View the step-by-step solution to:

# A manufacturer of batteries offers a two-year limited warranty. If the battery fails for any reason during the first two years, it is replaced.

A manufacturer of batteries offers a two-year limited warranty. If the battery fails for any reason during the first two years, it is replaced. The time to failure, T, has the density function f(t)=te^(-(t^2)/a) for t >0.

(a) If a = 2

1) What percentage of the batteries is expected to fail within the warranty period?
2) The manufacturing cost of a battery is \$75, and the profit per sale is \$25 at the time of sale, i.e, the selling price is \$100. What is the effect of warranty replacements on profit if during the warranty period a failed battery is replaced at no cost to the customer?

(b) What value of is required for a net profit of \$10 per sale?

Dear Student, I assessed your homework question, but unfortunately was not able to complete... View the full answer

### Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

### -

Educational Resources
• ### -

Study Documents

Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

Browse Documents