Question

A company prices its tornado insurance using the following assumptions:

- In any calendar year, there can be at most one tornado.
- In any calendar year, the probability of a tornado is 0.08.
- The number of tornadoes in any calendar year is independent of the number of tornados in any other calendar year.

Using the company's assumptions, calculate the probability that there are fewer than 3 tornadoes in a 19-year period.

Answer #1

A company prices its tornado insurance using the following
assumptions:
• In any calendar year, there can be at most one tornado.
• In any calendar year, the probability of a tornado is 0.08.
• The number of tornadoes in any calendar year is independent of
the number of tornados in any other calendar year.
Using the company's assumptions, calculate the probability that
there are fewer than 3 tornadoes in a 20-year period.

A company prices its tornado insurance using the following
assumptions:
In any calendar year, there can be at most one tornado.
In any calendar year, the probability of a tornado is
0.15.
The number of tornadoes in any calendar year is independent of
the number of tornados in any other calendar year.
Using the company's assumptions, calculate the probability that
there are fewer than 3 tornadoes in a 17-year period.
______________________________

A company prices its tornado insurance using the following
assumptions:
• In any calendar year, there can be at most one tornado.
• In any calendar year, the probability of a tornado is 0.03.
• The number of tornadoes in any calendar year is independent of
the number of tornados in any other calendar year.
Using the company's assumptions, calculate the probability that
there are fewer than 3 tornadoes in a 14-year period.

A company prices its tornado insurance using the following
assumptions: • In any calendar year, there can be at most one
tornado. • In any calendar year, the probability of a tornado is
0.01. • The number of tornadoes in any calendar year is independent
of the number of tornados in any other calendar year. Using the
company's assumptions, calculate the probability that there are
fewer than 2 tornadoes in a 24-year period

A company prices its tornado insurance using the following
assumptions: • In any calendar year, there can be at most one
tornado. • In any calendar year, the probability of a tornado is
0.05. • The number of tornadoes in any calendar year is independent
of the number of tornados in any other calendar year. Using the
company's assumptions, calculate the probability that there are
fewer than 3 tornadoes in a 15-year period.

A company prices its tornado insurance using the following
assumptions:
• In any calendar year, there can be at most one tornado.
• In any calendar year, the probability of a tornado is 0.09.
• The number of tornadoes in any calendar year is independent of
the number of tornados in any other calendar year.
Using the company's assumptions, calculate the probability that
there are fewer than 2 tornadoes in a 24-year period.

A company prices its tornado insurance using the following
assumptions:
• In any calendar year, there can be at most one tornado.
• In any calendar year, the probability of a tornado is 0.13.
• The number of tornadoes in any calendar year is independent of
the number of tornados in any other calendar year.
Using the company's assumptions, calculate the probability that
there are fewer than 3 tornadoes in a 13-year period.
Hint: Use the binomial distribution with n...

Assume that a procedure yields a binomial distribution with a
trial repeated n=9n=9 times. Use either the binomial probability
formula (or technology) to find the probability of k=3k=3 successes
given the probability p=0.27p=0.27 of success on a single
trial.
(Report answer accurate to 4 decimal places.)
P(X=k)=P(X=k)= ________
A company prices its tornado insurance using the following
assumptions:
• In any calendar year, there can be at most one tornado.
• In any calendar year, the probability of a tornado...

1/The time it takes me to wash the dishes is uniformly
distributed between 6 minutes and 14 minutes.
What is the probability that washing dishes tonight will take me
between 9 and 10 minutes?
Give your answer accurate to two decimal places.
2/A local bakary has determined a probability distribution for
the number of cheesecakes that they sell in a given day.
X= #sold
0
5
10
15
20
Probability
0.29
0.26
0.27
...?
0.06
What is the probability of...

______
3. If markets are perfect (and using
the other assumptions in Miller and Modigliani (1961)), stock
prices should fall by the amount of a cash dividend. If so, can a
firm make its stockholders wealthier by changing (i.e., increasing
or decreasing) its dividend?
A. No, under these assumptions, a firm
cannot make its stockholders wealthier by changing its
dividend.
B. Yes, under these assumptions, a
firm can make its stockholders wealthier, but only by increasing
its dividend.
C. Yes,...

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