A company sells small, colored binder clips in packages of 20 and offers a money-back guarantee if two or more of the clips are defective. Suppose a clip is defective with probability 0.01, independently of other clips. Let X denote the number of defective clips in a package of 20.
(a) The distribution of the random variable X is (choose one)
(i) binomial (ii) hypergeometric (iii) negative binomial (iv) Poisson.
(b) Specify the value of the parameter(s) of the chosen distribution and use R commands to find the probability that a package sold will be refunded.
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