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Belford company has three identical plants. They are located on the coast in Texas, southern Alabama and southern Florida. Belford's risk manager focuses on the influence of a single hurricane on the company's operations. The risk manager estimates that the total destruction of each plant would cause a loss of 50 million per plant. The risk manager estimates that the probability of a single hurricane destroying two or all three plants is very low, because they are so far apart. What is the maximum probable loss associated with a hurricane?
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