Question: A firm estimates that, for each exposure unit, it has an 80 percent chance of having $0 in losses, a 15 percent chance of having

A firm estimates that, for each exposure unit, it has an

A firm estimates that, for each exposure unit, it has an 80 percent chance of having $0 in losses, a 15 percent chance of having losses of $10,000, and a 5 percent chance of having losses equal to $30,000. In this case, the maximum possible loss (MPL) per exposure unit is: $0 $10,000 $40,000 $30,000

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