Suppose you work for a company that manufactures electronics. The development analysts estimate that 5% of their flagship produc

Question

3 years ago

10

Suppose you work for a company that manufactures electronics. The development analysts estimate that 5% of their flagship produc

t will fail within 2 years of the purchase date, with a replacement cost of $ 1200. A newly hired associate at the company proposes to charge $ 50 for a 2-year warranty. 1. Compute the expected value of this proposal. Let X be the amount profited or lost (by the company) on the warranties and P(X) is the probability. 2. Interpret the expected value in complete sentences.

Mathematics

1 answer:

givi [52] · Answer 1 · 2021-12-26T22:20:28+03:00

givi [52]3 years ago

6 0

I’m not sure but I tried