A Fast Food Restaurant Just Leased a New Freezer and Food

question 2

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 is the standard deviation of the number of repairs that may be required during the three- year term of the lease? On what assumption does your calculation rest? Do you think this assumption is reasonable?

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Definitions:

Peritoneal Membrane

A thin, delicate membrane that lines the interior of the abdominal cavity and covers the surfaces of abdominal organs.

Abdominal Cavity

A large body cavity in humans that houses many vital organs including the stomach, liver, and intestines, and is bounded primarily by the abdominal muscles and the spine.

Thoracic Cavity

The chamber of the human body located between the neck and the diaphragm, housing the heart, lungs, and other structures.

Renal Medulla

The innermost part of the kidney, composed of renal pyramids and tubules, crucial for concentrating urine.