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Back to 5.3 Problems on Conditional Independence

5.3 Exercise 6

Avg difficulty 2.5

A manufacturer claims to have improved the reliability of his product. Formerly, the product had probability 0.65 of operating 1000 hours without failure. The manufacturer claims this probability is now 0.80. A sample of size 20 is tested. Determine the odds favoring the new probability for various numbers of surviving units under the assumption the prior odds are 1 to 1. How many survivors would be required to make the claim creditable?

Pfeiffer, Applied Probability, 5.3 Problems on Conditional Independence, exercise 6

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Adapted from Applied Probability © 2009 Paul E. Pfeiffer. Licensed under CC BY 3.0. Source: Applied Probability. Imported at revision d7a0420.