You are given the following:i) A loss occurrence in excess of $1 billion may be caused by a hurricane, an earthquake, or a fire.ii) Hurricanes, earthquakes, and fires occur independently of one another.iii) The number of hurricanes causing a loss occurrence in excess of $1 billion in a one-year period follows a Poisson distribution. Theexpected amount of time between such hurricanes is 2.0 years.iv) The number of earthquakes causing a loss occurrence in excess of $1 billion in a one-year period follows a Poisson distribution. Theexpected amount of time between such earthquakes is 5.0 years.v) The number of fires causing a loss occurrence in excess of S1 billion in a one-year period follows a Poisson distribution. The expectedamount of time between such fires is 10.0 years.Determine the expected amount of time (in years) between loss occurrences in excess of $1 billion.

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Engineering

Civil Engineering

Determine the expected amount of time (in years) between loss occurrences in excess of $1 billion.

Structural Analysis

6th Edition

ISBN:9781337630931

Author:KASSIMALI, Aslam.

Publisher:KASSIMALI, Aslam.

Chapter2: Loads On Structures

Section: Chapter Questions

Problem 1P

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Concept explainers

Tax Significance of Depreciation

While calculating taxes, depreciation is the method used to allocate the cost of a tangible or immovable asset over the useful life of an asset. In other words, allocate part of that cost to the times when tangible assets help generate revenue or sales. By recording the depreciation of an asset, depreciation reduces the amount of taxes a company or business pays in tax deductions.

Question

You are given the following:
i) A loss occurrence in excess of $1 billion may be caused by a hurricane, an earthquake, or a fire.
ii) Hurricanes, earthquakes, and fires occur independently of one another.
iii) The number of hurricanes causing a loss occurrence in excess of $1 billion in a one-year period follows a Poisson distribution. The
expected amount of time between such hurricanes is 2.0 years.
iv) The number of earthquakes causing a loss occurrence in excess of $1 billion in a one-year period follows a Poisson distribution. The
expected amount of time between such earthquakes is 5.0 years.
v) The number of fires causing a loss occurrence in excess of S1 billion in a one-year period follows a Poisson distribution. The expected
amount of time between such fires is 10.0 years.
Determine the expected amount of time (in years) between loss occurrences in excess of $1 billion.

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