shopkeepers in west Mexican city are highly worried about the loss of property due to theft. the frequency of theft if very high in the area, and they expect a 30% chance of loss of property in a year. two of the shop owners who own property valued at $650,000 each, decide to share the risk of loss of property owning to theft.

1) what is the expected value of loss for the shop owners?

2) what is the risk of loss for the shop owners?

3)what will be the expected value of loss for the shop owners, if the two shop owners decide to pool their loos exposures, and each agrees to pay an equal share of any loss that might occur?

4) what will be the risk of loss for the shop owners, if the two shops decide to pool their loss exposures, and each agree to pay an equal share of any loss that might occur?

possible outcomes Probability

theft at both shops =. 0.09

theft at the first shop and no theft at second shop= 0.21

no theft at the first shop and theft at second shop= 0.21

no theft at all= 0.49

please solve the loss pooling question

thank you