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A company buys a policy to insure its revenue in the event of major snowstorms that shut down business. The policy pays nothing for the first such snowstorm of the year and $10000 for each one thereafter, until the end of the year. The number of major snowstorms per year that shut down business has a Poisson distribution with mean 1.5. Find the expected amount paid to the company under this policy during a one-year period.

A company buys a policy to insure its revenue in the event of major snowstorms that shut down business. The policy pays nothing for the first such snowstorm of the year and $10000 for each one thereafter, until the end of the year. The number of major snowstorms per year that shut down business has a Poisson distribution with mean 1.5. Find the expected amount paid to the company under this policy during a one-year period.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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A company buys a policy to insure its revenue in the event of major snowstorms that shut down business. The policy pays nothing for the first such snowstorm of the year and $10000 for each one thereafter, until the end of the year. The number of major snowstorms per year that shut down business has a Poisson distribution with mean 1.5.
Find the expected amount paid to the company under this policy during a one-year period.

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