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Mathematics, 20.09.2021 14:20 lilpeepxliltracy

A company makes bobblehead dolls. One out of every five is faulty, but the company does not know which dolls are faulty until a buyer complains. Suppose the company makes a $2.50 profit on the sale of any working doll, but suffers a $10 loss for every faulty one because they have to repair the doll. Which of the following is the company’s expected profit or loss per doll in the long term?

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