A Fast Food Restaurant Just Leased a New Freezer and Food

question 5

Essay

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 suggested 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.
-What are the mean and standard deviation of the restaurant's annual expense for the service
contract?

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Definitions:

Media Technology

Refers to the tools and platforms used for creating, distributing, and engaging with digital content and media.

Frankenstein-like Creation

A metaphor for something created by humans that becomes powerful or uncontrollable, turning problematic or dangerous to its creator.

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Radio Broadcasting

The transmission of audio content to the public through radio waves or digital signals, intended for widespread reception by listeners.