What happen if company fail to meet guaranteed mileage

Assignment Help Basic Statistics

Reference no: EM13115187

A tire company has developed a new type of steel-belted radial tire. Extensive testing indicates the population of mileages obtained by all tires of this new type is normally distributed with a mean of 40,000 miles and a standard deviation of 4,000 miles. The company wishes to offer a guarantee providing a discount on a new set of tires if the original tires purchased do not exceed the mileage stated in the guarantee. What should the guaranteed mileage be if the tire company desires that no more than 2 percent of the tires will fail to meet the guaranteed mileage?

Reference no: EM13115187

Questions Cloud

Determining the cost of capital of kubrick company : If the risk-free rate is 6% and the equity risk premium is 5%, calculate the cost of capital for the two firms and the combined firm. Assuming the value drivers remain constant(and revenues are simply combined), what would be the value of the comb..

Determining pert and cpm : Assume you are going to manage a large construction project involving many subcontractors. Why use PERT or CPM to plan the project rather than just logically scheduling the subcontractors?

Explain positive side of high degree of interconnection : A small, undocumented change resulted in the collapse of the VA system, largely due to the high interrelationship between its applications. What is the positive side of this high degree of interconnection, and how does this benefit patients?

Calculate the molar concentration of uncomplexed zinc ion : Calculate the molar concentration of uncomplexed Zn2+ in a solution that contains 0.20 mole of Zn(NH3)42+ per liter and 0.0116 M NH3 at equilibrium.

What happen if company fail to meet guaranteed mileage : What should the guaranteed mileage be if the tire company desires that no more than 2 percent of the tires will fail to meet the guaranteed mileage?

Computing annuity and sinking fund : What is the difference between an annuity and a sinking fund? If you were to set up an annuity today to purchase something in 7 years what would it be for?

Whats the hardness of water : You collected a water sample from your shower containing 3.2mM Ca2+ and 1.1 mM Mg2+ whats the hardness of water in terms of CaCO3/L.

Percentage of batteries is expected to fail-warranty period : A manufacturer of batteries offers a two-year limited warranty. If the battery fails for any reason during the first two years, it is replaced. What percentage of the batteries is expected to fail within the warranty period?

Discuss the shift in valuing direct and indirect : Discuss the shift in valuing direct and indirect use values of resources associated with the Elhwa River.

User Account

All Pages