Solve Applications Involving Expected Values

question 7

Multiple Choice

Solve applications involving expected values.
-A small business just leased a new computer and color laser printer for three years.
The service contract for the computer offers unlimited repairs for a fee of $100 a year
Plus a $25 service charge for each repair needed. The company's research indicates that
During a given year 86% of these computers need no repairs, 9% need to be repaired
Once, 4% twice, 1% three times, and none required more than three repairs. The standard
Deviation of the company's annual expense with the service contract for the computer is

• A) $105.
• B) $10.25.
• C) $187.42.
• D) $13.69.
• E) $2.75.

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Definitions:

Bluish-Green

A color that is a blend of blue and green, often associated with certain minerals, plants, or shallow waters.

Methane

A colorless, odorless gas that is the simplest alkane and a potent greenhouse gas, often produced by anaerobic digestion of organic material.

Visible Surface

The part of any object or phenomenon that is perceptible by the eye under normal conditions.

Iron-Oxide Mineral

A mineral composed primarily of iron and oxygen, often found in the form of hematite or magnetite, significant in various industrial applications.