THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 230

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A wire-spinning machine will spin,on average,12.3 miles before needing maintenance.Assume the time between maintenance is exponentially distributed.
-What is the probability that a spinning machine just placed back in service will need maintenance before it produces 4 miles of wire?

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Definitions:

Overhead Rate

A measure used to allocate overhead costs to products or services, often calculated by dividing total overheads by a base measure such as labor hours or machine hours.

Estimated Labor-Hours

The projected number of labor hours required to complete a batch of goods or provide a service.

Predetermined Overhead Rate

A rate used to allocate estimated overhead costs to products or job orders, based on a planned level of activity or driver.

Unused Capacity

Resources available for use that are not being employed in production, often representing inefficiency.