Assume each person in an insurance pool has a risk function as follows: there is a 25% probability of an $800 loss, a 50% probability of a $700 loss, and a 25% probability of a $400 loss. What is the expected mean loss?

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The Answer of Assume each person in an insurance pool has a risk function as follows: there is a 25% probability of an $800 loss, a 50% probability of a $700 loss, and a 25% probability of a $400 loss. What is the expected mean loss?

Assume Each Person in an Insurance Pool Has a Risk