Suppose that mr smith will return the defectives for repair


It is known that 8% of items in a large lot are defective. Five items are randomly selected from the lot and sold to Mr. Smith. Let X denote the number of defective items among the five sold.

(a) Find the expected value and variance of X

(b) Suppose that Mr. Smith will return the defectives for repair, where C the repair cost is given by C = 2X2 + 2X + 1. Find the mean of the repair cost.

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Finance Basics: Suppose that mr smith will return the defectives for repair
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