How is the probability of the Iowa Energy scoring more points that the Maine Red Claws affected? If
required, round your answer to three decimal places.
Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of 36,500 miles.
Management also believes that the standard deviation is 5000 miles and that tire mileage is normally
distributed. To promote the new tire, Grear has offered to refund some money if the tire fails to reach
30,000 miles before the tire needs to be replaced. Specifically, for tires with a lifetime below 30,000
miles, Grear will refund a customer $1 per 100 miles short of 30,000.
For each tire sold, what is the expected cost of the promotion? If required, round your
answer to two decimal places.
What is the probability that Grear will refund more than $50 for a tire? If required,
round your answer to three decimal places.
What mileage should Grear set the promotion claim if it wants the expected cost to be
$2.00? If required, round your answer to the hundreds place.