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25 The service manager for acar dealership reviewed sales records of the past 25 sales of new cars to determine the number of warranty repairs

25
  1. The service manager for acar dealership reviewed sales records of the past 25 sales of new cars to determine the number of warranty repairs he will be called on to perform in the next 90 days. Corporate reports indicate that the probability any one of their newcars needs a warranty repair in the first 90 days is 0.02. The manager assumes that calls for warranty repair are independent of one another and is interested in predicting the number of warranty repairs he will be called on to perform in the next 90 days for this batch of 25 new cars sold.

    What is the probability that less than two of the 25 new cars sold will require a warranty repair in the first 90 days?
    a.

    0.911

    b.

    0.987

    c.

    0.308

    d.

    0.114

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