Gabrielle has purchased the 2-year extended warranty from a retailer to cover the value of hers new cellphone in case if it gets damaged or becomes inoperable for the price of $25. Gabrielle's cellphone is worth $1400 and the probability that it gets damaged or becomes inoperable during the length of the extended warranty is estimated to be 4%. Let XX be the retailer's profit from selling the extended warranty. Answer the following questions: 1. Create the probability distribution table for XX : XX outcome profit xx ,$ P(X=x)P(X=x) the cellphone gets damaged or becomes inoperable no claim filed 2. Use the probability distribution table to find the following: E[X]=μX=E[X]=μX= dollars. (Round the answer to 1 decimal place.) SD[X]=σX=SD[X]=σX= dollars. (Round the answer to 1 decimal place.)

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Gabrielle has purchased the 2-year extended warranty from a retailer to cover the value of hers new cellphone in case if it gets damaged or becomes inoperable for the price of $25. Gabrielle's cellphone is worth $1400 and the probability that it gets damaged or becomes inoperable during the length of the extended warranty is estimated to be 4%. Let XX  be the retailer's profit from selling the extended warranty. Answer the following questions:

1. Create the probability distribution table for XX :

 XX  outcome profit xx ,$  P(X=x)P(X=x) 
  the cellphone gets damaged or becomes inoperable    
 

no claim filed

   

2. Use the probability distribution table to find the following:

    1.  E[X]=μX=E[X]=μX= dollars. (Round the answer to 1 decimal place.)
    2.  SD[X]=σX=SD[X]=σX= dollars. (Round the answer to 1 decimal place.)
Expert Solution
Step 1

Given:

2-year extended warranty price=$25

cellphone price =$1400

probability that it gets damaged or becomes inoperable during the length of the extended warranty = 4%

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