Suppose that you own a store that sells a particular stove. You purchase the stoves from the distributor for $550 each. You believe that this stove has a lifetime which can be faithfully modelled as an exponential random variable with mean 15 years. You would like to o ffer the following extended warranty on this stove: if the stove breaks within r years, you will replace the stove completely (at a cost of $550 to you). If the stove lasts longer than r years, the extended warranty pays nothing. Let $C be the cost you will charge the consumer for this extended warranty. For what pairs of numbers (C, r) will the expected profit you get from this warranty be zero. What do you think are reasonable choices for C and r? Why?