Question

digitalis is a technology company that makes high end computer processors. their newest processor, the luteA, is going to be sold directly to the public. the processor is to be sold for $2800, making digitalis a profit of $452. unfortunately there was a manufacturing flaw, and some of these luteA processors are defective and cannot be repaired. on these defective processors, digitalis is going to give the customer a full refund. suppose that each luteA there is a 12% chance that it is defective and an 88% chance that it is nit defective.

Answer 1

Given that

the processor is to be sold for $2800

a profit $452

for each luteA there is a 12%

defective an 88%