Homework Help is Here – Start Your Trial Now!
Math
Statistics
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
See similar textbooks
icon
Related questions
Question
100%
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.)
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 1 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman
SEE MORE TEXTBOOKS