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Amazon owns trucks used for cargo shipment. During their activities, Amazon sustains losses in the form of property damages to their trucks. Assume that the Amazon owns a truck station located in Pennsylvania (PA) and another station in New Jersey (NJ).

The PA station has 4,000 trucks in total, while the NJ station has 2,000 trucks in total.

Amazon has collected data for the reported number of accidents per truck per year in the PA station and NJ station, respectively.

# of accidents per truck per year	# of accidents per truck per year PA Station	# of accidents per truck per year NJ Station
0	3720	1800
1	200	140
2	80	60

A. Derive the probability distribution for frequency for PA and for NJ based on this data. Be careful to label exactly what you are defining as the probability distribution. [6 points]

B. Calculate the expected value of frequency per truck in PA station and NJ station, respectively. Show all work. What are the units of measurement? [4 points]

C.Calculated the variance of frequency per truck in PA station and NJ station, respectively. Show all work. What are the units of measurement? [4 points]

D. How much risk is present in PA station and NJ station, respectively? What are the units of measurement? Which truck station is riskier - PA station or NJ station? Show all work [4 points]

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