Answer:
1) if the manufacturer's assumptions are correct, it would reed to replace 0.62% of its batteries free.
2) a standard deviation of 6.0843 results in a 1.07% replacement rate
3) using the revised standard deviation for battery life, 91.9% of the manufacturer's batteries don't get free replacement but qualifies for the prorated credit
Step-by-step explanation:
based on the given data;
x will represent the random variable such that the lifetime of its auto batteries, is normally distributed with a mean of 45 months and a standard deviation of 5.6 months
so
x → N( U = 45, ∝ = 5.6)
Under the warranty, if a battery fails within 31 months of purchase, the manufacturer replaces the battery at no charges to the consumer.
if the battery fails after 31 months but within 54 months, the manufacturer provides a prostrated credit towards the purchase of anew battery
1) If the manufacturer's assumptions are correct,
p(x < 3) = p( [x-u / ∝ ] < [ 31-45 / 5.6] )
= p( z < -2.5 )
using the standard normal table,
value of z = 0.0062 ≈ 0.62%
so if the manufacturer's assumptions are correct, it would reed to replace 0.62% of its batteries free.
2)
The company finds that it is replacing 1.07% of its batteries free of charge. It suspects that its assumption standard deviation of the life of its batteries is incorrect, so a standard deviation of ? results in a 1.07%
so lets say;
p ( x < 31 ) = ( 1.07%) = 0.0107
p ( [x-u / ∝ ] < [ 31-45 / ∝] ) = 0.0107
now from the standard table
-2.301 is 1.07%
so
( 31 - 45 / ∝ ) = -2.301
-14 / ∝ = -2.301
∝ = -14 / - 2.301
∝ = 6.0843
therefore a standard deviation of 6.0843 results in a 1.07% replacement rate
3)
Using the revised standard deviation for battery life, what percentage of the manufacturer's batteries don't free replacement but do qualify for the prorated credit?
p( 31 < x < 54 ) = p ( [31 - u / ∝ ] < [ x-u / ∝] < [ 54 - 45 / ∝] )
= p ( [31 - 45 / 6.0843 ] < [ x-u / ∝] < [ 54 - 45 / 6.0843] )
= p ( -2.301 < z < 1.4792 )
= p(Z < 1.5) - p(Z < -2.3)
= 0.9393 - 0.0108
= 0.919 ≈ 91.9%
therefore using the revised standard deviation for battery life, 91.9% of the manufacturer's batteries don't get free replacement but qualifies for the prorated credit
