Asked by tatiana

A company estimates that 0.4% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $300.

If they offer a 2 year extended warranty for $46, what is the company's expected value of each warranty sold?

Answers

Answered by John1
.004(-300)+.996(46)
Answered by tatiana
iS IT 44.616
Answered by John1
Yes
Answered by jake
john failed, thanks for the way to figure it out, used it on my online quiz and was wrong.
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