A fast food restaurant just leased a new freezer and food fryer for 3 yrs. The service contract for the freezer offers unlimited repairs for a fee of $125 a year plus a $35 service charge for each repair needed. The restaurants research suggested that during a given year 80% of these freezers need no repair, 11% needed to be served once, 5 % twice, 4 % 3 times, and none required more than 3 repairs.

PLEASE SHOW WORK MATHEMATICALLY, HELP!!!! NEED ASAP!

1) Create a probability model for the above data

2) Find the expected # of repairs this kind of freezer is expected to need each yr.

3) Find the standard deviation of the # of repairs each yr.

4) What are the mean and standard deviation of the restaurantÂ’s annual expense for the service contract

5) How many times should the restaurant expect to have to get this freezer repaired over the 3-yr term of the Lease.

6) What is the standard deviation of the # of repairs that may be required during the 3 yr term of the lease? On what assumption does your calculation rest? Do you think this assumption is reasonable.

7) The yearly service contract for the food fryer estimates a mean annual cost of $140 with a standard deviation of $40. What is the expected value and standard deviation of the total cost for the service contracts for the freezer and the food dryer.

8) Which service contract should the restaurant expect to cost more each year? How much more? With what standard deviation?

THANKS!!!