2. Grear Tire Company has produced a new tirewith an estimated mean lifetime mileage of 36,500miles. Management also believes that thestandard deviation is 5,000 miles and that tiremileage is normally distributed. To promote thenew tire, Grear has offered to refund some moneyif the tire fails to reach 30,000 miles before the tireneeds to be replaced. Specifically, for tires with alifetime below 30,000 miles, Grear will refund acustomer $1 per 100 miles short of 30,000.a) For each tire sold, what is the expected cost ofthe promotion?b) Please perform the simulation for 1000 times,what is the probability that Grear will refund morethan $50 for a tire?

Answered: Image /qna-images/answer/53ac7c57-6e8e-4375-a356-6762b420a8ba.jpg

Answered: 2. Grear Tire Company has produced a…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks

Similar questions

Suppose that the quarterly sales levels among health care information systems companies are approximately normally distributed with a mean of 12 million dollars and a standard deviation of 1.3 million dollars. One health care information systems company considers a quarter a "failure" if its sales level that quarter is in the bottom 20% of all quarterly sales levels. Determine the sales level (in millions of dollars) that is the cutoff between quarters that are considered "failures" by that company and quarters that are not. Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place. million dollars X S
in a test of a lifelong brand of tires , a survey revealed that the mean life was 35,000 mikes and the standard deviation was 7083 mikes. if the shape of the population distribution is known to be normal, approximately what percentage of the tires lasts less than 20834 miles ?
The average wage for bank managers in a certain city is $91,900 per hour with a standard deviation of $24,300. What should be the hourly wage for an administrator if he/she wishes to earn less than 25% of all employees?
Suppose that the quarterly sales levels among health care information systems companies are approximately normally distributed with a mean of 9 million dollars and a standard deviation of 1.4 million dollars. One health care information systems company considers a quarter a "failure" if its sales level that quarter is in the bottom 10% of all quarterly sales levels. Determine the sales level (in millions of dollars) that is the cutoff between quarters that are considered "failures" by that company and quarters that are not. Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place.
In nutrition, the recommended daily allowance of vitamins is a number set by the government to guide an individual's daily vitamin intake. Actually, vitamin needs vary drastically from person to person, but the needs are closely approximated by a normal curve. To calculate the recommended daily allowance, the government first finds the standard deviation and the average need for vitamins among people in the population. The recommended daily allowance is then defined as the mean plus 2.7 times the standard deviation. What fraction of the population will receive adequate amounts of vitamins under this plan? Click here to see page 1 of the table for areas under the standard normal curve. Click here to see page 2 of the table for areas under the standard normal curve. The fraction of the population that will receive adequate amounts of vitamins under the given plan is (Type an integer or decimal rounded to the nearest thousandth as needed.)
A particular fruit's weights are normally distributed, with a mean of 454 grams and a standard deviation of 36 grams.The heaviest 18% of fruits weigh more than how many grams?Give your answer to the nearest gram.
Suppose there is a city where the mean cost per month of a one-bedroom apartment is $1,500, with a standard deviation of $250. Approximately what percentage of one-bedroom apartments in the city cost between $750 and $1,000?
Suppose that the quarterly sales levels among health care information systems companies are approximately normally distributed with a mean of 8 million dollars and a standard deviation of 1.3 million dollars. One health care information systems company considers a quarter a "failure" if its sales level that quarter is in the bottom 10% of all quarterly sales levels. Determine the sales level (in millions of dollars) that is the cutoff between quarters that are considered "failures" by that company and quarters that are not. Carry your intermediate computations to at least four decimal places. Round your answer to one decimal place. 00 0 million dollars X S ? Check acer Q tab esc ! 1 9. a @ 2 W →> S #m 3 X e C d $ LAS 4 C r % 5 f t > < 6 g y & JX b 7 h C n K1300
A scientist has just been funded by the National Institutes of Health to conduct a very expensive study. As it happens, the budget has been cut. Therefore, the choice of laboratory for analysis of sample data is being re-visited. Suppose the choice is between laboratory “A” and “B”. Laboratory “A” has a standard deviation of one milligram and each sample analysis costs $3. Laboratory “B” has a standard deviation of two milligrams but each sample analysis costs $1. All other things being equal, is the principal investigator better off spending $9 on laboratory “A” or spending $9 on laboratory “B”?
A particular fruit's weights are normally distributed, with a mean of 580 grams and a standard deviation of 30 grams.If you pick 100 fruits at random, then 20% of the time, their mean weight will be greater than how many grams?Enter your answer to the nearest gram.
A botting plant fills 12-ounce cans of soda by an automated filling process that can be adjusted to any mean fill volume and that will fill cans according to a normal distribution. However, not all cans will contain the same volume due to variation in the filling process. Historical records show that regardless of what the mean is set at, the standard deviation in fill will be 0.065 ounce. Operations managers at the plant know that if they put too much soda in a can, the company loses money. If too little is put in the can, customers are short changed, and the State Department of Weights and i Measures may fine the company. Complete parts a and b below. a. Suppose the industry standards for fill volume call for each 12-ounce can to contain between 11.93 and 12.07 ounces. Assuming that the manager sets the mean fill at 12 ounces, what is the probability that a can will contain a volume of product that falls in the desired range? The probability is (Round to four decimal places as…
In nutrition, the recommended daily allowance of vitamins is a number set by the government as a guide to an individual's daily vitamin intake. Actually, vitamin needs vary drastically from person to person, but the needs are very closely approximated by a normal curve. To calculate the recommended daily allowance, the government first finds the average need for vitamins among people in the population, and the standard deviation. The recommended daily allowance is then defined as the mean plus 2.5 times the standard deviation. What is the recommended daily allowance for a vitamin with mean u and standard deviation o? recommended daily allowance =

SEE MORE QUESTIONS

Recommended textbooks for you

A First Course in Probability (10th Edition)

Probability

ISBN:

9780134753119

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability

Probability

ISBN:

9780321794772

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability (10th Edition)

Probability

ISBN:

9780134753119

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability

Probability

ISBN:

9780321794772

Author:

Sheldon Ross

Publisher:

PEARSON

SEE MORE TEXTBOOKS