SOLUTION: You are the manufacturer of chain saws and are prepared to replace free all saws that fail while under guarantee. If you are willing to replace only 3% of the saws that fail, how l

Question 1053136: You are the manufacturer of chain saws and are prepared to replace free all saws that fail while under guarantee. If you are willing to replace only 3% of the saws that fail, how long a guarantee should you offer? Assume that you know that the lives of the saws follow a normal distribution with an average of 12 years and a standard deviation of 2 years.
Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!
average of 12 years and a standard deviation of 2 years.
z = invNorm(.03) = -1.88

2(-1.88) + 12 = x = 8.24
8 year guarantee (After that more than 3% will fail)

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