A Fast Food Restaurant Just Leased a New Freezer and Food

question 1

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

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Definitions:

Collectivized Farms

Agricultural operations where the land and resources are owned and managed collectively by a group of farmers or the government, as seen in socialist and communist societies.

Five-Year Plan

Economic programs implemented by Soviet Union to industrialize rapidly and increase production, usually focusing on heavy industry and agriculture.

Soviet Agriculture

Soviet agriculture refers to the farming practices and policies in the Soviet Union, characterized by collective farming, state ownership of land, and efforts to increase food production under communist ideologies.

Nuremberg Laws

A set of antisemitic laws in Nazi Germany introduced in 1935, which severely restricted the rights of Jewish people.