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The Brady & Matthew Camera Company has just come out with their newest professional quality digital camera, the ToughPixl. The company is selling this camera
The Brady & Matthew Camera Company has just come out with their newest professional quality digital camera, the ToughPixl. The company is selling this camera only through its new mobile app at a profit of $382 per camera. This purchase comes with a guarantee thatr barring gross negligence, if the camer breaks in the first two years after purchase, Bradyr & Matthew will replace it free of charge. Replacing a camera in this way costs the company $2300. Supp for each ToughPixl there is a 5% chance that it will need to be replaced exactly once, a 2% chance that it will need to be replaced exactly twice, and a 93' chance that it will not need to be replaced. If Brady & Mathew Knows that it will sell many of these cameras, should it expect to make or lose money from selling them? How much? To answer, take into account the profit earned on each camera and the expected value of the cost of replacements of the camera. -:j'j:- Bradyr 8: Mathew can expect to make money from selling these cameras. In the long un, they should expect to make dollars on each camera sold. -:j'j:- Brady 8L Mat:hew can expect to lose money from selling these cameras. In the long run, they should expect to lose dollars on each camera sold. [2:- Brady 8: Mathew should expect to neither make nor lose money from selling these cameras
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