The tires to be eligible for the discount guarantee

Assignment Help Applied Statistics

Reference no: EM13884116

Suppose a car company developed a new steel-belted radial tire to be sold through a national chain of discount tires. Because the tire is a new product, the company believes that the mileage guarantee offered with the tire will be an important factor in the acceptance of the product. Based on road tests with the tires, suppose the estimated mean, μ, tire mileage is 36500 miles and standard deviation, σ, of 5000 miles. Assume the data collected indicate a normal distribution.

a. What percentage of the tires will last more than 40000 miles?

b. What percentage of the tires will last between 28400 and 51200 miles?

c. Suppose the company is considering a guarantee that will provide a discount on replacement tires if the original tires do not provide the guaranteed mileage. What should the guaranteed mileage be if the company wants no more than 9% of the tires to be eligible for the discount guarantee?

Reference no: EM13884116

Questions Cloud

Product in the manufacture of ethylene : Acetylene is formed as a by-product in the manufacture of ethylene. It is removed by selective hydrogenation using noble metal catalysts (see, for example, US 7,453,017). A particular catalyst achieves 90% acetylene saturation with 50% hydrogen se..

What are delta g and k at 600 degrees? : What are Delta G and K at 600 degrees?

Determine the critical value for a left-tailed test : Determine the critical value for a left-tailed test of a population mean at the α=0.005 level of significance based on a sample size of n = 30

Find the common difference : The nth term of an A.P. is 6n+2. Find the common difference.Find the 6th term from the end of the A.P. 17, 14, 11,......,-40. For what values of n is the nth term of the following two A.P.'s the same. If the 8th term is f an A.P. is 31 and the 15th t..

The tires to be eligible for the discount guarantee : Suppose the company is considering a guarantee that will provide a discount on replacement tires if the original tires do not provide the guaranteed mileage. What should the guaranteed mileage be if the company wants no more than 9% of the tires to..

Referred to as principles in current gaap : 1.What are four key accounting practices that often are referred to as principles in current GAAP?

Determining the best way to teach introductory psychology : A university professor was interested in determining the best way to teach introductory psychology and ensure that his students would learn the material.

Compare and contrast type i errors and type ii errors : Compare and contrast Type I errors and Type II errors and explain which one is of more concern to researchers.

Design a storage and feed system for sorbitol powder : Design a storage and feed system for the sorbitol powder. Sorbitol has average bulk density 1.48 kg/liter, and can be assumed to have an average particle size of 200 μm.

User Account

All Pages