Construct a histogram of the time until first failure for this type of VCR. Then find a

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Construct a histogram of the time until first failure for this type of VCR. Then find a 95% confidence interval for the mean time until failure for this type of VCR. Does the shape of the histogram invalidate the confidence interval? Why or why not?


Problems 73-76 are related to the data in the files P9_73a.XLS and P9_73b.XLS. The Niyaki Company sells VCRs through a number of retail stores. On one popular model, there is a standard warranty that covers parts for the first 6 months and labor for the first year. Customers are always asked whether they wish to purchase an extended service plan for $25 that extends the original warranty 2 more years—that is, to 30 months on parts and 36 months on service. To get a better understanding of warranty costs, the company has gathered data on 70 VCRs purchased. The variables in the P9_73a.XLS file are:

  • @ Extended Plan: whether customer purchased the extended service plan 
  • @ Failure Time: time (months) until the first failure of the unit 
  • @ Parts Cost: cost of parts to repair the unit 
  • @ Labor Cost: cost of labor to repair the unit 

The latter two costs are tracked only for repairs covered by warranty. [Otherwise, the customer bears the cost(s).] The variables in the P9_73b.XLS file are similar, but they also include information of subsequent failures of the units (that occur during the warranty period).  

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Managerial Statistics

ISBN: 9780534389314

1st Edition

Authors: S. Christian Albright, Wayne L. Winston, Christopher Zappe

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