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:

Cost of Goods Manufactured

The total production cost of goods completed during a specific period, including materials, labor, and overhead costs.

Adjusted Cost of Goods Sold

This refers to the cost of goods sold figure after adjustments for any changes in inventory or other factors affecting the cost of goods produced and sold.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods in a specific period, including labor, material, and overhead.

Adjusted Cost of Goods Sold

The cost of goods sold figure after it has been adjusted for returns, allowances, and any other adjustments.