Report

Part 1

1.1 What is the probability of surviving past 95 years given a constant failure rate?

1.2 What is the probability of surviving past 95 years given the Weibull failure rate?

Part 2

2.1 Describe the density function plotted in Task 4. What does it represent? What patterns can you glean from it?

2.2 Discuss the hazard rate functions for the constant failure rate model and the Weibull model in comparison with the empirical (from data) estimation. What do you observe a) in the beginning of life and b) by the end of life?

2.3 Discuss the reliability functions for the constant failure rate model and the Weibull model in comparison with the empirical (from data) estimation.

Part 3

3.1 How should life insurance be priced by the company under the three different models? Consider insurance policies that change their premiums with age.

3.2 Think of other examples in engineering or everyday life and discuss what failure curves these examples follow. Explain why. Extra points for finding engineering examples of “bathtub” curves.

By Max Ramgraber, Renan Barros and Oswaldo Morales Napoles, Delft University of Technology. CC BY 4.0, more info on the Credits page of Workbook