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Author Question: A fast food restaurant just leased a new freezer and food fryer for three years. The service ... (Read 125 times)

c0205847

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A fast food restaurant just leased a new freezer and food fryer for three years. The service contract for the freezer offers unlimited repairs for a fee of $125 a year plus a $35 service charge for each repair needed. The restaurant's research suggested that during a given year 80% of these freezers need no repairs, 11% needed to be serviced once, 5% twice, 4% three times, and none required more than three repairs.

Which service contract should the restaurant expect to cost more each year? How much more? With what standard deviation?


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Marked as best answer by c0205847 on Aug 31, 2019

jordangronback

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c0205847

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Reply 2 on: Aug 31, 2019
Great answer, keep it coming :)


hollysheppard095

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Reply 3 on: Yesterday
:D TYSM

 

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