document.write( "Question 1204757: An appliance store sells additional warranties on its refrigerators. twenty percent of the buyers buy the limited warranty for $100 and 5% buy the extended warranty for $200. What is the expected revenue for the store from the warranty if it sells 120 refrigerators? \n" ); document.write( "

Algebra.Com's Answer #841224 by ikleyn(52858) $\"\"$ $\"About$

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\n" ); document.write( "An appliance store sells additional warranties on its refrigerators.
\n" ); document.write( "twenty percent of the buyers buy the limited warranty for $100
\n" ); document.write( "and 5% buy the extended warranty for $200.
\n" ); document.write( "What is the expected revenue for the store from the warranty if it sells 120 refrigerators?
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document.write( "20% of 120 buyers = 24 buyers; they buy the limited warranty of $100.\r\n" );
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document.write( " 5% of 120 buyers = 6 buyers; they buy the extended warranty of $200.\r\n" );
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document.write( "The problem does not tell it explicitly, but from the context, it is clear that the set of those \r\n" );
document.write( "who buys the limited warranty and the set of those who buys the extended warranty are disjoint,\r\n" );
document.write( "i.e. have empty intersection (nobody pays twice).\r\n" );
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document.write( "Therefore, the expected revenue is the sum  24*100 + 6*200 = 3600  dollars.    ANSWER\r\n" );
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