An electrical contractor orders circuits from a wholesale supplier. The supplier is aware that among all circuits being shipped, the population proportion of defective circuits is 0.03. the contractor decides to select a random sample of 20 circuits from each shipment that is received and test the circuits to determine their quality.
If the number of defectives, N, in a sample is 2 or greater, the contractor will return the entire shipment to the supplier. What is the probability that a shipment will be rejected by the contractor based on the results of the sample of 20 circuits that are tested?