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Fed [463]
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]3 years ago
6 0
I’m not sure but I tried
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