S2 June 2009 Q8

EdexcelOld spec13 marksPoisson Distribution

8. A cloth manufacturer knows that faults occur randomly in the production process at a rate of 2 every 15 metres.

(a) Find the probability of exactly 4 faults in a 15 metre length of cloth. (2)
(b) Find the probability of more than 10 faults in 60 metres of cloth. (3)

A retailer buys a large amount of this cloth and sells it in pieces of length \(x\) metres. He chooses \(x\) so that the probability of no faults in a piece is 0.80

(c) Write down an equation for \(x\) and show that \(x = 1.7\) to 2 significant figures. (4)

The retailer sells 1200 of these pieces of cloth. He makes a profit of 60p on each piece of cloth that does not contain a fault but a loss of £1.50 on any pieces that do contain faults.

(d) Find the retailer’s expected profit. (4)