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A Fast Food Restaurant Just Leased a New Freezer and Food

Question 27

Multiple Choice

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 indicates 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 standard deviation
Of the number of repairs for this freezer per year is


A) 0.72 repairs.
B) 0.512 repairs2.
C) 1.25 repairs.
D) 2.5 repairs2.
E) 0.33 repairs.

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