In: Statistics and Probability
Quick Start Company makes 12-volt car batteries. After many years of product testing, the company knows that the average life of a Quick Start battery is normally distributed, with a mean of 46.8 months and a standard deviation of 7.9 months.
(a) If Quick Start guarantees a full refund on any battery that
fails within the 36-month period after purchase, what percentage of
its batteries will the company expect to replace? (Round your
answer to two decimal places.)
%
(b) If Quick Start does not want to make refunds for more than 11%
of its batteries under the full-refund guarantee policy, for how
long should the company guarantee the batteries (to the nearest
month)?
months
Solution :
Given that ,
mean = = 46.8
standard deviation = = 7.9
a) P(x < 36)
= P[(x - ) / < (36 - 46.8) / 7.9]
= P(z < -1.37)
Using z table,
= 0.0853
The percentage is = 8.53%
b) Using standard normal table,
P(Z < z) = 11%
= P(Z < z ) = 0.11
= P(Z < -1.23 ) = 0.11
z = -1.23
Using z-score formula,
x = z * +
x = -1.23 * 7.9 + 46.8
x = 37.08
x = 37 months