STAT6315_Homework3Solutions

5 in a week how many units should the central

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Unformatted text preview: in a week, how many units should the central warehouse stock? b) If the retailer has 2,750 units on hand at the start of the week, what is the probability that weekly demand will be greater than inventory? ( ) 2033 c) If the standard deviation of weekly demand for the toy in creases from 300 to 500 units, how many more toys would have to be stocked to ensure that the probability of weekly demand exceeding inventory is no more than 2.5%? They would need to stock 3,480 toys instead of 3,088. Page 7 of 8 10. C&C Industries manufactures a wash-down motor that is used in the food processing industry. The motor is marketed with a warranty that guarantees it will be replaced free of charge if it fails within the first 13,000 hou rs of operation. On average, C&C washdown motors operate for 15,000 hours with a standard deviation of 1,250 hours before failing. The number of operating hours before failure is approximately normally distributed. a) What is the probability that a wash-down motor will have to be replaced free of charge? ( ) 0548 b) What percentage of C&C wash-down motors can be expected to operate for more than 17,500 hours? ( ) 0228 c) If C&C wants to design a wash-down motor so that no more than 1% are replaced free of charge, what would the average hours of operation before failure have to be if the standard deviation remains at 1,250 hours? Need to find μ when Z = -2.33, σ = 1250 and X = 13,000. hours Page 8 of 8...
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