1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
aksik [14]
3 years ago
14

An automobile battery manufacturer offers a 39/50 warranty on its batteries. The first number in the warranty code is the free-r

eplacement period; the second number is the prorated-credit period. Under this warranty, if a battery fails within 39 months of purchase, the manufacturer replaces the battery at no charge to the consumer. If the battery fails after 39 months but within 50 months, the manufacturer provides a prorated credit toward the purchase of a new battery. The manufacturer assumes that x, the lifetime of its auto batteries, is normally distributed with a mean of 44 months and a standard deviation of 3.6 months.
1. If the maufacturer's assumptions are correct, it would need to replace_____ of its batteries free of charge.

a. 8.23%
b. 4.75%
c. 91.77%
d. 95.25%

2. The company finds that it s replacing 9.34% of its batteries free of charge. It suspects that its assumption about the standard deviation of the life of its batteries is incorrect. A standard deviation of ______ results in a 9.34% replacement rate.

a. 3.8
b. 5.4
c. 4.1
d. 4.2
Business
1 answer:
balandron [24]3 years ago
7 0

Answer:

1)

If the manufacturer's assumptions are correct, it would need to replace 8.23% of its batteries free of charge.

Option a) 8.23% is the correct option

2)

the required standard deviation is 3.8

Option a) 3.8 is the correct answer

Explanation:

Given the data in the question;

mean μ = 44

standard deviation σ = 3.6

if a battery fails within 39 months of purchase, the manufacturer replaces the battery at no charge to the consumer. If the battery fails after 39 months but within 50 months

1)

If the manufacturer's assumptions are correct, it would need to replace_____ of its batteries free of charge

p( X < 39 ) = P( X-μ/σ < 39-μ/σ )

we substitute

= p( Z < ((39-44)/3.6 ))

= p( Z < -1.39 )

from standard normal table; p( Z < -1.39 ) = 0.08226 ≈ 0.0823

p( X < 39 ) = 0.0823 or 8.23%

Therefore, If the manufacturer's assumptions are correct, it would need to replace 8.23% of its batteries free of charge.

Option a) 8.23% is the correct option

2)

The company finds that it s replacing 9.34% of its batteries free of charge. It suspects that its assumption about the standard deviation of the life of its batteries is incorrect. A standard deviation of ______ results in a 9.34% replacement rate.

given that;

P( Z < x-μ/σ ) = 9.34%

⇒ P( Z < 39-44/σ ) = 0.0934 ----- let this be equation 1

now, from standard normal tables

∅( -1.32 ) = 0.0934   ---------- let this equation 2

so from equation 1 and 2

39-44/σ = -132

-5/σ = -1.32

σ  = -5 / - 1.32

σ  = 3.7879 ≈ 3.8

Therefore, the required standard deviation is 3.8

Option a) 3.8 is the correct answer

You might be interested in
Bartosiewicz Clinic uses client-visits as its measure of activity. During January, the clinic budgeted for 3,100 client-visits,
Degger [83]

Answer:

$354 Favorable

Explanation:

Net Operating Income in Planned budget = Revenue - Total Expense

Net Operating Income in Planned budget = (3,100*$35.10) - (3,100*$17.40 + $44,400)

Net Operating Income in Planned budget = $108,810 - $98,340

Net Operating Income in Planned budget = $10,470

Net Operating Income in Flexible budget = Revenue - Total Expense

Net Operating Income in Flexible budget = (3,080*$35.10) - (3,080*$17.40 + $44,400)

Net Operating Income in Flexible budget = $108,108 - $97,992

Net Operating Income in Flexible budget = $10,116

Activity variance for net operating income = Net Operating Income in Planned budget - Net Operating Income in Flexible budget

Activity variance for net operating income = $10,470 - $10,116

Activity variance for net operating income = $354 Favorable

7 0
3 years ago
Aztec Company reports current E&amp;P of $200,000 in 20 X 3 and accumulated E&amp;P at the beginning of the year of negative $10
kondaur [170]

Answer:

How much of the distribution is treated as a dividend in 20X3?

100000

Explanation:

E&P CURRENT       200000

E&P ACCUMULATE -100000

Dividend                   100000

3 0
3 years ago
​Sara's Jewelry sold 20 necklaces for $ 35 each to a credit customer. The invoice included a 5​% sales tax and payment terms of
jeka94

Answer:

The journal entry for recording the original sale is shown below:

Explanation:

The journal entry for recording the original sale is as follows:

Accounts receivable A/c................................Dr $735

         Sales Tax A/c...................................................Cr $35

          Sales A/c............................................................Cr $700

As sales is made on credit so the accounts receivable account will be debited against the Sales account, which is credited. And there is sales tax charged on selling necklaces, which is credited to the sales tax account.

Computation of Sales Tax as:

Sales tax = Selling amount × Tax

where

Selling amount = Number of Necklaces × Price

= 20 × $35

= $700

So,

Sales tax = $700 × 5%

Sales tax = $35

8 0
3 years ago
A focused differentiator has the advantage of: A. being able to respond to demands for deep price discounts. B. producing a larg
cricket20 [7]

Answer:

D. Selling on non-price factors, such as design or customer service

Explanation:

One of the main goals of a Focused differentiator strategy in business is to is to secure a competitive advantage over competitors by offering products that appeal to specific non-price and unique preferences of customers.

The strategy is to go for <u>products that will appeal to a well-defined group of buyers</u>. This strategy is the opposite of the Broad Differentiation strategy that aims at different or multiple market segments or multiple buyer groups for a product.

A good example is the development of a particular high-end product car manufacture line which is specifically targeted at high-end citizens in a society who will go for them despite their costs just because of their premium looks, additional features (off-road capabilities, 0-60 miles in 4 seconds and leather trimmings) among others. This is a focused differentiator

3 0
3 years ago
Profit is not the objective of business but it is the result of business​
yarga [219]
That is true. Good job
4 0
4 years ago
Other questions:
  • Beauty Island Corporation began operations on April 1 by issuing 60,000 shares of $5 par value common stock for cash at $13 per
    9·1 answer
  • Quince Holman Corporation reports: Cash provided by operating activities $250,000 Cash used by investing activities 110,000 Cash
    7·1 answer
  • Avril Synchronistics will pay a dividend of $ 1.40 per share this year. It is expected that this dividend will grow by 7​% each
    6·1 answer
  • Westford Corporation has $185 million dollars of interest-bearing debt outstanding at the end of fiscal 2014 year. In addition,
    13·1 answer
  • All of the following are guidelines for budgeting except:
    14·1 answer
  • The ________ process lays the groundwork for the project by clarifying the value it will bring to the organization, setting its
    9·1 answer
  • During the month of April, direct labor cost totaled $15,000 and direct labor cost was 30% of prime cost. If total manufacturing
    12·1 answer
  • Which qualities of the voice are described below?
    6·1 answer
  • If a firm's marginal revenue is below its marginal cost, an increase in production will usually: a. increase profits. b. leave p
    15·1 answer
  • Removing stressors before they can cause stress would be considered what type of stress reduction strategy?.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!