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5. Probability computations using the standard normal distribution #2

An automobile battery manufacturer offers a 29/46 warranty on its batteries. The first number in the warranty code is the free-replacement period; the

second number is the prorated-credit period. Under this warranty, if a battery fails within 29 months of purchase, the manufacturer replaces the battery at

no charge to the consumer. If the battery fails after 29 months but within 46 months, the manufacturer provides a prorated credit toward the purchase of
a new battery.

The manufacturer assumes that X, the lifetime of its auto batteries, is normally distributed with a mean of 36 months and a standard deviation of 4.5
months.

Use the following Distributions tool to help you answer the questions that follow. (Hint: When you adjust the parameters of a distribution, you must
reposition the vertical line (or lines) for the correct areas to be displayed.)

Normal
Mean = 36

Standard Deviation = 4.7

.9151

.0682 .0167

0 5 10 15 20 25 30 35 40 45 50 55 60 x
29 46

-7 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 z
-1.49 2.13

If the manufacturer’s assumptions are correct, it would need to replace 5.94%    of its batteries free of charge.

Points: 1/1

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Explanation: Close Explanation

Select the Normal distribution in the tool, and set its parameters to µ = 36 and σ = 4.5. Notice that two horizontal axes are displayed on the tool:

an X-axis and a Z-axis. When a vertical line is positioned on a value of X, the tool does the work of computing the corresponding value of Z. Select
the distribution with one vertical line, and position it at x = 29. Note that x = 29 corresponds to z = –1.56. The area under the curve to the left of x
= 29 is 0.0594. If the manufacturer’s assumptions are correct, it would need to replace 5.94% of its batteries free of charge.

The company finds that it is replacing 6.81% of its batteries free of charge. It suspects that its assumption about the standard deviation of the life of its
batteries is incorrect. A standard deviation of 4.7    results in a 6.81% replacement rate.

Points: 1/1

Explanation: Close Explanation

This question is asking for the standard deviation that provides an area under the curve to the left of x = 29 of 0.0681. If the battery manufacturer
is replacing batteries at a higher rate than anticipated, more batteries are in the tails of the distribution than the firm had assumed, so it has

underestimated the standard deviation of the life of its batteries.

Slide the standard deviation slider in the tool to the right, reposition the vertical line at x = 29 if necessary, and check the area to the left of the
line. If the area is smaller than 0.0681, the standard deviation is still too small to cause the firm’s result. When the standard deviation is 4.7, the

area to the left of x = 29 (z = –1.49) is 0.0681.

Using the revised standard deviation for battery life, what percentage of the manufacturer’s batteries don’t qualify for free replacement but do qualify for
the prorated credit?

1.66%

91.53%

43.19%

48.34%

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Points: 1/1

Explanation: Close Explanation

This question is asking for the percentage of batteries with a usage lifetime between 29 and 46 months. Select the distribution with two vertical

lines in the tool, and place them at x = 29 (z = –1.49) and x = 46 (z = 2.13). The area under the curve between x = 29 and x = 46, displayed in
blue, is 0.9153, so 91.53% of the manufacturer’s batteries qualify for the prorated credit.

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