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The likelihood of measurable precipitation is$0.01$ inches. The business will incur damages of $300000$. The weather service would be indicated that there is a $30\%$chance of a measurable amount of rain.

Constructing the distribution that describes the potential flood damages is:

This flood damage follows Bernoulli distribution. Because there are two possible casesof rain and not rain, in this case, the distribution will follow the Bernoulli distribution.

We must determine the probability distribution of possible rain damage.

Let x represent the flood damage.

Given that if a flood occurs, the firm will suffer a $300,000 loss.

If the flood does not occur, the firm is not harmed.

National weather agencies predicted a 30% probability of rain.

The probability distribution of X is thus

The expected loss is given by

$$\begin{gathered} 3000000×\frac{30}{100} \\ =90,000 \end{gathered}$$

So, there are expected loss of $$90,000$