A green grocer buys peaches in large consignments directly from a wholesaler.
In view of the perishable nature of the commodity, the green grocer accepts
that 15% of the supplied peaches will usually be unsalable. As he cannot check
all the peaches individually, he selects a single batch of 10 peaches on which to
base his decision of whether to purchase a large consignment or not. If no
more than two of these peaches are unsatisfactory, the green grocer purchases
the consignment.
Required:
(i) Identify situation (2 marks)
(ii) Determine the probability that under normal supply conditions, the
consignment is purchased.