# Question: A manufacturer of electronic calculators offers a one year warranty If

A manufacturer of electronic calculators offers a one-year warranty. If the calculator fails for any reason during this period, it is replaced. The time to failure is well modeled by the following probability distribution:

A manufacturer of electronic calculators offers a one-year warranty. If the calculator fails for any reason during this period, it is replaced. The time to failure is well modeled by the following probability distribution:

f (x) = 0.125e –0.125x x > 0

(a) What percentage of the calculators will fail within the warranty period?

(b) The manufacturing cost of a calculator is $50, and the profit per sale is $25. What is the effect of warranty replacement on profit?

A manufacturer of electronic calculators offers a one-year warranty. If the calculator fails for any reason during this period, it is replaced. The time to failure is well modeled by the following probability distribution:

f (x) = 0.125e –0.125x x > 0

(a) What percentage of the calculators will fail within the warranty period?

(b) The manufacturing cost of a calculator is $50, and the profit per sale is $25. What is the effect of warranty replacement on profit?

**View Solution:**## Answer to relevant Questions

The net contents in ounces of canned soup is a random variable with probability distribution Find the probability that a can contains less than 12 ounces of product. The Really Cool Clothing Company sells its products through a telephone ordering process. Since business is good, the company is interested in studying the way that sales agents interact with their customers. Calls are ...Surface-finish defects in a small electric appliance occur at random with a mean rate of 0.1 defects per unit. Find the probability that a randomly selected unit will contain at least one surface-finish defect. A quality characteristic of a product is normally distributed with mean µ and standard deviation . Specifications on the characteristic are 6 x 8. A unit that falls within specifications on this quality ...A machine is used to fill containers with a liquid product. Fill volume can be assumed to be normally distributed. A random sample of ten containers is selected, and the net contents (oz) are as follows: 12.03, 12.01, 12.04, ...Post your question