hello,

I am having trouble with an even numbered practice question. We are only given answers to odd numbered practice.

if an item costs $725.00 and has 15% chance of needing to be replaced in first 3 years, and the extended warranty is $95.50? What is the expected value of the warranty if replaced in first 3 years rounded to nearest cent.

I think this answer will come up later but the book’s example is nothing like this so I am confused on how to work it.