2)

Under the first method the number of broken eggs has a binomial distribution with index
k, parameter 𝜽. Thus, from the short formulas for the binomial distribution the mean
number of broken eggs is 𝒌𝜽 and the variance of the number of broken eggs is 𝒌𝜽(𝟏 −
𝜽).

Under the second method the number of broken eggs is 0 with probability 1 − 𝜽 and is k
with probability 𝜽. Thus, using the long formula for a mean, the mean number of broken
eggs is 𝟎 × (𝟏 − 𝜽) + 𝒌 × 𝜽 = 𝒌𝜽. The variance of the number of broken eggs (using
one of the formulas for a variance, using the other formula is allowed) is 𝟎𝟐 (𝟏 − 𝜽) +
𝒌𝟐 × 𝜽 − (𝒌𝜽)𝟐 = 𝒌𝟐 (𝟏 − 𝜽).

Thus, the mean number of broken eggs is the same under both methods, but the variance
is twice as large under the second method. Any reasonable comment relating this
doubling of variance to the statement that one should not put all your eggs in one basket
is acceptable