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.
The standard deviation of the company's annual expense with the service contract for the
Presentation equipment is

A) $105.
B) $10.25.
C) $187.42.
D) $13.69.
E) $2.75.