questions about insurance

Answer questions 3 to 4 based on the following information. Edwin faces two risks. They are car accident and plane crash, with the following loss amounts and probabilities of loss: Car accident Loss amount Probability 0.90 $ 2,000 0.07 $ 20,000 0.03 Plane crash Loss amount Probability 0.9999 $ 1,000,000 0.0001 What are the expected amount and standard deviation of loss for car accident? Select one: O a. Expected loss: $740 Standard deviation of loss: $3,425 O b. Expected loss: $740 Standard deviation of loss: $9,999 O c. Expected loss: $2,000 Standard deviation of loss: $3,425 O d. Expected loss: $2,000 Standard deviation of loss: $9,999 O e. None of the above Which of the following statements is correct? Select one: O a. In terms of standard deviation of loss, plane crash is riskier than car accident O b. In terms of standard deviation of loss, car accident is as risky as plane crash O c. The expected loss of plane crash is higher than that of car accident O d. The expected loss of car accident is equal to that of plane crash O e. None of the above