Question

a. Sophie is choosing two coins randomly from a box containing four $2, five $1, eight 50 cent and three 20 cent coins. Let X denote Sophie’s income. What are the possible values of X, and what are the probabilities associated with each value?

b. A company sells LED bulbs in packages of 20 for $25. From past records, it knows that a bulb will be defective with probability 0.01. The company agrees to pay a full refund if a customer finds more than 1 defective bulb in a pack. If the company sells 100 packs, how much should it expect to refund?

Answer 1