A tire manufacturer warranties its tires to last at least 20275 miles or "you get a new set of tires." In its experience, a set of these tires lasts on average 26275 miles with standard deviation 5110 miles. Assume that the wear is normally distributed. The manufacturer profits Rs. 200 on each set sold, and replacing a set costs the manufacturer Rs. 400. 20275 miles? a) What is the probability that a set of tires wears out before 24275 miles and after 20275 miles? b) What is the probability that a set of tires wears out before

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.4: Distributions Of Data
Problem 19PFA
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attempt Q5

FA
Conditional Format as Neutral
Formatting Table
A-
OMerge & Center
6 %
.00
00 .0
Calculation
Check Ce
Alignment
Number
Styles
hether silicon chip sales are independent of where the XYZ country's economy is in the business cycle, data have been collected on the weekly sales
J
K
M
Q
R.
U
percent, and the sample standard deviation was
1.39 percent. Is it reasonable to
conclude (at a=0.01) that wealth-market interest rates declined during 2015?
A tire manufacturer warranties its tires to last at least
Q5
20275 miles or "you get a new set of tires."
In its experience, a set of these tires lasts on average
26275 miles with standard deviation
5110 miles.
Assume that the wear is normally distributed. The manufacturer profits Rs. 200 on each set sold, and
replacing a set costs the manufacturer Rs. 400.
a) What is the probability that a set of tires wears out before
20275 miles?
20275 miles?
b) What is the probability that a set of tires wears out before
c) What is the cutoff value in terms of miles of the top
24275 miles and after
55% wearing out tires.
Q6
AC, Ltd., a supplier of operating system software for personal computers, was planning the initial public
offering of its stock in order to raise sufficient working capital to finance the development of a radically new,
seventh-generation integrated system. With current earnings of $1.61 a share, AC and its underwriters were
contemplating an offering price of $21, or about 13 times earnings. In order to check the appropriateness of this
price, they randomly chose seven publicly traded software firms and found that their average price/earnings ratio
1.85. At a 0.02, can AC conclude that the stocks
15.75 ?
was
14.4 , and the sample standard deviation was
of publicly traded software firms have an average P/E ratio that is significantly different from
What are the confidence limits of acceptance region?
Transcribed Image Text:FA Conditional Format as Neutral Formatting Table A- OMerge & Center 6 % .00 00 .0 Calculation Check Ce Alignment Number Styles hether silicon chip sales are independent of where the XYZ country's economy is in the business cycle, data have been collected on the weekly sales J K M Q R. U percent, and the sample standard deviation was 1.39 percent. Is it reasonable to conclude (at a=0.01) that wealth-market interest rates declined during 2015? A tire manufacturer warranties its tires to last at least Q5 20275 miles or "you get a new set of tires." In its experience, a set of these tires lasts on average 26275 miles with standard deviation 5110 miles. Assume that the wear is normally distributed. The manufacturer profits Rs. 200 on each set sold, and replacing a set costs the manufacturer Rs. 400. a) What is the probability that a set of tires wears out before 20275 miles? 20275 miles? b) What is the probability that a set of tires wears out before c) What is the cutoff value in terms of miles of the top 24275 miles and after 55% wearing out tires. Q6 AC, Ltd., a supplier of operating system software for personal computers, was planning the initial public offering of its stock in order to raise sufficient working capital to finance the development of a radically new, seventh-generation integrated system. With current earnings of $1.61 a share, AC and its underwriters were contemplating an offering price of $21, or about 13 times earnings. In order to check the appropriateness of this price, they randomly chose seven publicly traded software firms and found that their average price/earnings ratio 1.85. At a 0.02, can AC conclude that the stocks 15.75 ? was 14.4 , and the sample standard deviation was of publicly traded software firms have an average P/E ratio that is significantly different from What are the confidence limits of acceptance region?
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