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c. Jimmy's Coffee House Wants to know how their risk compares to that Of their competitor, Lulu's Cafe. Lulu's Cafe expects on average 1 accident

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c. Jimmy's Coffee House Wants to know how their risk compares to that Of their competitor, Lulu's Cafe. Lulu's Cafe expects on average 1 accident per year with a variance of .60. Who faces more risk, Jimmy's or Lulu's? Hint: Jimmy's and Lulu's have different means. Show your work. (6 points) Elite Limousine Service (ELS) uses a fleet of 1,000 vehicles to provide limousine and party bus services. From past information, the Chief Risk Officer for ELS has constructed the following loss distribution for the number of accidents per vehicle per year. Hint: frequency. # of accidents per vehicle per year # of vehicles having these losses 0 300 500 200 Find the expected number of accidents per vehicle per year, i.e. calculate the E(F). (3 points) Now assume from past information, ELS has constructed the following probability distribution (PD) for the dollar amount of loss when accidents do occur. Hint: severity. $ amount of losses Probability of dollar losses

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