Based on the data provided, which statement about the total cost for one year is true?
A=The offers from both companies are equally cost effective.
B=The offer from company A, with the repair contract, is more cost effective than company B's offer.
C=The offer from company B, with the repair contract, is more cost effective than company A's offer.
D=The offer from company A, without the repair contract, is more cost effective than company B's offer.

The best and most correct answer among the choices provided by your question is the second choice or letter B "The offer from company A, with the repair contract, is more cost effective than company B's offer."

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andriansp andriansp · Answer 2 · 2016-11-10T19:54:14+01:00

andriansp andriansp

10-11-2016

E[r] = 0.25 * 0 + 0.41 * 1 +0.22 * 2 + 0.12 * 3
= 0.41 + 0.44 + 0.36
= 1.21
the best answer is: b. the offer from company A, with the repair contract, is more cost effective than company B's offer.

hope this help

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