SOLUTION: On average, the probability that a computer breaks down in its second year of use is 0.05, and the average repair cost is $300 per computer per year. If a salesperson sells a secon

SOLUTION: On average, the probability that a computer breaks down in its second year of use is 0.05, and the average repair cost is $300 per computer per year. If a salesperson sells a secon

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Question 380334: On average, the probability that a computer breaks down in its second year of use is 0.05, and the average repair cost is $300 per computer per year. If a salesperson sells a second year extended warranty policy for $50, how much money is the policy issuer making per computer?
Answer by edjones(8007) (Show Source): You can put this solution on YOUR website!
300*.05=$15.
50-15=$35.00 Amount the policy issuer making per computer.
.
Ed
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