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Business, 08.03.2021 20:10 Theresab2021

Lelia is looking to buy a pair of Apple AirPods, which usually cost $140, at a discounted price. There is a listing at $65 dollars that she is interested in purchasing. There is a 40% chance the AirPods are in perfect condition, which would save her $75. However, there is a 30% chance that the AirPods are defective, which would add a repair cost of $90, for a net loss of $15. There is also a 30% chance the AirPods are never delivered, for a net loss of $65. 1. What is the expected value of gain or loss from this purchase?
2. Is it a good idea for Lelia to go through with the purchase?

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Lelia is looking to buy a pair of Apple AirPods, which usually cost $140, at a discounted price. The...

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