Your company sells and services dishwashers. The data show the number of warrant

Question

Your company sells and services dishwashers. The data show the number of warranty repair calls your company has made on a sample of dishwashers over the course of each dishwasher's warranty period.

Each dishwasher comes with a 1-year warranty. During the warranty period, your company will repair the dishwasher at no cost to the customer.

You receive a request to service a dishwasher that is under warranty. This is the first time this dishwasher has been serviced. This service will cost your company $300.

    Following this first service, how much more do you expect it to cost your company to continue servicing the dishwasher over the remainder of the warranty period?

Your company sells and services dishwashers. The data show the number of warranty repair calls your company has made on a sample of dishwashers over the course of each dishwasher's warranty period.

Each dishwasher comes with a 1-year warranty. During the warranty period, your company will repair the dishwasher at no cost to the customer.

You receive a request to service a dishwasher that is under warranty. This is the first time this dishwasher has been serviced. This service will cost your company $300.

    Following this first service, how much more do you expect it to cost your company to continue servicing the dishwasher over the remainder of the warranty period?

Number time needed a repair 0 3128 1 141 2 38 3 189 4 12 5 1 6 2 7 27 Total number of customer 3538 total number of repairs 1038

Explanation / Answer

Expected repairs = [( 0 × 3128) + ( 1 × 141) + (2 × 38) + ( 3× 189) + ( 4× 12) + (5× 1) + (6 × 2) + ( 7× 27)]/3538

= 1038/3538

= 0.29338609

Therefore, expected cost = 0.29338609 ×300 =88.015828

The expected cost for the company is $88.02

for the first time ,the expected cost the firm costs to continue servicing the dishwasher over the remainder of the warranty period is 300 .

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.