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2005 was a record year for hurricane devastation in the United States (San Luis Obispo Tribune, No- vember 30, 2005). Of the 26 tropical storms and hurricanes in the season, four hurricanes hit the mainland: Dennis, Katrina, Rita, and Wilma. The United States insured catastrophic losses since 1989 (approximate values read from a graph that appeared in the San Luis Obispo Tribune, November 30, 2005) are as follows:
Year Cost (in billions of dollars)
1989
7.5
1990
2.5
1991
4.0
1992
22.5
1993
5.0
1994
18.0
1995
9.0
1996
8.0
1997
2.6
1998
10.0
1999
2000
3.0
2001
27.0
2002
2003
12.0
2004
28.5
2005
56.8
Construct a time-series plot that shows the insured catastrophic loss over time. What do you think causes the peaks in the graph?
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