3) A tire manufacturer believes that the treadlife of its snow tires can be described by a normal model with a mean of 32000 miles and a standard deviation of 2500 miles. What percentage of these tires can be expected to last for more than 40,000 miles? What number of miles represents the 90th percentile?
Solution:
Given that,
mean = = 3200
standard deviation = = 2500
p ( x > 40,000 )
= 1 - p (x < 40,000 )
= 1 - p ( x - / ) < ( 40,000 - 32,000 / 2500 )
= 1 - p ( z < 8000 / 2500 )
= 1 - p ( z < 3.2)
Using z table
= 1 - 0.9993
= 0.0007
Probability = 0.0007 =0.07%
Using standard normal table,
P(Z < z) = 90%
P(Z < z) = 0.90
P(Z < 1.28) = 0.90
z = 1.28
Using z-score formula,
x = z * +
x = 1.28 + 2500 + 32000
x = 35200 miles
The 90th percentile is 35200
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