2.3-9. A warranty is written on a product worth $10,000 so that the buyer is given $8000 if it fails in the first year, $6000 if it fails in the second, $4000 if it fails in the third, $2000 if it fails in the fourth, and zero after that. The prob- ability of the product's failing in a year is 0.1; failures are independent of those of other years. What is the expected value of the warranty?

2.3-9. A warranty is written on a product worth $10,000 so that the buyer is given $8000 if it fails in the first year, $6000 if it fails in the second, $4000 if it fails in the third, $2000 if it fails in the fourth, and zero after that. The prob- ability of the product's failing in a year is 0.1; failures are independent of those of other years. What is the expected value of the warranty?

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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