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.

If they offer a 2 year extended warranty for $11, what is the company's expected value of each warranty sold?

Answers

Answer 1

Answer:

The company is expected to make [tex]\$ 1[/tex] on every extended warranty sold.

Step-by-step explanation:

Let [tex]X[/tex] denote whether a product with the extended warranty requires replacement in that two years. ([tex]X\![/tex] would be a random variable.) Assume that [tex]X = 1[/tex] means that the product requires replacement, and [tex]X = 0[/tex] otherwise.

Assume that this product requires replacement in that two years. That is: [tex]X = 1[/tex]. The company would then bear a cost of [tex]200 \times 1 =200[/tex] for replacing this product (since [tex]X = 1\![/tex], that cost would be the same as [tex]200 = 200 \times 1 = 200\, X[/tex].)

On the other hand, assume [tex]X = 0[/tex] (that is: this product does not require replacement in that two years.) The company would not need to pay for replacing this product. Since [tex]X = 0\![/tex], the expression [tex]200\, X[/tex] would still represent the cost for the company for this warranty.  

Either way, [tex]200\, X[/tex] would denote the replacement cost that the company would bear for this product. However, given that the company would charge [tex]\$ 11[/tex] for the extended warranty, the net revenue of the company on this warranty would be [tex]((-200) \, X + 11)[/tex]. (An earning of [tex]\$11 \![/tex] minus a spending of [tex]200\, X \![/tex].)

The question states that [tex]0.5\%[/tex] of the products would need replacement in this period. In other words, the expected value of [tex]X[/tex] would be [tex]\mathbb{E}(X) = 0.005[/tex].

The expected revenue of the company on this warranty would be:

[tex]\mathbb{E}(200\, X + 11)[/tex].

Apply the linearity of expected values to find the value of [tex]\mathbb{E}(200\, X + 11)[/tex]:

[tex]\begin{aligned}& \mathbb{E}((-200)\, X + 11) \\ &= (-200)\, \mathbb{E}(X) + 11 \\ &= (-200) \times 0.005 + 11 = 1\end{aligned}[/tex].

Hence, the company is expected to make [tex]\$ 1[/tex] on every extended warranty that it sold.


Related Questions

Factor the following expression so it is in simplest form.

6a – 4(2a + 3)

A.
–2(a – 6)


B.
–2(a + 6)


C.
2(7a – 6)


D.
2(7a + 6)

Answers

Factorization of the given algebraic expression in its' simplest form is; B.–2(a + 6)

How to factorize an Algebraic Expression?

To factorize an algebraic expression, it means that the highest common factors of the terms of the specific algebraic expression are determined and then we group the terms accordingly.

We are given the algebraic expression as;

6a – 4(2a + 3)

Multiplying the bracket out gives us;

6a - 4(2a) - 4(3)

= 6a - 8a - 12

= -2a - 12

Now, the highest common factor of the expression is 2 and so we have;

-2(a + 6)

Read more about Factorization at; https://brainly.com/question/25829061

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hurry I need it quickly

1. Write the ratio below as a decimal (per one). Round your answer to the nearest hundredths place.


2 weeks to 46 days

2,Professor Ivy records the following scores on her final: 35, 48, 48, 52, 69, 72, 81, 88, 92. What is the median score for the final?

3. Professor Ivy’s students have the following scores on her Exam. Find the mean value, round to the tenths place.


76 88 67 88 91 69 45 92 52 38 98

Answers

hold on what grade is this so I can do it?

Raina picks 20 flowers
1/4 are roses 2/5
are daisies
How many flowes are lilies?

Answers

Answer:

7 of the flowers were lilies.

Step-by-step explanation:

8 daises and 5 roses were picked. 8 + 5 = 13    20 - 13 = 7

7 of the flowers were lilies

What type of construction is illustrated in the diagram below

Answers

Answer:

This is an angle bisector.

Step-by-step explanation:

This is due to the arcs being drawn from point C in a manner to intersect the line segment AB, and the points are then used to find another point by creating arcs, thus creating the angle bisector for the angle ∠ACB.

solve 3e = -27 show work
this one i dont understand how to do​

Answers

Answer:

-9

Step-by-step explanation:

This would be -27/3 = -9

Which statement about the graph of y
3x + 5 is correct?

