5
QuizMultiple Choice

Expected Value — Quiz

Question 5 • 26-27 - C - RUSD Math 3

A company makes a 5 dollars profit on each non-faulty product it sells. Approximately 2 percent of the products manufactured are faulty, with no way to discover which ones are faulty before delivery. If replacement-and-repair costs for the faulty products are 100 dollars each, what is the profit per item?

Answer
A
profit of 3 point 0 0 dollars
B
profit of 2 point 9 0 dollars
C
loss of 15 point 1 0 dollars
D
loss of 15 dollars
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