Question

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 5000 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 30,000 miles before the tire needs to be replaced. Specifically, for tires with a lifetime below 30,000 miles, Grear will refund a customer $1 per 100 miles short of 30,000.

- For each tire sold, what is the expected cost of the promotion?
If required, round your answer to two decimal places.

- What is the probability that Grear will refund more than $50
for a tire? If required, round your answer to three decimal
places.

- What mileage should Grear set the promotion claim if it wants
the expected cost to be $2.00? If required, round your answer to
the hundreds place.

miles

Please answer with excel

Answer #1

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 5000 miles and that tire mileage is
normally distributed. To promote the new tire, Grear has offered to
refund a portion of the purchase price if the tire fails to reach
30,000 miles before the tire needs to be replaced. Specifically,
for tires with a lifetime below 30,000 miles, Grear will refund a
customer $1...

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 30,000 miles before
the tire needs to be replaced. Specifically, for tires with a
lifetime below 30,000 miles, Grear will refund a customer $1 per
100 miles short...

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 30,000 miles before
the tire needs to be replaced. Specifically, for tires with a
lifetime below 30,000 miles, Grear will refund a customer $1 per
100 miles short...

. 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 30,000 miles before
the tire needs to be replaced. Specifically, for tires with a
lifetime below 30,000 miles, Grear will refund a customer $1 per
100 miles...

(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 30,000 miles before
the tire needs to be replaced. Specifically, for tires with a
lifetime below 30,000...

The operation manager at a tire manufacturing company believes
that the mean mileage of a tire is 20,138 miles, with a variance of
10,304,100. What is the probability that the sample mean would
differ from the population mean by less than 236 miles in a sample
of 171 tires if the manager is correct? Round your answer to four
decimal places.

The Layton Tire and Rubber Company wishes to set a minimum
mileage guarantee on its new MX100 tire. Tests reveal the mean
mileage is 67900 with a standard deviation of 2050 miles and that
the distribution of miles follows the normal distribution. They
want to set the minimum guarantee mileage so that no more than 4
percent of tires will be replaced. What minimum guaranteed mileage
should Layton announce?

The mean lifetime of a tire is 36 months with a variance of
49.
If 126 tires are sampled, what is the probability that the mean
of the sample would be less than 36.44 months?
Round your answer to four decimal places.

The mean lifetime of a tire is 42 months with a variance of
49.
If 145 tires are sampled, what is the probability that the mean
of the sample would be greater than 42.8 months? Round your answer
to four decimal places.

The mean lifetime of a tire is 46 months with a variance of 49.
If 133 tires are sampled, what is the probability that the mean of
the sample would differ from the population mean by less than 1.05
months? Round your answer to four decimal places.

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