A television manufacturer estimates that about one percent (196) of one of their products will fail after the regular warranty but within two years from the date of purchase. If it happens, the manufacturer will pay a replacement cost of P20,000. if the manufacturer offers its customers an extended warranty covering a period of two years for the price of P550, what is the manufacturer's expected value for each extended warranty that it can sell? Do not write the peso sign. Blank 1

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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A television manufacturer estimates that about one percent (196) of one of their products will fail after the regular
warranty but within two years from the date of purchase. If it happens, the manufacturer will pay a replacement cost of
P20,000. If the manufacturer offers its customers an extended warranty covering a period of two years for the price of
P550, what is the manufacturer's expected value for each extended warranty that it can sell? Do not write the peso sign.
Blank 1
Transcribed Image Text:A television manufacturer estimates that about one percent (196) of one of their products will fail after the regular warranty but within two years from the date of purchase. If it happens, the manufacturer will pay a replacement cost of P20,000. If the manufacturer offers its customers an extended warranty covering a period of two years for the price of P550, what is the manufacturer's expected value for each extended warranty that it can sell? Do not write the peso sign. Blank 1
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