You sell a brand of automobile tire that has a life expectancy that is normally distributed, with a mean life of 40,000 miles and a standard deviation of 5,000 miles. You need provide a warranty for free replacement of tires that do not wear well, that is, tires that cannot last for certain amount of miles are qualified for free replacement. Suppose that you are willing to replace approximately 1% of the tires, what is the amount should be put there?
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!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
