Accrotime is a manufacturer of quartz crystal watches. Accrotime researchers have shown that the watches have an average life of 34 months before certain electronic components deteriorate, causing the watch to become unreliable. The standard deviation of watch lifetimes is 7 months, and the distribution of lifetimes is normal. (a) If Accrotime guarantees a full refund on any defective watch for 2 years after purchase, what percentage of total production will the company expect to replace? (Round your answer to two decimal places.) (b) If Accrotime does not want to make refunds on more than 11% of the watches it makes, how long should the guarantee period be (to the nearest month)?
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Accrotime is a manufacturer of quartz crystal watches. Accrotime researchers have shown that the watches have an average life of 34 months before certain electronic components deteriorate, causing the watch to become unreliable. The standard deviation of watch lifetimes is 7 months, and the distribution of lifetimes is normal.
(a) If Accrotime guarantees a full refund on any defective watch for 2 years after purchase, what percentage of total production will the company expect to replace? (Round your answer to two decimal places.)
(b) If Accrotime does not want to make refunds on more than 11% of the watches it makes, how long should the guarantee period be (to the nearest month)?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
