Download presentation

Presentation is loading. Please wait.

Published byJaven Colmer Modified over 2 years ago

1
The X Tire Company Problem

2
A Business Application Suppose that the X Tire Company has just developed a new steel-belted tire that will be sold through a national chain of discount stores. X’s management believes that the mileage guarantee offered with tire will be an important factor in the acceptance of the product. Before finalizing the tire mileage guarantee policy, X’s management would like some probability information concerning the number of miles the tires will last.

3
X Tire Problem From actual road tests with tires, X’s engineering group has estimated the mean tire mileage at 36,500 miles and the standard deviation at 5000 miles. In addition the data collected indicate that a normal distribution is a reasonable assumption.

4
X Tire Problem Using the normal distribution, what percentage of the tires can be expected to last more than 40,000 miles? In other words, what is the probability that the tire mileage will exceed 40,000 miles??

5
X Tire Problem Let us assume that X is considering a guarantee that will provide a discount on an new set of tires if the original tires do not exceed the mileage stated in the guarantee. What should the guarantee mileage be if X would like no more than 10% of the tires to be eligible for the discount guarantee?

Similar presentations

OK

Assuming normally distributed data! Naïve Bayes Classifier.

Assuming normally distributed data! Naïve Bayes Classifier.

© 2017 SlidePlayer.com Inc.

All rights reserved.

Ads by Google

Ppt on polynomials free download Ppt on biological pest control Ppt on 3 idiots movie Ppt on democratic and non democratic countries Ppt on regular expression python Ppt on order of operations Ppt on diabetes mellitus type 2 Motivational ppt on life Ppt on revolution and rotation of the earth Download ppt on adolescence and puberty