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A Transportation company uses a fleet of 1,000 vehicles to provide limousine and party bus services. From past information,
# of accidents per vehicle per year # of vehicles having these losses
0 300
1 500
2 200
Find the expected number of accidents per vehicle per year
3. Now assume from past information,the company has constructed the following probability distribution
$ amount of losses Probability of dollar losses
2,000 .40
8,000 .35
15,000 .25
a. Find the expected cost per accident
b. Calculate the expected loss per vehicle per year.
c. Calculate the expected loss for all vehicles per year.
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