A Manufacturing Company Has 5 Identical Machines That Produce Nails

question 53

Short Answer

A manufacturing company has 5 identical machines that produce nails. The probability that a machine will break down on any given day is 0.1. Define a random variable x to be the number of machines that will break down in a day.
a.What is the appropriate probability distribution for x? Explain how x satisfies the properties of the distribution.
b.Compute the probability that 4 machines will break down.
c.Compute the probability that at least 4 machines will break down.
d.What is the expected number of machines that will break down in a day?
e.What is the variance of the number of machines that will break down in a day?

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Definitions:

Underapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead cost is less than the actual overhead cost incurred.

Estimated Total Manufacturing Overhead

The projected sum of all manufacturing costs (excluding direct labor and direct materials) expected to be incurred over a specific period.

Schedule of Cost of Goods Manufactured

A detailed statement listing the total costs incurred in the production process to arrive at the cost of goods manufactured.

Work in Process Inventory

Items in a manufacturing process that are in progress but not yet completed.