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Question 20 The lifetime of a printer costing R2000 is exponentially distributed with mean 2 years. The manufacturer agrees to pay a full refund to

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Question 20 The lifetime of a printer costing R2000 is exponentially distributed with mean 2 years. The manufacturer agrees to pay a full refund to a buyer if the printer fails during the first year following its purchase, a one-half refund if it fails during the second year, and no refund for failure after the second year. Calculate the expected total amount of refunds from the sale of 100 printers. Hint: The expected cost for a sale of one printer is: 2000P(X 2) where X is the lifetime of the printer

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