Pear, a manufacturer of computer mice, receives a daily shipment of 1200 electrical cords from Electric International. The companies have agreed that Pear will inspect 40 cords from each shipment, and if a cord is found to be defective, the shipment will be returned to EI at their expense. In addition, if three or more shipments are rejected in a 5-day work week, Pear will terminate its contract with EI. (EI engineers report producing 1,350 defective cords per million.)

What is the probability that a daily shipment will be returned?

What is the probability that EI will have its contract terminated next week?

What is the probability that EI will have its contract terminated this year?