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What is the expected value of utility company repair cost

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Airtight Manufacturing produces plastic cases that utility companies buy to protect electronic components on utility poles from weather damage.

Problem (a) The protective case currently used by utility companies has a 0.035 probability of cracking or breaking in any given year. When a protective case cracks or breaks, the utility company incurs a $600 expense to repair that utility pole. What is the expected value of the utility company's repair costs per utility pole?

Reference no: EM132674066

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