can someone please help me

Question

A company produces products at a cost of $38 each. Defective products cost an additional $15 each to repair. The probability of no defective products is 80%. The probability of 5% defective products is 20%. What is the expected cost of producing 700 products?

Answer 1

700 products.

There is a 20% chance that 5% of those ( 35) are defective, cost 15 x 35 = 525.

There is an 80% chance that none are defective, cost 0.

Production cost = 38 x 700 = 26600

Expected defect cost = 0.20 x 525 + 0.80 x 0 = 105

Total expected cost = 26600 + 105 = 26705