Assume the cost of an extended 100,000 mile warranty for a particular SUV follows the normal distribution

Question:

Assume the cost of an extended 100,000 mile warranty for a particular SUV follows the normal distribution with a mean of $1,600 and a standard deviation of $75.

a. Determine the interval of warranty costs from various companies that are 1. one standard deviation around the mean.

2. two standard deviations around the mean.

3. three standard deviations around the mean.

b. You see an ad for an extended warranty for this type of vehicle for $1,900. Based on the previous results, what conclusions can you make?

AppendixLO1

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Business Statistics

ISBN: 9780133852288

2nd Edition

Authors: Robert A Donnelly, Robert Donnelly Jr

See More Books

Question Posted: Jul 09, 2024 10:09 AM

See More Questions

Assume the cost of an extended 100,000 mile warranty for a particular SUV follows the normal distribution with a mean of $1,390 and a standard deviation of $90. Complete parts (a) through (d) below....
Can you please help me with questions 8 and 9 for Case 6..... I have answers to questions 1-7 if needed... Cases for Management Decision-Making CA-1 Suggested Uses of Cases Case Overview CASE 1 This...
Need help in questions 8-9 for Case 6. thank you.. Cases for Management Decision-Making CA-1 Suggested Uses of Cases Case Overview CASE 1 This case is the first in a series of four cases that...
Joshua Tree Inc. reported that at the end of 2012 net accounts receivable of 2,050 (the net value at the end of 2011 was 1,090). Their allowance for doubtful accounts at the end of 2012 was 150 (the...
A waterfall is 75 m high. If of the gravitational potential energy of the water went into heating the water, by how much would the temperature of the water, increase in going from the top of the...
A purely competitive firm finds that the market price for its product is $20. It has a fixed cost of $100 and a variable cost of $10 per unit for the first 50 units and then $25 per unit for all...
Arsenic in groundwater. Refer to the Environmental Science & Technology (January 2005) study of the reliability of a commercial kit to test for arsenic in groundwater, Exercise 12.16 (p. 728). Recall...
Selected accounts for Kebby Photography at December 31, 2018, follow: Requirements 1. Journalize Kebby Photography's closing entries at December 31, 2018. 2. Determine Kebby Photography's ending...
Personal Assistant Printers, Inc., produces luxury checkbooks with three checks and stubs per page. Each checkbook is designed for an individual customer and is ordered through the customer's bank....
The average price of a 42-in. television on Best Buys Web site is $790. Assume the price of these televisions follows the normal distribution with a standard deviation of $160. a. What is the...
According to the Internal Revenue Service, the average income tax refund for the 2011 tax year was $2,913. Assume the refund per person follows the normal probability distribution with a standard...
List the types of substances to which each of the following chromatographic methods is most applicable: (a) Gas-liquid. (b) Liquid-liquid. (c) Ion. (d) Adsorption. (e) Gel permeation. (f) Affinity....
Use the following information for questions 1 and 2. Caterpillar Financial Services Corp. (a subsidiary of Caterpillar) and Sterling Construction sign a lease agreement dated January 1, 2020, that...
Identifying Binomial Distributions. Determine whether the given procedure results in a binomial distribution or a distribution that can be treated as binomial (by applying the 5% guideline for...
Case 6: TOMS Shoes in 2016: An Ongoing Dedication to Social Responsibility, by Margaret A. Peteraf, Sean Zhand, and Meghan L. Cooney (page C-57) Read the case and then respond to the case questions...
Quatro Co. issues bonds dated January 1, 2019, with a par value of $740,000. The bonds' annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds mature in...
Wildcat Mining wants to know the appropriate discount rate to use in their capital budgeting decision making process. Based on the following data, what is the weighted average cost of capital the CFO...
The balance sheet for Bearing Industries Inc. at the end of the current fiscal year indicated the following: Bonds payable, 10% (issued in 2000 due in 2020) $4,000,000 Preferred $5 stock, $100 par...
Evaluate how many lines there are in a true rotational spectrum of CO molecules whose natural vibration frequency is w = 4.09 1014 s1 and moment of inertia I = 1.44 1039 g cm2.
An estimated 84 percent of enterprises now use cloud computing solutions involving multiple clouds, whereas less than 10 percent of large organizations employ just a single public cloud. Group of...
XYZ inc. was involved in a tax dispute with the national tax authority. The companys legal counsel estimates that there is a 75% likelihood that the company will lose the dispute and that the amount...
3 . Accounting.. How does depreciation impact financial statements, and what are the different methods of depreciation?

Assume the cost of an extended 100,000 mile warranty for a particular SUV follows the normal distribution

Question:

Step by Step Answer:

Business Statistics

Students also viewed these Business questions