7) A multiple-choice quiz has 20 questions. Each question has five possible answers, of which only one is correct.

A) What is the probability that sheer guesswork will yield at least 10 correct answers?

B) What is the expected number of correct answers by sheer guesswork?

C) Suppose 5 points are awarded for a correctly answered question. How many points should be deducted for an incorrectly answered question, so that for a student guessing randomly, the expected score on a question is zero? (Most standardized tests use this method to set penalties for guessing).

D) If a student is able to correctly eliminate one option as a possible correct answer but is still guessing randomly, what happens to his/her expected score for that question? Use your answer to C) as the number of points being deducted for an incorrect answer.

8) A Motel has 15 bedrooms. From past experience, the manager knows that on the average, 20% of the people who make room reservations dont show up. On a particular day, the manager accepts 20 reservations. If a customer with a reservation shows up and the motel has run out of rooms, it is the motels policy to pay $100 as compensation to the customer. What is the expected value of the compensation that the motel must pay?