Suppose Joe and Leo both face the following individual loss distribution:

Probability of Loss (_i) Amount of Loss (L_i)

0.7 $0

0.2 $40

0.1 $60

Determine the expected loss faced by Joe and Leo on an individual basis. Expected value of loss = _iL_i = ₁L₁ + ₂L₂ + ₃L₃, where

• L_i: Value of the i^th outcome
• _i: Probability of the i^th outcome

The expected loss is $______.