23. [Contingencies] Consider two firms that self-insure for workers' compensation losses. Assume that the annual probabil- ity of a claim is 1 in 1,000 for each firm and that cach claim has an expected value of $10,000.

a. Firm A has 3 employees

b. Firm B has 10,000 employees. Discuss how each firm should account for its liability for work- ers' compensation benefits. If there is any difference in your an- swers, explain why.