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Assume a loss exposure of K100 00 for which the probability is estimated to be .01. Insurance against loss from this exposure will cost K1500

Assume a loss exposure of K100 00 for which the probability is estimated to be .01. Insurance against loss from this exposure will cost K1500 annually. Should this exposure be insured or retained? Use the Minimax Regret strategy to alternatively evaluate the decision. Would this change the decision from the earlier position? Explain

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