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 standard deviation of the number of repairs for this freezer per year is ________________________ . A)0.72 repairs B)0.512 repairs² C)1.25 repairs D)2.5 repairs² E)0.33 repairs

Question

Quizplus · Accepted Answer

The standard deviation is calculated using the probabilities and the number of repairs. The variance is calculated first, which is the sum of the squared differences from the mean, weighted by their probabilities. The standard deviation is the square root of the variance.

A Fast Food Restaurant Just Leased a New Freezer and Food