Assume that property losses for Buckeye Brewery have the following distribution: Loss Probability $3,000,000 0.004 1,500,000 0.010 800,000 0.026 0 0.96 A. Answer the following questions: i. What is the expected value of the loss distribution? ii. What is the standard deviation of the loss distribution? B. Greater American Insurance Group underwrites the property risk from Buckeye Brewery. The policy involves a deductible of $300,000. The premium that Greater American charges is $50,000. Is this premium actuarially fair (an actuarially fair premium equals the expected value of the insurer's claim costs)? Justify your answer with the calculation? C. Suppose the premium in (2) is not actuarially fair and suppose Buckeye Brewery is willing to purchase the coverage. Provide the rationales for Buckeye Brewery to purchase the insurance policy. D. What is the law of large number (LLN)? Why are insurance premiums typically not actuarially fair (i.e., insurance premiums are not equal to expected losses)? Assume that property losses for Buckeye Brewery have the following distribution: Loss Probability $3,000,000 0.004 1,500,000 0.010 800,000 0.026 0 0.96 A. Answer the following questions: i. What is the expected value of the loss distribution? ii. What is the standard deviation of the loss distribution? B. Greater American Insurance Group underwrites the property risk from Buckeye Brewery. The policy involves a deductible of $300,000. The premium that Greater American charges is $50,000. Is this premium actuarially fair (an actuarially fair premium equals the expected value of the insurer's claim costs)? Justify your answer with the calculation? C. Suppose the premium in (2) is not actuarially fair and suppose Buckeye Brewery is willing to purchase the coverage. Provide the rationales for Buckeye Brewery to purchase the insurance policy. D. What is the law of large number (LLN)? Why are insurance premiums typically not actuarially fair (i.e., insurance premiums are not equal to expected losses)