Exam type problem Assume that the probability of being stopp
Solution
We are given that
0.18 * e-0.18X (0 to T)
P(being stopped next year) = 0.18 * e-0.18X (0 to 1)
= 0.18 * [ e-0.18X / -0.18 ]
= - [ e-0.18*1 - e-0.18*0 ]
= 1 - 0.8353 = 0.1647
P(not being stopped the next 10 years) = 1 - P(being stopped the next 10 years)
= 1 - 0.18 * e-0.18X (T is from 0 to 10)
= 1 - [ 0.18 * [ e-0.18X / -0.18 ] ]
=1 - ( - [ e-0.18*10 - e-0.18*0 ]
= 1 - [ -0.1653 + 1]
= 0.1653
How many months will go by before your chance of being stopped is more than 50%.
That mean we have given probability and we have to calculate Time.
0.18 * e-0.18X = 0.5 (0 to T)
0.18 [ e-0.18T / -0.18] = 0.5
- [ e-0.18T - e0.18*0] = 0.5 (0 to T)
- [ e-0.18T - 1 ] = 0.5
1 - e-0.18T = 0.5
e-0.18T = 1 - 0.5
e-0.18T = 0.5
take log to the base e on bothsides,
-0.18*T = loge(0.5)
-0.18*T = -0.69315
T = -0.69315 / -0.18
T = 3.85
Approximately equal to 4.
