Suppose a Tire Manufacturer Wants to Set a Mileage Guarantee

Multiple Choice

Suppose a tire manufacturer wants to set a mileage guarantee on its new XB 70 tire. Life test
Revealed that the mean mileage is 47,900 and the standard deviation of the normally distributed
Distribution of mileage is 2,050 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) 44,528
B) 32,960
C) 49,621
D) 40,922