What percentage of the batteries would you expect to fail

Assignment Help Operation Management

Reference no: EM131920632

Problem

Auto batteries have an average life of 2.9 years. Battery life is normally distributed with a mean of 2.9 years and a standard deviation of 0.48 year.

The batteries are warranted to operate for a minimum of 2 years. If a battery fails within the warranty period, it will be replaced with a new battery at no charge. The company sells and installs the batteries. Also, the usual $3 installation charge will be waived.

a. What percentage of batteries would you expect to fail before the warranty period expires?

(Round your z value to 2 decimal places. Round probabilities to 4 decimal places. Round your final answer to 2 decimal places. Omit the "%" sign in your response.)

Percentage __________ %

b. A competitor is offering a warranty of 26 months on its premium battery. The manager of this company is toying with the idea of using the same battery with a different exterior, labeling it as a premium battery, and offering a 26-month warranty on it.

What percentage of the batteries would you expect to fail before this new warranty period expires?

(Round your z value to 2 decimal places. Round probabilities to 4 decimal places.Round your final answer to 2 decimal places. Omit the "%" sign in your response.)

Attachment:- Tables.rar

Reference no: EM131920632

Questions Cloud

Compute their income tax refund : Mr. and Mrs. K's AGI (earned income) was $14,610. Their federal income tax withholding was $850. Compute their income tax refund.

Why is leverage sometimes called a two edged sword : Mr. Agirich has provided the following information and ratios for the Aggie Farms 20X0 operations. Why is leverage sometimes called a two edged sword?

Compute the normalized throughput for the case : Compute a new window size so that the channel pipe is entirely filled with transmitted PDUs and compute the normalized throughput for this case.

What is the value of mr ashs estate : Mr. Ash died on June 15 of the previous year. The assets in his estate were valued on his date of death. What is the value of Mr. Ash's estate?

What percentage of the batteries would you expect to fail : Auto batteries have an average life of 2.9 years. Battery life is normally distributed with a mean of 2.9 years and a standard deviation of 0.48 year.

Calculate the average service time for a given PDU : Calculate the average service time for a given PDU entering the ARQ system. (Hint: the transmitter's queue can be modeled using the M/G/1 theory.)

Defining the normalized throughput : Let ? be the expected number of PDUs transmitted from A to B for each PDU successfully received at B. Show that ? = 1 + p(ß + ?).

Compute accounts receivable and inventory turnover ratios : Instructions - Compute the accounts receivable and inventory turnover ratios for 20X5. Alaska rounds all calculations to two decimal places

What price should mountaintop charge for a round of golf : Mountaintop golf course is planning for the coming season. Investors would like to earn a 12%. What price should Mountaintop charge for a round of golf?

User Account

All Pages