A company produces products at a cost of $32 each. Defective products cost an additional $15 each to repair. The probability of no defective products is 80%. The probability of 5% defective products is 20%. What is the expected cost of producing 500 products?

Using the expected value concept, it is found that the expected cost of producing 500 products is $35.

The expected value is given by the sum of each outcome multiplied by it's probability.

In this problem:

The expected cost is:

The expected cost of producing 500 products is $35.

A similar problem is given at link

The expected cost of producing 500 products is $14300

Explanation:

Given:

Cost of products = $32

Cost of repair = $15

Probability of no defective pens = 80%

Probability of defective pens = 20%

Cost of 500 products = ?

Number of defective products =

n = 100

Number of good products =

n(good) = 400

Cost of production of good products = 400 X $32

                                                              = $12800

Cost of defective pens = 100 X $15

                                      = $1500

Expected cost of producing 500 products = $12800 + $1500

                                                                       = $14300

Therefore, the expected cost of producing 500 products is $14300

step-by-step explanation:

let

we know that

the y-intercept is the y-coordinate of the point when the value of x is equal to zero

so

the y-coordinate of the point a is the y-intercept

the answer part a) is

the value of y-intercept is

part b) find the slope m

we know that

the value of the slope is equal to

substitute the values

therefore

the answer part b) is

the value of the slope is equal to

the general answer is

the slope is

the value of y-intercept is