A company estimates that 0.7% of their products will fail after the original warranty period but...

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A company estimates that 0.7% of their products will fail after the original warranty period but...

A company estimates that 0.7% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $350. If they offer a 2 year extended warranty for $48, what is the company's expected value of each warranty sold?

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Answer 1

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The companys expected valued each warantly sold in Hope this helps you! Thank you. respectively The outcomes are $48 and - ( If you don't understand please comment

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Answer 2

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