We assume two people having same distribution. For thesepeople, we assume also that losses are uncorrelated

Loss	Outcome	Probability
	10,000 dollars	0.05
	0	0.95

1. Explain risk pooling and give its main purpose

2. Calculate the expected value

We assume two people having same distribution. For these people, we assume also that losses are uncorrelated Outcome Probability Loss 10,000 dollars 0.05 0 0.95 1. Explain risk pooling and give its main purpose 2. Calculate the expected value