A Fast Food Restaurant Just Leased a New Freezer and Food

question 6

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.
-The yearly service contract for the food fryer estimates a mean annual cost of $140 with a standard deviation of $40.What is the expected value and standard deviation of the total cost for the service contracts for the freezer and the food fryer?

---

Definitions:

Home Rule

The power granted to local governments to govern themselves with minimal or no interference from the national government.

Dual Federalism

A concept of federalism in which federal and state governments have clearly defined, separate spheres of authority and responsibility.

Private Property

The legal right to own, use, and dispose of physical items or land, exclusive of others, protected by law.

Enacting Laws

Enacting laws refers to the process by which legislative bodies create new statutes or legal standards.