document.write( "Question 1195672: A company estimates that 0.5% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $200.\r
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document.write( "If they offer a 2 year extended warranty for $27, what is the company's expected value of each warranty sold?\r
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Algebra.Com's Answer #828158 by ikleyn(52794)![]() ![]() You can put this solution on YOUR website! . \n" ); document.write( " \r\n" ); document.write( "\r\n" ); document.write( "Expected value is\r\n" ); document.write( "\r\n" ); document.write( "\r\n" ); document.write( " 27 - 0.005*200 = 26 dollars for each sold warranty. ANSWER\r\n" ); document.write( "\r \n" ); document.write( "\n" ); document.write( "Solved.\r \n" ); document.write( " \n" ); document.write( " \n" ); document.write( "\n" ); document.write( " \n" ); document.write( " |