National Welding Company Uses Industrial Robots in Some of Its

question 56

Short Answer

National Welding Company uses industrial robots in some of its assembly-line operations. Management has determined that the lengths of time in hours between breakdowns are exponentially distributed with probability density function
​ ​
What is the probability that a robot selected at random will break down between 500 and 800 hr of use? Round the answer to the nearest hundredth.
​
__________
​
What is the probability that a robot will break down after 1,100 hr of use? Round the answer to the nearest hundredth.
​
__________

---

Definitions:

Deferred Gross Profit-Year 1

This refers to the portion of gross profit on sales made in the first year that is not recognized immediately but is deferred to future periods under certain accounting methods.

Realized Gross Profit

The gross income that a company has earned and recognized from its sales or services, after accounting for the cost of goods sold, but before deducting operating expenses.

Installment Sales Revenue

Revenue recognized from sales that are paid in installments over a period, rather than in a single transaction.

Installment Sales Method

An accounting technique used to recognize revenue from sales made on credit, where income is recognized proportionally as payments are received.