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(Only answer part II/ Part I is only for reference)
I. The Readylite Company produces a flashlight in which product managers are trying to decide how long a warranty to issue.
If the managers believe the life of the flashlight follows a normal distribution with a mean of 3.5 years and a standard deviation of 1.50 years):
a. What percentage of flashlights sold can they anticipate will be returned within the first one and one-half years?
b. What percentage of flashlights sold can they anticipate will be returned within two and one-half years?
c. What percentage of flashlights sold can they anticipate will be returned between the first one and one-half and three and one-half years?
II. Suppose a company has a design maximum output of 280. Its actual output is 195 and its efficiency is 80%. Calculate its effective output and its capacity utilization.
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