(1)
His final position is x - (8 - x) = 2x - 8 units west, where x is the number of heads.
(a)
P(exactly 4 heads) = (8!/(4!4!))(1/2)^8 = 35/128
(b)
P(0, 1, 2, 6, 7 or 8 heads)
= 2*P(0, 1 or 2 heads)
= 2*(1/2)^8 (1 + 8 + 8!/(2!6!))
= 37/128
(2)
P(a randomly selected envelope is heavier than 2 grams)
= 1 - Phi((2 - 1.95)/0.025)
= 1 - Phi(2)
= 0.02275
In a lot of 1000 envelopes there will be on average 1000*0.02275 = 22.75 envelopes that are heavier than 2 grams.