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(Only answer part II/ Part I is only for reference) I. The Readylite Company pro

ID: 433600 • Letter: #

Question

(Only answer part II/ Part I is only for reference)

I. The Readylite Company produces a flashlight in which product managers are trying to decide how long a warranty to issue.

If the managers believe the life of the flashlight follows a normal distribution with a mean of 3.5 years and a standard deviation of 1.50 years):

a. What percentage of flashlights sold can they anticipate will be returned within the first one and one-half years?

b. What percentage of flashlights sold can they anticipate will be returned within two and one-half years?

c. What percentage of flashlights sold can they anticipate will be returned between the first one and one-half and three and one-half years?

II. Suppose a company has a design maximum output of 280. Its actual output is 195 and its efficiency is 80%. Calculate its effective output and its capacity utilization.

Explanation / Answer

Answer II: