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A company has 4 (independent) manufacturing plants, and each has $1 million in value. For simplicity reason, let us assume that the chance of a

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A company has 4 (independent) manufacturing plants, and each has $1 million in value. For simplicity reason, let us assume that the chance of a single fire destroying a whole plant in 5 year period is 5%, and there is either no loss or total loss (no partial loss). What is the probability that loss equals to $2 million? O 1.35% 07.14% 2.23% 4.51%

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