Herman’s Hardware uses a neon light in its store window that is left burning continuously.

The light has an average lifetime of 1,250 hours and fails completely at random. Lights that burn out are replaced instantly.

a. On average, how many neon lights does Herman’s use in one year?

b. Suppose that the lights cost $37.50 each and Herman, the store owner, has budgeted

$300 annually for them. What is the probability that Herman exceeds his annual budget in any given year?

c. What is the probability that two bulbs will be used within the same month? (Assume that one month equals 30 days for your calculation.)