1. A video cassette recorder manufacturer is so certain of its quality control that it is offering a


1. A video cassette recorder manufacturer is so indubitable of its property administer that it is offering a finished replacement bond if a recorder loses among 2 years. Based upon compiled axioms, the assemblage has notable that singly 1 percent of its recorders lose during the principal year, seeing 5 percent of the recorders that outlast the principal year obtain lose during the promote year. The bond does not meet replacement recorders. (a) Formulate the evolution of the status of a recorder as a Markov manacle whose states include two parching states that compromise needing to respect the bond or having the recorder outlast the bond end. Then invent the (one-step) transition matrix. (b) Use the approach described in Sec. 16.7 to perceive the presumption that the manufacturer obtain have to respect the bond.