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Kio Outfitters estimated the following losses and probabilities from past experience:
Loss Probability (%)
$30,000 ......... 0.25
$15,000 ......... 0.75
$10,000 ........ 1.50
$5,000 ........ 2.50
$1,000 ......... 5.00
$250 ......... 15.00
$0 ......... 75.00
What is the probability Kio will experience a loss of $5,000 or greater?
If an insurance company offers a loss policy with a $1,500 deductible, what is the most Kio will pay?
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