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The average life of an electric scooter is 12 years with a standard deviation of 1.5 years. The manufacturer replaces for free all scooters that fail while under a guarantee. If she is willing to replace 3.0% of the scooters that fail, how long of a guarantee (in years) should she offer

Respuesta :

adioabiola

The guarantee which should be given by the manufacturer in years is; 0.405years

Percentages and Averages

Since the average life of a scooter is 12 years with a standard deviation of 1.5 years.

Hence, the maximum life of any electric scooter is 13.5 years.

On this note, to offer a guarantee with the intention to replace only 3% of the scooters;

We must evaluate 3% of 13.5 years as follows;

  • Guarantee offer = 3% of 13.5 years

  • Guarantee offer = (3/100) × 13.5

Guarantee offer = 0.405 years

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