A company estimates that 1 of their products will fail after the original warranty period but within 2 years of the purchase

Question

A company estimates that 1 of their products will fail after the original warranty period but within 2 years of the purchase with a replacement cost of 100 If they want to offer a 2 year extended warranty what price should they charge so that they ll break even in other words so the expected value will be O

Kunduz · Accepted Answer

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