Mathematics, 09.11.2020 20:50 Gideon3291
An electronics retailer offers an optional protection plan for a mobile phone it sells. Customers can choose to buy the protection plan for \$100$100dollar sign, 100, and in case of an accident, the customer pays a \$50$50dollar sign, 50 deductible and the retailer will cover the rest of the cost of that repair. The typical cost to the retailer is \$200$200dollar sign, 200 per repair, and the plan covers a maximum of 333 repairs.
Let X be the number of repairs a randomly chosen customer uses under the protection plan, and let F be the retailer's profit from one of these protection plans. Based on data from all of its customers, here are the probability distributions of X and F:
X=\# \text{ of repairs}X=# of repairsX, equals, \#, start text, space, o, f, space, r, e, p, a, i, r, s, end text 000 111 222 333
F=\text{ retailer profit}F= retailer profitF, equals, start text, space, r, e, t, a, i, l, e, r, space, p, r, o, f, i, t, end text \$100$100dollar sign, 100 -\$50−$50minus, dollar sign, 50 -\$200−$200minus, dollar sign, 200 -\$350−$350minus, dollar sign, 350
Probability 0.900.900, point, 90 0.070.070, point, 07 0.020.020, point, 02 0.010.010, point, 01
Find the expected value of the retailer's profit per protection plan sold.
Answers: 1
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