Suppose a Tire Manufacturer Wants to Set a Mileage Guarantee

question 66

Multiple Choice

Suppose a tire manufacturer wants to set a mileage guarantee on its new XB 70 tire. Tests revealed that the tire's mileage is normally distributed with a mean of 47,900 miles and a standard deviation of 2,050 miles. The manufacturer wants to set the guaranteed mileage so that no more than 5% of the tires will have to be replaced. What guaranteed mileage should the manufacturer announce?

• A)44,518
• B)32,960
• C)49,621
• D)40,922

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