Q. The probability that a product is defective is 0.01. The products are packed in boxes; each box contains 10 products. A company orders a consignment of 12 boxes of products. A purchaser randomly opens three boxes, and accepts the consignment if the 3 boxes altogether contain at most one defective product. Calculate the probability that the purchaser rejects the consignment. Round your answer to 3 decimal places.
My Sol:
I understand the distribution is binomial but I am not sure of the full solution for this. I am thinking that n=10 (each box contains 10 products) and p=0.99 (non-defective). But I am not sure how to bring in the 3 out of the 12 boxes to find the probability...any help is appreciated. Thank you.