1. Your firm, Brisk8, faces considerable revenue uncertainty because you have to negotiate contracts with several customers. You forecast that there is a 20 percent chance that your revenues will be $200,000, a 30 percent chance that your revenues will be $300,000, and a 50 percent chance that your revenues will be $500,000. Your costs are also uncertain, as the prices of your supplies fluctuate considerably. You forecast that there is a 40 percent chance that your costs will be $400,000 and a 60 percent chance your costs will be $250,000. What is your expected profit (Revenue - Costs)? 2. Your firm, Brisk8, has annual profits of $800 million and cash reserves of $500 million. Your clinics have a replacement value of $200 million, and fire insurance for them would cost $5 million per year. Actuarial data show that your expected losses due to fire are $4 million. The fire insurance will cover all loses. Should you buy insurance