What is your recommendation as far as the life of lightbulbs

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Reference no: EM132210702

SunLight Company is planning to manufacture a new lightbulb with an estimated mean lifetime run of 36,500 hours. Management also believes that the standard deviation is 5,000 hours, and that the lifetime hours are normally distributed.

a. Use Excel to simulate the hours obtained from a sample of 500 lightbulbs, and use the COUNTIF function to determine the number of bulbs that last longer than 40,000 hours. What is your estimate of the percentage of bulbs that will exceed 40,000 hours? Hint: See Appendix A for a description of the Excel COUNTIF function.

b. Use COUNTIF to find the number of lightbulbs expected to last fewer than 32,000 hours. Then, find the number with fewer than 30,000 hours and the number with fewer than 28,000 hours.

c. If management would like to advertise a light bulb guarantee such that approximately no more than 10% of the bulbs would last long enough to qualify for the guarantee, what is your recommendation as far as the life of the lightbulbs, in hours, that should qualify for the guarantee?

Reference no: EM132210702

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