Industry standards suggest that 12 percent of new vehicles require warranty serv
ID: 3224663 • Letter: I
Question
Industry standards suggest that 12 percent of new vehicles require warranty service within the first year. Jones Nissan in Sumter, South Carolina, sold 11 Nissans yesterday. (Round your mean answer to 2 decimal places and the other answers to 4 decimal places.) a. What is the probability that none of these vehicles requires warranty service? Probability b. What is the probability exactly one of these vehicles requires warranty service? Probability c. Determine the probability that exactly two of these vehicles require warranty service Probability d. Compute the mean and standard deviation of this probability distribution.Explanation / Answer
p = 0.12
n = 11
P(X = x) = 11Cx * 0.12x * (1 - 0.12)11-x
a) P(X = 0) = 11C0 * 0.120 * 0.8811 = 0.2451
b) P(X = 1) = 11C1 * 0.121 * 0.8810 = 0.3676
c) P(X = 2) = 11C2 * 0.122 * 0.889 = 0.2507
d) Mean = n * p = 11 * 0.12 = 1.32
Stnadard deviation = sqrt(n * p * (1 - p)) = sqrt(11 * 0.12 * 0.88) = 1.0778