Use the following setup for questions 8-9 Tom wants to avoid any accidents on the work floor of his factory. If an accident does occur, it would cost him £500,000 in damages. Installing safety equipment would decrease the probability of an accident occurring from 20% to 10%. However, the equipment costs £20,000 to install.

What is his expected loss from an accident after installing the safety equipment?
a. £20,000
b. £50,000
c. £100,000
d. £125,000