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In a production run of 300 units, there are exactly 20 defective items and 280 good items.
(a) What is the probability that a randomly selected item is defective?
(b) If two items are sampled without replacement, what is the probability that both are good?
(c) If two items are randomly sampled without replacement, what is the probability that the first is good but the second is defective?
Evaluate the probability that such a failure will take place in the event of an accident and What is the contractual MTTF
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Determining the root causes
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A company, sells and repairs old bicycles and parts for replacement. Sell reconstructed pictures at a unit price of $ 50. The fixed cost of equipment for re construction of the tables is $ 500.
Calculate a simple one-year credit default swap spread using a recovery rate of 30% and an unconditional default probability of 4%. Assume that there are no accruals, payments are made annually and ignore discounting any cash flows.
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