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A cell phone company offers insurance on a broken contract for a new phone. The cost of this insurance to the customer is $60 per
A cell phone company offers insurance on a broken contract for a new phone. The cost of this insurance to the customer is $60 per contract. When the customer cancels his contract, the total cost to the company is $300 ($360 fee minus the $60 received from the customer). Suppose that, according to statistics, the probability that a customer cancels his contract is 0.10. Let Y be the total gain to the company when it insures 9 customers who have purchased a new phone. Determine the standard deviation of Y. a.324 b.328 c.332 d.336 e.340 f.344 g.348
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