Bill's Supermarket is a small grocery store located in Cleveland. Bill's receives 150 shipments per month. In the past four months, Bill's received 35, 55, 65, and 45 shipments with damaged food products.
ShopAll is a large, multi-state supermarket in the Midwest. ShopAll receives 10,000 shipments per month. In the past four months, ShopAll received 2,450, 2,850, 2,200, and 2,500 shipments with damaged food products.
- Which business has greater risk concerning the occurrence of a damaged food shipment?
If a shipment is damaged, the average amount of unsellable food for Bill's is $25.
- Based on this past data, what is Bill's Expected Loss for damaged food products next month?