A tire company has developed a new type of steel-belted radial tire. Extensive testing indicates the population

Question:

A tire company has developed a new type of steel-belted radial tire. Extensive testing indicates the population of mileages obtained by all tires of this new type is normally distributed with a mean of 40,000 miles and a standard deviation of 4,000 miles. The company wishes to offer a guarantee providing a discount on a new set of tires if the original tires purchased do not exceed the mileage stated in the guarantee. What should the guaranteed mileage be if the tire company desires that no more than 2 percent of the tires will fail to meet the guaranteed mileage?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Statistics In Practice

ISBN: 9780073401836

6th Edition

Authors: Bruce Bowerman, Richard O'Connell

Question Posted: