Question: PLEASE ANSWER FAST! A firm has the following probability distribution for annual losses due to vandalism: Loss Amount Probability $0 0.65 $5,000 0.30 $10,000 0.05

PLEASE ANSWER FAST!

A firm has the following probability distribution for annual losses due to vandalism:

Loss Amount	Probability
$0	0.65
$5,000	0.30
$10,000	0.05

The firm is considering three options:

Partial Insurance > Face amount = $5,000; Premium = $1,000

Deductible Insurance > Face amount = $10,000; Deductible = $500; Premium = $2,500

Avoidance

Derive the loss matrix for the firm. Simply copy and paste the below loss matrix template (if you want) into your answer box > and then fill out the loss matrix accordingly. Complete the loss matrix to then Calculate the Expected Cost of each option? (3 points)

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