Question: Problem 2.5

Assume that Acme tire life is normally distributed and that both all weather tires and high performance tires have a mean life of 50,000 miles.

(a) Using the probabilities you calculated in problem 2.1, calculate the standard deviations of tire life for both tire types.

(b) If Acme wanted to ensure that 95% of their tires exceeded the 40,000 mile threshold, what would they have to set their warrantee at for All Weather tires? For high performance tires?