Question

An appliance manufacturer wants to contract with a repair shop to handle authorized repairs in Indianapolis. The company has set an acceptable range of repair time of 50 minutes to 90 minutes. Two firms have submitted bids for the work. In test trials, one firm had a mean repair time of 74 minutes with a standard deviation of 4.0 minutes and the other firm had a mean repair time of 72 minutes with a standard deviation of 5.1 minutes. Which firm would you choose? Why?

Answer 1

Although one would repair at the most time of 76 minutes, the other is at most 77.1 minutes. I would pick the second one because they may take longer by 1.1 minutes at most, they also included seconds, which seems more like an honest bid time.

Answer 2

The best repair shop for the appliance manufacturer for authorized repairs is the other firm with a 72 minute mean time and deviation of 5.1 minutes.

Which firm will be best for handling authorized repairs?

The best firm to pick will be the one that has a lower range of repair times.

The range can be found as:

= Mean time ± Standard deviation

The first firm's range is therefore:

= 74 + 4                                                = 74 - 4

= 78 minutes                                        = 70 minutes

(78 - 70) minutes.

The second firm's range is:

= 72 + 5.1                                              = 74 - 5.1

= 77.1 minutes                                       = 68.9 minutes

(77.1 - 68.9) minutes.

The second company has a lower range and would be better.

Find out more on standard deviation at https://brainly.com/question/475676.