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 indicates 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. The expected number
Of repairs for this freezer per year is
A) 1 repair.
B) 1.25 repairs.
C) 0.33 repairs.
D) 0.79 repairs.
E) 2.5 repairs.
Correct Answer:
Verified
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