Answer:
$44.90
Step-by-step explanation:
The resulting value for the company of replacing a failed product is given by the price of the warranty minus the cost of replacement:

This event has a 0.7% chance of happening.
The resulting value for selling extended warranty to a product that does not fail is given by the proce of the warranty:

This event has a 99.3% chance of happening.
The expected value is:

The expected value for each warranty sold is $44.90.
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Answer:
<h3>
9.2 ft</h3>
Step-by-step explanation:
