Question 1: Choose the correct answer - 10 marks Q1 Assume that Four business owners each own an identical storage building valued at $60,000. If there is a 20 percent chance in any year that each building will be destroyed by a peril, and that a loss to either building is an independent event. Now consider that the three owners decide to pool (combine) their loss exposures, and each agrees to pay an equal share of any loss that might occur. A) How many events that can happen in this scenario? Explain? B) Find The Probability Distribution of losses. C) Find The Expected Value of losses. D) Find The standard deviation of losses. Solution