Nhat is the company's expected value for each warranty sold?

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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A company offers a 2-year warranty on a product for $35. Replacing the product to the consumer who purchases the warranty
costs the company $200. The quality control division estimates that 0.25% of their products will fail within the fırst 2 years.
What is the company's expected value for each warranty sold?
Transcribed Image Text:A company offers a 2-year warranty on a product for $35. Replacing the product to the consumer who purchases the warranty costs the company $200. The quality control division estimates that 0.25% of their products will fail within the fırst 2 years. What is the company's expected value for each warranty sold?
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