Assume that four business owners each own an identical storage building valued at 800,000$. Assume that there is a 2% chance in any year each building will be destroyed by a peril (fire) and that a loss to any of the buildings is an independent event. Assuming that: (1) Fire events are independent of each other (2) Each building faces the same types of risks and environmental conditions. Given that, Answer the following questions:

D. Explain what happens to the objective risk with the addition of more individuals

E. Explain what happens to the expected loss with the addition of more individuals

F. Explain the importance of the law of large numbers to predict expected losses

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