An electronics retailer is developing a model for insurance policies on new cell phone purchases. It estimates that 51% of customers never make a claim, 30% of customers require a small repair costing an average of $45, and 19% of customers request a full refund costing $180. What is the long-term average cost the retailer should expect to pay to its customers per claim?

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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A Probability Distributions Mix
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/formatives/5f7753a3e8a98c6b7a4eldf5
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An electronics retailer is developing a model for insurance policies on new cell phone
purchases. It estimates that 51% of customers never make a claim, 30% of customers
require a small repair costing an average of $45, and 19% of customers request a full
refund costing $180. What is the long-term average cost the retailer should expect to pay
to its customers per claim?
$47.70
$112.50
$4500
$75.00
Transcribed Image Text:A Probability Distributions Mix O Formative A Outline drawing of your picture E X /formatives/5f7753a3e8a98c6b7a4eldf5 ades and Attend... spanish A art A english A math - Google Podcasts 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 0.2415 An electronics retailer is developing a model for insurance policies on new cell phone purchases. It estimates that 51% of customers never make a claim, 30% of customers require a small repair costing an average of $45, and 19% of customers request a full refund costing $180. What is the long-term average cost the retailer should expect to pay to its customers per claim? $47.70 $112.50 $4500 $75.00
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