document.write( "Question 1195581: A company estimates that 0.2% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $250.\r
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Algebra.Com's Answer #828106 by ikleyn(52781) $\"\"$ $\"About$

You can put this solution on YOUR website!
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document.write( "the company's expected value of each warranty sold = 38 - 0.002*250 = 38 - 0.5 = 37.5 dollars.    ANSWER\r\n" );
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