What is probability that company will experience 3 returns

Reference no: EM13209851

For the past four years, Armonco Manufacturing has been offering a three-year limited warranty on all appliances it manufactures. Although all appliances are given a unique serial number when manufactured, until this year Armonco had no capability of determining how often any appliance was brought to an authorized service facility. At the beginning of the year, the long-promised computer database linking all service facilities with a central system was finally operational. A preliminary report shows the following results for one of the appliances Armonco manufactures.
Times Brought for Repair Probability
0 0.55
1 0.25
2 0.14
3 0.04
4 0.02

What is the probability that the company will experience three returns in the next two months.

Reference no: EM13209851

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