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 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 . Suppose for each ToughPix1 there is a chance that it will need to be replaced exactly once, a chance that it will need to be replaced exactly twice, and a chance that it will not need to be replaced.