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Accrotime is the producer of quartz crystal watches. Accrotime researchers have shown that watches have average life of 30 months before certain electronic components deteriorate, causing watch to become unreliable. Standard deviation of watch lifetimes is 7 months, and th distribution of lifetimes is normal.
(a) If Accrotime guarantees full refund on any defective watch for 2 years after purchase, determine percentage of total production will company expect to replace?
(b) If Accrotime doesn't want to make refunds on more than 12% of watches it makes, how long must the guarantee period be (to the nearest month)?
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