If the Expected Value is negative, be sure to rounded to two decimal places. ll

Question

If the Expected Value is negative, be sure to rounded to two decimal places. ll include the -m sign with the answer. Express the Expected Value-s14 -(4.0 #15 Points possible: 1, Total attempts: 1 2 warranty period but within company estimates that 6% of their products will fail years of the purchase, with a replacement cost of $350. after the original (in If they want to offer a 2 year extended warranty, what price should they charge so that they'll break even other words, so the expected profit will be 0)

Explanation / Answer

Expected expense = probability of failure x expense to repair = 0.06x350= $21

So, they should charge $21 for extended warranty to break even

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