A manufacturer of a certain product can expect that between 0.1 percent and 0.3 percent of the units manufactured will be defective. If the retail price is $2,500 per unit and the manufacturer offers a full refund for defective units, how much money can the manufacturer expect to need to cover the refunds on 20,000 units?  Answers: A) Between $15,000 and $25,000 B) Between $50,000 and $150,000 C) Between $60,000 and $100,000 D) Between $150,000 and $250,000 E) Between $300,000 and $500,000
Number of defective units is between = .1 % of 20000 and .3% of 20000   = 20 and 60   Retail Price per unit = 2500 $   Expected price of refund is between = 2500 x 20 and 2500 x 60   =50,000 and 1,50,000 dollars   Answer Between $50,000 and $150,000
<result>B</result>
A manufacturer of a certain product can expect that between 0.1 percent and 0.3 percent of the units manufactured will be defective. If the retail price is $2,500 per unit and the manufacturer offers a full refund for defective units, how much money can the manufacturer expect to need to cover the refunds on 20,000 units?