Question

Distinguish between ‘Age Replacement’ and ‘Block Replacement’ policies. Let the lifetimes Y1 ,Y2 ,...., are independently and identically distributed random variables and follows negative exponential distribution with parameter 5. If lifetimes T > 0 and age replacement policy is to be employed, then:

i) find the mean renewal time and

ii) find the long-run average cost per unit time, given the costs C 4 1 = and C 6 2 = units of money.

18 Feb 2025
Answer :
Word Count : 256
Under an age‐replacement policy, each item is preventively replaced when it reaches a specified age T if it has not failed earlier; if it fails before T it is correctively replaced at failure, and the “clock” restarts for the new item. Under a block‐replacement policy, all items (or the single item ___ ___ __________ _____ ___ ______ ____ ___ ___ _____ ______ ___.
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