A local car dealer in Germany is mounting a new crossdivisional promotional campaign. Purchasers of new caes may, if dissatisfied for any reason, return the vehicle within 2 days of purchase and receive a full refund.

The cost to the dealer of such a refund is €300. The dealer estimates that 18% of all purchasers will indeed return cars purchased and obtain refunds. Suppose that 80 cars are purchased during the campaign period.

a. Find the mean and standard deviation of the number of these cars that will be returned for refunds.

b. Find the mean and standard deviation of the total refund costs that will accrue as a result of these 80 purchases.