Expected refund cost to the manufacturer


The life span of an electronic component that costs $100 is exponentially distributed with a mean on 10 years. The manufacturer will refund $100 if it fails within the first year. If it fails after one year but before two years the manufacturer will refund $50. What is the expected refund cost to the manufacturer on the component?

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Basic Statistics: Expected refund cost to the manufacturer
Reference No:- TGS0731222

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