The Useful Lifetime of a Brand of Automobile Battery Is

question 184

Short Answer

The useful lifetime of a brand of automobile battery is normally distributed with mean 1,100 days and standard deviation 80 days. For how long should these batteries be guaranteed if the manufacturer wants to replace only five percent of the batteries sold because they "died" before the guarantee expired?
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Definitions:

Related Diversification

A growth strategy where a business expands its operations into areas that are similar to its existing operations, aiming to leverage its existing strengths and capabilities.

Business Strategy

Deals with how the firm will compete in each market where it conducts business.

Retrenchment

The act of reducing costs or spending in response to economic difficulty, often involving layoffs or downsizing of an organization.

Prospector Strategy

A business approach focused on innovation, seeking out new markets and opportunities, characterized by flexibility and a readiness to adapt to changing environments.