Company A makes bulbs which have a lifetime described by a Uniform distribution ranging from minimum of 1000 to a maximum of 3000 hours and a warranty of 2000 hours. Company B makes bulbs which have a lifetime described by a Normal distribution with a mean of 1500 hours and a standard deviation of 250 hours. They also provide a warranty of 2000 hours. Which company is likely to spend more money on warranty claims? The answer is company B - why is this the answer?
Added by Carolina H.
Step 1
For Company A: The probability of a warranty claim can be calculated by finding the area under the Uniform distribution curve between 2000 and 3000 hours. This can be calculated as (3000-2000)/(3000-1000) = 0.5. So, the probability of a warranty claim for Company Show more…
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