Question

In: Statistics and Probability

The engine manufacturer has observed that their engine control modules (ECM) fail as a direct function...

The engine manufacturer has observed that their engine control modules (ECM) fail as a direct function of how many hours they are active. The mean time between failures for the ECM is 50,000 operating hours. Accounting has determined that the company cannot profitably afford to pay for the repair of more than 12% of the ECM modules produced.


What do you estimate to be the maximum acceptable warranty period (in operating hours) so that the company does not end up having to exceed the guidance for acceptable fraction of units repaired under warranty?

Solutions

Expert Solution

orchestra answered 2 years ago
Next > < Previous

Related Solutions

The engine manufacturer above has observed that their engine control modules (ECM) fail as a direct...
The engine manufacturer above has observed that their engine control modules (ECM) fail as a direct function of how many hours they are active. The mean time between failures for the ECM is 50,000 operating hours. Accounting has determined that the company cannot profitably afford to pay for the repair of more than 12% of the ECM modules produced. Question: What do you estimate to be the maximum acceptable warranty period (in operating hours) so that the company does not...
An engine manufacturer has observed failures with their product. In the last 6 years, they have...
An engine manufacturer has observed failures with their product. In the last 6 years, they have experienced 2 engine failures one year, 3 engine failures in two consecutive years, 4 engine failures one year, and 5 engine failures in each of the preceding two years (two in the last month, alone). The CEO of the engine manufacturer wants to reassure customers. He promises that in the next month, there will not be multiple engine failures (no more than 1 failure)....
An engine manufacturer has observed failures with their product. In the last 6 years, they have...
An engine manufacturer has observed failures with their product. In the last 6 years, they have experienced 2 engine failures one year, 3 engine failures in two consecutive years, 4 engine failures one year, and 5 engine failures in each of the preceding two years (two in the last month, alone). The CEO of the engine manufacturer wants to reassure customers. He promises that in the next month, there will not be multiple engine failures (no more than 1 failure)....
An environmentally progressive small manufacturer in South Dakota has observed that her gas bill in February...
An environmentally progressive small manufacturer in South Dakota has observed that her gas bill in February (the coldest month of the year) is usually about $900 (for space heating only). She uses a large natural gas space heater whose efficiency is known to be about 89%. She is considering upgrading to a furnace that uses a water source heat-pump with a coefficient of performance of 4.2. The heat-pump operates on 240 VAC electricity. Furthermore, she plans to install a wind...
Lakeview Engine, Inc., produces engines for the watercraft industry. An outside manufacturer has offered to supply...
Lakeview Engine, Inc., produces engines for the watercraft industry. An outside manufacturer has offered to supply several component parts used in the engine assemblies, which are currently being produced by Lakeview. The supplier will charge Lakeview $320 per engine for the set of parts. Lakeview’s current costs for those part sets are direct materials, $160; direct labor, $75; and manufacturing overhead applied at 100% of direct labor. Variable manufacturing overhead is considered to be 20% of the total, and fixed...
6.5 An engine manufacturer has decided to change one of its engines from a spark ignition...
6.5 An engine manufacturer has decided to change one of its engines from a spark ignition type to a compression ignition type. If the swept volume is unchanged, what effect will the change have on: (i) maximum torque? (ii) maximum power? (iii) the speed at which maximum power occurs? (iv) economy of operation?
Lakeview Engine, Inc., produces engines for the watercraft industry. An outside manufacturer has offered to supply...
Lakeview Engine, Inc., produces engines for the watercraft industry. An outside manufacturer has offered to supply several component parts used in the engine assemblies, which are currently being produced by Lakeview. The supplier will charge Lakeview $290 per engine for the set of parts. Lakeview’s current costs for those part sets are direct materials, $165; direct labor, $75; and manufacturing overhead applied at 100% of direct labor. Variable manufacturing overhead is considered to be 20% of the total, and fixed...
A electronics manufacturer has developed a new type of remote control button that is designed to...
A electronics manufacturer has developed a new type of remote control button that is designed to operate longer before failing to work consistently. A random sample of 20 of the new buttons is selected and each is tested in continuous operation until it fails to work consistently. The resulting lifetimes are found to have a sample mean of ?¯ = 1260.4 hours and a sample standard deviation of s = 116.1. Independent tests reveal that the mean lifetime of the...
A Manufacturer of flash drives has a profit function of P= t - q2where t is...
A Manufacturer of flash drives has a profit function of P= t - q2where t is the price charged for a flash drive and q2 is the cost of producing a drive whose capacity is q gigabytes. A consumer of type 'x' has a utility function of u = xq-t, where 'x' takes on the value of 8 for H-type consumers or 6 for L-type consumers. There are 100 consumers of each type. A consumer gets zero utility if she...
Economics - Direct Price Discrimination, Indirect Price Discrimination A manufacturer of microwaves has discovered that male...
Economics - Direct Price Discrimination, Indirect Price Discrimination A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men and attribute greater value to the auto-defrost feature. There is little additional cost to incorporating an auto defrost feature. Since men and women cannot be charged different prices for the same product, the manufacturer is considering introducing two different models....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT