The Risk Company is looking to balance a $250,000 potential loss against a new safety program. The Risk Company has hired you to advise them on how much to spend on the safety program. Below are the loss probabilities associated with each safety expenditure level. What is the expected loss with a $20,000 safety expenditure?

30% Loss Probability/$0 Safety Expenditures

25% Loss Probability/$10,000 Safety Expenditures

18% Loss Probability/$20,000 Safety Expenditures

13% Loss Probability/$30,000 Safety Expenditures

10% Loss Probability/$40,000 Safety Expenditures

8% Loss Probability/$50,000 Safety Expenditures

a. 65,000

b. $45,000

c. 7,500

d. 17,500