Answer
$\color{blue}{\$132}$
Work Step by Step
Let $Y$ be the random variable denoting the number of defective components among the 12 electronic components produced daily. Then $Y$ has a binomial distribution with $n=12$ and $p=0.11$ so that by Theorem 3.5.1 (see p. 139-40),
$\begin{align*}
E(Y)& =np \\
&= 12(0.11) \\
E(Y) &= 1.32
\end{align*}$
Thus, the expected number of defective components among the 12 components produced daily is 1.32. Since reworking a component that is defective costs \$100, then the average daily costs for defective components is given by $\color{blue}{E(Y)\cdot $100 =1.32(\$100) = \$132.}$
