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Mathematics, 14.12.2021 09:20 yhhh
Marcos and Amaya work at a mobile phone company that offers customers an optional care plan. Customers can choose to pay an extra $50 when they buy a new phone, and if they damage their screen, then the company will cover the cost of the repair. Marcos and Amaya let X represent their company's net gain on the sale of a given care plan, and they find the expected value of X is E(X)=$25.
Marcos says, "If we sell many of these care plans, the average gain for our company will be about $25 per plan."
Amaya says, "For every 1,000 customers who buy this care plan, we can expect a net gain of about $25,000."
Whose statement is correct based on the expected value?
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Marcos and Amaya work at a mobile phone company that offers customers an optional care plan. Custome...
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