An oil refinery plant has requested permission from the community to expand. The expansion is likely...

       

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An oil refinery plant has requested permission from the community to expand. The expansion is likely to increase the number of deaths in the community due to increased rates of cancer. The number of deaths and their associated probabilities is revealed in the table below: Number of Deaths 0 Probability .80 1 .11 2 .05 3 .04 4 .00 1. What is the expected value of 0 deaths? 2. What is the expected number of deaths? 3. If the value of life is $7.9 million, what is the expected cost of death for the plant expansion? An oil refinery plant has requested permission from the community to expand. The expansion is likely to increase the number of deaths in the community due to increased rates of cancer. The number of deaths and their associated probabilities is revealed in the table below: Number of Deaths 0 Probability .80 1 .11 2 .05 3 .04 4 .00 1. What is the expected value of 0 deaths? 2. What is the expected number of deaths? 3. If the value of life is $7.9 million, what is the expected cost of death for the plant expansion?

Answer rating: 100% (QA)

1 let substitute X0 and PX 08 Now for expected value of death EX X PX E0 0 08 ... View the full answer