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  • Econometrics Tutorial 1

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    DanTan
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    This document provides questions about the normal distribution of personal computer lifespan. It states that computer lifespan has a mean of 3.4 years and variance of 1.6 years. It then asks what fraction of computers will: fail in the first year; last 4 years or more; last at least 2 years; last between 2.5 and 4.5 years. It finally asks what warranty period would be needed if only 5% of computers need replacement.

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    Econometrics

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    This document provides questions about the normal distribution of personal computer lifespan. It states that computer lifespan has a mean of 3.4 years and variance of 1.6 years. It then asks what fraction of computers will: fail in the first year; last 4 years or more; last at least 2 years; last between 2.5 and 4.5 years. It finally asks what warranty period would be needed if only 5% of computers need replacement.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    31 views10 pages

    Econometrics Tutorial 1

    Uploaded by

    DanTan
    This document provides questions about the normal distribution of personal computer lifespan. It states that computer lifespan has a mean of 3.4 years and variance of 1.6 years. It then asks what fraction of computers will: fail in the first year; last 4 years or more; last at least 2 years; last between 2.5 and 4.5 years. It finally asks what warranty period would be needed if only 5% of computers need replacement.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 10

    Econometrics tutorial 1

    Probability Primer
    Q1.
    Q2.
    Q3.
    Q4.The length of life (in years) of a personal
    computer is approximately normally distributed
    with mean 3.4 years and variance 1.6 years.

    a. What fraction of computers will fail in the first year?


    b. What fraction of computers will last 4 years of more?
    c.What fraction of computers will last at least 2 years?
    d. What fraction of computers will last more than 2.5 years but less
    than 4.5 years? e. If the manufacturer adopts a warranty policy in
    which only 5% of computers have to be replaced, what is the length of
    the warranty period?

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