A tire company has developed a new type of steel-belted radial tire. Extensive t

Question

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 qualify the guarantee mileage. 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 Canvas Quiz 5-9 and 5-10.

Explanation / Answer

for no more then 2% of the tires to fail gaurantee mileage ; thresh hold should be at 2 percentile for which z =-2.054

therefore corresponding guarantee mileage =mean+z*std deviaiton =40000-2.054*4000 =31785 miles.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.