21 An electronics retailer is developing a model for insurance policies on new cell phone purchases. It estimates that 50% of customers never make a claim, 34% of customers ロ require a small repair costing an average of $60, and 16% of customers request a full refund costing $290. What is the long-term average cost the retailer should expect to pay to its customers per claim?

Big Ideas Math A Bridge To Success Algebra 1: Student Edition 2015
1st Edition
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:HOUGHTON MIFFLIN HARCOURT
Chapter11: Data Analysis And Displays
Section: Chapter Questions
Problem 1CA
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21
An electronics retailer is developing a model for insurance policies on new cell phone
purchases. It estimates that 50% of customers never make a claim, 34% of customers
3
A require a small repair costing an average of $60, and 16% of customers request a full
refund costing $290.
What is the long-term average cost the retailer should expect to pay to its customers per
claim?
$175.00
$66.80
$60.00
$116.67
FIN
Sign out
INTL +
Ce
#3
&
4
6.
7
8.
9.
Transcribed Image Text:21 An electronics retailer is developing a model for insurance policies on new cell phone purchases. It estimates that 50% of customers never make a claim, 34% of customers 3 A require a small repair costing an average of $60, and 16% of customers request a full refund costing $290. What is the long-term average cost the retailer should expect to pay to its customers per claim? $175.00 $66.80 $60.00 $116.67 FIN Sign out INTL + Ce #3 & 4 6. 7 8. 9.
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