Discuss the below:
Q1: Assume you are a tire manufacturer and want to determine what the tread life of a new line of tires is. A sample of 100 tires are run to failure and the average mileage is computed to be 55,000 miles with a standard deviation of 1000 miles.
Q2: Compute the 95% confidence interval on the population mean. Interpret the interval. What is the "best" number to use? What number might your sales force tend to use? Why?
Q3: Your company typically guarantees similar type of tires to provide 55,000 miles on average. Would you conclude that this line of tires meets that standard? Why or why not?