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Suppose 5% of the People Who Buy a Certain Type

Question 20

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Suppose 5% of the people who buy a certain type of DVD player return it to get their money back.The DVD player costs $100.What is the expected loss, per customer, for the company due to returns (ignoring the monetary value of the returned DVD player) ?


A) $5
B) $0; most people don't return it
C) Either $0 or $100, but it is impossible to determine which.
D) $100

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