The lifetime of a camera costing $200 is exponentially distributed with mean 4 years. The manufacturer agrees to pay a full refund to a buyer if the camera fails during the first year following its purchase, and a one-half refund if it fails during the second year. If the manufacturer sells 100 cameras, how much should it expect to pay in refunds? The manufacturer should expect to pay $6817.51 in refunds. (Round to the nearest cent as needed.)

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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The lifetime of a camera costing $200 is exponentially distributed with mean 4 years. The manufacturer agrees to pay a full refund to a buyer if the camera fails during the first year following its purchase, and
a one-half refund if it fails during the second year. If the manufacturer sells 100 cameras, how much should it expect to pay in refunds?
The manufacturer should expect to pay $6817.51 in refunds.
(Round to the nearest cent as needed.)
Transcribed Image Text:The lifetime of a camera costing $200 is exponentially distributed with mean 4 years. The manufacturer agrees to pay a full refund to a buyer if the camera fails during the first year following its purchase, and a one-half refund if it fails during the second year. If the manufacturer sells 100 cameras, how much should it expect to pay in refunds? The manufacturer should expect to pay $6817.51 in refunds. (Round to the nearest cent as needed.)
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