Explain and evaluate risk measurements of expected losses as a method to evaluate risk using the following example.

Losses (RM) Probability (Distribution) Expected Loss 0 (0.800) 0 500 (0.150) 75 1,000 (0.030) 30 5,000 (0.010) 50 10,000 (0.007) 70 25,000 50 (0.002) (0.001) 50,000 50 1.000 325 Losses (RM) Probability (Distribution) Expected Loss 0 (0.800) 0 500 (0.150) 75 1,000 (0.030) 30 5,000 (0.010) 50 10,000 (0.007) 70 25,000 50 (0.002) (0.001) 50,000 50 1.000 325