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18. X is a company involved in oil exploration and extraction. Following a risk review, X has
identified that earthquakes occur in its exploration areas once every five years, on average.
The average cost of work to resume oil production, following an earthquake, is estimated to
be US$ 30million.
Calculate the value of the risk of earthquakes, in US$, to the nearest million.Which part of the model answer is giving you problems? The question would be better worded if it said:
“Calculate the annual value of the risk of earthquakes…”
All I have is the questions without any model answers.So that’s why i wanted to find out how would the answer be calculated in this case.In the case of calculating the “annual value at risk of earthquakes”what steps should i take to providing the right answer?
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