A. The line passes through the ordered pair (3,0) and has a slope of 5.

B. The line passes through the ordered pair (0,5) and has a slope of 3.

С. The line passes through the ordered pair (5,20) and has a slope of 5/3

D. The line passes through the ordered pair (3, 14) and has a slope of 3/5

Answers

It is B as 5 is the y intercept in the equation. Checked with a graphing calculator. B is the answer

The correct statement for the equation of the line is the line passes through the ordered pair (0,5) and has a slope of 3.

What is an equation of the line?

An equation of the line is defined as a linear equation having a degree of one. The equation of the line contains two variables x and y. And the third parameter is the slope of the line which represents the elevation of the line.

The general form of the equation of the line:-

y = mx + c

m = slope

c = y-intercept

Slope = ( y₂ - y₁ ) / ( x₂ - x₁ )

Compare the given equation of the line y = 3x + 5 with the general equation.

y = mx + c

y = 3x + 5

The slope, m = 3

y-intercept = 5

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Find the perimeter P of
JKLM
with vertices J(-3,-2),K(-5,-5),L(1.-5),M(3.-2) Round your answer to the nearest tenth

Answers

Yes just round it to two decimal then multiply to three then you’ll get ur answer. Simple.

First to answer correctly gets brainliest

Answers

answer: 40x + 13900 < 28000

Troy and Lisa were shopping for school supplies. Troy bought 3 notebooks and 5 thumb drives for $20.25. Lisa bought 8 notebooks and 8 thumb drives for $38. Find the cost of each notebook and the cost of each thumb drive.

Answers

Answer:

Step-by-step explanation:

3n + 5d = 20.25

24n + 40d = 162

8n + 8d = 38

-24n - 24d = -114

24n + 40d = 162

-24n - 24d = -114

—————————

16d = 48

d = 3

A drive costs $3

3n + 5(3) = 20.25

n = 1.76

A notebook costs $1.75

Find the value of x. Explain your work please.
Concurrency of Angle Bisectors

Answers

Answer:

[tex]x+5=2x-1[/tex]

combine terms

subtract x from both sides and add 1 to both sides

[tex]6=x[/tex]

Answer is A

Carsen loves to run. She runs 4 miles each day. If she wants to run a total of 56 miles how many days should she run? Write an equation to show this problem along with the answer.
SHOW YOUR WORK.

Answers

Answer:

14 days

Step-by-step explanation:

you just do 56/4=x, x=14

Two plus two equals what

Answers

Answer: 4 or fish

Step-by-step explanation:

Answer:

2 plus 2 is equal to 4

Step-by-step explanation:

2+2:4

Imari went on a hike and recorded the number of each type of bird he saw. The circle graph shows the results of his count.

Imari saw 42 sparrows.

How many birds did he count in all?



Enter your answer in the box.

Answers

Step-by-step explanation:

step 1. 42 represents 35% of the birds.

step 2. 42/.35 = all of the birds counted.

step 3. 42/.35 = 120.

step 4. There are 120 total.

Answer:

120

Step-by-step explanation:

What is the great common factor between 68 and 54?​

Answers

Answer:

2

Step-by-step explanation:

#5 Mr. Awesome & Mrs. Amazing had their students count how many pencils they each had in their pencil boxes. The box plots display the data for both classes. NUMBER OF PENCILS Mc. Awesome's Class Mrs Amazing's Class 앵 0 1 2 3 10 12 13 14 4 15 16 17 18 19 20 Which statement is best supported by the information in the box plots? A) The data for Mr. Awesome's class is more symmetrical than the data for Mrs. Amazing's class. B) The interquartile range of the data for Mr. Awesome's class is less than the interquartile range of the data for Mrs. Amazing's class. The median number of the data for Mr. Awesome's class is less than the median number of the data for Mrs. Awesome's class. D) The range of the data for Mc Awesome's class is less than the range of the data for Mrs. Amazing's class. Amazno Mihemetics​

Answers

Bbsshhshshshdhdhdgdbdbbshdhd

Mark is buying different nuts to make a mixed nut platter to serve at a party. He buys 1.2 kilograms of peanuts, 300 grams of almonds and 40 dekagrams of cashews. What is the total weight in grams of the nuts he purchased? Enter only the number. Do not include unit

Answers

Answer:

1900

Step-by-step explanation:

1 kg = 1000g

1.2kg = x

1 kgx = 1200 kg.g

1kg. 1kg

x = 1200 g

1 decagram = 10g

40 decagram = x

1 dg.x = 400 dg.g

1 dg. 1 dg

x = 400g

so the total= 1200g +300 + 400g=1900g

without the unit = 1900

WILL MARK BRAINLYIST
put median or altitude for the first part

Answers

1: altitude
2: median
3: for the last selections I can see I would put CJB.

