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 0.06. • 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 22- year period. Round your answer to 4 decimals.

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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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 0.06.
- The number of tornadoes in any calendar year is independent of the number of tornadoes in any other calendar year.

Using the company's assumptions, calculate the probability that there are fewer than 2 tornadoes in a 22-year period. Round your answer to 4 decimals.

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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 0.06. - The number of tornadoes in any calendar year is independent of the number of tornadoes in any other calendar year. Using the company's assumptions, calculate the probability that there are fewer than 2 tornadoes in a 22-year period. Round your answer to 4 decimals. [Text box for answer] Show your work. Show what you entered into your calculator.
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