Dishwashers with option of converting rental

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Question

XYZ rents dishwashers with the option of converting rental into a purchase. They sign 2,000 new leases every month, each for a 2-month period. On average 10% of customers convert their rental to purchase at the end of the first month, and 5% of customers purchase the dishwasher at the end of the second month. The rest of customers return their dishwashers at the end of the 2-month contract.

In order to provide a good service, XYZ holds an inventory of 1500 dishwashers at its warehouse. Calculate the average number of dishwashers XYZ own.

Reference no: EM133506560

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