A company manufactures and sells treadmills that require small electric motors which it purchases from a supplier. It has been using its current supplier for about five years, but there have been some issues. A new supplier is making a bid for the company's business. The purchasing department decides to compare the two suppliers by taking a random sample of motors from each supplier and running them on its treadmills until they fail. The company's marketing research reveals that any failure at 1,100 hours or before of the treadmill (and therefore, the motors) is seen by Its customers as evidence of inferior quality. The results of the test are given below. Assume the time-to-failure for the motors is normally distributed in each case. ANSWER CELLS Show answer as a decimal to Current Supplier New Supplier four places (e.g., 1000 1715 You should use Excels NORM.DIST function to compute probabilties 0.4365) 1313 1602 1207 1532 1 What is the probability the Current Supplier's motors will not the meet minimum life of 1, 100 1241 1550 hours? 1311 1456 1267 1370 2 What is the probability the New Supplier's motors will not meet the minimum life of 1182 1570 1,100 hours? 1315 1496 1249 1625 3 What is the probability the New Supplier's motors will fail between 1,000 hours and 1102 1304 1,400 hours? 1358 1485 1303 1239 4 What is the probability the Current Supplier's motors will fail between 1,000 hours and 111 1271 1594 1,400 hours? 1242 1420 1199 1603 5 What is the probability the Current Supplier's motors will operate beyond 1,500 hours 1375 1553 ? 1190 1449 1168 1421 6 What is the probability the New Supplier's motors will operate beyond 1,500 hours ?7 & 8 Suppose the Current Supplier's motor costs the company $37.75 per motor and the 7. Which Supplier is preferred (that is, is most reliabile, lowest total cost)? New Supplier's motor will cost the company $39.15 per motor. If the company plans to offer an 1, 100 hour warranty and to replace any motor that fails at the company's 8. What is the net savings annually using the most reliable motor? expense (which includes the cost of the replacement motor plus approximately $60 labor per unit for the service call to install it), which supplier should the company use and what is the net annual savings with this supplier (relative to the other one)? Assume that in a typical year the company uses 36,500 motors and each treadmill has, one motor. Show any computations for your answers in this worksheet to the right as indicated. Computations over here 9 Suppose we take another random sample of n=18 of the Current Supplier's motors. What is the probability the average of the new sample exceeds 1250 hours? 10 Suppose we take another random sample of n=18 of the New Supplier's motors. What is the probability the average of the new sample exceeds 1500 hours? 11 & 12 Ninety percent of the averages of future random samples of n=18 from the New Lower bound Supplier should fall between what two values? Upper bound