A company estimates that 0.5% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $250.
If they offer a 2 year extended warranty for $31, what is the company's expected value of each warranty sold? Round to the nearest cent.
$
If they offer a 2 year extended warranty for $31, what is the company's expected value of each warranty sold? Round to the nearest cent.
$