Bespin Car Rental predicts that the annual probability of one of its cars being destroyed in a crash is 1 in 1,000,000. If destroyed, the value of the property damage to the car equals $45,000. Assume that there are no partial losses; the car is either destroyed in a crash or suffers no loss.

A) Show the physical damage loss distribution for Bespin Car Rentals automobiles and calculate the expected value of the physical damage loss. Explain your answer.

B) Show the calculations for the variance and the standard deviation. Explain your answer.

A) Loss Outcome Probability of Loss Outcome Expected Value of Loss Damage B) Column 1 Loss outcomes Column 2 Probabilities Column 3 Loss Outcome - Expected Loss Column 4 Squared Difference Column 5 Squared Difference x Probability Sum Variance Standard Deviation