A company has an online order processing system. The company is in the process of determining the dollar amount of loss from user error. The company estimates the probability of occurrence of user error to be 90%, with evenly distributed losses ranging from $1,000 to $30,000. What is the expected annual loss from user error?
a.$13,050
b.$13,500
c.$13,950
d.$14,400
Answer：C
Choice “c” is correct. The requirement is to compute the expected annual loss from user error. Answer (c) is correct because the expected loss is equal to $13,950 (($30,000 + $1,000)/2 X 90%). Answers (a), (b), and (d) are incorrect because the expected loss is equal to $13,950.