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9709 P61 - Nov 2012 - Q5
3042

A company set up a display consisting of 20 fireworks. For each firework, the probability that it fails to work is 0.05, independently of other fireworks.

(i) Find the probability that more than 1 firework fails to work.

The 20 fireworks cost the company $24 each. 450 people pay the company $10 each to watch the display. If more than 1 firework fails to work they get their money back.

(ii) Calculate the expected profit for the company.

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