Accrotime is a manufacturer of quartz crystal watches. Accrotime researchers have shown that the watches have an average life of 32 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.
(a) If Accrotime guarantees a full refund on any defective watch
for 2 years after purchase, what percentage of total production
will the company expect to replace? (Round your answer to two
decimal places.)
(b) If Accrotime does not want to make refunds on more than 6% of
the watches it makes, how long should the guarantee period be (to
the nearest month)?
months
It is given that the lifetime of watches is normally
distributed with
.
a) The probability that the lifetime of a watch is less than 2 years (24 months) is
The percentage of total production will the company expect to
replace is
.
b)Let the guarantee period be .
Then,
The guarantee period (to the nearest month)
is .
Get Answers For Free
Most questions answered within 1 hours.