Answer: 40 phones
Explanation:
The company expects that every 2 out of 25 phones will have some form of defect.
In percentage terms, this is:
= 2 / 25 * 100%
= 8%
If there are 500 phones therefore, the defected phones would still be the same percentage and the actual number would be:
= 8 % * 500
= 40 phones