An LG Dishwasher, which costs / $800, has a 20% chance of needing to be replaced in the first 2 years of purchase. A two-year extended warrantee costs / $112.10 on a dishwasher. What is the expected value of the extended warranty assuming it is replaced in the first 2 years?
I don't even know how to start with this or how to find the probability distribution as my book tells me to do.
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