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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 washdown 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 washdown motor will have to be replaced free of
charge?
( ) 0548
b) What percentage of C&C washdown motors can be expected to operate for more
than 17,500 hours?
( ) 0228
c) If C&C wants to design a washdown 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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 Spring '14

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