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Business, 08.03.2021 19:40 jacobever6752

An automobile battery manufacturer offers a 39/50 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 39 months of purchase, the manufacturer replaces the battery at no charge to the consumer. If the battery fails after 39 months but within 50 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 44 months and a standard deviation of 3.6 months. 1. If the maufacturer's assumptions are correct, it would need to replace of its batteries free of charge.

a. 8.23%
b. 4.75%
c. 91.77%
d. 95.25%

2. The company finds that it s replacing 9.34% 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 results in a 9.34% replacement rate.

a. 3.8
b. 5.4
c. 4.1
d. 4.2

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