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Mathematics Clinic => Statistics => Topic started by: casperchen82 on Aug 31, 2019

Title: A cell phone company offers a simple extended warranty plan. If your phone is damaged, they will ...
Post by: casperchen82 on Aug 31, 2019: A cell phone company offers a simple extended warranty plan. If your phone is damaged, they will repair it for up to $50. If you lose or destroy your phone, they will give you a $200 voucher towards a new phone. The company believes that 5% of customers will need the replacement voucher and 10% will request a repair.

What do your answers to the previous question tell you about the company's likelihood of making a profit?
Title: A cell phone company offers a simple extended warranty plan. If your phone is damaged, they will ...
Post by: shewald78 on Aug 31, 2019: Because $6250 minus 2 SD's is still well above zero (about $3000), there is little doubt this plan is profitable.
Title: Re: A cell phone company offers a simple extended warranty plan. If your phone is damaged, they will
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Title: Re: A cell phone company offers a simple extended warranty plan. If your phone is damaged, they will
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Title: Re: A cell phone company offers a simple extended warranty plan. If your phone is damaged, they will
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