Suppose Joe and Leo both face the following individual loss distribution: Probability of Loss Amount of Loss 0.7 $0 0.3 $40 Determine the expected loss faced by Joe and Leo on an individual basis. Calculate the variance of the loss. Now assume Joe and Leo enter a pooling arrangement. Show how this affects their expected losses. Does the expected loss change? Calculate the variance of the loss if they are in a pooling arrangement. Does the variance of the loss change? How?