Question
A company estimates that 0.2% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement
A company estimates that 0.2% 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 $24, what is the company's expected value of each warranty sold?
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How To Prove It A Structured Approach
Authors: Daniel J Velleman
2nd Edition
0511159439, 9780511159435
