A company estimates that 0.7% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $400. If they offer a 2-year extended warranty for $43, what is the company's expected value of each warranty sold? Round your answer to the nearest cent. $ %24

A company estimates that 0.7% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $400. If they offer a 2-year extended warranty for $43, what is the company's expected value of each warranty sold? Round your answer to the nearest cent. $ %24

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter10: Sequences, Series, And Probability

Section: Chapter Questions

Problem 35T

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