SOLUTION: A particular brand of electric bulb has an average life of 800 hours with a standard deviation of 100 hours. The length of life of the bulb is approximately normally distributed. T

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Question 1042702: A particular brand of electric bulb has an average life of 800 hours with a standard deviation of 100 hours. The length of life of the bulb is approximately normally distributed. The bulbs are guaranteed to last at least 700 hours and are replaced at a cost of Php3.00 per bulb if they fail before this time. If 500,000 bulbs per annum are produced, how much can the company expect to pay for the bulbs replaced under this guarantee?
Answer by robertb(5830)   (Show Source): You can put this solution on YOUR website!

===> Around 0.1587*500,000 = 79,350 electric bulbs will will have lives that are less than 700 hours.

===> The company can expect to pay 79,350*Php 3.00 = PhP 238,050 for bulbs replaced under guarantee.

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