manufactures electronics. The development analysts estimate that 2% of their flagship product will fail within 2 years of the purchase date, with a replacement cost of $ 1200. A newly hired associate at the company proposes to charge $ 15 for a 2 year warranty. a. Compute the expected value of this proposal. Let X be the amount profited or lost (by the company) on the warranties and P(X) is the probability. E=E=

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