An electronics store sells warranties on a $200 item for

cyrsvab

cyrsvab

Answered question

2022-02-11

An electronics store sells warranties on a $200 item for $15. The probability that a customer exercises the warranty is 3%. If it costs $3 to administer each warranty, what is the expected profit per warranty sold?

Answer & Explanation

ithangesf4

ithangesf4

Beginner2022-02-12Added 16 answers

Profit = Revenue - Claims - Expenses
Revenue=$15.00
Expected Claims =2000.03=$6.00
Expenses =$3.00
Profit =$15.00$6.00$3.00=$6.00

Do you have a similar question?

Recalculate according to your conditions!

New Questions in High school probability

Ask your question.
Get an expert answer.

Let our experts help you. Answer in as fast as 15 minutes.

Didn't find what you were looking for?