A midterm exam has two parts. Part 1 consists of ten multiple choice questions. Each question has four choices, labeled (a), (b), (c), and (d), and one may pick any combination of responses on each of these questions. For example, one could choose just (a) alone on one question, or both (b) and (c), or all four possibilities, or none of them. In Part 2, one may choose either to answer eight true/false questions, or to select the proper definition of each of seven terms from a list of ten possible definitions. Every question must be answered on whichever portion (true/false or definition) of Part 2 is chosen, but one is not allowed to complete both the true/false and the definition portions. How many ways are there to complete the exam?

Operations Research : Applications and Algorithms
4th Edition
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Wayne L. Winston
Chapter19: Probabilistic Dynamic Programming
Section19.4: Further Examples Of Probabilistic Dynamic Programming Formulations
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A midterm exam has two parts. Part 1 consists of ten multiple choice questions. Each question has
four choices, labeled (a), (b), (c), and (d), and one may pick any combination of responses on each of
these questions. For example, one could choose just (a) alone on one question, or both (b) and (c),
or all four possibilities, or none of them. In Part 2, one may choose either to answer eight true/false
questions, or to select the proper definition of each of seven terms from a list of ten possible definitions.
Every question must be answered on whichever portion (true/false or definition) of Part 2 is chosen,
but one is not allowed to complete both the true/false and the definition portions. How many ways
are there to complete the exam?

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I am not clear on step 2. The question asked how many ways to complete the exam. I followed up to the end of step 1. Is the final answer 240 . (28 +  107) = 665, 266, 107, 455, 635, 456 or  4C1*4C1*…..*4C1 (10 times)= 4^10=1048576 .

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