Laptop computers produced by the company have average life of 38.36 months. Suppose that the life of the computer is exponentially distributed (which is good assumption).
- Find out the probability that the computer will fail in 12 months?
- If the company gives the warranty period of 12 months, what proportion of computers will fail throughout the warranty period?
- Based upon the answer to (b), would you say the company can afford to provide a warranty period of 12 months?
- If the company wants not more than 5% of computers to fail throughout the warranty period, what should be warranty period?