Question

Magic Video Games, Inc., sells an expensive video games

package. Because the package is so expensive, the company wants to advertise an impressive guarantee
for the life expectancy of its computer control system.
The guarantee policy will refund the full purchase price if the computer fails during the guarantee period.
The research department has done tests that show that the mean life for the computer is 35 months, with standard deviation of 5 months. The computer
life is normally distributed. How long can the guarantee period be if management does not want to refund the purchase price on more than 6.596 of the
Magic Video packages?

Answer 1

Magic Video Games, Inc., sells an expensive video games

package. Because the package is so expensive, the company wants to advertise an impressive guarantee

for the life expectancy of its computer control system.

The guarantee policy will refund the full purchase price if the computer fails during the guarantee period.

The research department has done tests that show that the mean life for the computer is 35 months, with standard deviation of 5 months. The computer

life is normally distributed. How long can the guarantee period be if management does not want to refund the purchase price on more than 6.596 of the

Magic Video packages?

Explanation: