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SCM313 Final F19 18109361685 X File Home Insert Draw Design Layout References Mailings Review View Help Tell me what you want to do Share Comments OXJ 2) Reliability Analysis GM has a 1.4L engine that they put into over 7,000,000 vehicles. This particular engine has a major issue with reliability. The PCV valve can break and it costs roughly $700 to repair. If the vehicle was made in between 2008 and 2014, the powertrain warranty covers this cost for the first 100,000 miles. After that, it's on the owners, LIKE ME, to pay for it. If the part has a MTTF(mean) of 42,000 miles, answer the following: i) Using the exponential distribution, calculate the probability it will fail within the first 15,000 miles.... Like mine just did. Run a simulation with 3 columns and 5,000 random variables, using the function in cells A5, B5, C5 (copy and paste) with mean=42,000. Each column represents the lifetime of a PCV valve. ii) O In column 1, what is the probability of one of these parts failing on the car within 100,000 miles. P(1 Failure) = iii) Combine the values in Column 1 and 2. What is the percent of vehicles that have the PCV valve replaced twice within the first 100,000 miles????? LIKE MINE. P(2 Failures) = iv) Combine the values in column 1, 2 and 3. What percent of the vehicles have had 3 PCV valve replaced within the first 100,000? P(3 Failures) = At a cost of $700/repair, and $300 to install the part initially, how much does it costs GM to fix 1,000,000 1.4L engines? Total Install Cost (100,000 miles) = Page 4 of 9 2368 words [X + 100% Type here to search O WE ? A [)) 6 0 7 10:16 PM 12/8/2019SCM313 Final F19 18109361685 X File Home Insert Draw Design Layout References Mailings Review View Help Tell me what you want to do Share Comments . 2 . . . 3 . . . . 1. . .5 . . 1 . . . 7 . . . . . GM's fix for this situation is to drop the powertrain warranty from 100,000 miles to 48,000 miles. What is the total cost to GM if they only replace PCV valves that break in the first 48,000 miles? Total Install Cost (48,000 miles) = What if GM just made the part better in the first place. Suppose that a part that costs $1,200 initially, has a repair cost of $1,600 and has an MTTF of 450,000. What would the cost be if they used this new part and had the original 100,000 mile warranty? Total Install Cost (100,000 miles new part) = V ) Using the costs you just calculated, describe a business case why it's a better idea to just shorten the warranty. (3-4 sentences.) vi) Using the costs you just calculated, describe a business case why it's a better idea to use better parts. (3- 4 sentences. Page 4 of 9 2368 words [x + 100% 9 ? A 10:16 PM Type here to search O Fi 12/8/2019SCM313 Final F19 18109361685 X File Home Insert Draw Design Layout References Mailings Review View Help Tell me what you want to do Share Comments 1 . . . 2 . . . 1 . . . 3 . . . . . 4 . . . 1 . . . 5 . . . . 6 . . . 1 . . . 7 . . . . . Another thing that you might need to consider is a Lemon Law. Some states have a law that says it a product (of any kind) is defective, meaning it needs to be fixed more than 3 times for the same problem during the warranty period, the producer must buy it back. If the average cost to buy back each vehicle is $25,000.. vii) What are the total costs under the original part and warranty, original part and new warranty and the new part and original warranty? Original Total Cost = Original part and new warranty cost = New part and Original warranty cost = viii) Based upon these total costs, including the Lemon Law, make a business case for the best option in part vii. (3-4 sentences) Page 5 of 9 2368 words [x + 100% Type here to search ? 10:16 PM 12/8/2019