Question: A component has a life (in hours) that is exponentially distributed with a mean life of 100,000 hours. On average, each unit of this component

A component has a life (in hours) that is exponentially distributed with a mean life of 100,000 hours. On average, each unit of this component costs the manufacturer $10 to be produced. A customer has recently purchased 20 components and put them into operation in her plant which operates 16 hours per day and 250 days per year. Under the free warranty replacement policy and non-repairable state of components, what is the total expected warranty cost for the 20 components if the warranty period is 2 years? 

a. $11.752 

b. None of the answers is correct 

c. $10.8 

d. $216 

e. $235.04

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