Answer to question 2 and question 3

2. How does the concept of risk differ for an insurance company as compared to another type of corporation or individual? Make sure to include the impact of the law of large numbers. 3. Two neighbors each face the same probability distribution for potential fire losses to their homes. (60% chance of no loss, 20% chance of $12,500 loss, 10% chance of a $25,000 loss, 8% chance of $50,000 loss, and 2% chance of $100,000 loss.) They agree that they will face the risk together and share all losses equally. For example, if neighbor one's house suffers a $100,000 loss and neighbor two's house has no loss, they will each pay $50,000. What is the probability of each neighbor paying $25,000