document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1161871>Question 1161871</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A company prices its tornado insurance using the following assumptions:<BR>\n" );
document.write( "• In any calendar year, there can be at most one tornado.<BR>\n" );
document.write( "• In any calendar year, the probability of a tornado is 0.02.<BR>\n" );
document.write( "• The number of tornadoes in any calendar year is independent of the number of tornados in any other calendar year.<BR>\n" );
document.write( "Using the company's assumptions, calculate the probability that there are fewer than 3 tornadoes in a 18-year period.<BR>\n" );
document.write( "Hint: Use the binomial distribution with n = 18 and p = 0.02. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #785633 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=785633\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> this would be 0,1,2 tornadoes<BR>\n" );
document.write( "for 0 it would be 0.98^18=0.6951<BR>\n" );
document.write( "for 1 it would be 18*0.98^17*0.02=0.2554<BR>\n" );
document.write( "for 2 it would be 18C2*0.98^16)*0.02^2=0.0443<BR>\n" );
document.write( "0.9948 is the sum of the three and the probability.\r<BR>\n" );
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document.write( "or 2nd VARS scroll down to binomcdf ENTER (18,0.02,2)=0.9948. (n,p,x)<BR>\n" );
document.write( " </SPAN>\n" );
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