Reference no: EM132857382

If the expected value of an extended warranty sold by an electronics store is $47, what does that mean?

1. The store makes $47 in revenue each time they sell this warranty

2. The store makes $47 each time a warranty is purchased and not used by the customer

3. If the store sells this same warranty many, many times, they will make (on average) $47 in revenue for each warranty sold

4. If a customer purchase the Warranty and their item breaks, the site will lose $22 when they replace the item