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

Multiple Choice

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.