A tire manufacturer oers to fix flats at no cost to the customer during the advertised life
Question:
A tire manufacturer offers to fix flats at no cost to the customer during the advertised life of a tire. The manufacturer sells a tire X that has an advertised life of 60,000 miles. Assume that flats occur only when a tire runs over sharp metallic objects (screws, nails, etc.) on the road. The manufacturer has been selling tire X for a long time and the accumulated warranty repairs data shows that on average the manufacturer ends up fixing 1.9 flats per tire.
(a) What random variable best describes the number of flats a tire will have?
(b) What parameter(s) describe the random variable? What is (are) the value(s) of the parameter(s)?
(c) Using the manufacturer’s warranty repairs data estimate the probability that your tire–which may or may not be produced by the manufacturer–will have a flat within the next 100 miles you drive. Explain your answer. Clarify the assumptions under- lying your estimate.
Expert Answer:
a Answer Poisson Variable best describes the number of flats a tire will have over its life This is ... View the full answer
