A Local FedEx/Kinkos Has Three Black-And-White Copy Machines and Two

question 87

Multiple Choice

A local FedEx/Kinkos has three black-and-white copy machines and two color copiers. Based on historical data, the chances that each black-and-white copier will be down for repairs is 0.10. The color copiers are more of a problem and are down 20% of the time each. Based on this information, what is the probability that if a customer needs a color copy, both color machines will be down for repairs?

• A) 0.04
• B) 0.96
• C) 0.47
• D) 0.42

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Definitions:

Price Discrimination

A pricing strategy where a company charges different prices for the same product or service depending on the customer, market, or region.

Airline Company

A business that provides air transport services for traveling passengers and freight.

Telephone Company

A business that provides telecommunications services such as voice calls and data transmission to customers.

Perfectly Price-Discriminated

When a seller charges each buyer their maximum willingness to pay, capturing all consumer surplus as producer surplus.