A Fast Food Restaurant Just Leased a New Freezer and Food

Essay

A fast food restaurant just leased a new freezer and food fryer for three years. The service contract for the freezer offers unlimited repairs for a fee of $125 a year plus a $35 service charge for each repair needed. The restaurant’s research suggested that during a given year 80% of these freezers need no repairs, 11% needed to be serviced once, 5% twice, 4% three times, and none required more than three repairs.
-The yearly service contract for the food fryer estimates a mean annual cost of $140 with a standard deviation of $40.What is the expected value and standard deviation of the total cost for the service contracts for the freezer and the food fryer?