Acme's risk manager is considering three risk management options to manage this risk:

Acme can purchase full insurance on this truck for the risk of physical damage up to a total

loss of $80,000 for a premium of $2,800. Acme can purchase insurance with a limit of $80,000 and a deductible of $1,000 for a premium of $2,200. Acme is also considering retention as an alternative to full insurance.

1. Construct a loss matrix. All matrices must be constructed with the Risk Management

Alternatives as the rows and the States of the World as the columns, as we did in the video.

Ignore tax considerations for this assignment.