A vacuum cleaner manufactured and sold by LB Appliances sucked in and damaged the hand of a two year old toddler. Doctors doubt if she will have the use of her hand again. The parents of the child have instated legal action against the company on 23 May 2013. The companys lawyers have determined the following probable amounts could be paid should the lawsuit succeed. They are of the opinion that the company will most likely lose the case. a) R300 000 (15% possibility) b) R550 000 (35% possibility) c) R750 000 (20% possibility).

At what amount will provision be measured ?