Question 1 [15 Marks] You have been appointed as Chief Risk Officer for Lucky Strike You are concerned about the high level of theft of the diamonds and developed this table with a team of experts to estimate the maximum probable yearly loss (MPY) for 2016, as no specific insurance was negotiated for theft 2016 Jan Feb Mar ESTIMATED THEFT IN CARAT ZAR PRICE PER CARAT PROBABILITY 300 4500 008 350 4500 0.08 400 4500 008 Apr 350 4500 0.09 May 500 4500 0 09 Jun 550 4500 0.09 Jul 450 4500 0 09 Aug 400 4500 0 09 Sep 350 4500 0 09 Oct 300 4500 0 08 Nov 250 4500 007 Dec 200 4500 007 Calculate the estimated maximum probable yearly loss (MPY) for diamond theft in 2016, based on the information in the table above The k value can be accepted as 125 As the numbers may become difficult to manage, use R450 as the price per carat. Multiply your answer with a factor of 10 to arrive at the MPL. Show all calculations.