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:

Accounts Payable

A liability account on the balance sheet representing money owed by a company to its creditors or suppliers for purchases made on credit.

Credit Column

The section of an accounting record where increases in liabilities, revenues, and equity accounts are recorded.

Debit Column

The Debit Column is the left-hand side of an account record in double-entry bookkeeping, used to record increases in asset, expense, and loss accounts, and decreases in liability, equity, and revenue accounts.

General Journal

A primary accounting record used to document all financial transactions in chronological order.