Mathematics, 02.11.2020 08:30 eaarnold

A company estimates that 0.3% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $400.
If they offer a 2 year extended warranty for $49, what is the company's expected value of each warranty
sold?

Answers: 1

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More questions: Mathematics Another questions

A company estimates that 0.3% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $400. If they offer a 2 year extended warranty for $49, what is the company's expected value of each warranty sold?

Answers

Another question on Mathematics

A company estimates that 0.3% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $400.
If they offer a 2 year extended warranty for $49, what is the company's expected value of each warranty
sold?