please help with the whole question!!! thanks!!!

1. Assume a firm owns a small warehouse. The warehouse is subject to the risk of a fire. Below is the probability distribution for losses: Loss ($) P(Loss) 0 0.72 2,750 0.13 8,500 0.08 9,900 0.05 12,000 0.02 The firm has six current risk management options it can use to manage this risk: [1] Insurance of $12,000 with a premium cost of $2,100. [2] Insurance policy with a FA of $12,000, a premium of $1,850, and a deductible of 200. This option has a worry value of $400. [3] Insurance policy with a face amount (FA) of $10,000, a premium cost of $1,300 and a deductible of 100. Implement a loss reduction program that costs $99 and changes the probability of a $0 loss to 74% and eliminates the potential of an $12,000 loss. All other loss probabilities stay the same. This option has a worry value of $500. [4] Insurance policy with a FA of $11,000, a premium of $1,700, and a deductible of 275. This option has a worry value of $425. [5] Retention with a worry value of $690. [6] Insurance policy with a face amount (FA) of $12,000, a premium cost of $1,500 and a deductible of 190. Implement a loss prevention program that costs $69 and changes the probability of a $0 loss to 77%, a $2750 loss to 11%, a $8,500 loss to 7%, a $9,900 loss to 4%, and a $12,000 loss to 1%. This option has a worry value of $500. a. Construct a loss matrix. What is the expected cost for each option? (3 points each) b. Assume that the risk manager makes decisions based on total cost. What option would she choose? (2 points)