Question: please it is urgent QUESTION 1 Frema printers specialize in the manufacture of printers. The firm has been successful in automating much of its work,

 please it is urgent QUESTION 1 Frema printers specialize in the

please it is urgent

QUESTION 1 Frema printers specialize in the manufacture of printers. The firm has been successful in automating much of its work, using robots for most of its manufacturing and processing. Out of 10,000 printers, it is expected that there will be 1% of breakdown. Over the last 12 months, an average of ten (10) breakdown per month. The firm can however afford the breakdown cost. Explain Objective risk and find the objective risk for this company over the last 12 months? 8 marks b. If the company decides to increase its production levels far higher than the output of 10,000 units, by applying the law of large numbers, explain what will happen to the objective risk? 8 marks Explain the risk management method you will use to deal with this loss exposure. 4 marks a c

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