Acompany estimates that 0.1% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $500.

if they offer a 2 year extended warranty for $36, what is the company's expected value of each warranty sold?

$35.5

Step-by-step explanation:

The outcomes are:

$36 [warranty cost]

and

-(500 - 36) = -$464 [replacement cost - warranty cost]

The probabilities are:

1 - 0.001 = 0.999 [ for the first ]

and

0.001 [for the second possibility]

Thus, the company's expected value for each warranty sold is:

36(0.999) + (-464)(0.001) = $35.5

what golf ball

step-by-step explanation:

.632

step-by-step explanation:

6 * 1/10 = 3/5

3*0.01 = 0.03

3/5 + 0.03 = .63

2*0.002 = .002

.63 + 0.002 = .632