Alana L. answered 09/20/15
Tutor
New to Wyzant
Accounting Tutor with auditing experience at Big 4 Firm
First you find the number of eggs that are expected to be broken each time they ship a dozen eggs.
- (3% * 1) + (.5%* 12) + (96.5% *0)
Make sure the probabilities add up to one. There is a 3% chance that one egg will break, a .5% chance 12 will break and 96.5% chance that no eggs will break at all.
= (.03* 1) + (.005 *12) = .09
Thus .09 eggs are expected to be broken for each batch of one dozen eggs.
Second Step
If they are shipping 1000 dozen eggs, then we should expect that (.09 *1000) of the eggs should arrive broken. Since .09 eggs are expected to be broken for each dozen.
Therefore 90 eggs will be broken.
Mostafa A.
09/20/15