SOLUTION: As a birthday gift, you are mailing a new personal digital assistant (PDA) to your cousin in Toledo. The PDA cost $250. There is a 2 percent chance it will be lost or dama

Algebra ->  Probability-and-statistics -> SOLUTION: As a birthday gift, you are mailing a new personal digital assistant (PDA) to your cousin in Toledo. The PDA cost $250. There is a 2 percent chance it will be lost or dama      Log On


   



Question 306977: As a birthday gift, you are mailing a new personal digital assistant (PDA) to your cousin in Toledo.
The PDA cost $250. There is a 2 percent chance it will be lost or damaged in the mail. Is it worth
$4 to insure the mailing? Explain, using the concept of expected value.

Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!




Insure it.

John