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The American Iron and Steel Institute reports the fatality rate for workers in this industry as 0.007 fatalities per 200,000 worker-hours of production. During 1998, the aggregate number of worker-hours spent on producing iron and steel products amounted to 243 million worker-hours.
Assuming that (1) an exponential distribution applies for the number of worker-hours between fatalities in this industry, and (2) the 243 million worker-hours level of activity continues in the industry, what is the expected number of worker-hours until the next fatality occurs in this industry?
If a given company in this industry has 1,000,000 workerhours devoted to production each year, what is the probability that the next fatal injury in this company will not occur until at least 30 years from now?
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