IndietroBusiness Statistics Exam Study Guidance
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Q2. What StatCrunch calculator instruction is needed to determine the lifetime that should be advertised for flood lamps, given a mean of 3750 hours, standard deviation of 300 hours, and a requirement that no more than 2% burn out before the advertised lifetime?
Background
Topic: Normal Distribution & Probability Calculation
This question tests your ability to use the normal distribution to determine a cutoff value (advertised lifetime) so that only a small percentage (2%) of lamps fail before that time. This is a common application of probability in quality control and product guarantees.
Key Terms and Formulas
Normal Distribution: A continuous probability distribution characterized by a symmetric, bell-shaped curve.
Mean (): The average value, here 3750 hours.
Standard Deviation (): The spread of the distribution, here 300 hours.
Probability (): The likelihood that a lamp burns out before a certain time.
Z-score formula:
Step-by-Step Guidance
Identify the requirement: No more than 2% of lamps should burn out before the advertised lifetime. This means you want the advertised lifetime to be at the 2nd percentile of the normal distribution.
Set up the probability statement:
Use the normal calculator in StatCrunch: Enter the mean (3750) and standard deviation (300), and set the probability to 0.02 for the left tail.
Find the value of such that . This is the cutoff for the advertised lifetime.

Try solving on your own before revealing the answer!
Final Answer: StatCrunch instruction is P(X ≤ 3133.8753) = 0.02
This means the manufacturer should advertise a lifetime of approximately 3133.88 hours to ensure no more than 2% of lamps burn out before this time.