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Calculate the expected gain or loss for a consumer

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Reference no: EM132502061

Question 1: What is the probability of any failure that require repair in the next 5 years?

Question 2: What is the expected repair cost? What is the Standard deviation of repair cost? Hint: Use Excel.

Question 3: If the cost of purchasing a 5-year warranty is $99, calculate the expected gain or loss for a consumer that purchase this warranty. Would you recommend purchasing a warranty? Why?

Question 4: Would you a buy 5-year warranty if it costs $59.95?

Attachment:- expected cost.zip

Reference no: EM132502061

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