Question
A company estimates that 8% of their products will fail after the original warranty period but within 2 years of the purchase, with a
A company estimates that 8% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $450. If they want to offer a 2 year extended warranty, what price should they charge so that they'll break even (in other words, so the expected value will be 0)
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Financial Accounting and Reporting a Global Perspective
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
4th edition
978-1408066621, 1408066629, 1408076861, 978-1408076866
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