Question

Select the correct answer.
This table lists the probabilities of the number of repairs required by a photocopy machine during one year.

Number of Repairs Probability
0 0.12
1 0.24
2 0.33
3 0.17
4 0.14

Based on the data provided, what is the expected cost of repairs over two years if each repair costs $60?

A.
$118.20

B.
$120.00

C.
$236.40

D.
$250.80

Answer 1

Compute the expected repairs per year: E = 0(0.12)+1(0.24)+2(0.33)+3(0.17)+4(0.14) = 1.97.
Over two years: 2 × 1.97 = 3.94 repairs.
Cost = 3.94 × $60 = $236.40.

Answer: C.