Mathematics, 17.12.2020 08:20 corbinfisher
The Brady & Matthew Camera Company has just come out with their newest professional quality digital camera, the ToughPix1. The company is selling this
camera only through its new mobile app at a profit of $221 per camera. This purchase comes with a guarantee that, barring gross negligence, if the camera
breaks in the first two years after purchase, Brady & Matthew will replace it free of charge. Replacing a camera in this way costs the company $4900. Suppose
for each Tough Pixi there is a 3% chance that it will need to be replaced exactly once, a 2% chance that it will need to be replaced exactly twice, and a 95%
chance that it will not need to be replaced.
Should it expect to make or lose money from selling them? How much?
Answers: 2
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The Brady & Matthew Camera Company has just come out with their newest professional quality digi...
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