Mathematics, 25.03.2020 20:00 MGA20078
A fast food restaurant just leased a new freezer and food fryer for three years. The service contract for the freezer offers unlimited repairs for a fee of $125 a year plus a $35 service charge for each repair needed. The restaurant’s research indicates that during a given year 80% of these freezers need no repairs, 11% needed to be serviced once, 5% twice, 4% three times, and none required more than three repairs.
a. Find the expected number of repairs for this freezer per year.
b. Find the standard deviation of the number of repairs per year.
c. What are the mean and standard deviation of the restaurant’s annual expense with the service contract for the freezer?
Answers: 1
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A fast food restaurant just leased a new freezer and food fryer for three years. The service contrac...
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