Problem 2: You have $1,000,000 worth of equipment at the job site and wish to minimize...

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Problem 2: You have $1,000,000 worth of equipment at the job site and wish to minimize your risk of direct property damage by

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Answer 1

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Total Premium	=	$ 1,020

Workings:
Type of damage	Probability (%)	Amount of damage (loss) (%)	Equipment value	Premium
	(i)	(ii)	(iii)	(i)(ii)(iii)
Total	0.02%	100%	$ 10,00,000	$ 200
Medium	0.08%	40%	$ 10,00,000	$ 320
Low	0.10%	20%	$ 10,00,000	$ 200
No damage	99.80%	0%	$ 10,00,000	$ -
Handling and Profit				$ 300
Total Premium				$ 1,020

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Answer 2

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Problem 2: You have $1,000,000 worth of equipment at the job site and wish to minimize...

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