Mini-Case #3 (12 points) IMPORTANT: Your answers must demonstrate the use of appropriate Excel functions and formulas. Mini-Case #3 must be uploaded to CANVAS no later than 12 noon CT on Wednesday, March 30. Late assignments are not accepted. Show your probability answers to four decimal places. SCENARIO: Motor Supplier Life Data 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 four places (e.g., 0.4365) You should use Excels NORM. DIST function to compute probabilties Current Supplier New Supplier 1000 1715 What is the probability the Current Supplier's motors will not the meet minimum life of 1313 1602 1,100 hours? 1207 1532 1241 1550 2 What is the probability the New Supplier's motors will not meet the minimum 1311 1456 life of 1,100 hours? 1267 1370 1182 1570 3 What is the probability the New Supplier's motors will fail between 1,000 hours 1315 1496 and 1,400 hours? 1249 1625 1102 1304 What is the probability the Current Supplier's motors will fail between 1,000 1358 1485 hours and 1,400 hours? 1303 1239 1271 1594 5 What is the probability the Current Supplier's motors will operate beyond 1,500 1242 1420 hours ? 1199 1603 1375 1553 6 What is the probability the New Supplier's motors will operate beyond 1,500 1190 1449 hours ? 1168 1421 7 & 8 Suppose the Current Supplier's motor costs the company $37.75 per motor and Which Supplier is preferre the 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 8. What is the net savi at the company's expense (which includes the he 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 dret 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