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An Appliance Comes with an Unconditional Money Back Guarantee for Its

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An appliance comes with an unconditional money back guarantee for its first 6 months. It has been found that the time before the appliance experiences some sort of malfunction is an exponential random variable with mean 2 years. What percentage of appliances will malfunction during the warranty period? Enter your answer as just a ± eb\mathrm { e } ^ { \mathrm { b } } , where a is an integer and b is a real number to two decimal places. (no units).

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Definitions:

Lease Payments

Lease payments are the regular payments made by a lessee to a lessor for the use of an asset, such as property or equipment, under a lease agreement.

Fair Value

A measurement of the price at which an asset could be bought or sold, or a liability settled, in a current transaction between willing participants in the market.

Economic Life

The estimated period over which an asset is expected to be economically usable by one or more users, with profitability considered.

Residual Value

The estimated value that an asset will realize upon the end of its useful life, often used in calculating depreciation.

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