Results 1 to 2 of 2

Math Help - Warrenty payout?

  1. #1
    Newbie
    Joined
    Oct 2009
    Posts
    16

    Warrenty payout?

    At time of purchase, the value of a certain TV is $1000, and its value in the future is given by w(t) = 12.5(3^(4-t) -1) 0<=t<=4, where t is the time in years (after 4 years, the TV has no more value with respect to warranty). If it fails during the first four years, the warranty pays w (t). Compute the expected valueof the payment on the warranty if the lifetime distribution of the TV is exponential with expectation 10 years.(Note: 3^x=e^(x ln 3 )
    Follow Math Help Forum on Facebook and Google+

  2. #2
    Flow Master
    mr fantastic's Avatar
    Joined
    Dec 2007
    From
    Zeitgeist
    Posts
    16,948
    Thanks
    5
    Quote Originally Posted by affelix View Post
    At time of purchase, the value of a certain TV is $1000, and its value in the future is given by w(t) = 12.5(3^(4-t) -1) 0<=t<=4, where t is the time in years (after 4 years, the TV has no more value with respect to warranty). If it fails during the first four years, the warranty pays w (t). Compute the expected valueof the payment on the warranty if the lifetime distribution of the TV is exponential with expectation 10 years.(Note: 3^x=e^(x ln 3 )
    Use the known pdf of the exponential distribution, f(t), to calculate the expected value of W: E(W) = \int_0^{+\infty} w(t) f(t) \, dt = \int_0^4 w(t) f(t) \, dt.

    If you need more help please show all your work and say exactly where you're stuck.
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Payout Formula?
    Posted in the Calculus Forum
    Replies: 6
    Last Post: May 25th 2010, 06:21 AM
  2. Insurance doesn't give full payout
    Posted in the Business Math Forum
    Replies: 1
    Last Post: August 19th 2009, 08:40 PM
  3. Progessive payout formula
    Posted in the Statistics Forum
    Replies: 1
    Last Post: December 24th 2008, 01:31 PM
  4. payout calculation -please help
    Posted in the Algebra Forum
    Replies: 1
    Last Post: May 1st 2008, 02:20 PM

Search Tags


/mathhelpforum @mathhelpforum