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%

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