Question 188172This question is from textbook
: Here is my question. I am totally lost in this class I am taking. Your help is greatly appreciated. Thank you!
60. In establishing warranties on HDTV sets, the manufacturer wants to set the limits so that few will need repair at manufacturer expense. On the other hand, the warranty period must be long enough to make the purchase attractive to the buyer. For a new HDTV the mean number of months until repairs are needed is 36.84 with a standard deviation of 3.34 months. Where should the warranty limits be set so that only 10 percent of the HDTVs need repairs at the manufacturer’s expense?
This question is from textbook
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! In establishing warranties on HDTV sets, the manufacturer wants to set the limits so that few will need repair at manufacturer expense. On the other hand, the warranty period must be long enough to make the purchase attractive to the buyer. For a new HDTV the mean number of months until repairs are needed is 36.84 with a standard deviation of 3.34 months. Where should the warranty limits be set so that only 10 percent of the HDTVs need repairs at the manufacturer’s expense?
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Find the z-value that has 10% of the population above it.
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That number is z = 1.645
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Now, using z = (x-u)/s, solve for "x".
1.645 = (x-36.84)/3.34
x-36.84 = 5.4943
x = 5.4943+36.84
x = 42.33
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Cheers,
Stan H.
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