12
QuizMultiple Choice

Applications with Standard Normal Distribution — Unit test

Question 12 • Concepts in Probability and Statistics - MA3120 B-CR

A company makes a product and has no way to determine which ones are faulty until an unhappy customer returns it. Three percent of the products are faulty and will cost the company $200 each in customer service and repairs. If the company does not refund the customer when repairing the item, how much should the company charge to make a profit of $2.00 per item?

Answer
$
$6.00
$
$6.19
$
$8.00
$
$8.25
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