The lifetimes of TVs produced by Company B are normally dist

The lifetimes of TVs produced by Company B are normally distributed with a mean of 70 months and a standard deviation of 10 months.

If replacing a tv costs $200, and this new technology costs $1M to implement, how many tvs company B has to sell so that the cost savings (replacing fewer tvs) will equal the cost of implementation of the new technology?

Solution

Let the number of tvs to be replaced be \'n\'.

So, in order to have equal cost of implementation of the new technology-

n x $200 = $1,000,000

So, n = 5000