A manufacturer of luxury SUVs is concerned because warranty claims and customer dissatisfaction seems to be on the rise. The manufacturer knows that, based on experience with last year’s model, there is a probability of 4% that a customer will bring back their SUV within the first 6 months of ownership for a warranty repair. A sample of 5 SUVs are selected.
a) What is the appropriate probability distribution to use to describe this situation, and why is it appropriate? Explain your thinking fully.
b) What is the probability that none will need a warranty repair?
c) What is the probability that 2 or less will need a warranty repair?