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A company estimates that 0.5% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement

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A company estimates that 0.5% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $150. If they offer a 2 year extended warranty for $22, what is the company's expected value of each warranty sold? Preview Get help: Video Points possible: 1 This is attempt 1 of 3. Submit

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