Digitalis is a technology company that makes high-end computer processors. Their newest processor, the luteA, is going to be sold directly to the public. The processor is to be sold for $3300, making Digitalis a profit of $429. Unfortunately there was a manufacturing flaw, and some of these luteA processors are defective and cannot be repaired. On these defective processors, Digitalis is going to give the customer a full refund. Suppose that for each luteA there is a 13% chance that it is defective and an 87% chance that it is not defective. (If necessary, consult a list of formulas.) If Digitalis knows it will sell many of these processors, should it expect to make or lose money from selling them? How much? To answer, take into account the profit earned on each processor and the expected value of the amount refunded due to the processor being defective. Digitalis can expect to make money from selling these processors. In the long run, they should expect to make|| dollars each processor sold. O Digitalis can expect to lose money from selling these processors. In the long run, they should expect to lose edollars on each processor sold. O Digitalis should expect to neither make nor lose money from selling these processors.
Digitalis is a technology company that makes high-end computer processors. Their newest processor, the luteA, is going to be sold directly to the public. The processor is to be sold for $3300, making Digitalis a profit of $429. Unfortunately there was a manufacturing flaw, and some of these luteA processors are defective and cannot be repaired. On these defective processors, Digitalis is going to give the customer a full refund. Suppose that for each luteA there is a 13% chance that it is defective and an 87% chance that it is not defective. (If necessary, consult a list of formulas.) If Digitalis knows it will sell many of these processors, should it expect to make or lose money from selling them? How much? To answer, take into account the profit earned on each processor and the expected value of the amount refunded due to the processor being defective. Digitalis can expect to make money from selling these processors. In the long run, they should expect to make|| dollars each processor sold. O Digitalis can expect to lose money from selling these processors. In the long run, they should expect to lose edollars on each processor sold. O Digitalis should expect to neither make nor lose money from selling these processors.
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 5SC: If during the following year it is predicted that each comedy skit will generate 30 thousand and...
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Given informatiion:
The selling price of processor is $ 3300
The profit on processor is $ 429
The cost price per processor is
Cost per processor = Selling price - Profit
Cost per processor=$ 3300 - $429
Cost per processor= $ 2871.
13% chance that the processor is defective and 87% chance that the processor is non defective.
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