Saturday
March 28, 2015

Homework Help: statistics

Posted by joe on Saturday, March 6, 2010 at 12:55pm.

Assume that Acme Tires sells their high performance tires for $180 each and their all weather tires for $135 each. Further assume that the cost of producing a high performance tire is $150 and the cost of producing an all weather tire is $120. Finally, assume that if a tire does not last 40,000 miles, Acme tires will replace it free of charge to the consumer; Acme will incur the cost of replacement, but will not receive any additional revenue.

(a) Calculate the profit earned/loss incurred on; a high performance tire that exceeds 40,000 miles, a high performance tire that does not exceed 40,000 miles, an all weather tire that exceeds 40,000 miles, and an all weather tire that fails to last 40,000 miles.
(b) What is the expected value (expected profit) of producing an all weather tire? Of producing a high performance tire?
(c) What is the variance and standard deviation of producing an all weather tire? Of producing a high performance tire?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

business - Rocky Mountain Tire Center sells 20,000 go cart tires per year. The ...
Math - A tire shop that sells only one size of tire, .75 metres in diameter, ...
math - A tire company determines that to manufacture a certain type of tire, it ...
Physics - I have to compare and contrast three types of tires, and relate them ...
college - American Tire and Rubber Company sells identical radial tires under ...
AP Physics - To test the performance of its tires, a car travels along a ...
Statistics - A purchasing agent for a trucking company is shopping for ...
Statistics - A purchasing agent for a trucking company is shopping for ...
math - A company has two factories that manufacture tires. Suppose 65% of the ...
Math - Twenty tires are tested to see if they last as long as the manufacturer ...

Members