Find the Expected Value and Standard Deviation of a Random $\text { B. } 0.512 \text { repairs } { } ^ { 2 } \text {. }$

question 13

Multiple Choice

Find the expected value and standard deviation of a random variable.
-A fast food restaurant just leased a new freezer and food fryer for three years. The
Service contract for the freezer offers unlimited repairs for a fee of $125 a year plus a $35
Service charge for each repair needed. The restaurant's research indicates that during a
Given year 80% of these freezers need no repairs, 11% needed to be serviced once, 5%
Twice, 4% three times, and none required more than three repairs. The standard deviation
Of the number of repairs for this freezer per year is

• A) 0.72 repairs.
• B) \(\text { B. } 0.512 \text { repairs } { } ^ { 2 } \text {. }\)
• C)C 1.25 repairs.
• D) 2.5 repairs2.
• E) 0.33 repairs.

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Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where supply equals demand.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a specific price over a given period of time.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price within a specific time period.

Surplus

An excess of production or supply over demand.