Solve the Problem. -The Lifetime of an Appliance That Costs $500 Is Exponentially

Multiple Choice

Solve the problem.
-The lifetime of an appliance that costs $500 is exponentially distributed with a mean of 4 years. The manufacturer gives a full refund if the appliance fails in the first year following its purchase. If the
Manufacturer sells 500 printers, how much should it expect to pay in refunds?

A) $55,300
B) $49,770
C) $553
D) $194,700