The time required for an automotive center to complete an oil change service on an automobile approximately follows a normal distribution, with a mean of 19 minutes and a standard deviation of 2 minutes.
(a) The automotive center guarantees customers that the service will take no longer than 20 minutes. If it does take longer, the customer will receive the service for half-price. What percent of customers receive the service for half-price?
(b) If the automotive center does not want to give the discount to more than 3% of its customers, how long should it make the guaranteed time limit?
a)
Given:
= 19,
= 2
To find the probability, we need to find the Z scores first.
Z = (X -
)/ [
/Sqrt(n)].
Since n = 1, Z = (X -
)/
(a) P(X > 20) = 1 - P(X < 20) ), as the normal tables give us the left tailed probability only.
For P( X < 20), Z = (20 – 19)/2 = 0.50
The probability for P(X < a) from the normal distribution tables is = 0.6915
Therefore the required probability = 1 – 0.6915 = 0.3085. Therefore 30.85% of the customers receive the service for half the price.
(b) P(X > x) = 0.03 (Since it wants to restrict it to not more
than 3%)
Therefore P(X < x) = 1 - 0.03 = 0.97 and the corresponding Z value is 1.88
Therefore 1.88 = (X - 19)/2. Solving for X, we get X = 1.88*2 +
19 = 22.76
23 minutes
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