Question 28 Valley Fair Amusements is a amusement park in Oregon Management determined that there of a visitor being injured on a amusement ride. Settlement of resulting w ith an avec 5400000 procedures have been proposed to deal with this problem. Procedure put in more safety procedures w 1 1000 and would reduce the risk to 5.5%. Procedure B - change the dangerous des - would cost $16.000 and wor th 4. The combination of A and B would reduce the risk to 1% 1. What is the current expected loss before adopting any procedures? 2. Compute the revised expected loss if procedure A were implemented, if procedures were implemented, and the combination of procedure A and B were implemented. 3. Compute the net cost or benent if procedure A were implemented. If procedure B were implemented and the combination of procedure A and B were implemented 4. Considering only the net cost or benent, which procedure should be implemented? 5. Assuming the company doesn't know what the current risk is, compute the current risk percentage necessary to just have the company implement procedure B - in other words compute the current risk percentage needed to result in a net benefit of zero if procedure B were implemented. Show computation and round your answer to four decimals. Question 28 Valley Fair Amusements is a amusement park in Oregon Management determined that there of a visitor being injured on a amusement ride. Settlement of resulting w ith an avec 5400000 procedures have been proposed to deal with this problem. Procedure put in more safety procedures w 1 1000 and would reduce the risk to 5.5%. Procedure B - change the dangerous des - would cost $16.000 and wor th 4. The combination of A and B would reduce the risk to 1% 1. What is the current expected loss before adopting any procedures? 2. Compute the revised expected loss if procedure A were implemented, if procedures were implemented, and the combination of procedure A and B were implemented. 3. Compute the net cost or benent if procedure A were implemented. If procedure B were implemented and the combination of procedure A and B were implemented 4. Considering only the net cost or benent, which procedure should be implemented? 5. Assuming the company doesn't know what the current risk is, compute the current risk percentage necessary to just have the company implement procedure B - in other words compute the current risk percentage needed to result in a net benefit of zero if procedure B were implemented. Show computation and round your answer to four decimals