Math  /  Word Problems

QuestionA company estimates 0.5%0.5\% product failure post-warranty, costing \150.Ifa2yearwarrantyis$19,findprofit150. If a 2-year warranty is \$19, find profit x$ values and expected value.

Studdy Solution
Calculate the expected value.
(x)=$0.655+$18.905=$18.25(x) = -\$0.655 + \$18.905 = \$18.25The company's expected value of each warranty sold is $18.25.

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