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what is the optimal amount of Safety expenditures? Why? The Risk Company is looking to balance a $250,000 potential loss against a new safety program.

what is the optimal amount of Safety expenditures? Why?

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.

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

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