(a) Explain how the amount of a provision should be measured. 

(b) A company needs to make a provision for the cost of repairing a faulty product supplied to a customer some weeks previously. The company estimates that there is a 60 per cent chance that this repair will cost EUR 200,000. However, there is a 30 per cent chance that the cost will be EUR 300,000 and a 10 per cent chance that the cost will be EUR 400,000. How should the amount of the provision be measured?