Certified Extreme Event Modeler (CEEM) Practice Test

In the series method, payments are allocated in order, with each structure receiving its full stated amount before moving on to the next, and the third structure only gets whatever remains after the first two have been paid. Here, the first structure gets 40 and the second gets 60, which together total 100; therefore nothing is left for the third structure, so its payment is zero. This is what makes the statement about the series method’s payments to the third structure true. (In contrast, the parallel method assigns amounts to each structure independently, so the third structure would receive 80 in the parallel scenario, illustrating the difference between the two methods.)