Use the following information to answer Problem 1 (a),_(b), and (c). Speedy, a delivery company, has a fleet of cars. The loss distribution per vehicle is: Amount of Loss (Xi) Probability (Pi) 0.8 500 0.2 Problem 1 (a) (20 points) Speedy employs 2 cars and they pool these risks. Assume the losses incurred by one car are independent of the losses incurred by the other. Show how the pooling arrangement affects the expected loss and standard deviation, respectively for each individual car (show how the expected value of loss and standard deviation of loss for each individual car change before and after pooling).Problem 1 (b) (5 points) Does pooling of losses increase or reduce risk of individual car? Explain it using the results of question (a).Problem 1 (c) (10 points) What is the insurer's major concern when predicting expected losses? What is the primary implication of the law of large numbers in predicting and pricing future losses