Assignment:
Q: Life tests on a sample of five units were conducted to evaluate a component design before release to production. The units failed at the following times:
Unit Failure Time,
Number hours
1 1200
2 1900
3 2800
4 3500
5 4500
Suppose that the component was guaranteed to last 1000 hours. Any failures during this period must be replaced by the manufacturer at a cost of $200 for each component. Although the number of test data is small, management wants an estimate of the cost of replacements. If 4000 of these components are sold, provide a dollar estimate of the replacement cost.