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Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 33,500 miles. Management also believes that the standard deviation is 3,500 miles and that tire mileage is normally distributed. To promote the new tire, Grear has offered to refund some money if the tire fails to reach 30,000 miles before the tire needs to be replaced. Specifically, for tires with a lifetime below 30,000 miles, Grear will refund a customer $1 per 100 miles short of 30,000. Construct a simulation model to answer the following questions. (a) For each tire sold, what is the average cost of the promotion (in $)? (Use at least 1,000 trials. Round your answer to two decimal places.) $ (b) What is the probability that Grear will refund more than $25 for a tire? (Use at least 1,000 trials. Round your answer to three decimal places.)

Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 33,500 miles. Management also believes that the standard deviation is 3,500 miles and that tire mileage is normally distributed. To promote the new tire, Grear has offered to refund some money if the tire fails to reach 30,000 miles before the tire needs to be replaced. Specifically, for tires with a lifetime below 30,000 miles, Grear will refund a customer $1 per 100 miles short of 30,000. Construct a simulation model to answer the following questions. (a) For each tire sold, what is the average cost of the promotion (in $)? (Use at least 1,000 trials. Round your answer to two decimal places.) $ (b) What is the probability that Grear will refund more than $25 for a tire? (Use at least 1,000 trials. Round your answer to three decimal places.)

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 33,500 miles. Management also believes that the standard deviation is 3,500 miles and that tire mileage is normally distributed. To promote the new tire, Grear has offered to refund some money if the tire fails to reach 30,000 miles before the tire needs to be replaced. Specifically, for tires with a lifetime below 30,000 miles, Grear will refund a customer $1 per 100 miles short of 30,000. Construct a simulation model to answer the following questions. (a) For each tire sold, what is the average cost of the promotion (in $)? (Use at least 1,000 trials. Round your answer to two decimal places.) $ (b) What is the probability that Grear will refund more than $25 for a tire? (Use at least 1,000 trials. Round your answer to three decimal places.)
Transcribed Image Text:Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 33,500 miles. Management also believes that the standard deviation is 3,500 miles and that tire mileage is normally distributed. To promote the new tire, Grear has offered to refund some money if the tire fails to reach 30,000 miles before the tire needs to be replaced. Specifically, for tires with a lifetime below 30,000 miles, Grear will refund a customer $1 per 100 miles short of 30,000. Construct a simulation model to answer the following questions. (a) For each tire sold, what is the average cost of the promotion (in $)? (Use at least 1,000 trials. Round your answer to two decimal places.) $ (b) What is the probability that Grear will refund more than $25 for a tire? (Use at least 1,000 trials. Round your answer to three decimal places.)
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