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.
Answer :
Word Count : 256
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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 _____ _________ ___ ______ ________ ______ ________ _________ _________ _________.
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