Assume that Kate and Anne enter into a pooling arrangement. Assume that both women have the following loss distributions and that losses are independent. Possible outcomes probabilities \$50,000 0.005 \$20,000 0.01 \$10,000 0.02 \$0 0.965 1) What is the probability that Both Anne and Kate have a loss greater than zero at the same time? 2) What is the probability that at least one of Anne and Kate has a loss greater than zero? 3) Write out the possible outcomes and the probability of each outcome for Kate and Anne after they enter into a pooling arrangement. That is, write out the probability distribution for each of the women after they enter into a pooling arrangement.

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