The Average Life Expectancy of Computers Produced by Ahmadi,Inc

question 107

Essay

The average life expectancy of computers produced by Ahmadi,Inc.is 6 years with a standard deviation of 10 months.Assume that the lives of computers are normally distributed.Suggestion: For this problem,convert ALL of the units to months.
a.What is the probability that a randomly selected computer will have a life expectancy of at least 7 years?
b.Computers that fail in less than 5¹/₂ years will be replaced free of charge.What percentage of computers are expected to be replaced free of charge?
c.What are the minimum and the maximum life expectancy of the middle 95% of the computers' lives? Give your answers in months and do not round your answers.
d.The company is expecting that only 104 of this year's production will fail in less than 3 years and 8 months.How many computers were produced this year?

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Definitions:

Sales Data

Information related to the amount, timing, and composition of a company's sales.

Stockholders

Individuals or entities that own a share or shares of a corporation, thereby having a claim on its assets and earnings.

Marketability

The ease with which an asset can be sold quickly in the market without affecting its price significantly.

Solvency

A measure of a company's ability to meet its long-term financial obligations.