2Grear Tire Company has produced new tire with an estimated mean lifetime mileage of 36,500 miles. Management also believes that the standard deviation is 5,000 miles andthat tire mileage is normally distributed. To promote the new tire, Grear has offered to refund a portion of the purchase price if the tire fails to reach 30,000 miles before thetire needs to be replaced. Specifically, for tires with a lifetime below 30,000 miles, Grear will refund customer $1 per 100 miles short of 30,000. Construct a simulation modelto answer the following questions. (Use at least 1,000 trials.)(a) For each tire sold, what is the expected cost (in dollars) of the promotion? (Round your answer to two decimal places.)$(b) What is the probability that Grear will refund more than $50 for a tire? (Round your answer to three decimal places.)(c) What mileage should Grear set the promotion claim if it wants the expected cost to be $2?This question can be answered by trial and error. While the mean profit can vary, a promotion claim of ---Select--- miles will result in an expected cost of approximately$2.00.SHOW WORK FOR (a) and (b) ON EXCEL SPREADSHEET.

Grear Tire Company has produced a new tire with an estimated mean lifetime mileage of miles…

(a) For each tire sold, what is the expected cost (in dollars) of the promotion? (Round your answer to two decimal places.) (b) What is the probability that Grear will refund more than $50 for a tire? (Round your answer to three decimal places.) (c) What mileage should Grear set the promotion claim if it wants the expected cost to be $2? This question can be answered by trial and error. While the mean profit can vary, a promotion claim of ---Select--- miles will result in an expected cost of approximately $2.00.

(a) For each tire sold, what is the expected cost (in dollars) of the promotion? (Round your answer to two decimal places.) (b) What is the probability that Grear will refund more than $50 for a tire? (Round your answer to three decimal places.) (c) What mileage should Grear set the promotion claim if it wants the expected cost to be $2? This question can be answered by trial and error. While the mean profit can vary, a promotion claim of ---Select--- miles will result in an expected cost of approximately $2.00.

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section: Chapter Questions

Problem 22SGR

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