SOLUTION: There is a company that has a product which lasts with a mean of 18 months and standard deviation of 3 months. The company can only afford to replace 2% of the products. How many

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Question 301185: There is a company that has a product which lasts with a mean of 18 months and standard deviation of 3 months. The company can only afford to replace 2% of the products. How many months should the warranty be?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
There is a company that has a product which lasts with a mean of 18 months and standard deviation of 3 months. The company can only afford to replace 2% of the products. How many months should the warranty be?
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Find the z-value that has a left tail of 2%
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invNorm(0.02) = -2.0537
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Find the corresponding "x" value using x = zs+u
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x = -2.0537*3 + 18
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x = 11.84 months
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Cheers,
Stan H.