 total 1 = 0.33 10.476 2= 0.5611 std deviation=     =    2 = 0.7491
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