38. the quality control director of a small company that manufactures exercise equipment knows that 10% of their

products are defective. market research shows that only 30% of their customers will use the product the first year

after the sale. so, the manufacturer expects that 3% of the units will be returned for service under a one-year full

warranty. this company expects to sell 600 units next year. (this problem is based on data from an actual company.)