A P/OM Student Has Purchased a Four-Function Calculator for Use

question 57

Multiple Choice

A P/OM student has purchased a four-function calculator for use during exams.This calculator is perfectly reliable except for two parts: its microchip,which has a failure rate of one in every twenty hours of operation; and its battery,which has a failure rate of one in every ten hours of operation.Also,on average the battery will fail in five hours,with a standard deviation of 30 minutes.Assuming that a new battery has just been installed,what is the probability that the calculator will perform reliably during a one-hour exam?

• A)0.800
• B)0.855
• C)0.900
• D)0.950
• E)1.850

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Definitions:

Labor

Human effort, both physical and mental, used in the production of goods and services.

Output

The total amount of goods or services produced by a firm, an industry, or an economy, often measured within a specific time period.

Production Function

An equation or graph that indicates the maximum output that a firm can produce with a given set of inputs, such as labor and capital, under current technology.

Production Function

A mathematical relationship expressing the maximum output that can be produced from a given set of inputs.