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Given following binomial probability distribution for the next year. 3. No of Monetary loss Probability accidents Br. 0 0.40 5000 0.25 2 10,000 ? 3
Given following binomial probability distribution for the next year. 3. No of Monetary loss Probability accidents Br. 0 0.40 5000 0.25 2 10,000 ? 3 15,000 0.12 20,000 0.05 5 30,000 0.03 Based on the above information, determine: A. The average number of accidents per year B. The expected monetary loss per year C. The maximum possible loss D. The maximum probable loss assuming a less than 12% criterion E. The probability that the firm will suffer some loss.
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