Replacement Times for TV Sets Are Normally Distributed with a Mean

question 18

Multiple Choice

Replacement times for TV sets are normally distributed with a mean of 8.2 years and a standard deviation of 1.1 years, (based on data from "Getting Things Fixed, "Consumer Reports) . (i) If you want to provide a warranty so that only 3% of the TV sets will be replaced before the warranty expires, the length of warranty you would recommend would be 6.13 years.
(ii. The probability that a randomly selected TV will be replaced after more than 10.0 years is 0.0505.

• A) (i) and (ii) are correct statements.
• B) (i) is a correct statement but not (ii).
• C) (ii) is a correct statement but not (i).
• D) (i) and (ii) are false statements.

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Definitions:

Savings Method

is a memory recall technique noted by Ebbinghaus, measuring the retention of information by comparing the rate of learning to the rate of relearning the same information.

Relearns

The process of learning information or skills again, which were previously acquired and then forgotten or unpracticed.

Recognition

The ability to identify previously encountered information, stimuli, or events.

Savings

The allocation of money that is not spent on consumption in order to be used for future expenses or investments.