A company developed a new product – Toner Cartridge. In order to attract more customers to purchase the new product, the manager of the company designs a guarantee policy. If a customer purchases a toner cartridge that does not reach the guarantee pages, the customer can get 50% of the money back. The manager does not want to lose money. However, if the guarantee pages were set too low, the guarantee policy will not be attractive to customers at all. From actual tests with the toner cartridges, the company estimated that the mean of printing pages is 30,000 pages and the standard deviation is 1500 pages. To determine guarantee pages, the manager just simply sets 28,500 pages as guarantee pages. In your opinion, does the way the manager determines the guarantee pages make any sense? If you think that it does, explain your reason why. If not, explain your reason why not, and describe what you would do if you were the manager. Discuss and explain your reasons. You must provide your statistical analysis and reasons.
A company developed a new product – Toner Cartridge. In order to attract more customers to purchase the new product, the manager of the company designs a guarantee policy. If a customer purchases a toner cartridge that does not reach the guarantee pages, the customer can get 50% of the money back. The manager does not want to lose money. However, if the guarantee pages were set too low, the guarantee policy will not be attractive to customers at all. From actual tests with the toner cartridges, the company estimated that the mean of printing pages is 30,000 pages and the standard deviation is 1500 pages. To determine guarantee pages, the manager just simply sets 28,500 pages as guarantee pages. In your opinion, does the way the manager determines the guarantee pages make any sense? If you think that it does, explain your reason why. If not, explain your reason why not, and describe what you would do if you were the manager. Discuss and explain your reasons. You must provide your statistical analysis and reasons.
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