Q5 A tire manufacturer warranties its tires to last at least 20108 miles or "you get a new set of tires." In its experience, a set of these tires lasts on average 26108 miles with standard deviation 5024 miles. Assume that the wear is normally distributed. The manufacturer profits Rs. 200 on each set sold, and replacing a set costs the manufacturer Rs. 400. a) What is the probability that a set of tires wears out before 20108 miles? b) What is the probability that a set of tires wears out before 24108 miles and after 20108 miles? c) What is the cutoff value in terms of miles of the top 12% wearing out tires.

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Statements and Logic

Logic is the analysis of general patterns of thoughts without regard to any specific sense of context.