AY 1500-
1400
1300
Optional: How much compound
interest is earned at 35 years?
(looks to be in the middle)
compound interest
Total amount (dollars)
1200
1100
1000
900
800
700
600
500
400
300
200
100
Optional: How much simple
interest is earned at 35 years?
(looks close to the whole number)
simple interest
(a) How much more compound
interest than simple interest is
earned after 35 years?
0
5 10 15 20 25 30 35 40 45 50
Number of years

Amachine that produces a special type of transistor (a component of computers) has a 2% defective rate. the production is considered a random process where each transistor is independent of the others. (a) what is the probability that the 10th transistor produced is the first with a defect? (b) what is the probability that the machine produces no defective transistors in a batch of 100? (c) on average, how many transistors would you expect to be produced before the first with a defect? what is the standard deviation? (d) another machine that also produces transistors has a 5% defective rate where each transistor is produced independent of the others. on average how many transistors would you expect to be produced with this machine before the first with a defect? what is the standard deviation? (e) based on your answers to parts (c) and (d), how does increasing the probability of an event a↵ect the mean and standard deviation of the wait time until success?