[Solution Library] A manufacturer of electronic calculators offers a one-year warranty. If the calculator fails for any reason during this period, it is replaced.
Question:
A manufacturer of electronic calculators offers a one-year warranty. If the calculator fails for any reason during this period, it is replaced. The time to failure, x (in years), is well modeled by the following probability distribution:
\[f\left( x \right)=0.5{{e}^{-0.5x}}\] , \[x>0\]- What percentage of the calculators will fail within the warranty period?
- The manufacturing cost of a calculator is $50. At what price should the manufacturer sell the calculator to have a net profit of $25 per calculator, after budgeting for warranty repair costs?
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