Suppose your firm is buying five new computers. The manufacturer offers a warranty to replace any computer that breaks down within three years. Suppose there is a 25% chance that any given computer breaks down within three years. i. Compute the probability that exactly two of the five computers breaks down within three years. ii. If the manufacturer sells 600 computers per year, what is the expected number of computers that the manufacturer needs to replace? What is the standard deviation?

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