Solving Exponential Distribution Problem: Find c for P(Y1+Y2+Y3+Y4+Y5>c)=0.05

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In summary: This makes sense because a higher c value would make the probability of Y1 + Y2 + Y3 + Y4 + Y5 being greater than c even smaller, which aligns with the given probability of 0.05. In summary, you correctly used the given information to determine the value of c = 124.342 for the probability of Y1 + Y2 + Y3 + Y4 + Y5 being greater than c to be 0.05.
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J Flanders
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Here's my question:

A plant supervisor is interested in budgeting weekly repair costs for a certain type of machine. Records over the past years indicate that these repair costs have an exponential distribution with mean 20 for each machine studied. Let Y1, Y2, Y3, Y4, Y5 denote the repair costs for five of these machines for the next week. Find a number c such that P(Y1 + Y2 + Y3 + Y4 + Y5 > c) = 0.05, assuming that the machines operate independently.

I was given in the previous problem that if Y has an exponential distribution with mean X, U = 2Y/X has a chi-squared distribution with 2 degrees of freedom.

I'm not quite sure what to do here. I think I solve for Y to get Y = UX/2, which means Y1, Y2, Y3, Y4, and Y5 each are independent chi-squared distributed random variables, each with 20 degrees of freedom. Then Y1 + Y2 + Y3 + Y4 + Y5 has a chi-squared distribution with (20)(5) = 100 degrees of freedom. Then I look at a chi-squared table for 100 d.f. and alpha = 0.05. Let c = 124.342.

Is this right and/or make sense?
Thanks for any help.
 
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Yes, your answer is correct. You have correctly identified that each of the Y variables has an exponential distribution with mean 20, and then that U = 2Y/X has a chi-squared distribution with 2 degrees of freedom. Then, since the machines operate independently, you can add the five Y variables together to get a chi-squared distribution with (20)(5) = 100 degrees of freedom. Finally, you looked in the chi-squared table for alpha = 0.05 and 100 degrees of freedom to get the value of c = 124.342.
 

FAQ: Solving Exponential Distribution Problem: Find c for P(Y1+Y2+Y3+Y4+Y5>c)=0.05

1. What is an exponential distribution?

An exponential distribution is a type of probability distribution that is often used to model the time between events that occur independently at a constant rate. It is characterized by a single parameter, λ (lambda), which represents the rate of the events.

2. What does c represent in the given problem?

In this problem, c represents the value of the sum of five exponential random variables (Y1, Y2, Y3, Y4, and Y5) at which the probability of the sum being greater than c is 0.05. In other words, c is the critical value that separates the top 5% of the distribution from the rest.

3. How do you solve for c in this problem?

To solve for c, you would first use the property of exponential distributions that states that the sum of independent exponential random variables follows a gamma distribution. Then, you would use a gamma distribution table or a statistical software to find the critical value c for a given probability of 0.05 and the appropriate parameters.

4. What is the significance of finding c in this problem?

Finding c allows us to determine the maximum value of the sum of the five exponential random variables (Y1, Y2, Y3, Y4, and Y5) that would give a probability of 0.05 or less. This can be useful in various applications, such as in quality control to determine the maximum acceptable time between events.

5. Are there any assumptions made in solving this problem?

Yes, the main assumption is that the five exponential random variables (Y1, Y2, Y3, Y4, and Y5) are independent and identically distributed. This means that the rate parameter λ is the same for all five variables, and the occurrence of one event does not affect the occurrence of another event. Other assumptions may include the use of a continuous probability distribution and the absence of any external factors that may affect the rate of events.

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