Aman is considering buying a one-year warranty for $100, which will cover the $600 replacement cost for his new swimming pool pump. the probability the pump does not break within the first year is 90%.

a) the expected value is −$90, so the man should not buy the warranty.
b) the expected value is $90, so the man should buy the warranty.
c) the expected value is −$40, so the man should not buy the warranty.
d) the expected value is $40, so the man should buy the warranty.

it'd me out a lot if you explained your answer!

C)The expected value is −$40, so the man should not buy the warranty.

Step-by-step explanation:

The expected value is( each value times the respective probability) minus the cost of the item

E = cost * probability + no cost * probability

   It will cost 600 dollars if it breaks * 10 percent chance it breaks

   It will cost nothing if it does not break * 90 percent chance it does not break

E = 600 * .1 + 0*90

E = 60 +0

E = 60

Now we subtract the 100 dollars for the warranty

E - 100

60-100

-40

Our expected cost is -40

C. The expected value is −$40, so the man should not buy the warranty.

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hope this is what you were asking for!

step-by-step explanation: