An electronics store sells warranties on a $200 item for $15. The probability that a customer exercises the warranty is 3%. If it costs $3 to administer each warranty, what is the expected profit per warranty sold?
1 Answer
Oct 19, 2015
Profit = Revenue - Claims - Expenses
Explanation:
Revenue = $15.00
Expected Claims =
Expenses = $3.00
Profit
hope that helped
