Final answer:
To determine the total first-year cost of car ownership for Milagros, we need to consider the cost of the vehicle and the maintenance costs. The total first-year cost is the sum of the cost of the vehicle and the expected maintenance cost.
Step-by-step explanation:
To determine the total first-year cost of car ownership for Milagros, we need to consider the cost of the vehicle and the maintenance costs. We are given that the cost of all maintenance for a car during its first year is approximately exponentially distributed with a mean of $150. This means that on average, Milagros will spend $150 on maintenance during the first year of car ownership.
Therefore, the total first-year cost of car ownership for Milagros is the sum of the cost of the vehicle and the expected maintenance cost. Let's say Milagros purchased a vehicle valued at $x. The total first-year cost can be calculated as: x + $150.