A company makes bobble head dolls. One out of every 5 is faulty, but the company doesn't know which ones are faulty until a buyer complains. Suppose the company makes a $3.50 profit on the sale of any working doll, but suffers a loss of $14 for every faulty case because they have to repair the doll. What is the company’s expected value in the long term?

A company makes bobble head dolls. One out of every 5 is faulty, but the company doesn't know which ones are faulty until a buyer complains. Suppose the company makes a $3.50 profit on the sale of any working doll, but suffers a loss of $14 for every faulty case because they have to repair the doll. What is the company’s expected value in the long term?

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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