Multiple Choice
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 47,900 miles and a standard deviation of 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
Correct Answer:
Verified
Correct Answer:
Verified
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