A company prices its tornado insurance using the following assumptions: • 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 companys assumptions, calculate the probability that there are fewer than 3 tornadoes in a 15-year period. Round your answer to 4 decimals. Show your work. Show what you entered into your calculator.

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
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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 companys assumptions, calculate the probability that there are fewer than 3 tornadoes in a 15-year
period. Round your answer to 4 decimals.
Show your work. Show what you entered into your calculator.
Transcribed Image Text: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 companys assumptions, calculate the probability that there are fewer than 3 tornadoes in a 15-year period. Round your answer to 4 decimals. Show your work. Show what you entered into your calculator.
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