Chapter 16 Assessment Use your Chapter 16 notes, anticipation guide, practice, and review to help answer questions about the situation below. For each question, show all necessary work. The review will be helpful in knowing what work to show. 1.) A small business just leased a new computer and color laser printer for five years. The service contract for the computer offers unlimited repairs for a fee of $100 a year plus a $25 service charge for each repair needed. The company's research suggested that during a given year 86% of these computers needed no repairs, 9% needed to be repaired once, 4% twice, 1% three times, and none required more than three repairs. a. Create a t-table representing the relationship between the number of repairs this computer needs in a year and the probability of that event occurring. Number of 3 repairs for the computer Probability Question Answer b. Find the expected number of repairs this kind of computer is expected to need each year. Show your work. c. Find the standard deviation of the number of repairs each year. d. What are the mean and standard deviation of the company's annual expense for the service contract? e. How many times should the company expect to have to get this computer repaired over the five-year term of the lease? f. What is the standard deviation of the number of repairs that may be required during the five year lease period? On what assumption does your calculation rest? Do you think this assumption is reasonable? Explain. The service contract for the printer estimates a mean annual cost of $120 with standard deviation of $30. What is the expected value and standard deviation of the total cost for the service contracts on computer and printer? h. Which service contract should the company expect to cost more each year? How much more? With what standard deviation