GEICO Insurance has received applications from two drivers l…

GEICO Insurance has received applications from two drivers looking for auto insurance policies.  Based on GEICO’s risk classification process, they have come up with the following estimates for the two drivers:  Driver A’s Expected Value (Loss) = $500 Driver B’s Expected Value (Loss) = $1,000 Based only on the above information: which driver will be charged a higher premium, and more importantly, why?