A small business just leased a new computer and color laser printer for three years.
The service contract for the computer offers unlimited repairs for a fee of $100 a year
plus a $25 service charge for each repair needed. The company's research indicates that
during a given year 86% of these computers need no repairs, 9% need to be repaired
once, 4% twice, 1% three times, and none required more than three repairs.
a. Find the expected number of repairs for this kind of computer per year.
b. Find the standard deviation of the number of repairs per year.
c. What are the mean and standard deviation of the company's annual expense with the service contract for the computer?

Question

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The Answer of A small business just leased a new computer and color laser printer for three years.
The service contract for the computer offers unlimited repairs for a fee of $100 a year
plus a $25 service charge for each repair needed. The company's research indicates that
during a given year 86% of these computers need no repairs, 9% need to be repaired
once, 4% twice, 1% three times, and none required more than three repairs.
a. Find the expected number of repairs for this kind of computer per year.
b. Find the standard deviation of the number of repairs per year.
c. What are the mean and standard deviation of the company's annual expense with the service contract for the computer?

A Small Business Just Leased a New Computer and Color