Problem
Many products, such as computers, come with the option of an extended warranty. Suppose you are buying a computer with a one-year warranty. Thereafter, you can purchase an extended warranty for one more year, at a cost of $50. The warranty will repair or replace your computer in the event of breakdown. Suppose the average cost to the manufacturer of repairing or replacing the computer is $1,000. If the manufacturer is making no money from this warranty, what is the implied probability that the computer will need repair?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.