Question 5 [7 marks Accrotime is a manufacturer of quartz crystal watches. Accro

Question

Question 5 [7 marks Accrotime is a manufacturer of quartz crystal watches. Accrotime researchers have shown that the watches have an average life of 28 months before certain electronic components deteriorate, causing the watch to become unreliable. The standard deviation of watch lifetimes is 5 months, and the distribution of lifetimes is normal. 5.1 If Accrotime guarantees a full refund on any defective watch for 2 years after purchase, what percentage of total production should the company expect to replace?

Explanation / Answer

Ans:

Given that

mean= 28 months

standard deviation=5 months

z=(x-28)/5

2 years=24 mnths

z=(24-28)/5=-4/5=-0.8

P(x<24)=P(z<-0.8)=0.2119

21.19% will be replaced.

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