The purpose of a cash budget is to help financial managers to get a better understanding of the timing of cash flows.
The cash budget will make it easier for the managers to monitor whether the current cash flow is enough to fund all companies' operation and to determine whether they need to make any changes in their departments.

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2 years ago

A parallel system functions whenever at least one of its components works. Consider a parallel system of 5 components, and suppo

Aneli [31]

Answer:

Probability that component 4 works given that the system is functioning = 0.434 .

Step-by-step explanation:

We are given that a parallel system functions whenever at least one of its components works.

There are parallel system of 5 components and each component works independently with probability 0.4 .

Let <em>A = Probability of component 4 working properly, P(A) = 0.4 .</em>

<em>Also let S = Probability that system is functioning for whole 5 components, P(S)</em>

Now, the conditional probability that component 4 works given that the system is functioning is given by P(A/S) ;

P(A/S) = {Means P(component 4 working and system also working)

divided by P(system is functioning)}

P(A/S) = {In numerator it is P(component 4 working) and in

denominator it is P(system working) = 1 - P(system is not working)}

Since we know that P(system not working) means that none of the components is working in system and it is given with the probability of 0.6 and since there are total of 5 components so P(system working) = 1 - $0.6^{5}$ .