Following an exponential distribution, the average lifespan of a smartphone battery is 2.3 years. The battery manufacturer wants to offer a warranty for its customers to receive a free replacement if the battery fails during the first year. Each battery generates a profit of $10.85, and the replacement cost is $6.35. Use Excel's Analysis ToolPak, with a seed of 1, to develop a Monte Carlo simulation for the lifespan of 100 batteries. a. What is the expected total cost of this warranty program? Note: Round intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places. Answer is complete but not entirely correct. The expected total cost of the warranty program for every 100 batteries sold $ -190.50 x b. In order to cover the cost of the warranty program, how many additional battery units does the company need to sell? Note: Round intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places. Answer is complete but not entirely correct. Additional batteries the company needs to sell for every 100 batteries currently 0.35 x sold
Following an exponential distribution, the average lifespan of a smartphone battery is 2.3 years. The battery manufacturer wants to offer a warranty for its customers to receive a free replacement if the battery fails during the first year. Each battery generates a profit of $10.85, and the replacement cost is $6.35. Use Excel's Analysis ToolPak, with a seed of 1, to develop a Monte Carlo simulation for the lifespan of 100 batteries. a. What is the expected total cost of this warranty program? Note: Round intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places. Answer is complete but not entirely correct. The expected total cost of the warranty program for every 100 batteries sold $ -190.50 x b. In order to cover the cost of the warranty program, how many additional battery units does the company need to sell? Note: Round intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places. Answer is complete but not entirely correct. Additional batteries the company needs to sell for every 100 batteries currently 0.35 x sold
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter1: Functions
Section1.EA: Extended Application Using Extrapolation To Predict Life Expectancy
Problem 2EA
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Question
![Following an exponential distribution, the average lifespan of a smartphone battery is 2.3 years. The battery manufacturer wants to
offer a warranty for its customers to receive a free replacement if the battery fails during the first year. Each battery generates a profit
of $10.85, and the replacement cost is $6.35. Use Excel's Analysis ToolPak, with a seed of 1, to develop a Monte Carlo simulation for
the lifespan of 100 batteries.
a. What is the expected total cost of this warranty program?
Note: Round intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places.
> Answer is complete but not entirely correct.
The expected total cost of the warranty program for every 100 batteries sold $
-190.50 x
b. In order to cover the cost of the warranty program, how many additional battery units does the company need to sell?
Note: Round intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places.
> Answer is complete but not entirely correct.
Additional batteries the company needs to sell for every 100 batteries currently
sold
0.35 x](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba758c3a-13cf-425a-b3ae-d5d1fac8a83c%2F7177aeec-909c-4014-914b-ab89b8946634%2Ftjmnebk_processed.png&w=3840&q=75)
Transcribed Image Text:Following an exponential distribution, the average lifespan of a smartphone battery is 2.3 years. The battery manufacturer wants to
offer a warranty for its customers to receive a free replacement if the battery fails during the first year. Each battery generates a profit
of $10.85, and the replacement cost is $6.35. Use Excel's Analysis ToolPak, with a seed of 1, to develop a Monte Carlo simulation for
the lifespan of 100 batteries.
a. What is the expected total cost of this warranty program?
Note: Round intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places.
> Answer is complete but not entirely correct.
The expected total cost of the warranty program for every 100 batteries sold $
-190.50 x
b. In order to cover the cost of the warranty program, how many additional battery units does the company need to sell?
Note: Round intermediate calculations to at least 4 decimal places and your final answer to 2 decimal places.
> Answer is complete but not entirely correct.
Additional batteries the company needs to sell for every 100 batteries currently
sold
0.35 x
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