Ron Swanson and Tom Haverford have purchased a piece of land and are planning to set up a bicycleassembly unit there. They believe the new bicycles will be very popular as these will be manufacturedfrom carbon fibers and will last much longer than any other bicycle available. The assembly plant andtechnology will be provided by a Danish company. Ron is very optimistic about the performance andsales potential of these bikes. An independent research company has conducted extensive tests andtheir report shows an average life of 95,900 miles. Tom thinks they should give a guarantee of 110,000miles while Ron is more inclined to go for 76,000 miles. You have recently been hired by Ron as anassistant manager and are assigned to the marketing team. While going through the test results younotice that the analysis mentions many tests that were conducted and that the test data followed anormal distribution with a mean of 95,900 miles and a standard deviation of 2,250 miles. You quicklyfigured out that a guarantee of 110,000 miles might become a disaster for the firm. You mention thisissue to Tom, but he is too busy to give it serious thought. Instead, he asks you to submit a report withyour recommendations.
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