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Please see attached Document for questions. These questions have to do with binomial distribution, and I can not figure out where to begin, these are just 2 examples from an assignment and I would like work to be shown on how to begin answering these 2 questions and how to follow through so that I may do the others on my own. All information is provided in the attached document, no data is missing at all. Thank you.

Each sheet contains a yellow cell for each answer.

You may use blank areas in the spreadsheet for intermediate steps.

For example:

What is the square root of

What is the square root of

3

3

times

times

Do not make any changes to this sheet.

1.

2.

0.0%

4

4

3.464 No

3.4641 Yes

mediate steps.

wer itself.

Your company produces bicycles and is about to start production of a new model.

Independent lab tests show that there is a 1% chance, over the course of this bike's life, that the brakes will fail.

Your legal team estimates that it will cost your company, on average, \$1,000 to settle each complaint of brake failure.

However, if at least 250 people suffer brake failures, plaintiffs' lawyers will be able to file a class-action lawsuit against yo

Your legal team estimates that a class-action lawsuit will cost your company \$1 million in addition to the estimated \$1,00

Before legal and settlement costs, your company will make an average profit of \$75 per bicycle.

How many bikes should your company sell so as to maximize its expected profit (after expected legal and settlement cos

t the brakes will fail.

omplaint of brake failure.

dition to the estimated \$1,000 per incident settlement.

cted legal and settlement costs)?

Company A prints scratch-off lottery tickets. Because they are instant winner tickets, the printing company knows whic

Company A wraps tickets in &quot;packs&quot; of 1,000 tickets each and then ships the packs to Company B.

Company B then distributes the packs of tickets to retailers throughout the Pittsburgh area.

To help prevent people from rigging the game, Company A tells Company B how many winning tickets are in the shipm

The winning tickets are supposed to be randomly spread throughout the packs.

You work for Company B. Last month, you received a shipment of 1,008 packs of tickets. You know that that shipment c

When the shipment arrived, you divided it into 16 sets of 63 packs each. Each of these 16 packs went to a different reta

You have since discovered that two of the \$10,000 grand prize tickets that went out in that shipment ended up at the s

You suspect that someone at Company A told someone at Company B which packs contained the grand prize tickets, an

conspirator arranged for two of the packs containing the winning tickets to be sent to the same retailer.

To test your suspicion, you need to know the probability that a single retailer would have received at least two grand pr

rinting company knows which tickets are winners.

ning tickets are in the shipment, but not which packs contain winning tickets.

ou know that that shipment contained six \$10,000 grand prize tickets.

packs went to a different retailer.

shipment ended up at the same retailer.

ed the grand prize tickets, and that the Company B

same retailer.

eceived at least two grand prize tickets.

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This question was answered on: Feb 21, 2020

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