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021 RMI 2101 Homework 3 (11AM).pdf (133 KB) 1. After witnessing the recent storm that took place in the tri-state area, as a risk manager you want to reevaluate the potential frequency and severity of future storms in these areas. You use new models to predict future weather patterns on 90 counties within the tri-state. Conclusions were formed to contrast the probability distribution for number of hurricanes per county per year within the tri-state area. of hurricanes per county per year 0 1 2 3 4 5 Probability 0.05 0.15 0.18 0.30 0.30 0.02 Calculate the expected frequency of hurricanes per county per year (2 points) Calculate the variance. (2 points) 2. Now assume that when hurricanes do occur, they are non-random and losses due to clean ups are equal to $1900. Calculate the expected losses per county per year? (2 points) Calculate the expected losses for ALL counties in the tri-state per year. (1 point) Calculate the expected loss for ALL counties in the tri-state for the next 5 years. (1) point) MacBook Air F6 F7 F8 F9 F10 Fll