Question

A computer manufacturer sells warranties for $180. Those warranties have an expected profit of $133. Which one of the following choices represents the correct interpretation of expected profit? multiple choiceA. If the company sells two warranties, they will earn a total profit of $133 from those two warranties.B. Each warranty will earn the company $133 in revenue.C. If the company sells just one warranty, they will profit $133 from that one warranty.D. If a very large number of warranties are sold, the total profit divided by the number of warranties sold will be $133

Answer 1

Given

computer manufacturer sells warranties for $180.

an expected profit of $133.

Find

Which one of the following choices represents the correct interpretation of expected profit

Step-by-step explanation

sells warranties for $180

an expected profit of $133.

so ,

interpretation of expected profit = If a very large number of warranties are sold, the total profit divided by the number of warranties sold will be $133

Final Answer

Hence , the correct option is D.