Question

Issue 4: Design a Guarantee Policy

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A company developed a new product – Toner Cartridge. In order to attract more customers to purchase the new product, the manager of the company designs a guarantee policy. If a customer purchases a toner cartridge that does not reach the guaranteed pages, the customer can get 50% of the money back. The manager does not want to lose money. However, if the guaranteed pages were set too low, the guarantee policy will not be attractive to customers at all. From actual tests with the toner cartridges, the company estimated that the mean of printing pages is 30,000 pages and the standard deviation is 1500 pages. To determine guaranteed pages, the manager just simply sets 28,500 pages as guaranteed pages. In your opinion, does the way the manager determines the guaranteed pages make any sense? If you think that it does, explain your reason why. If not, explain your reason why not, and describe what you would do if you were the manager. Discuss and explain your reasons. You must provide your statistical analysis and reasons. The minimum requirement for your discussion is 150 words,

Answer 1