It is a risk management problem. Leah’s clothing boutique has one dry cleaning machine to press the new clothes. It is a very large machine; it has…

It is a risk management problem.

Leah’s clothing boutique has one dry cleaning machine to press the new clothes.  It is a very large machine; it has 5% chance in any one year of being destroyed.  If it is destroyed, the machine will cost $6,000 to replace.

Derive the probability distribution for total losses. 

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