1. It is known that screws produced by a certain company will be defective with probability .01, independently of each other. The company sells the screws in packages of 10 and let X denote the number of defective screws in a package. (a) Suppose the company offers a money-back guarantee that there are no defective screws. What proportion of packages sold must the company replace? Give your answer to the tenth of a percent. (b) Suppose the company offers a money-back guarantee that there is at most one defective screw. What proportion of packages sold must the company replace? Give your answer to the tenth of a percent.

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1. It is known that screws produced by a certain company will be defective with probability
.01, independently of each other. The company sells the screws in packages of 10 and let
X denote the number of defective screws in a package.
(a) Suppose the company offers a money-back guarantee that there are no defective
screws. What proportion of packages sold must the company replace? Give your
answer to the tenth of a percent.
(b) Suppose the company offers a money-back guarantee that there is at most one
defective screw. What proportion of packages sold must the company replace? Give
your answer to the tenth of a percent.

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