2. A company makes electronic doohickeys. Seventeen out of every 80 doohickeys are faulty,but the company doesn't know which ones are faulty until a buyer complains. Suppose adoohickey costs $33 to make and they sell it for $55. This means the company makes a $22profit on the sale of any working doohickey, but suffers a loss of $75 for every doohickeythat is faulty because they have an amazing guarantee and will repair the unit.How much is the expected value of each doohickey? Can the company expect a profit inthe long term? How much profit will they make if they sell 100 doohickeys? How muchoverall profit will they make if they sell 2000?

Out of 80 doohickeys, 17 are faulty doohickeys. The making cost of doohickeys is $33 and the selling…

Answered: A company makes electronic doohickeys.…

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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