The time required for an automotive center to complete an oil change service on an automobile approximately follows a normal distribution, with a mean of 15 minutes and a standard deviation of 4 minutes.
(a) The automotive center guarantees customers that the service will take no longer than 20 minutes. If it does take longer, the customer will receive the service for half-price. What percent of customers receive the service for half-price?
(b) If the automotive center does not want to give the discount to more than 3% of its customers, how long should it make the guaranteed time limit?
(a) The percent of customers that receive the service for half-price is 1.06%.
(Round to two decimal places as needed.)
(b) The guaranteed time limit is_minutes.
Solution :
Given that ,
mean = = 15 minutes
standard deviation = = 4 minutes
a) P(x < 20) = P[(x - ) / < (20 - 15) / 4]
= P(z < 1.25)
Using z table,
= 0.8944
The percentage is = 89.44%
b) Using standard normal table,
P(Z > z) = 3%
= 1 - P(Z < z) = 0.03
= P(Z < z) = 1 - 0.03
= P(Z < z ) = 0.97
= P(Z < 1.88 ) = 0.97
z = 1.88
Using z-score formula,
x = z * +
x = 1.88 * 4 + 15
x = 22.52 minutes
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