A Small Business Just Leased a New Presentation Equipment and a Color

Multiple Choice

A small business just leased a new presentation equipment and a color laser printer for three years. The service contract for the computer offers unlimited repairs for a fee of
$100 a year plus a $25 service charge for each repair needed. The company's research
Indicates that during a given year 86% of these computers need no repairs, 9% need to be
Repaired once, 4% twice, 1% three times, and none required more than three repairs.
Find the expected number of repairs for this kind of computer per year.

A) 0.20 repairs.
B) 0.55 repairs.
C) 0.89 repairs.
D) 1.00 repairs.
E) 1.20 repairs.