A company manufactures electronic pedometers. One out of 60

Last updated: 7/20/2022

A company manufactures electronic pedometers. One out of 60 pedometers Is faulty, but the company cannot pinpoint the faulty ones until a consumer complains. Say that the company makes a profit of $10 on the sale of every pedometer but takes a loss of $100 for every faulty one, as they have to replace the unit. What is the expected average profit on the sale of a single pedometer in the long run? $7.80 -$1.20 -$7.80 $2.56