A home improvement warehouse, HIW, has 15 sump pumps in stock. The company sells these pumps for $150 each, with a double-your-money-back guarantee for any defective pump. Suppose the probability of any pump being defective is 0.08 and each pump’s quality is independent.

(a) Find the mean and standard deviation of the number of defective pumps.

(b) Find the probability that at least 2 pumps are defective.

(c) Let x represent the number of defective pumps. Write an expression in x for HIW’s net revenue from the sale of all 15 pumps (including the money-back guarantee of returns of defective ones). Then find HIW’s expected net revenue.