#30 Guarantee: Watches Accrotime is a manufacturer of quartz crystal watches. Accrotime researches haves shown that the watches they make have an average life of 28 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) To offer a full refund guarantee on any defective watch for 2 years after purchase, what percentage of total production should the company expect to replace? (b) If Accrotinme does not want to make refunds on more than 12% of the watches it makes, how long should the guarantee period be ( to the nearest month)?

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
#30 Guarantee: Watches Accrotime is a manufacturer of quartz crystal watches. Accrotime
researches haves shown that the watches they make have an average life of 28 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) To offer a full refund guarantee on any defective watch for 2 years after purchase, what
percentage of total production should the company expect to replace?
(b) If Accrotinme does not want to make refunds on more than 12% of the watches it makes,
how long should the guarantee period be ( to the nearest month)?
Transcribed Image Text:#30 Guarantee: Watches Accrotime is a manufacturer of quartz crystal watches. Accrotime researches haves shown that the watches they make have an average life of 28 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) To offer a full refund guarantee on any defective watch for 2 years after purchase, what percentage of total production should the company expect to replace? (b) If Accrotinme does not want to make refunds on more than 12% of the watches it makes, how long should the guarantee period be ( to the nearest month)?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman