Question: Can someone help me solve this? CNA TechComplete offers coverage to corporations for damages from electronic vandalism, ISP disruption, and damage to EDP systems. The

Can someone help me solve this?

Can someone help me solve this? CNA TechComplete offers coverage to corporations

CNA TechComplete offers coverage to corporations for damages from electronic vandalism, ISP disruption, and damage to EDP systems. The cost of a one year policy is $1.25 million. A particular company estimates its annual damages as follows: a 0.2 probability ofa loss of $300,000, a .3 probability ofa loss of $800,000, a .3 probability of a loss of $1.2 million and a 0.2 probability of a loss of $2.0 million. Using the expected value criterion, should this company purchase the insurance from CNA? A A. Should be indifferent to buying because the expect loss is $1.25 million, the same as the cost of the insurance policy A B. Yes, because their expected loss is $1.56 million. A C. No, because their expected loss is $1.075 million . A D. No, because their expected loss is $1.06 million

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