You have been appointed as Chief Risk Officer for Lucky Strike You are concerned about the...

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You have been appointed as Chief Risk Officer for Lucky Strike You are concerned about the high level of theft of the diamonds and developed this table with a team of experts to estimate the maxmum probable yearly loss (MPY) for 2016, as no specific insurance was negobated for theft 2016 Jan Feb Mar Apr May Jun Jul Aug Sep Oct NOV Dec ESTIMATED THEFT IN CARAT ZAR PRICE PER CARAT 300 4500 350 4500 4500 4500 4500 4500 350 500 $50 450 400 350 300 250 200 4500 4500 4500 4500 4500 4500 PROBABILITY 008 0.08 008 0.09 0.09 0.09 009 009 0.09 008 007 0.07 Calculate the estimated maximum probable yearly loss (MPY) for diamond theft in 2016, based on the information in the table above The k value can be accepted as 125 As the numbers may become difficult to manage, use R450 as the price per carat. Multiply your answer with a factor of 10 to arrive at the MPL Show all calculations You have been appointed as Chief Risk Officer for Lucky Strike You are concerned about the high level of theft of the diamonds and developed this table with a team of experts to estimate the maxmum probable yearly loss (MPY) for 2016, as no specific insurance was negobated for theft 2016 Jan Feb Mar Apr May Jun Jul Aug Sep Oct NOV Dec ESTIMATED THEFT IN CARAT ZAR PRICE PER CARAT 300 4500 350 4500 4500 4500 4500 4500 350 500 $50 450 400 350 300 250 200 4500 4500 4500 4500 4500 4500 PROBABILITY 008 0.08 008 0.09 0.09 0.09 009 009 0.09 008 007 0.07 Calculate the estimated maximum probable yearly loss (MPY) for diamond theft in 2016, based on the information in the table above The k value can be accepted as 125 As the numbers may become difficult to manage, use R450 as the price per carat. Multiply your answer with a factor of 10 to arrive at the MPL Show all calculations

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ANSWER Given price per carat is R450 Estimated theft in carats and probabilities for ... View the full answer