Step-by-step explanation:
The expected value of the extended warrant is calculated as follow.
Value of Waranty
= 800 x 20% − 112.10
= 800 x 20/100 − 112.10
= 47.9
The expected value of the extended warranty assuming it is replaced in the first 2 years is given as follow.
Expected value=800-112.10=>687.90
Therefore, required expected value of extended warranty is 687.90
2.
Given information:
Number of Trials (n) = 15
Probability of Success (p) = 0.10
a) Let X represents the number of left-handed people.
b) The probability distribution follows binomial distribution.
X ∼ Binomial distribution
The probability distribution is given as follow.
P(X = x) = ^nCx(p)^x(1 − p)^n − x
c)The histogram is given as follow. (See attachment)
d) The shape of histogram is skewed right.
e) The mean is calculated as follow.
Mean
=n x p
= 15 x 0.10
= 1.5
f) The variance is calculated as follow.
Variance
= n x p x q
= 15 x 0.10 x 0.90
= 1.35
g) The standard deviation is calculated as follow.
Standard deviation
=√n x p x q
=√15 x 0.10 x 0.90
= 1.162
