You are a landlord and one of your tenants complained that the refrigerator was not...

90.2K

Verified Solution

Question

Algebra

You are a landlord and one of your tenants complained that the refrigerator was not working properly. You plan to sell this property in three years, so you are only concerned with the least expensive solution that results in the refrigerator working for the next three years. To address this issue you can purchase a new refrigerator for $400 and it will last for 3 years. You can repair the current refrigerator for $150, but estimate there is only a t 30% chance it will last a full 3 years. If the repaired refrigerator does not last a full 3 years, you will end up purchasing a new refrigerator, but it will cost you $500 if you wait. You can buy a used refrigerator for $200, and there is a 60% chance it will last for 3 years. If it breaks down within the three years, you estimate a 40% probability that you will repair the used refrigerator for $150, otherwise, you will end up purchasing a new refrigerator for $500. If the used refrigerator is repaired, there is only a 30% chance it will last the remainder of the 3 years. If the repaired used refrigerator breaks down within three years from today, you will end up purchasing a new refrigerator for $500.

Answer & Explanation Solved by verified expert

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

You are a landlord and one of your tenants complained that the refrigerator was not working properly. You plan to sell this property in three years, so you are only concerned with the least expensive solution that results in the refrigerator working for the next three years. To address this issue you can purchase a new refrigerator for $400 and it will last for 3 years. You can repair the current refrigerator for $150, but estimate there is only a t 30% chance it will last a full 3 years. If the repaired refrigerator does not last a full 3 years, you will end up purchasing a new refrigerator, but it will cost you $500 if you wait. You can buy a used refrigerator for $200, and there is a 60% chance it will last for 3 years. If it breaks down within the three years, you estimate a 40% probability that you will repair the used refrigerator for $150, otherwise, you will end up purchasing a new refrigerator for $500. If the used refrigerator is repaired, there is only a 30% chance it will last the remainder of the 3 years. If the repaired used refrigerator breaks down within three years from today, you will end up purchasing a new refrigerator for $500.