A Small Business Just Leased a New Computer and Color

question 59

Essay

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
suggested that during a given year 86% of these computers needed no repairs, 9% needed to be repaired once, 4% twice, 1%
three times, and none required more than three repairs.
-The service contract for the printer estimates a mean annual cost of $120 with standard
deviation of $30. What is the expected value and standard deviation of the total cost for the
service contracts on computer and printer?

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Definitions:

Tardive Dyskinesia

A neurological disorder resulting from long-term or high-dose use of antipsychotic drugs, characterized by repetitive, involuntary, purposeless movements.

Hedonic Consumption

The aspect of consumer behavior that relates to the emotional and pleasure-seeking aspects of consumption.

Brand Loyalty

The tendency of consumers to continuously purchase products from the same brand due to satisfaction, preference, or emotional connection.

Behavioural Learnings

The process of acquiring new behaviors or modifying existing ones through various forms of learning, such as conditioning or observation.