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 0.13. • 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 3 tornadoes in a 10-year period.
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 0.13. • 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 3 tornadoes in a 10-year period.
MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Problem 1P
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Question
![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
0.13.
• 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 3 tornadoes in a
10-year period.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fea15dc7a-6472-40a8-9fcc-24e71d0c7d61%2Fa8b51441-ce68-47b9-a579-aec5d3aa4532%2F0kwnlci_processed.jpeg&w=3840&q=75)
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
0.13.
• 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 3 tornadoes in a
10-year period.
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