(d) Assume that the average life of a color TV is 8.2 years with a standard deviation of 1.7 years before it breaks. Suppose that a company guarantees color TVs and will replace a TV that breaks while under guarantee with a new one. However, the company does not want to replace more than 15% of the TVs under guarantee. For how long should the guarantee be made (rounded to the nearest tenth of a year)
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
NOTE Kindly answer part d
Suppose, household color TVs are replaced at an average age of μ = 8.2 years after purchase, and the (95% of data) range was from 6.2 to 10.2 years. Thus, the range was 10.2 – 6.2 = 4.0 years. Let x be the age (in years) at which a color TV is replaced. Assume that x has a distribution that is approximately normal.
(a) The empirical rule indicates that for a symmetrical and bell-shaped distribution, approximately 95% of the data lies within two standard deviations of the mean. Therefore, a 95% range of data values extending from μ – 2σ to μ + 2σ is often used for "commonly occurring" data values. Note that the interval from μ – 2σ to μ + 2σ is 4σ in length. This leads to a "rule of thumb" for estimating the standard deviation from a 95% range of data values.Estimating the standard deviation
For a symmetric, bell-shaped distribution,
| standard deviation ≈ |
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where it is estimated that about 95% of the commonly occurring data values fall into this range. Use this "rule of thumb" to approximate the standard deviation of x values, where x is the age (in years) at which a color TV is replaced. (Round your answer to one decimal place.)
(b) What is the
(c) What is the probability that someone will keep a color TV fewer than 10 years before replacement? (Round your answer to four decimal places.)
(d) Assume that the average life of a color TV is 8.2 years with a standard deviation of 1.7 years before it breaks. Suppose that a company guarantees color TVs and will replace a TV that breaks while under guarantee with a new one. However, the company does not want to replace more than 15% of the TVs under guarantee. For how long should the guarantee be made (rounded to the nearest tenth of a year)
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