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

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Definitions:

Random

Lacking any definite plan or order or purpose; governed by or depending on chance.

Male and Female

Categories that describe an individual’s sex, based on biological differences, within a binary framework.

Probability

An indicator of how probable it is for an event to happen, represented by a number ranging from 0 to 1.

Births

The occurrence of bringing forth a new individual from a parent organism, initiating a new life.