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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:

Counta

A function in spreadsheet software that counts the number of cells in a range that are not empty.

Cell B2

A specific cell located in column B and row 2 of a spreadsheet, used to reference a particular data point.

Passing Score

The minimum score required on a test or examination to be considered successful or to achieve a certain certification or qualification.

Data Label

A Data Label is a descriptive text used in charts and graphs to provide specific information about a data point, such as the value or category name.

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