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# module 10.pdf

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Ryerson University

Quantitative Methods

QMS 102

Changping Wang

Winter

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8/4/2014https://ccs.cf.ryerson.ca/qms102homework/module10_questions.cfm?CFID=42999852&CFTOKEN=10141433&jsessionid=3830675d7ecf4872b2dcc2a3267…
QMS102 Winter 2014
Module 10 Questions for Nabil Score:89%
1. The lifetime ofa certain brand oftire is normally distributed with a mean of100,000 km. and standard
deviation of11,000 km. The tire carries a warranty for 80,000 km.
a) What is the probability that the tire you recently purchased willlast at least 101,000 km.0.4638
Soln: 0.4638 Eval: 1/1
b) What percent ofthis brand oftire willfailbefore the warranty expires? 3.45 % format{~.dd}
Soln: 3.45 Eval: 1/1
c) What should the mileage warranty be so that only 2% ofthe tires need to be replaced under warranty?
122591 km. format{ w}
Soln: 77409 Eval: 0/1 Feedback: IDF.NORMAL(0.02, 100000, 11000)
2. A firm's marketing manager believes that totalsales for next year can be represented by a normaldistribution,
with a mean of$2.4 million and a standard deviation of$400,000. The firmhas fixed costs of$1.6 million.
a) What is the probability that the firm's sales willbe less than $3.3 milli0.9878
Soln: 0.9878 Eval: 1/1
b) What is the probability that the firmwillhave sufficient sales to cover fixed cost0.9772
Soln: 0.9772 Eval: 1/1
c) What is the probability that the firm's sales willbe within $150,000 ofthe expected sales?0.2923
Soln: 0.2923 Eval: 1/1
d) Determine the sales levelthat has only a 7% chance ofbeing exceeded. $ 2.99 million.format{~.dd}
Soln: 2.99 Eval: 1/1
3. The owner ofa convenience store has copies ofthe localnewspaper delivered early each morning. The
demand for papers is normally distributed with a mean of72 and a standard deviation of18.
{Assume daily demand is continuous}
a) What is the probability that there willnot be enough newspapers to meet demand ifthe owner orders 70
copies? 0.5442
Soln: 0.5442 Eval: 1/1
b) How many copies should be ordered so that the probability of"selling out"is at most 13% ? 92.28
papers.
https://ccs.cf.ryerson.ca/qms102homework/module10_questions.cfm?CFID=42999852&CFTOKEN=10141433&jsessionid=3830671/3ecf4872b2dcc2a3267d6f31… 8/4/201https://ccs.cf.ryerson.ca/qms102homework/module10_questions.cfm?CFID=42999852&CFTOKEN=10141433&jsessionid=3830675d7ecf4872b2dcc2a3267…
Soln: 93 Eval: 0/1 Feedback: ROUNDUP[IDF.NORMAL(1-.13, 72, 18)]
4. An investment broker reports that the annualreturns on common stock and municipalbonds are both no

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