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Math Help - Expected value

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    Expected value

    The initial value of an appliance is $700 and its value in the future is given by v(t)=100(2^(3-t)-1)
    v(t)=100(2^{3-t}-1) 0<=t<=3
    where t is time in years. Thus after the first 3 years the appliance is worth nothing as far as the warranty is concerned. If it fails in the first 3 years, the warrantee pays v(t). Compute the expected value of the payment on the warranty if T has an exponential distribution with mean 5.
    I have no clue where to start, help please
    Last edited by mr fantastic; November 10th 2010 at 07:43 PM. Reason: Fixed exponent in latex.
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