SOLUTION: 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 superstr

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Question 1141862: 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 ($350 Million) is .25, the probability of total loss of the facility ($850 million) is .25 and the probability of no loss is .50. Find the expected loss
Answer by Shin123(626) About Me  (Show Source):
You can put this solution on YOUR website!
The expected loss is 350,000,000(.25)+850,000,000(.25)+0= $300,000,000.