Quality control offers full replacement warranty

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Reference no: EM132242052

A hard disk manufacturer is so confident in its quality control offers a full replacement warranty if a hard drive fails within 2 years. Based on historical data, the manufacturer knows that only 1% of the disks the fail during the 1 year of operation, while 5% of trays which survive the 1 year operation fail during the 2 nd year of operation. The warranty agreement does not cover discs that have been replaced.

1. Format the evolution of a disk's status as a Markov chain whose conditions include 2 absorbent states: one is n a situation where the manufacturer has to honor the guarantee contract and the other is the situation where the disc will survive the period covered by the warranty. In then build the flow chart and the one-step transition table Markov chain.

2. Find the likelihood that the manufacturer will have to honor the warranty agreement.

Reference no: EM132242052

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