Question: 1. When solid state hard drives fail to function, it is not possible to repair them. They should be replaced. Such drives, manufactured by Seaportal

1. When solid state hard drives fail to function, it is not possible to repair them. They should be replaced. Such drives, manufactured by Seaportal Technology, have lifetimes that are exponentially distributed with mean 8 years. An online company, which sells this brand of hard drives, offers its own warranty that fully refunds the price of the hard drive if it fails within the first year, refunds half of its price if it fails during the second year, and offers no refund if it fails thereafter. If the online company sells each hard drive for

$250, what is the expected value of its loss due to warranty claims per hard drive?

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