A Cell Phone Company Offers a Simple Extended Warranty Plan

question 10

Essay

A cell phone company offers a simple extended warranty plan. If your phone is damaged, they will repair it for up to $50. If you lose or destroy your phone, they will give you a $200 voucher towards a new phone. The company believes that 5% of customers will need the replacement voucher and 10% will request a repair.
-What is the standard deviation of their profit?

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Definitions:

Chemoautotroph

Organism that obtains energy from inorganic compounds and synthesizes organic compounds from inorganic raw materials; includes some bacteria and many archaea. Compare with photoautotroph, photoheterotroph, and chemoheterotroph.

Nitrogen-Fixing Bacteria

are bacteria capable of transforming atmospheric nitrogen into fixed nitrogen, making it accessible to plants for growth.

Porphyrin Ring

A large, ring-shaped molecule found in many biologically important molecules, such as heme, vital for carrying oxygen in blood.

Chlorophyll

A green pigment found in the chloroplasts of plants, algae, and some bacteria, essential for photosynthesis by capturing light energy.