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 0.07. 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 20-year period
We need to find:
P(x < 3)
So, Probability of tornado fewer than 3-
Comments
Leave a comment