Answer:
Step-by-step explanation:
standard deviation σ =5000
Mean μ = 36500
X = 30000
Probability that tire fails to reach 30000 miles
P(< 30000) = P( z < (30000-36500) / 5000 )
= P ( z < - 1.3 )
= .0968 ( from z table )
refund per mile = .01
refund for 30000 mile = .01 x 30000 = 300
expected cost of promotion
= 300 x .0968
= 29.04
b )
refund of $50 is equivalent to shortage of milage by 50 / .01 = 5000 miles
Probability of miles less than 30000 - 5000 = 25000
P ( X < 25000 ) = P ( z < (25000 - 36500) / 5000 )
P ( z < - 2.3 )
= 0.0107 Answer .
Then you get 1/5x = 2
X= 10
Answer:
$2475 or $1875
Step-by-step explanation:
Assuming the question meant to say $25 less than the original price, it would be $2475 because $2500-$25= $2475
However, if the question meant to say that Sam bought the iron for 25% less than the original price, it would be $1875 because 2500*0.25= $625
$2500-$625= $1875