- [Maximum mark: 6]
Jerry makes handcrafted chocolates. On average, 1 in 25 of the chocolates that Jerry makes is flawed. Whether or not a chocolate is flawed is independent of all other chocolates.
(a) In a batch of 20 chocolates, chosen at random, find the probability that
(i) two are flawed.
(ii) more than two are flawed. [4]
Jerry sells the perfect chocolates for 50 pesos each and the flawed ones for 15 pesos each.
(b) Calculate the expected number of pesos Jerry makes from selling a batch of 20 randomly selected chocolates. [2]