Respuesta :
Answer: company A: 1.36
company B: 1.54 A; lowest expected number of defective boards
Step-by-step explanation:
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The weighted average is a generalization of the expected value. The company that should be chosen for purchasing circuit boards is Company A.
What is the expected value?
The weighted average is a generalization of the expected value. The expected value is the arithmetic mean of a large number of independently chosen random variable outcomes.
A.) The expected number of defective circuit boards for company A is,
Expected number = (0.21×0) + (0.30×1) + (0.41×2) + (0.08×3) = 1.36
B.) The expected number of defective circuit boards for company B is,
Expected number = (0.18×0) + (0.32×1) + (0.28×2) + (0.22×3) = 1.54
C.) Since the expected number of defective circuit boards for Company A is less, therefore, the company that should be chosen for purchasing circuit boards is Company A.
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