Chapters 4 Assignment A. A small business just leased a new computer and color laser printer for three years. The service contract for the computer offers unlimited repairs for a fee of $100 per year plus a $50 service charge for each repair needed. The company's research suggests that during a given year, 76% of these computers needed no repairs, 12% needed to be repaired once, 8% twice, 4% three times, and none required more than three repairs. 1. Find the expected number of repairs this kind of computer is expected to need each year. 2. Find the standard deviation of the number of repairs each year. 3. What are the mean and standard deviation of the company's annual expense for the service contract?
Chapters 4 Assignment A. A small business just leased a new computer and color laser printer for three years. The service contract for the computer offers unlimited repairs for a fee of $100 per year plus a $50 service charge for each repair needed. The company's research suggests that during a given year, 76% of these computers needed no repairs, 12% needed to be repaired once, 8% twice, 4% three times, and none required more than three repairs. 1. Find the expected number of repairs this kind of computer is expected to need each year. 2. Find the standard deviation of the number of repairs each year. 3. What are the mean and standard deviation of the company's annual expense for the service contract?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:**Chapters 4 Assignment**
A. A small business just leased a new computer and color laser printer for three years. The service contract for the computer offers unlimited repairs for a fee of $100 per year plus a $50 service charge for each repair needed. The company's research suggests that during a given year, 76% of these computers needed no repairs, 12% needed to be repaired once, 8% twice, 4% three times, and none required more than three repairs.
1. Find the expected number of repairs this kind of computer is expected to need each year.
2. Find the standard deviation of the number of repairs each year.
3. What are the mean and standard deviation of the company’s annual expense for the service contract?
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