Problem:
Grear Tire company has produced a new tire with an estimated mean lifetime mileage of 36,500 miles. Management also believes that the standard deviation is 5000 miles and that tire mileage is normally distributed. Use a worksheet to simulate the miles obtained for a sample of 500 tires.
1) USE THE EXCEL COUNTIF FUNCTION to determine the number of tires that last longer than 40000 miles. What is your estimate of the percentage of tires that will exceed 40,000 miles?
2) Use COUNTIF to find the number of tires that obtain mileage less than 32,000 miles. Then find the number with less than 30,000 miles and the number with less than 28,000 miles.
3) If management would like to advertise a tire mileage guarantee such that approximately no more tnan 10% of the tires would obtain mileage low enough to qualify for the guarantee, what tire mileage considered in part (b) would you recommend for the guarantee.