Answer to Question #246344 in Statistics and Probability for lachicka

Question

A restaurant will be opening in green hills shopping center. in the process of preparing they have to buy appliances. a refrigerator, which costs 45,789.00, has a 15% chance of replacement in the first three years of purchase. the store is offering an extension of the warranty cost of 8,795.00 on the refrigerator.


a. what is the expected value of the extended warranty assuming it is replaced after three years?

b. will you buy the refrigerator? why?

c.identify the mean, variance and standard deviation.