Sample Paint Life 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 4.4 4.3 7.2 6.3 3.1 2.8 5.4 7.5 6.9 5.4 7.8 4.9 6.2 7 2.4 6.4 3.8 3.1 6 7.5 3.7 7.9 4.2 7.6 6.1 3 6.6 4.6 3.6 4.5 3.7 7.8 4.2 4.5 6.2 3.9 3 2 2.5 3.6 6.2 5.7 4.9 7.6 5.8 5.6 5.2 Your company, that advertises that its paint will last at least five years, is being The court has ordered that an independent laboratory test your paint. The lab of your paint and determine the average paint-life for the sample. The law allo That means that, to be found not guilty, the average paint-life for the sample m Your company claims that your paint lasts 5 years, so if the average of the labo your company will be found guilty of false advertising. To anticipate what the laboratory will find, you have taken 50 samples of your the paint-life. The results of those tests are shown at the left. Based on what you have observed, what is the probability that your company if the laboratory tests 10 samples? Based on what you have observed, what is the probability that your company if the laboratory tests 30 samples? If your company is found guilty, it will have to pay $20 million in fines. The inde 10 samples, but has not yet conducted its tests. Meanwhile, the plaintiffs' law agrees to pay their clients $1 million. Your company would not have to admit f much money (to the nearest thousand dollars) can your company expect to sa 48 49 50 7.1 2 4.3 t least five years, is being sued for false advertising. y test your paint. The laboratory will randomly select samples the sample. The law allows a 10% "buffer" in your advertising claim. paint-life for the sample must be 0.9 times what you claim or greater. f the average of the laboratory's samples is less than 4.5 years, aken 50 samples of your company's paint and tested bility that your company will be found guilty of false advertising bility that your company will be found guilty of false advertising million in fines. The independent laboratory has said that it will examine nwhile, the plaintiffs' lawyers have offered to drop the case if your company would not have to admit fault. Ignoring your company's legal fees, how ur company expect to save by accepting the offer