Find variance-standard deviation for producing weather tire

Reference no: EM13118265

Assume that Acme Tires sells their high performance tires for $175 each and their all weather tires for $100 each. Further assume that the cost of producing a high performance tire is $140 and the cost of producing an all weather tire is $75. Finally, assume that if a tire does not last 40,000 miles, Acme tires will replace it free of charge to the consumer; Acme will incur the cost of replacement, but will not receive any additional revenue.

(a) Calculate the profit earned/loss incurred on; a high performance tire that exceeds 40,000 miles, a high performance tire that does not exceed 40,000 miles, an all weather tire that exceeds 40,000 miles, and an all weather tire that fails to last 40,000 miles.

(b) What is the expected value (expected profit) of producing an all weather tire? Of producing a high performance tire?

(c) What is the variance and standard deviation (of profit, NOT of tire life) for producing an all weather tire? Of producing a high performance tire?

Reference no: EM13118265

Questions Cloud

Explain how comb shape is inherited : What progeny would result from crossing a pure-bred rose combed hen with dihybrid walnut rooster? Give the genotypes of the parents and the genotpye and phenotypes of the F1.

Rationalization and simplification : ationalize the denominator and simplify. Assume that all variables represent positive real numbers.

Illustrate what will the traveler weigh on another planet : A space traveler weighs 750 N on earth. Illustrate what will the traveler weigh on another planet whose radius is three times that of the earth and whose mass is twice that of the earth.

Find independent events based probability : Independent events based probability. A company operates a telephone order system for a catalogue of its outdoor clothing products. The catalogue orders are processed in three stages. In the first stage, the telephone operator enters the order int..

Find variance-standard deviation for producing weather tire : What is the variance and standard deviation (of profit, NOT of tire life) for producing an all weather tire? Of producing a high performance tire?

Rules for radical expressions : Five outside of the square root symbol then 3 under the square root symbol plus 15 outside of the square root symbol then 3 under the square root symbol plus 12 outside the square root symbol then 3 under the square root symbol plus 32.

What minimum mass of succimer in miligrams is needed : A modern chealting agent used for this purpose is succimer (C4H6O4S2). Suppose you are trying to determine the appropriate dose for succimer treatment of lead poisoning.

Expalin how far above the floor should the bottom edge : The top of her head is 0.12m above her eyes. What is the height of the shortest mirror in which she can see her entire image? Expalin how far above the floor should the bottom edge of the mirror be placed?

Gambling is generally a losing proposition : Use excel solver to find solution for LP problem A couple has agreed to attend a "Casino Night" as part of a fundraiser for the local hospital. They do not like to gamble because they believe that gambling is generally a losing proposition.

User Account

All Pages