What is the expected cost of the promotion

Assignment Help Basic Statistics
Reference no: EM131341267

Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 36,500 miles. Management also believes that the standard deviation is 5000 miles and that tire mileage is normally distributed. To promote the new tire, Grear has offered to refund some money if the tire fails to reach 30,000 miles before the tire needs to be replaced. Specifically, for tires with a lifetime below 30,000 miles, Grear will refund a customer $1 per 100 miles short of 30,000.

A) For each tire sold, what is the expected cost of the promotion? If required, round your answer to two decimal places.

B) What is the probability that Grear will refund more than $50 for a tire? If required, round your answer to three decimal places.

C) What mileage should Grear set the promotion claim if it wants the expected cost to be $2.00? If required, round your answer to the hundreds place.

Reference no: EM131341267

Questions Cloud

Draw graphs depicting the general shape of each relationship : Describe each correlation and draw graphs depicting the general shape of each relationship.
Comment on the effects that the given would have : Comment on the effects that the given would have on the net present value. Provide a short explanation of your answer. Each item is independent of every other item.
Discuss how the child cognitively and emotionally responds : Discuss how the child cognitively and emotionally responds during the confinement: from Piaget's Concrete Operational Stage perspective and from Erickson's psychosocial perspective
What is role of style in construction of peoples identities : What is linguistic "style," and what is the role of style in the construction of young people's identities, according to Bucholtz? (must be answered by the file I uploaded)(just 2 paragraphs)
What is the expected cost of the promotion : A) For each tire sold, what is the expected cost of the promotion? If required, round your answer to two decimal places. B) What is the probability that Grear will refund more than $50 for a tire? If required, round your answer to three decimal pla..
Cash flows treated as incremental cash flows : Which of the given cash flows should be treated as incremental cash flows when computing the net present value of an investment?
What factors are involved in choosing a significance level : Distinguish between a Type I and a Type II error. Why is your significance level the probability of making a Type I error?
Explain the negative effects of apologizing : Explain the negative effects of apologizing. Provide evidence and sources for your answer. Does CRIP play a role in the negative outcomes
Write essay on water commercialization versus human rights : Write an essay with the topic "water commercialization versus human rights".

Reviews

Write a Review

Basic Statistics Questions & Answers

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd