On slide $11$ of the mini$-$lecture on risk and expected value, we calculate an expected value of hurricane flood damage using the assumptions from earlier in the slideshow. The answer comes out to $$189,000.$ Which statement below describes the logic of the "full calculation" on that slide? Question $3$Answer The total expected value captures the probability$-$weighted average damage for both Cat $3+$ storms and storms below Cat $3.$ Both expected damages are also calculated as probability$-$weighted averages. The full calculation captures how risk$-$averse we should be: since the damage from Cat $3$ and higher storms is so much worse than the damage from storms below Cat $3,$ the expected value puts more emphasis on this bad outcome and actually overstates the damage. The full calculation captures how risk$-$averse we should be: since the damage from Cat $3$ and higher storms is so much worse than the damage from storms below Cat $3,$ the expected value puts less emphasis on this bad outcome and actually understates the damage.