COUNTING AND PROBABILITY Computing expected value in a business application C Amber Espanol The Brady & Matthew Camera Company has just come out with their newest professional quality digital camera, the ToughPix1. The company is selling this camera only through its new mobile app at a profit of $341 per camera. This purchase comes with a guarantee that, barring gross negligence, if the camera breaks in the first two years after purchase, Brady & Matthew will replace it free of charge. Replacing a camera in this way costs the company $2700. Suppose for each ToughPix1 there is a 4% chance that it will need to be replaced exactly once, a 1% chance that it will need to be replaced exactly twice, and a 95% chance that it will not need to be replaced. If Brady & Matthew knows that it will sell many of these cameras, should it expect to make or D lose money from selling them? How much? To answer, take into account the profit earned on each camera and the expected value of the cost of replacements of the camera. O Brady & Matthew can expect to make money from selling these cameras. In the long run, they should expect to make dollars on each camera sold. O Brady & Matthew can expect to lose money from selling these cameras. In the long run, they should expect to lose |dollars on each camera sold. O Brady & Matthew should expect to neither make nor lose money from selling these cameras