The Time It Takes to Completely Tune an Engine of an Automobile

question 81

Short Answer

The time it takes to completely tune an engine of an automobile follows an exponential distribution with a mean of 40 minutes.
a.What is the probability of tuning an engine in 30 minutes or less?
b.What is the probability of tuning an engine between 30 and 35 minutes?

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Definitions:

Forward Rate

is a financial term referring to a predetermined interest rate or currency exchange rate agreed upon for a transaction that will occur at a future date.

Discount

A reduction from the usual cost of something or the process of determining the present value of future cash flows.

Political Risk

In international business, the chance that the value of a firm’s investment in a foreign country will be reduced by political actions of either the foreign government or terrorists.

Exchange Rate Risk

The risk that international trade dealings will earn less than expected because of movement in exchange rates.