From experience, a shipping company knows that the cost of delivering a small package within 24 hours is $16.20. The company charges $16.95 for shipment but guarantees to refund the charge if delivery is not made within 24 hours. If the company fails to deliver only 3% of its packages within the 24-hour period, what is the expected gain per package?
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The Answer of From experience, a shipping company knows that the cost of delivering a small package within 24 hours is $16.20. The company charges $16.95 for shipment but guarantees to refund the charge if delivery is not made within 24 hours. If the company fails to deliver only 3% of its packages within the 24-hour period, what is the expected gain per package?
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From Experience, a Shipping Company Knows That the Cost of Delivering