Sharon, the risk manager of Tracie's Ceramics, wants to know more about the employee injuries at her firm. One loss was a wrist sprain that has a probability of 0.06. Another was a back sprain with a probability of 0.07. Yet another was overinhalation of a hazardous substance with a probability of 0.02. The other two were slips and falls with a probability of 0.13. If the amounts of the losses were $700, $3,000, $2,500, $950, and $950, respectively, what is the expected value of an employee injury loss for that year?
A) $500
B) $749
C) $549
D) $1,249.

Question

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The Answer of Sharon, the risk manager of Tracie's Ceramics, wants to know more about the employee injuries at her firm. One loss was a wrist sprain that has a probability of 0.06. Another was a back sprain with a probability of 0.07. Yet another was overinhalation of a hazardous substance with a probability of 0.02. The other two were slips and falls with a probability of 0.13. If the amounts of the losses were $700, $3,000, $2,500, $950, and $950, respectively, what is the expected value of an employee injury loss for that year?
A) $500
B) $749
C) $549
D) $1,249.

Sharon, the Risk Manager of Tracie's Ceramics, Wants to Know