Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

LR test for binomial samples Suppose that Yk has a binomialdistribution with sample size n, and proportion p k , = I , . . . , K . All Y,are statistically independent of each other.

(a) Derive the (log) likelihood ratio test statistic for equality p ...=  P K

(b) How many degrees of freedom does the approximate chi-square distribution for this statistic have?

(c) Apply the test to the capacitor data of Chapter 10.

(d) Do you think that the asymptotic theory is adequate for the Explain why. capacitor data?

(e) Apply the test to the appliance component data of Problem 10.5, doing parts (b) through (e) of the problem.

( f ) Do you think that the asymptotic theory is adequate for the appliance component data? Explain why.

Problem 10.5

Appliance component (renewal data). The data in the accompanying table show the number of appliances that entered each month of service and the number of failures of a particular component. On failing, acomponent was replaced (renewed) with a new one, and an appliance can have any number of such failures over the months it is in service. Regard each month of service of an appliance as a binomial trial in which the

component either fails or survives with the probability for that month.

(a) For each month, calculate the estimate of the binomial proportion failing (expressed as a percentage). Month 1 has a high percentage. typical of many appliance components.

(b) Test for equality of the binomial proportions of all months. Calculate the pooled estimate of the proportion.

(c) Repeat (b) for months through 12.

(d) Repeat (b) for months 13 through 24.

(e) Repeat (b) for months 25 through 29.

(f) Cumulate the percentage failing for each month to estimate the cumulative percentage failing through each month. Such cumulative percentages could exceed loo%, as an appliance can have more than one failure. Plot the sample cumulative percentage failing (called the "renewal function") on log-log paper.

(g) Estimate the cumulative percentage failing on the 12-month warranty and during the 15-year life of the appliance.

               

(h) Criticize the preceding analyses.

(i) Comment on the accuracy of the 15-year estimate in view of the fact that data from months 1 through 12 come from 65% of the population, data from months 13 through 24 come from about 8% of the population that is on service contract (unlimited repair service, owner choses to pay a single premium for), and data from months 25 through 29 come from 2% of the population, whose owners elect a second year of service contract.

(j) Devise a better 15-year estimate of the cumulative percentage failing.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91780745

Have any Question?


Related Questions in Accounting Basics

Question -a revenue of 62000 was earned but only 45000 was

Question - a. Revenue of $62,000 was earned, but only $45,000 was collected. Expenses of $36,000 were incurred, but only $30,000 was paid. What is reported operating income? b. Wages of $5,000 are paid every Friday for a ...

Question - a fire destroys all of the merchandise of

Question - A fire destroys all of the merchandise of Bridgeport Company on February 10, 2017. Presented below is information compiled up to the date of the fire. Inventory, January 1, 2017$395,100 Sales revenue to Februa ...

Question 1 texas co expects sales of 20000 units of s1 in

Question: 1. Texas Co. expects sales of 20,000 units of S1 in September. DX1 is its most popular high performance desktop model. The sales manager is confident that, between October and December, the total sales will hav ...

Question - pharoah company traded a used welding machine

Question - Pharoah Company traded a used welding machine (cost $10,260, accumulated depreciation $3,420) for office equipment with an estimated fair value of $5,700. Pharoah also paid $3,420 cash in the transaction. Prep ...

Question sam and sue are married and age 65 sam has a full

Question: Sam and Sue are married and age 65. Sam has a full time job that pays $80,000 and Sue's full time job pays $85,000. They have worked since age 16 and are planning on keeping their jobs and signing up for social ...

Questions answer the following questions all the questions

Questions: Answer the following questions. All the questions below are based on it. You are NOT allowed to cite information from other sources!!! It is based on Australian accounting system so do not rely too much on you ...

Assignment -part a - you are working as an accountant in a

Assignment - Part A - You are working as an accountant in a local accounting firm. You have been approached by Oliver and Sydney, the owner of Sugariffic, a start-up wholesaler. They have chosen Xero as their cloud based ...

Question - on october 1 2018 daw inc signed a long-term

Question - On October 1, 2018, DAW Inc. signed a long-term, non-cancellable purchase commitment with a major supplier to purchase raw materials needed for production of the company's product during 2019 for $1,000,000. O ...

Question - assume you graduate from college with 30000 in

Question - Assume you graduate from college with $30000 in student loans. If your interest rate is fixed at 5.00% APR with monthly compounding and you repay the loans over 10-year period, what will be your monthly paymen ...

Question - retained earnings had a balance on january 1

Question - Retained Earnings had a balance on January 1, 2017, and December 31, 2017, respectively, of $234,500 and $411,000. Net income for the year was $199,500 and the only other event affecting Retained Earnings was ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As