**Question:**A farmer purchases a 5 year insurance policy that covers crop destruction due to hail. Over the 5 year period, the farmer will receive a benefit of 20 for each year in which hail destroys his crop, subject to a maximum of 3 benefit payments. The probability that hail will destroy the farmerâ€™s crop in any given year is 0.5, independent of any other year.

Calculate the expected benefit that the farmer will receive over a 5 year period.

**Answers:**

I got 26.875. Find the probabily it of how many times it'll hail during the 5 years (1,2,3,4 or 5 times) using the binomial distribution and mulitiply the amount of payout for each option, keeping in mind that even if it hails 4 or 5 times, he'll still only be paid 60(dollars?).

*EDIT*Sorry, I just checked my math on that, apparetnly, I can't add. It should be 45.625.

20 what? Dollars? That seems a bit low. Get the rest and I'll plug it into a chart

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