1. 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?