An LG washing machine that costs $800 should be replaced with a 20% probability within the first 2 years of purchase. The two-year extended warranty on the dishwasher costs $112.10. What is the expected value from the warranty, assuming it has been replaced in the first 2 years?

Answer rating: 100% (QA)

To calculate the expected value from the warranty we need to consider the cost of the warranty and t... View the full answer