Use the bell curve below to help you answer this question

The Boffo Product Company sells a waffle iron on which they have done product testing. They have determined that the amount of time the product will last can be described by a normal distribution. In particular, the average waffle iron lasts for 12 years and one standard deviation is 8 months.

A.)How long should they warranty the product for if they want no more than 6.7% of the waffle irons to fail within that time?
B.)Suppose they warranty the waffle iron for the amount of time found in the previous question and suppose that it costs them $13 to make each waffle iron. How much should they charge to make an average profit of $5 per waffle iron? Assume they refund the full price for each failed waffle iron.

Question

Use the bell curve below to help you answer this question

The Boffo Product Company sells a waffle iron on which they have done product testing. They have determined that the amount of time the product will last can be described by a normal distribution. In particular, the average waffle iron lasts for 12 years and one standard deviation is 8 months.

A.)How long should they warranty the product for if they want no more than 6.7% of the waffle irons to fail within that time?
B.)Suppose they warranty the waffle iron for the amount of time found in the previous question and suppose that it costs them $13 to make each waffle iron. How much should they charge to make an average profit of $5 per waffle iron? Assume they refund the full price for each failed waffle iron.

NikkoleReece · Answer

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