MAT 133 5-3 Homework Assignment Solutions (MAT 133-J4254)

MAT 133 5-3 Homework Assignment Solutions (MAT 133-J4254) Oxnard Petro Ltd. is buying hurricane insurance for its off-coast oil drilling platform. During the next five years, the probability of total loss of only the above-water superstructure ($250 million) is .30, the probability of total loss of the facility ($950 million) is .30, and the probability of no loss is .40. Find the expected loss. Expected loss is the same as the mean. We have 3 different x-values here because we have 3 different outcomes along with their corresponding probabilities, aka 3 different P(x) values. So, we just need to multiply each outcome by its corresponding probability. Then, you add up those three x*P(x) values. Notes: P(loss of $250 million) = .30 P(loss of $950 million) = .30 Therefore P($0 loss) = .40 x P(x) x*P(x) $250 million loss .30 $75,000,000 $950 million loss .30 $285,000,000 $0 loss .40 $0 million Total 1.00 $360,000,000 Expected Loss = E(x) = Mean = $360,000,000 Here is a video you can watch for Problem 4: Homework Problem 5 The number of tickets purchased by an individual for Beckham College’s holiday music festival is a uniformly distributed random variable ranging from 2 to 8. Find the mean and standard deviation of this random variable