Question 1032264
expected value per customer = 20 - .0004 * 7000 = 17.2


with 450,000 customers, this comes out to 450,000 * 17.2 = 7,740,000 dollars of net income per year.


look at it from another angle.


450,000 customers * 20 per customer = gross income of 9,000,000 per year.


an average of .0004 * 450,000 customers will experience a lightning strike each year. 


that equals 180 customers per year.


they receive an average of 7000 each in compensation.


that's 180 * 7,000 = 1,260,000 per year is spent in compensation.


9,000,000 minus 1,260,000 equals net income of 7,740,000 per year.


their expected value is 7,740,000 per year.