Mathematics, 18.09.2019 05:00 bartonamber4042

Acompany estimates that 0.1% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $500.
if they offer a 2 year extended warranty for $36, what is the company's expected value of each warranty sold?

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Acompany estimates that 0.1% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $500. if they offer a 2 year extended warranty for $36, what is the company's expected value of each warranty sold?

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Another question on Mathematics

Acompany estimates that 0.1% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $500.
if they offer a 2 year extended warranty for $36, what is the company's expected value of each warranty sold?