The Life Expectancy of a Particular Brand of Tire Is

question 90

Multiple Choice

The life expectancy of a particular brand of tire is normally distributed with a mean of 40,000 and a standard deviation of 5,000 miles. What is the probability that a randomly selected tire will have a life of at least 35,000 miles?

• A) 0.1587
• B) 0.8413
• C) 0.0000
• D) 1.0000

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Definitions:

Lease

An agreed contract in which the lessor permits the lessee to utilize an asset for a set duration in return for regular payments.

Tax-Oriented Lease

A financial lease in which the lessor is the owner for tax purposes. Also called a true lease or a tax lease.

Lessor

The party who rents or leases a property or asset to another party, known as the lessee.

Financial Lease

A lease agreement where the lessee assumes most of the risks and rewards of ownership, often with an option to purchase the asset at the end of the lease term.