Question
In: Advanced Math
Problem 16-03 Grear Tire Company has produced a new tire with an estimated mean lifetime mileage...
Problem 16-03
Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 36,500 miles. Management also believes that the standard deviation is 5000 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.
- For each tire sold, what is the expected cost of the promotion?
If required, round your answer to two decimal places.
- What is the probability that Grear will refund more than $50
for a tire? If required, round your answer to three decimal
places.
- What mileage should Grear set the promotion claim if it wants
the expected cost to be $2.00? If required, round your answer to
the hundreds place.
miles
Solutions
Expert Solution
Solution:
Formula used for simulation of tire life in Excel range B2:B502 =NORMINV(RAND(),36500,5000)
The simulation model in excel and calculation of the answers is given below alongwith formulas:
Colby Messinger answered 1 year agoRelated Solutions
Problem 16-03 Grear Tire Company has produced a new tire with an estimated mean lifetime mileage...
Problem 16-03
Grear Tire Company has produced a new tire with an estimated
mean lifetime mileage of 36,500 miles. Management also believes
that the standard deviation is 5000 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...
Problem 16-03 Grear Tire Company has produced a new tire with an estimated mean lifetime mileage...
Problem 16-03
Grear Tire Company has produced a new tire with an estimated
mean lifetime mileage of 36,500 miles. Management also believes
that the standard deviation is 5000 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...
Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 36,500...
Grear Tire Company has produced a new tire with an estimated
mean lifetime mileage of 36,500 miles. Management also believes
that the standard deviation is 5000 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...
The operation manager at a tire manufacturing company believes that the mean mileage of a tire...
The operation manager at a tire manufacturing company believes
that the mean mileage of a tire is 23,383 miles, with a variance of
21,436,900. What is the probability that the sample mean would be
less than 22,909 miles in a sample of 286 tires if the manager is
correct? Round your answer to four decimal places.
The operation manager at a tire manufacturing company believes that the mean mileage of a tire...
The operation manager at a tire manufacturing company believes
that the mean mileage of a tire is 47,225 miles, with a standard
deviation of 3178 miles. What is the probability that the sample
mean would be greater than 47,050 miles in a sample of 208 tires if
the manager is correct? Round your answer to four decimal
places.
(All answers were generated using 1,000 trials and native Excel functionality.) Grear Tire Company has produced...
(All answers were generated using 1,000 trials and native Excel
functionality.)
Grear Tire Company has produced a new tire with an estimated
mean lifetime mileage of 36,500 miles. Management also believes
that the standard deviation is 5,000 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...
(All answers were generated using 1,000 trials and native Excel functionality.) Grear Tire Company has produced...
(All answers were generated using 1,000 trials and native Excel
functionality.)
Grear Tire Company has produced a new tire with an estimated
mean lifetime mileage of 36,500 miles. Management also believes
that the standard deviation is 5,000 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...
SunLight Company is planning to manufacture a new lightbulb with an estimated mean lifetime run of...
SunLight Company is planning to manufacture a new lightbulb with
an estimated mean lifetime run of 36,500 hours. Management also
believes that the standard deviation is 5,000 hours, and that the
lifetime hours are normally distributed.
Essay Questions
A. Use Excel to simulate the hours obtained from a sample of 500
lightbulbs, and use the COUNTIF function to determine the number of
bulbs that last longer than 40,000 hours. What is your estimate of
the percentage of bulbs that will...
The lifetime of a particular brand of tire is modeled with a normal distribution with mean...
The lifetime of a particular brand of tire is modeled with a
normal distribution with mean μ = 75,000 miles and standard
deviation σ = 5,000 miles.
a) What is the probability that a randomly selected tire lasts
less than 67,000 miles?
b) If a random sample of 35 tires is taken, what is the
probability that the sample mean is greater than 70,000 miles?
1) The mean lifetime of a tire is 36 months with a variance of 49. If...
1) The mean lifetime of a tire is 36 months with a variance of
49. If 126 tires are sampled, what is the probability that the mean
of the sample would differ from the population mean by greater than
0.44 months? Round your answer to four decimal places.
2) Suppose that a study of elementary school students reports
that the mean age at which children begin reading is 5.5 years with
a standard deviation of 1.1 years.
a) If a...
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