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Title: Jenny owns a home in a heavily wooded area. If there is a 1-in-25 chance of fire in the area, what ... Post by: kirstykirst on Sep 4, 2023 Jenny owns a home in a heavily wooded area. If there is a 1-in-25 chance of fire in the area, what is her expected loss given the following possible outcomes:
• Minor smoke damage: cost = $5,000, probability = 50% • Exterior fire damage: cost = $15,000, probability = 30% • Everything ruined: cost = $150,000, probability = 5% ▸ $280 ▸ $800 ▸ $580 ▸ $6,800 Title: Re: Jenny owns a home in a heavily wooded area. If there is a 1-in-25 chance of fire in the area, what ... Post by: fs125 on Sep 4, 2023 Content hidden
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