A manufacturer of programmable calculators is attempting to determine a reasonable free-serviceperiod for a model it will introduce shortly. The manager of product testing has indicated that thecalculators have an expected life of 30 months. Assume product life can be described by an exponential distribution.a. If service contracts are offered for the expected life of the calculator, what percentage of thosesold would be expected to fail during the service period?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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A manufacturer of programmable calculators is attempting to determine a reasonable free-service
period for a model it will introduce shortly. The manager of product testing has indicated that the
calculators have an expected life of 30 months. Assume product life can be described by an exponential distribution.
a. If service contracts are offered for the expected life of the calculator, what percentage of those
sold would be expected to fail during the service period?

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