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Optimal-Eats blender has a mean time before failure of 37 months with a standard deviation of 5 months, and the failure times are normally distributed. What should be the warranty period, in months, so that the manufacturer will not have more than 7% of the blenders returned

User Hallupa
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1 Answer

16 votes
16 votes

Answer:

The warranty period should be of 30 months.

Explanation:

Normal Probability Distribution:

Problems of normal distributions can be solved using the z-score formula.

In a set with mean
\mu and standard deviation
\sigma, the z-score of a measure X is given by:


Z = (X - \mu)/(\sigma)

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the p-value, we get the probability that the value of the measure is greater than X.

Optimal-Eats blender has a mean time before failure of 37 months with a standard deviation of 5 months.

This means that
\mu = 37, \sigma = 5

What should be the warranty period, in months, so that the manufacturer will not have more than 7% of the blenders returned?

The warranty period should be the 7th percentile, which is X when Z has a p-value if 0.07, so X when Z = -1.475.


Z = (X - \mu)/(\sigma)


-1.475 = (X - 37)/(5)


X - 37 = -1.475*5


X = 29.6

Rounding to the nearest whole number, 30.

The warranty period should be of 30 months.

User Melani
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