Question

How much should be budgeted for weekly repairs and maintenance to provide that the probability the budgeted amount will be exceeded in a given week is only 0.1?

a) $800
b) $900
c) $1000
d) $1100

Answer 1

Without more information on distribution parameters, it is impossible to determine the correct budget amount for weekly repairs and maintenance that will only be exceeded with a probability of 0.1.

Step-by-step explanation:

Considering the problem involves working with probability and exponential distribution, it falls into the statistics category within Mathematics. The question does not provide enough information to calculate the budget for weekly repairs and maintenance with a given probability. Generally, to solve such a problem, one would need the distribution parameters for the cost of maintenance, such as the rate parameter (lambda) for the exponential distribution.

Once these are known, you would calculate the upper quantile that corresponds to the 0.9 probability (since the budget should be exceeded only 10% of the time, or probability 0.1) using the inverse cumulative distribution function (CDF) for the exponential distribution. Without the necessary parameters or a clear distribution of the costs, it is impossible to determine the correct budget amount to meet the probability requirement.