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    finding the expected value of owning a defibrillator

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    Suppose it costs $2,500 to buy a defibrillator. Find the expected value of owning a defibrillator if there is a 4% probability that Silver's will lose a lawsuit regarding its operation, with each lawsuit resulting in Silver's being liable in the amount of $1,000,000.

    Need to solve a problem using E(X) = ∑xP(x) Hint:Add constant value to ∑(x) to get total cost.
    Please provide explanation (text) for each step taken for someone who doesn't know statistics to understand what is done & why. Also please enplane what is x. P(x), etc.

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    My answer is as follows, I will appreciate if you can award me one more credit if you satisfy because it is not a one credit question.

    Step 1: If the defibrillator works after purchase, then the value of owning a ...

    Solution Summary

    The solution gives detailed steps on finding the expected value of owning a defibrillator. All formula and calculations are shown and explained.