Set a mileage guarantee


Suppose a tire manufacturer wants to set a mileage guarantee on its new XB 70 tire. Tests revealed that the tire's mileage is normally distributed with a mean of 49,069 miles and a standard deviation of 2,303 miles. The manufacturer wants to set the guaranteed mileage so that no more than 5 percent of the tires will have to be replaced. What guaranteed mileage should the manufacturer announce?

A. 45,981
B. 45,670
C. 44,738
D. 45,281

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Basic Statistics: Set a mileage guarantee
Reference No:- TGS0836011

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