Q:

CCC (Classroom Clicker Co.) produces student response pads. Average normally distributed life span is 500 days; with a known std. dev. of 100 days under normal operating conditions. The company is considering a 300 day warranty for this product (C3). With this warranty policy, what percentage of C3’s sold should we expect to replace under warranty?2.28%5.40%97.72%4.75%1.85%

Accepted Solution

A:
Answer:2.28% Step-by-step explanation:Mean life span (μ) = 500 days Standard deviation (σ) = 100 days The z-score for any given life span, 'X', is given by the following expression; [tex]z=\frac{X- \mu}{\sigma}[/tex] For a 300 day life span, the z-score is:[tex]z=\frac{300-500}{100}\\z=-2.0[/tex]According to a z-score table, a z-score of -2.0 falls into the 2.28th percentile of a normal distribution.Thus, CCC should expect 2.28% of their products sold to be replaced under warranty.