Oxnard Petro LTD is buying hurrican insurance for its off-coast oil drilling platform. During the next five years, the probability of total loss of only above-water superstructure ($350) is .25, the probability of total loss of the facility ($850) is .25 and the probability of no loss is .50 find the expected loss
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Oxnard Petro LTD is buying hurrican insurance for its off-coast oil drilling platform. During the next five years, the
find the expected loss
From the provided information,
The probability of total loss of only above-water superstructure ($350) is 0.25, the probability of total loss of the facility ($850) is 0.25 and the probability of no loss is 0.50.
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