A piece of equipment has a lifespan of T which is exponentially distributed with mean 20....
A piece of equipment has a lifespan of T which is exponentially distributed with mean 20. A warranty pays (20 – T) if the failure occurs prior to time 20 and 0 otherwise. Find the variance of the warranty payment.
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52
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75
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150
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199
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331
Homework Answers
let x be payment
here E(X) =
(20-t)f(t) dt =
(20-t)*(1/20)*e-t/20 dt =7.3576
E(X2)=
(20-t)2f(t) dt =
(20-t)2*(1/20)*e-t/20 dt =105.6964
Var(X)=E(X2)-(E(X))2 =105.6964-7.3576^2 =52
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A piece of equipment has a lifespan of T which is
exponentially distributed with mean 20....
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