Maurice Tutor

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    Argosy University/ Phoniex University/
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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 10 Feb 2018 My Price 5.00

Ward Doering Auto Sales

41.      Ward Doering Auto Sales is considering offering a special service contract that will cover the total cost of any service work required on leased vehicles. From experience, the com- pany manager estimates that yearly service costs are approximately normally distributed, with a mean of $150 and a standard deviation of $25.

a.       If the company offers the service contract to customers for a yearly charge of $200, what is the probability that any one customer’s service costs will exceed the contract price of $200?

b.       What is Ward’s expected profit per service contract?

Answers

Maurice Tutor
(5)
Status NEW Posted 10 Feb 2018 10:02 PM My Price 5.00

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