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 is well modeled by the following probability distribution:

\(f\left( x \right)=0.125{{e}^{-0.125x}}\,\,\,\,\,x>0\)

1. What percentage of the calculators will fail within the warranty period?
2. The manufacturing cost of a calculator is $50, and the profit per sale is $25. What is the effect of warranty replacement on profit?

Price: $2.99

Solution: The downloadable solution consists of 1 pages
Deliverable: Word Document