(All answers were generated using 1,000 trials and native Excel functionality.) Grear Tire Company has produced...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
(All answers were generated using 1,000 trials and native Excel functionality.) 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 5,000 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 27,000 miles before the tire needs to be replaced. Specifically, for tires with a lifetime below 27,000 miles, Grear will refund a customer $1 per 100 miles short of 27,000. Construct a simulation model to answer the following questions. (a) For each tire sold, what is the average cost of the promotion? Round your answer to two decimal places. per tire (b) What is the probability that Grear will refund more than $25 for a tire? Round your answer to one decimal percentage place. 1.4 % (All answers were generated using 1,000 trials and native Excel functionality.) 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 5,000 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 27,000 miles before the tire needs to be replaced. Specifically, for tires with a lifetime below 27,000 miles, Grear will refund a customer $1 per 100 miles short of 27,000. Construct a simulation model to answer the following questions. (a) For each tire sold, what is the average cost of the promotion? Round your answer to two decimal places. per tire (b) What is the probability that Grear will refund more than $25 for a tire? Round your answer to one decimal percentage place. 1.4 %
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Consider Devine Fashion from S8-6. Assume that the fixed expenses assigned to each department include only direct fixed costs of the department (rather than unavoidable fixed costs as given in S8-6):...
-
Describe five types of information systems, and give an example of each.
-
1. Ghost employee schemes usually generate the largest losses among the payroll disbursement fraud schemes. 2. Corruption is divided into four fraud scheme types: (1) Bribery, (2) Conflict of...
-
The following data were obtained from the year-end financial statements of The Arcadia Company: Required Compute the following ratios for The Arcadia Company: (1) Return on Sales, (2) Return on...
-
1. Write a short proposal describing what type of user interface would be appropriate for the users of the project reporting system who are in the training group. Include reasons for your decision....
-
Q# 5 . A coupon - paying bond has a current price of $ 9 3 5 . Its face value is $ 1 , 0 0 0 . Its $ 8 0 coupon is paid just once per year ( at the end of each year ) . There are 8 years left until...
-
Concord Corporation makes backpacks, with a specialty line for baseball players. This backpack has a spot for everything-helmet, spikes, glove, and batsand it comes with a hook at the top that makes...
-
How do you determine normal and tangential components of acceleration?
-
a. Contrast accounting and auditing as to objectives, methodology, applicable standards, and responsible parties, b. What assumption underlies financial statement audits?
-
Name and describe the general requirements that are tested for compliance in a single audit.
-
Who issues International Standards on Auditing and what is their standing relative to local national standards such as the AICPA's SASs?
-
a. Identify the three categories of the ten generally accepted auditing standards. b. Briefly indicate the subject matter of each of the ten standards.
-
When a company exchanges a note for property, goods, or services, what value does it place on the note: a. If it bears interest at a reasonable rate and is issued in a bargained transaction entered...
-
Use translations to graph f. f(x) = x-/2 +1
-
On December 31, 2017, Brown Company issued \(\$ 750,000\) of 20 -year, eight percent bonds payable for \(\$ 621,307\), yielding an effective interest rate of ten percent. Interest is payable...
-
On December 31, 2017, Shade Company issued \(\$ 250,000\) of 20 -year, eight percent bonds payable for \(\$ 276,694\), yielding an effective interest rate of seven percent. Interest is payable...
-
Matt Enterprises issued \(\$ 200,000\) of ten percent, five-year bonds with interest payable semiannually. Determine the issue price if the bonds are priced to yield (a) ten percent, (b) six percent,...
Study smarter with the SolutionInn App