What type of probability distribution will most likely be used to analyse warranty repair needs on new cars in the following problem? The service manager for a new automobile dealership reviewed dealership records of the past 20 sales of new cars to determine the number of warranty repairs he will be called on to perform in the next 90 days. Corporate reports indicate that the probability any one of their new cars needs a warranty repair in the first 90 days is 0.05. The manager assumes that calls for warranty repair are independent of one another and is interested in predicting the number of warranty repairs he will be called on to perform in the next 90 days for this batch of 20 new cars sold.

Warranty records show that that the probability that a new Mercedaz car needs a repair withinthe first 90 days after delivery is 5%.Find the probability that in a random sample of six new Mercedaz cars:(i) None will require a repair within the first 90 days after delivery(ii) At most one car will require a repair within the first 90 days after delivery

At a certain auto parts manufacturer, the Quality Control division has determined that one of the machines produces defective parts 19% of the time. A random sample of 7 parts produced by this machine is chosen. Find the probability that at most 2 of these parts are defective.Do not round your intermediate computations, and round your answer to three decimal places.

An entity sells goods under warranty and past experience shows that minor defects account for 10% of sales and major defects account for 2% of sales.  If all minor defects were repaired the warranty cost would be K300 000, and if all major defects were repaired the warranty cost would be K800 000.  The expected value of the warranty cost is

Question # 1A car dealership also owns a workshop it uses for servicing cars under warranty. Inpreparing financial statements, the car dealership needs to ascertain the provision ofwarranty that it would be required to provide at year-end. The entity’s past experiencewith warranty claims is1. 60% of cars sold in a year have zero defects.2. 25% of cars sold in a year have normal defects.3. 15% of cars sold in a year have significant defects.The cost of rectifying a “normal defects” in a car is Rs. 10,000. The cost of rectifying a“significant defects” in a car is Rs. 30,000.Required: Compute the amount of “provision for warranty” needed at year –end

On average, 5 % of items supplied by manufacturer X are defective. If a batch of 10 items is inspected: what is the probability that 2 items are defective 0.065 0.075 0.085 0.095