Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 04 May 2018 My Price 2.00

pro rata warranty

Zemansky’s sells tires with a pro rata warranty. The tires are warranted to deliver 50,000 miles with the rebate based on the remaining tread on the tire. The tires fail on the average after 35,000 miles of wear. Suppose the tires sell for $50 each with the warranty. If failures occur completely at random, what would be a consistent price for the tires if no warranty were offered?

 

 

Answers

(5)
Status NEW Posted 04 May 2018 07:05 PM My Price 2.00

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