A company makes electronic gadgets. One out of every 20 gadgets is faulty, but the company doesn’t know which ones are faulty until a buyer complains. Suppose the company makes a  $8   profit on the sale of any working gadget, but suffers a loss of  for every faulty gadget because they have to repair the unit. What is the expected profit or loss for every batch of  20  gadgets sold?

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...
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A company makes electronic gadgets. One out of every 20 gadgets is faulty, but the company doesn’t know which ones are faulty until a buyer complains. Suppose the company makes a  $8   profit on the sale of any working gadget, but suffers a loss of  for every faulty gadget because they have to repair the unit. What is the expected profit or loss for every batch of  20  gadgets sold?

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