A Small Business Just Leased a New Computer and Color

question 45

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.
-Find the expected number of repairs this kind of computer is expected to need each year.
Show your work.

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Definitions:

Scanner Data

A type of syndicated external secondary data used in quantitative research that is obtained from scanner readings of UPC codes at check-out counters.

Articulate Experiences

means to express or convey one's personal or shared experiences in a clear and effective manner.

Consumers' Preferences

Refers to the likes, dislikes, motivations, and desires of individuals or groups of consumers, which influence their buying behavior.

In-Depth Interviewing

A qualitative research technique that involves conducting thorough, open-ended interviews to explore a respondent's thoughts and feelings on a particular topic.