To calculate the probability that the clothes dryer will need repairs during the extended warranty period, we first need to determine the probability of not needing repairs over the 5-year period.
The odds against needing repairs are given as 3:17. This means that out of every 20 dryers sold, 3 will need repairs and 17 will not.
Therefore, the probability of not needing repairs is 17/20 = 0.85.
Now, to find the probability of needing repairs, we subtract the probability of not needing repairs from 1:
P(repair) = 1 - P(no repair)
P(repair) = 1 - 0.85
P(repair) = 0.15
So, the probability that the clothes dryer will need repairs during the extended warranty period is 0.15 or 15%.
Denon is buying a clothes dryer that costs $825.
The clothes dryer has a 1 yr warranty from the manufacturer.
The store sells a 5 yr extended warranty for $110. (This is gain amount.)
The odds against needing repairs over the 5 yr are 3:17
a) What is the probability that the clothes dryer will need repairs during the extended- warranty period? (This is probability of loss.) Express using the method of your choice
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1 answer