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Suppose you work for a company thatmanufactures electronics. The developmentanalysts estimate that 1% of their...

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Suppose you work for a company thatmanufactures electronics. The developmentanalysts estimate that 1% of their flagship productwill fail within 2 years of the purchase date, with areplacement cost of $ 1600.A newly hired associate at the company proposes tocharge $6 for a 2 year warranty.a. Compute the expected value of this proposal. LetX be the amount profited or lost (by the company)on the warranties and P(X) is the probability. E =b. Interpret the expected value in completesentences. (See Example 4.3 in the textbook for anexample of this)

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