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Mathematics, 07.04.2020 23:04 nadikadiaz1

A company manufactures chairs at a cost of $70 each. The following are probabilities of defective chairs in a given production run: probability of 1% defective chairs: 40%; probability of 2% defective chairs: 35%; probability of 3% defective chairs: 25%. When a defective chair is detected, it must be removed from the assembly line and replaced. This process adds an extra $10 to the cost of the replaced chair. What is the expected cost to the company of a batch of 500 chairs?

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A company manufactures chairs at a cost of $70 each. The following are probabilities of defective ch...
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