Question

In: Statistics and Probability

Eurowatch company assembles expensive wristwatches and then sells them to retailers throughout europe. The watches are...

Eurowatch company assembles expensive wristwatches and then sells them to retailers throughout europe. The watches are assembled at a plant with two assembly lines. These lines are intended to be identical, but line 1 uses somewhat older equipment than line 2 and is typically less reliable. Historical data have shown that each watch coming off line 1, independently of the others, is free of defects with probability .98. The similar probability for line 2 is 0.99. Each line produces 500 watches per hour. The production manager has asked you to answer the following questions.

[1] Assume that the number of watches produced every hour is normally distributed with a mean of 500 and a standard deviation of 100. What is the probability that in a randomly selected hour the number of watches produced is greater than 500? 25% 100% 0% 50%

[2] Assume that the number of watches produced every hour is normally distributed with a mean of 500 and a standard deviation of 100. What is the probability that in a randomly selected hour the number of watches produced is less than 700? 0.4772 0.9772 almost 0 0.0228

[3] Assume that the number of watches produced every hour is normally distributed with a mean of 500 and a standard deviation of 100. What is the probability that in a randomly selected hour the number of watches produced is greater than 700? almost 0 0.9772 0.4772 0.0228

[4] Assume that the number of watches produced every hour is normally distributed with a mean of 500 and a standard deviation of 100. What is the probability that in a randomly selected hour the number of watches produced is between 300 than 700? 0.9545 almost 0 0.4545 0.0455

[5] Assume that the number of watches produced every hour is normally distributed with a mean of 500 and a standard deviation of 100. What is the probability that in a randomly selected hour the number of watches produced is less than 300 or more than 700? 0.9545 almost 0 0.0455 0.4545

Solutions

Expert Solution

First four questions have been solved in detail

[1] Assume that the number of watches produced every hour is normally distributed with a mean of 500 and a standard deviation of 100. What is the probability that in a randomly selected hour the number of watches produced is greater than 500?

[2] Assume that the number of watches produced every hour is normally distributed with a mean of 500 and a standard deviation of 100. What is the probability that in a randomly selected hour the number of watches produced is less than 700?

3] Assume that the number of watches produced every hour is normally distributed with a mean of 500 and a standard deviation of 100. What is the probability that in a randomly selected hour the number of watches produced is greater than 700?

[4] Assume that the number of watches produced every hour is normally distributed with a mean of 500 and a standard deviation of 100. What is the probability that in a randomly selected hour the number of watches produced is between 300 than 700?


Related Solutions

EuroWatch Company assembles expensive wristwatches and then sells them to retailers throughout Europe. The watches are...
EuroWatch Company assembles expensive wristwatches and then sells them to retailers throughout Europe. The watches are assembled at a plant with two assembly lines. These lines are intended to be identical, but line 1 uses somewhat older equipment than line 2 and is typically less reliable. Historical data have shown that each watch coming off line 1, independently of the others, is free of defects with probability 0.98. The similar probability for line 2 is 0.99. Each line produces 500...
Case 5.1EuroWatch Company EuroWatch Company assembles expensive wristwatches and then sells them to retailers throughout Europe....
Case 5.1EuroWatch Company EuroWatch Company assembles expensive wristwatches and then sells them to retailers throughout Europe. The watches are assembled at a plant with two assembly lines. These lines are intended to be identical, but line 1 uses somewhat older equipment than line 2 and is typically less reliable. Historical data have shown that each watch coming off line 1, independently of the others, is free of defects with probability 0.98. The similar probability for line 2 is 0.99. Each...
The Wholesale Company purchases soft drinks from producers and then sells them to retailers. The company...
The Wholesale Company purchases soft drinks from producers and then sells them to retailers. The company began 2019 with merchandise inventory of $120,000 on hand. The company uses the gross method to record cash discounts. During 2019, additional inventory transactions include: Purchases of merchandise on account totaled $620,000, with terms 2/10, n/30. Merchandise with a cost of $20,000 was returned to suppliers for credit. Freight charges paid by Wholesale were $16,000. All purchases on account were paid within the discount...
PERFORMANCE EVALUATION - Economics Computer Company assembles personal computers and sells them in the retail marketplace....
PERFORMANCE EVALUATION - Economics Computer Company assembles personal computers and sells them in the retail marketplace. The company is organized into two profit centers: the assembly division and the distribution division. The demand curve facing the company (and the distribution division) is P = 3,500 – 10Q. The marginal cost for assembly (which includes purchasing the parts) is constant at $450. The distribution division faces constant marginal distribution costs of $50 per unit. A. What is the profit-maximizing retail price...
PERFORMANCE EVALUATION – Economics for Business Decisions Computer Company assembles personal computers and sells them in...
PERFORMANCE EVALUATION – Economics for Business Decisions Computer Company assembles personal computers and sells them in the retail marketplace. The company is organized into two profit centers: the assembly division and the distribution division. The demand curve facing the company (and the distribution division) is P=3,500 – 10Q. The marginal cost for assembly (which includes purchasing the parts) is constant at $450. The distribution division faces constant marginal distribution costs of $50 per unit. A. What is the profit-maximizing retail...
L” is an enterprise which sells gaming cards to retailers, who then resell them to the...
L” is an enterprise which sells gaming cards to retailers, who then resell them to the general public. Customers who buy these cards scratch off a panel to reveal whether they have won a cash prize. There are several different ranges of cards, each of which offers a different assortment of prices. Prize winners send their winning cards to “L” and are paid by cheque. If the prize is major, then the prize-winner is required to telephone “L” to register...
Mimova Ltd buys shoes from a supplier in France and sells them on to retailers in...
Mimova Ltd buys shoes from a supplier in France and sells them on to retailers in Australia. Mimova Ltd currently uses an EOQ model to determine the number of shoes to send to order. Annual demand for shoes are approximately 45,600. The ordering cost is $55 per order. The annual cost of physically storing shoes is $8.75 per unit. The insurance on the inventory (shoes) cost is $4.25 per unit. The opportunity cost (annual ROI 25% x $30) is $7.50...
Question text Glory Shirts Co. sells shirts wholesale to major retailers across Europe. Each shirt has...
Question text Glory Shirts Co. sells shirts wholesale to major retailers across Europe. Each shirt has a selling price of $80 with $56 in variable costs of goods sold. The company has fixed manufacturing costs of $1,700,000 and fixed marketing costs of $550,000. Sales commissions are paid to the wholesale sales reps at 10% of revenues. The company has an income tax rate of 30%. Required: 1.    How many shirts must Glory sell in order to break even?       2.   ...
Rain Forest Inc. Imports fruit from Latin America and sells them in boxes to retailers in...
Rain Forest Inc. Imports fruit from Latin America and sells them in boxes to retailers in the U.S. a) Today the company signed a contract with a major software company to purchase, customize, and implement an Enterprise Resource Planning (ERP) system. Rain Forest is taking a loan from a bank of $3 million, which is the value of the ERP contract. The bank offers an APR (annual percentage rate) of 4.3% for 120 monthly payments. How much Rain Forest has...
You are a cost accountant for a company that assembles, distributes and sells automobiles. Your competition...
You are a cost accountant for a company that assembles, distributes and sells automobiles. Your competition provides a superior product with a similar product line.   There has been a significant shakeup in senior management. The new regime is committed to improving the company’s perceived and actual quality.   Senior management is especially interested in capturing the costs in (1) preventing low quality; (2) product testing and appraisal; (3) the cost of manufactured products failing before shipment and (4) the cost of...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT