SOLUTION: Suppose a tire manufacturer wants to set a mileage guarantee on its new XB 70 tire. Tests revealed that the tire's mileage is normally distributed with a mean of 47,900 miles and a

Question 435309: Suppose a tire manufacturer wants to set a mileage guarantee on its new XB 70 tire. Tests revealed that the tire's mileage is normally distributed with a mean of 47,900 miles and a standard deviation of 2,050 miles. The manufacturer wants to set the guaranteed mileage so that no more than 5 percent of the tires will have to be replaced. What guaranteed mileage should the manufacturer announce?
A. 44,528
B. 32,960
C. 49,621
D. 40,922
Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!



Hi

tire's mileage is normally distributed with a mean of 47,900 miles and a standard deviation of 2,050 miles

*Note:   

 no more than 5 percent of the tires will have to be replaced...

then z = -1.6449

 x = -1.6449*2050 + 47900 = 44,528 

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