The lives of a certain type of carpet cleaners are approximately normally distributed with mean of 10 years and standard deviation of 2 years. The manufacturer of the carpet cleaner wants to determine the guarantee period during which the carpet cleaner will be replaced if it fails. If the manufacturer is willing to replace 16% of the carpet cleaners that fail, how many years of replacement guarantee period should the manufacturer offer?

Questions 16 to 21 (6 points) are based on the Problem 1.

16	The replacement guarantee period should be determined based on ________________. The probability distribution of the carpet cleaners lives only The percentage of the carpet cleaners that the manufacturer is willing to replace only None of the above Both of the above
17	The percentage of carpet cleaners that the manufacturer is NOT willing to replace represents the probability that a carpet cleaners life will be ______________ its replacement guarantee period. Longer than Exactly equal to Both of the above Shorter than
18	In order to calculate the replacement guaranty period, _____________________. We must use the normal distribution formula for our calculations We should use the standard normal distribution tables to find the replacement probability We should use binomial distribution We should use the standard normal distribution tables to find Z-score
19	After using the tables one can conclude that for the given percentage of 16%, the warranty period should be by about ______ standard deviations shorter than the mean of the carpet cleaners lives. 3 1 2 0
20	The carpet cleaner guarantee period should be equal to about __________ years. 10 4 8 6
21	The guarantee period is very long because ____________. The cost associated with the carpet cleaner replacement are probably very low The product reliability is high The standard deviation is not very large relative to mean of carpet cleaner lives All of the above Problem 2 The auto parts department of an automotive dealership sends out an average of nine special orders daily. The number of special orders is assumed to follow a Poisson distribution. What is the probability that the number of special orders sent out for two days will be more than one? What is the standard deviation of the number of special orders sent out daily? Questions 22 - 27 (6 points) are based on the Problem 2.