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A company makes bobblehead dolls. One out of every five is faulty, but the company does not know which dolls are faulty until a buyer
A company makes bobblehead dolls. One out of every five is faulty, but the company does not know which dolls are faulty until a buyer complains. Suppose the company makes a $2.50 profit on the sale of any working doll, but suffers a$10loss for every faulty one because they have to repair the doll.
Which of the followingis the company's expected profit or loss per doll in the long term?
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