An electronics retailer is developing a model for insurance policies on new cell phone purchases. It estimates that 52% of customers never make a claim, 30% of customers require a small repair costing an average of $70, and 18% of customers request a full refund costing $260. What is the long-term average cost the retailer should expect to pay to its customers per claim?
An electronics retailer is developing a model for insurance policies on new cell phone purchases. It estimates that 52% of customers never make a claim, 30% of customers require a small repair costing an average of $70, and 18% of customers request a full refund costing $260. What is the long-term average cost the retailer should expect to pay to its customers per claim?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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An electronics retailer is developing a model for insurance policies on new cell phone purchases. It estimates that
52% of customers never make a claim, 30% of customers require a small repair costing an average of $70, and
18% of customers request a full refund costing $260. What is the long-term average cost the retailer should expect
to pay to its customers per claim?
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