Solve the Problem. -The Lifetime of an Appliance That Costs $500 Is Exponentially

question 299

Multiple Choice

Solve the problem.
-The lifetime of an appliance that costs $500 is exponentially distributed with a mean of 4 years. The manufacturer gives a full refund if the appliance fails in the first year following its purchase. If the
Manufacturer sells 500 printers, how much should it expect to pay in refunds?

• A) $55,300
• B) $49,770
• C) $553
• D) $194,700

---

Definitions:

Equivalent Amount

A value or quantity that corresponds or is considered equal in value, function, or significance to another in a different context or format.

Philippine Corn

A major agricultural crop in the Philippines, important both for domestic consumption and as a component of the country's agricultural exports.

Tariffs

Government taxes on products or services entering a country that primarily serve to raise prices on imports.

Chinese Tire Imports

Refers to the importation of tires from China into other countries, which has often been a point of trade and tariff discussions.