Extremely sorry if this is incorrect.

Which expression represents the same relationships shown on the graph? y = x - 6 y = x + 6 y = 6x y= - 6x

Answers

The correct answer is A

Math sucks helppppp pls

Answers

Answer:

B

Step-by-step explanation:

Perimeter of the composite shape = ½ of the circumference of a circle + perimeter of a rectangle - Length of the rectangle

= ½*2πr + 2(L + W) - L

Where,

r = 8

π = 3.14

L = 16

W = 12

Perimeter of the composite shape = ½(2*3.14*8) + 2(16 + 12) - 16

= 25.12 + 56 - 16

Perimeter of the composite figure = 65.12 inches

Area of the composite figure = ½(πr²) + L*W

= ½(3.14*8²) + 16*12

= 100.48 + 192

Area = 292.48 square inches

using digits 3,6,1 and 5 write the greatest decimal number less than 1 that can be formed without repeating any digit. write it in words​

Answers

0.6531
Six tenths, five hundredths, three thousandths, one ten thousandth.

A submarine is 84 feet below the surface of the water and descends 10 feet
deeper every minute. How many minutes will it take for the submarine to be
located 219 feet below the surface? Write and solve an equation,

Answers

Answer:

13.5

Step-by-step explanation:

219-84=135

10*13.5=135

so it would take 13.5 minutes to get to 219 since 84+135=219

Kevin is designing a cover for a comic book. He wants to have a rectangular grid with x ^ 2 - 3x - 10 squares in it, for some positive whole number x. What are the possible side lengths for the grid?

A. There are no possible whole number side lengths.
B. (x + 2) and (x - 5)
C. (x - 2) and (x + 5)
D. (x + 2) and (x + 5)

Answers

Answer:

(X+2) and (x-5)

Step-by-step explanation:

Two less than three times a number

Answers

Answer:

3x-2

Step-by-step explanation:

3 times a number is 3x, if we use x as the number

Two less than (3x) is 3x - 2

1) Rewrite the expression as the difference of two squares.
(X+y)(x-y)-6x+9

A) (x + 3)2 + y2
B) (x + 3)2 - y2
c)(x – 3)2 + y2
D) (x – 3)2 - y2

Answers

Answer:

c

Step-by-step explanation:

Is the answer

a store charges 32% extra for credit items. if the cash price is $1100, what is the credit price?​

Answers

Answer:

$1452

Step-by-step explanation:

[tex]CP=1100*1.32=$1452[/tex]

A hexagon can be divided into 4 non-overlapping triangles. Which is the sum of the interior angles of a hexagon?

Answers

Answer:

12

Step-by-step explanation:

4 time 3 =12

what is the difference between a quadratic function and a quadratic equation​

Answers

Answer:

The roots of a quadratic equation simply tell what values of x will make the equation true. A quadratic function is a function where the largest power for the variable is 2. ... A quadratic equation is given to you so that you can solve it for the variable. A quadratic function is given to you so that you can graph it.

• Quadratic function:
- general form: f(x) = ax² + bx + c
- vertex form: f(x) = a(x - h)² + k
- Quadratic function is given so that you can graph it.

• Quadratic equation:
- General form: ax² + bx + c = 0
- Vertex form: a(x - h)² + k
- It is given so that you can solve it for finding the variable x.


Hope it helps!

What is the area of a rectangle with a length of yard and width of yard?

Answers

Answer: The formula for the area of a rectangle is: A = L * W where L is the length and W is the width. where S is the length of one side.

Step-by-step explanation:

Hope This helps, Brainlees, please



F= 200 lbs, d = 10 ft, How much work is performed?

Answers

Answer:

Step-by-step explanation:

Work = (force) x (distance)

= (200 lb) x (10 ft)  =  2,000 ft-lbs .


1. What is the range of frequencies a human ear can hear?

Answers

Answer:

Humans can detect sounds in a frequency range from about 20 Hz to 20 kHz.

(Human infants can actually hear frequencies slightly higher than 20 kHz, but lose some high-frequency sensitivity as they mature; the upper limit in average adults is often closer to 15–17 kHz.)

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