A Small Business Just Leased a New Computer and Color

question 36

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.
-Which service contract should the company expect to cost more each year? How much more? With what standard deviation?

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Definitions:

Application Software

Programs designed for end-users to perform specific tasks or functions beyond the basic operation of the computer itself.

Mathematical Equations

Mathematical equations in programming are expressions that involve variables and operations, used to calculate values based on input.

Pseudocode

A high-level description of the algorithmic steps of a program or computation, not written in any specific programming language but in a form resembling coding syntax.