SOLUTION: A tyre manufacturer wants to set a minimum mileage guarantee on its new MX100 tyre. Tests reveal the mean mileage is 47,900 with a standard deviation of 2,050 miles and the distrib

Algebra ->  Probability-and-statistics -> SOLUTION: A tyre manufacturer wants to set a minimum mileage guarantee on its new MX100 tyre. Tests reveal the mean mileage is 47,900 with a standard deviation of 2,050 miles and the distrib      Log On


   

Question 1178617: A tyre manufacturer wants to set a minimum mileage guarantee on its new MX100 tyre. Tests reveal the mean mileage is 47,900 with a standard deviation of 2,050 miles and the distribution is a normal distribution. The manufacturer wants to set the minimum guaranteed mileage so that no more than 4% of the tyres will have to be replaced. What minimum guaranteed mileage should the manufacturer announce?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!

Hi
z+=blue+%28x+-+mu%29%2Fblue%28sigma%29
so no more than  4% of the tires will have to be replaced:
InvNorm(.96) = 1.75
2050%2A1.75+%2B+47900+=+blue+%28x%29
  x = 51487.5
What minimum guaranteed mileage should the manufacturer announce?
 51,487

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