The Brady Matthew Camera Company has just come out with

Last updated: 4/24/2023

The Brady Matthew Camera Company has just come out with their newest professional quality digital camera the ToughPix1 The company is selling this camera only through its new mobile app at a profit of 186 per camera This purchase comes with a guarantee that barring gross negligence if the camera breaks in the first two years after purchase Brady Matthew will replace it free of charge Replacing a camera in this way costs the company 3100 Suppose for each ToughPix1 there is a 4 chance that it will need to be replaced exactly once a 1 chance that it will need to be replaced exactly twice and a 95 chance that it will not need to be replaced If Brady Matthew knows that it will sell many of these cameras should it expect to make or lose money from selling them How much To answer take into account the profit earned on each camera and the expected value of the cost of replacements of the camera Brady Matthew can expect to make money from selling these cameras hey should expect to make dollars on each camera sold In the long run Brady Matthew can expect to lose money from selling these cameras In the long run they should expect to lose dollars on each camera sold Brady Matthew should expect to neither make nor lose money from selling these cameras