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Following an exponentlal distribution, the average lifespan of a smartphone battery is 2 . 3 years. The battery manufacturer wants to offer a warranty for
Following an exponentlal distribution, the average lifespan of a smartphone battery is years. The battery manufacturer wants to
offer a warranty for its customers to recelve a free replacement if the battery falls during the first year. Each battery generates a profit
of $ and the replacement cost is $ Use Excel's Analysis ToolPak, with a seed of to develop a Monte Carlo simulation for
the lifespan of batterles.
a What is the expected total cost of this warranty program?
Note: Round Intermedlate calculations to at least decimal places and your final answer to decimal places.
The expected total cost of the warranty program for every batteries sold
b In order to cover the cost of the warranty program, how many additional battery units does the company need to sell?
Note: Round Intermedlate calculations to at least decimal places and your final answer to decimal places.
Additional batteries the company needs to sell for every batteries currently sold
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