Exam DISC-RM Practice Question 461
Study guide: Exam DISC-RM
A risk manager estimates a store's annual theft and vandalism loss as $0 with probability 0.70, $5,000 with probability 0.20, $20,000 with probability 0.08 and $200,000 with probability 0.02. What are the expected annual loss and the median annual loss?
- A) Expected loss $5,000; median $6,600
- B) Expected loss $6,600; median $0
- C) Expected loss $6,600; median $5,000
- D) Expected loss $56,250; median $0
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