The Microprocessors, Which Are Used in Automobiles to Regulate Fuel

question 198

Multiple Choice

The microprocessors, which are used in automobiles to regulate fuel consumption, are guaranteed against defects for 20,000 miles of use. Tests conducted in the laboratory under simulated driving conditions reveal that the distances driven before the microprocessors break down are exponentially distributed and that the average distance driven before the microprocessors fail is 120,000 miles. What is the probability that a microprocessor selected at random will fail during the warranty period?

• A) 0.15
• B) 0.12
• C) 0.36
• D) 0.63
• E) 0.85

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Definitions:

Economic Order Quantity

The optimal quantity of stock to order at one time, considering holding costs and ordering costs, to minimize total inventory costs.

Safety Stock

Additional inventory kept on hand to prevent stockouts caused by fluctuations in demand or supply delays.

Lead Time

The amount of time it takes for a process to go from the initiation phase to its completion.

Monthly Usage

The total amount of a resource or input consumed within a month, often tracked for budgeting and planning purposes.