Question: A tire company has developed a new type of steel belted
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?
Answer to relevant QuestionsRecall from Exercise 6.28 that yearly returns on common stocks are normally distributed with a mean of 12.4 percent and a standard deviation of 20.6 percent. a. What percentage of yearly returns are at or below the 10th ...Explain how we make a continuity correction. Why is a continuity correction needed when we approximate a binomial distribution by a normal distribution? A department store will place a sale item in a special display for a one- day sale. Previous experience suggests that 20 percent of all customers who pass such a special display will purchase the item. If 2,000 customers ...Suppose that the number of accidents occurring in an industrial plant is described by a Poisson distribution with an average of one accident per month. Let x denote the time (in months) between successive accidents. a. Find ...The amount of sales tax paid on a purchase is rounded to the nearest cent. Assume that the round-off error is uniformly distributed in the interval .5 to .5 cent. a. Write the formula for the probability curve describing ...
Post your question