Temple owns a small warehouse on campus where they store vehicles. The warehouse is subject to the risk of a fire. Below is the probability distribution for losses: Loss ($) P(Loss) 0 0.86 30,000 0.08 50,000 0.03 80,000 0.02 100,000 0.01 The firm has four current risk management options it can use to manage this risk: [1] Retention [2] Insurance policy with a FA of $55,000, a premium of $6,000. [3] Insurance policy with a face amount (FA) of $35,000, a premium cost of $4,000. Also implement a loss prevention program that costs $2,500 and changes the probability of a $0 loss to 91%, $30,000 to 6%, $50,000 to 2%, $80,000 to 1% and $100,000 to 0% [4] Insurance of 100,000 with a premium cost 9,500. A) Construct a loss matrix. What is the expected cost for each option? B) Assume that the risk manager makes decisions based on total cost, do a comparison where you show what conditions on the WVs (Worry Value) would make Option 4 preferred to retention Option 1