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6. You are the manufacturer of chain saws and are prepared to replace free all saws that fail while under guarantee. If you are willing to replace only 3% of the saws that fail, how long a guarantee should you offer? Assume that you know that the lives of the saws follow a normal distribution with an average of 12 years and a standard deviation of 2 years.

6. You are the manufacturer of chain saws and are prepared to replace free all saws-example-1
6. You are the manufacturer of chain saws and are prepared to replace free all saws-example-1
6. You are the manufacturer of chain saws and are prepared to replace free all saws-example-2

1 Answer

5 votes
If I'm correct the answer is 17
User Thisdotnull
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