Answer:
$406,000,000
Step-by-step explanation:
Given that:
During the next five years;
the probability of total loss of only the above-water superstructure ($330 million) = .35
the probability of total loss of the facility ($830 million) = .35
the probability of no loss = .30
The Expected loss is being calculated by using the summation of both the total loss amount with their corresponding probability of loss
i.e
Expected Loss = Σ ($ 330,000,000 × .35) + ($ 830,000,000 × .35)
Expected Loss = $ 115,500,000 + $ 290,500,000
Expected Loss = $ 406,000,000
